CFO digital transformation. What are the roles of the Chief Financial Officer in the journey? Do they play any vital roles at all?
CFOs are the captain of their company’s finance journey. Before, players with these roles only head in one direction.
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But today, they are doing a lot more. Due to many new techs rising, they need to adopt new ways of working. Thus, changing the role of a CFO over the years.
So, what are their roles in the digital transformation (Dx) of companies?
CFO Digital Transformation: Their Roles
Today, CFOs have a lot of data to work on at their fingertips. So, they need to get the right insight into such data.
Gone is the age of guesswork. There are now many ways to do better and informed decision-making.
This is vital because they need to make strategies amidst fast-paced changes. Then, make sure these strategies align with their business goals.
Also, due to the ocean of data they have, they need to make sure these are secure. So, not only play a big role in getting data, but they also need to play a big one in its security.
Thus, to do this, they need to play a big role in the company’s Dx. They need to work together with the CIO and CTO in doing changes.
For example, there is now a wide use of robotic process automation or RPA. Especially in the finance sector. This eases up many workloads.
Thus, lessening costs and human effort and letting workers focus on more complex work.
Further, CFOs now need to build the right team that has talents in digital finance. Also, this team will need to be agile with a futuristic outlook.
As per one survey, 60% of CFOs see their roles changing fast. This is because many finance tasks are now automated. Or done in managed shared services centers.
So, they need to take three vital steps to aid in their company’s Dx. These are:
- Drive an innovative mindset. Competition today is tight. So, they need to drive this mindset among workers so that their company survives. Many will not be on board the changes first. So, it is the CFO’s job to help them see its value. Then, ensure the company has the right financial systems and processes. This is so that they have a clearer view of the company’s financial standing.
- Understand all the data at hand. This is a crucial step that ensures they make smarter decision-making. So, the success of the CFO is based on their ability to turn data into insights. What they can do is make use of data analytics to see future trends and events. With this, they can focus their budget on better projects.
- Focus on customer engagement. This is where CFOs should put their focus on, the customers. This is vital because we now live in the “age of the customer” where businesses now revolve around them. So, they need to make sure they engage with them, give value, and keep their data secure.