Finance is essential to any journey toward digital transformation. This implies that the whole business will turn to the CFO to organize the plethora of activities that contribute to the one shared aim of long-term transformation and expansion.
CFOs that effectively harness new technology will become the primary source for data-driven decision-making, empowering them to lead their enterprises to become more flexible, dynamic, and successful.
The three primary technologies driving this shift are as follows:
Typically, the initial step is to automate the financial function. According to McKinsey Global Institute research, 42% of a finance team’s tasks may be entirely automated, while the other 19% can be significantly automated. General accounting processes, accounts payment, accounts receivable, payroll, financial management and reporting, and the tax function are examples of finance functions that lend themselves well to automation. The finance team saves time and money by automating these activities, allowing them to focus on delivering strategy and innovation all throughout the organization.
Organizations can access vital real-time data when financial and operational tasks are automated, and data visualization technologies are used. Businesses sometimes lack quick access to data because the important information they want is spread around the organization or in systems that do not connect well with one another. Data visualization software collects raw data from many sources, organizes it, and generates clear, timely, and actionable images that may be delivered to the relevant end users to improve decision making.
While automation aids in the automation of processes and data visualization gives real-time data, data analytics is the sophisticated analysis of a large amount of data accessible to make educated, tactical choices and uncover development prospects. Companies that can effectively exploit data will be market leaders of the future.
Because of the seismic upheaval in the finance function, the CFO must wear several titles. With a focused emphasis on advancing the business strategy throughout the business, the CFO understands which areas require the most investment and where resources should be deployed to generate the most value.
Beyond the CEO, the CFO must collaborate with the other essential members of the C-suite to establish a holistic approach to the company and a wide grasp of the organization’s full value chain. This includes collaborating with human resources to keep driving the talent agenda, collaborating with IT to drive technology transitions throughout the organization, collaborating with operations to optimize efficiency in the supply chain, transportation, production, and procurement functions, and collaborating with sales and advertising to increase visibility and target customers.
From securing loyalty and confidence in customers through constant monitoring of available client service insights to reshaping the supply chain by connecting buyers, distributors, and intermediaries, the CFO has not only the opportunity but also the responsibility to reach out to many judgments that are outside of the traditional finance area. Technology is now available to help businesses improve procedures, overcome challenges, and drive them toward transformational success.