In an increasingly digital world, controlling departments are facing new challenges and opportunities. The term "digital controlling" describes the use of modern technologies to improve and automate controlling processes. This article sets out the key aspects of digital controlling and offers practical advice for managing directors and finance managers of mid-sized companies and start-ups.

Why digital controlling matters

Digital controlling enables companies to analyse their data in real time, make well-founded decisions and automate processes. The result is greater efficiency and accuracy in financial planning and analysis.

Why digital controlling is important:

1. Greater efficiency: Digital tools allow many manual, time-consuming tasks to be automated. This not only saves time but also reduces the risk of errors and frees employees to focus on strategic, value-adding work.
2. Better decision-making: Digital controlling systems provide up-to-date, accurate data in real time. This allows decision-makers to respond quickly to market changes and make well-founded decisions.
3. Cost savings: Automating processes and reducing manual intervention leads to significant cost savings. Companies can use their resources more efficiently and so strengthen their competitiveness.
4. Flexibility and adaptability: Digital solutions are often scalable and flexible, allowing companies to react quickly to change and adapt their systems as required.
5. Transparency and control: Digital controlling tools give companies better control over their financial data and processes. This creates more transparency and helps to identify and manage risks at an early stage.

Key aspects of digital controlling

Digitalisation in controlling brings numerous benefits and opportunities that put traditional methods in the shade. These are the main aspects companies should consider:

1. Digitalisation in controlling
   Digitalisation in controlling involves implementing software solutions that automate manual tasks and enable real-time data analysis. This reduces errors and speeds up data processing. Examples of such solutions include SAP Analytics Cloud and IBM Planning Analytics.
2. Automation in controlling
   Automated controlling systems take over repetitive tasks such as data entry, validation and evaluation. This allows controllers to concentrate on strategic tasks that create greater value for the business. Programmes such as Microsoft Power BI and Tableau offer powerful automation features.
3. Real-time reporting
   Real-time reporting is a key element of digital controlling. It allows companies to access current data at any time and make decisions immediately. This is particularly valuable in fast-moving industries, where delays can be costly. Tools such as Qlik Sense and Domo are ideally suited to this.
4. Cloud-based solutions
   Cloud-based controlling solutions offer flexibility and scalability. They provide access to data and reports from anywhere at any time, which makes collaboration and decision-making easier. Oracle Cloud EPM and Workday Adaptive Planning are leading providers in this field.
5. Big data and analytics
   The use of big data and advanced analytics tools is another important aspect of digital controlling. These technologies provide in-depth insights into company data and support forward-looking planning and decision-making. Platforms such as Alteryx and SAS Analytics are particularly helpful here.

Challenges of digital controlling

Despite its many benefits, the move to digital controlling also brings challenges that need to be addressed:

1. Data integration
   One of the biggest challenges in digital controlling is integrating different data sources. Different systems and formats have to be brought together to create a single, consistent data basis. This requires extensive technical adjustments and can be time-consuming.
2. Data security
   As digitalisation increases, so does the risk of cyber attacks and data loss. Companies must ensure that their digital controlling systems are adequately protected. This includes both technical security measures and employee training.
3. System complexity
   Digital controlling tools can be highly complex and require specialist expertise. Implementing and maintaining such systems can be a challenge, especially for smaller companies with limited resources.
4. Changing the corporate culture
   Introducing digital controlling systems often requires a cultural shift within the company. Employees must be willing to embrace new technologies and keep developing their skills. This can meet with resistance and calls for careful change management.

Practical application and implementation

Successfully introducing and using digital controlling tools requires strategic planning and continuous adjustment. Here are some practical steps for implementation:

1. Introducing digital controlling tools
   Companies should introduce digital controlling tools step by step. Start-ups and mid-sized companies can begin with basic software solutions and expand them as needed. A good entry-level example is QuickBooks for accounting and financial planning.
2. Training and development
   Employees should be trained regularly so that they can make effective use of the latest technologies and methods in digital controlling. Training programmes and workshops are essential here. Platforms such as Coursera and Udemy offer specialist courses in digital controlling and data analysis.
3. Integration into existing systems
   New digital solutions must be integrated seamlessly into the existing IT infrastructure. This requires thorough planning and close collaboration with IT specialists. SAP S/4HANA, for example, can be integrated seamlessly into existing ERP landscapes.
4. Continuous improvement
   Digital controlling is an ongoing process. Companies should regularly review and adjust their systems and processes to keep pace with technological developments. Lean Six Sigma methods can help to establish continuous improvement processes.

Benefits of digital controlling

Introducing digital controlling tools offers numerous benefits that go well beyond traditional practice:

1. Greater efficiency and accuracy
   Automating routine tasks increases efficiency and minimises the risk of errors.
2. Better decision-making
   Real-time data and advanced analytics tools support well-founded decisions and strengthen corporate strategy.
3. Cost savings
   Digital controlling reduces the need for manual intervention and therefore lowers operating costs.
4. Flexibility and scalability
   Cloud-based solutions provide the flexibility to respond quickly to change and scale systems as required.

How digital controlling is evolving

Technology in digital controlling is constantly evolving and keeps opening up new possibilities:

1. Artificial intelligence and machine learning
   Integrating artificial intelligence (AI) and machine learning into controlling systems is becoming increasingly important. These technologies can recognise patterns in large volumes of data and make precise forecasts. Tools such as Kensho and Ayasdi use AI for in-depth data analysis.
2. Robotic Process Automation (RPA)
   RPA makes it possible to fully automate recurring tasks. Software robots can take over tasks such as reading and processing invoices, further increasing efficiency. Examples include UiPath and Automation Anywhere.
3. Advanced data visualisation
   Advanced visualisation technologies make it easier to present complex data clearly. Interactive dashboards and visualisations help to generate insights quickly. Tools such as Tableau and Microsoft Power BI offer advanced visualisation features.

Conclusion

Digital controlling is an indispensable part of modern business management. By using digital technologies, mid-sized companies and start-ups can increase their efficiency, make well-founded decisions and gain a competitive edge. Introducing and continuously developing digital controlling systems should therefore be an integral part of corporate strategy.