03 May The State of Digital Finance Transformation in Biotech
Biotech and Life Science organizations have complex accounting needs that require flexible solutions. Often, stakeholders may include varied categories – private equity partners, stockholders, grants, venture capital – that require custom-tailored financial information. How are finance teams serving these needs with their limited assets and time? In this guide, we discuss the state of digital finance transformation in Biotech.
Gatepoint Research surveyed 100 Finance executives in the biotech and life sciences industry to find out. Management levels represented are all senior decision makers: 25% hold the title CxO, 16% are VPs, 45% are directors, and 14% are managers. Most biotech companies have a small back-office team. 50% only have 1 to 4 back office team members, 18% have five to ten people, and 32% have eleven to twenty-five people.
Not surprisingly, most respondents’ finance initiatives include gaining operational efficiency with simpler processes and automating manual processes. In addition, nearly half cite a push to build data analysis capabilities.
Table Of Contents
Finance initiatives
- 59% Gain operational efficiencies by simplifying processes
- 57% Automate manual processes
- 49% Build data analysis capabilities and skills
- 46% Optimize the finance operating model
- 42% Harness data to meet changing information needs of stakeholders
- 24% Strengthen response to rapidly changing market environment
- and 20% Evaluate and pilot leading-edge technologies
But there are challenges with that: it’s hard to integrate data from different systems, they have a lot of manual processes, and many feel like they don’t have the budget to change something about that.
Common barriers to performance improvement and innovation
- Poor integration of data from different systems
- Cumbersome administrative and manual tasks
- Budget constraints for finance technology
- Lack of relevant skills within finance team
- Inadequate or outdated finance systems
- Changes to compliance requirements
- Leadership reluctance to challenge the status quo
- Perceived risk of migrating business-critical systems
As a result, they have a hard time focusing on their core business and steering it in the right direction.
Need more guidance on the state of digital finance transformation in Biotech? Drop us a line on 011 792 9521 and we’d be glad to assist.
