Still on the e-theme, KPMG reckons that finance departments could become sidelined if they do not adapt to the new business environment, although it gives the beancounters 10 years to make the change.

The concept of e-Finance is closer to reality than could have been anticipated two years ago say the consultants, in a new report, eFinance@work. "The role of the finance function within companies is changing dramatically," says KPMG's Scott Parker, "From now on, finance departments will drive, rather than measure, financial performance. While the traditional responsibilities of finance departments - forecasting, budgeting and financial control - will remain, many of the processes associated with these have been automated, freeing finance to become a strategic partner to the business."

The report highlights the finance department's role as an integrator and provider of information, which may come as a surprise to some who have had to deal with them. According to KPMG, this will involve liaising with external parties, such as suppliers and partners, and pulling together information from marketing, logistics and other departments, in order to challenge decisions and business directions. Not surprisingly this transition will require wholesale change within finance departments, both culturally and operationally.

Chris Gant, partner responsible for eFinance at KPMG Consulting, commented: "The back-office revolution is already happening. However, while leading organisations, such as Cisco, Virgin, Whitbread and Motorola are implementing the necessary changes already, many firms still have substantial ground to make up. Customers and suppliers are ultimately forcing all companies to meet the e-business challenge and there is no time to delay. The traditional finance department will not survive, finance must either adapt to the pace of change or risk becoming sidelined within an organisation.

Richard Byatt