The Future of Finance: Unpacking the Impact of Finance 4.0

Abstract

This master's thesis explores the influence of Finance 4.0 on finance functions within Danish companies, addressing a gap in both academic research and practical understanding. Through a mixed-methods approach, this study investigates how Finance 4.0 enhances the value contribution and performance of finance functions, the challenges and preparedness of finance departments in adopting these technologies, the transformation of the finance function's role, and how far Danish finance departments are in exploring and utilizing these technologies. 112 survey responses from Danish finance functions are analyzed using both descriptive and inferential statistics, where the inferential statistics include, one-sample t-tests and two-sample t-tests. Furthermore, the thesis utilizes Everett Rogers' Diffusion of Innovation theory to examine the adoption rates and patterns of Finance 4.0, focusing on its key attributes. The study also incorporates insights from experts within the research area to challenge data interpretation and see if it aligns with current field knowledge, and to validate and deepen the analysis. The findings suggest that Danish finance functions expect Finance 4.0 to increase the value contribution and performance of finance functions with agreement among 9 out of 10 respondents, but they are challenged by their preparedness to adopt to Finance 4.0. Insufficient knowledge, current employee qualifications and financial restrains in effectively adopting to Finance 4.0 are some of the biggest challenges. The findings also suggest that Finance 4.0 will enhance the finance functions' influential and strategic role within organizations with agreement close to two thirds of respondents. Furthermore, Danish finance functions' adoption patterns slightly deviate from Everett M. Rogers' Diffusion of Innovation Theory's adoption curve, being more positively inclined. The results further indicate that the respondents' perceptions differ across organizational sizes, organizational levels, and industries. The study's findings highlight relevant business implications by uncovering the positive perceptions on the opportunities of Finance 4.0, as well as the challenges and complexities.