The world of business is changing at a rapid pace. And for the finance department, that sentiment couldn’t be clearer.
As we move to a digitised world, CFOs and finance teams are being required to move away from basic tasks such as manually inputting numbers and reporting on the figures. Now, when it comes to financial management, they are moving to interpreting real-time data.
However, the next step is to become a visionary within their businesses.
But what does that mean for you as a CFO and how can you make that a reality for your role and your company?
CFO 3.0: Digital transformation beyond financial management is a new guide that looks at the evolution of the chief financial officer.
It will show you how technology such as artificial intelligence and automation can help you take your finance team and your role to the next level.
CFO 3.0: Digital transformation beyond financial management covers the following topics:
- Driving digitalisation – from historian to visionary
- Managing uncertainty – the evolution of finance
- Riding the technology wave
An excerpt from CFO 3.0: Digital transformation beyond financial management
The intersection between technology and human interaction has created an opportunity for leaders to re-imagine business.
Fundamentally, the nature of business is evolving in all manner of ways: end users are changing, employees are changing, and the availability of tools is changing.
All impact the way work happens and how we construct, organise and operate companies. Finance heads have, in the past, used their gut to interpret the figures and understand what it means for their business.
They had no more to go on other than their intuition and experience. But data has changed that and altered the dynamics of decision making. If we look to startups, the impact of technology is clear.
Modern breakout businesses use artificial intelligence (AI) and automation to enhance connections with their customers and employees. Their ‘new age’ and tech-first approach looks very different to past business models.
They have successfully fused human needs with technology, rethinking the way we conduct business from top to bottom.
In mid-sized and larger companies, however, where technology wasn’t birthed at inception, the tide is turning.
All business leaders need to move with the times and digitisation is key to the transition. Knowing where to go, and how to get there, are two very different sides of the same coin.
While the burst of e-commerce has brought about many opportunities, its digital nature also brings about concerns of fraud, cybersecurity and the changing landscape of job roles. But behind all these changes is one driver: the finance department.
Why? Because the very essence of finance is evolving.
The finance professional now needs to be more closely aligned to individuals with the company’s managing director or CEO. They are not just the right-hand person with their finger on the financial pulse of the business anymore.
They are essential in providing up-to-date information, financial analysis and forecasting for rapid response decisions. It’s a far cry from the traditional way of doing business.
Finance professionals used to look in their rear-view mirror to provide business information – always looking behind them while trying to steer in front.
The introduction of predictive analytics is all about understanding data and looking forward, rather than back.
Today’s CFO is transforming into a real-time analyst. Tomorrow’s CFO will be a visionary.
This is CFO 3.0.
Editor’s note: This article was first published in November 2019 and has been updated for relevance.
CFO 3.0: Digital transformation beyond financial management
Discover how CFOs are playing a key role in leading the digitalisation of medium-sized businesses and learn how to move from a 'historian' to a 'visionary' within your business.