CFO 3.0 How Finance Professionals Can Spearhead Digital Transformation Strategies
The role of the CFO has changed significantly over the past several years to include much more than traditional accounting and reporting. Departments throughout the modern organization clamor for insight and analysis that stems from the finance department. This puts today’s finance leaders in a position to lead their organizations’ digital transformation strategy, adopting new financial management technologies that allow for real-time data analysis.
Sage has published a new report, CFO 3.0 – Digital transformation beyond financial management, which looks at the roles and disciplines a CFO will need in the future and how a financial management system like Sage X3 can help them get there. Here’s a recap of some of the report’s more significant insights.
Predictive analysis must replace ‘rearview mirror’ reporting
Financial decision-makers used to report on the financial status of an organization by looking at past performance. Today’s financial decision-makers need access to real-time and predictive analysis. This allows businesses to adapt faster, respond to trends more quickly, take advantage of opportunities, and effectively lead their digital transformation strategy.
Automation creates a nimbler, more cost-effective finance function
Decision-makers spend just as much time collecting and preparing data as they do analyzing it within many organizations –due to a lack of automation and unwieldy legacy systems. This creates an information bottleneck that limits overall productivity. Sage found that investing in new technology to drive efficiency improvements is currently one of the top aims for businesses. And specifically, new financial management technology is a priority for 86% of in-house financial decision-makers.
It’s necessary to align technology with the organizational culture
Many employees remain hesitant to wholly embrace technological developments. For some, it may be a worry about losing their job to technology. For others, change can be a disruptive, uncomfortable process. CFOs can lead their digital transformation strategy with a sensitivity to the concerns of the team. It helps to take them through the process so that teams are developing and upskilling together, rather than a top-down change that feels forced.
Finance leaders have their own transformations to attend to
While the Sage report asserts that finance leaders are in the best position to spearhead their organizations’ digital transformations, that doesn’t mean that all finance leaders are ready for that role. The modern CFO needs to be versatile – marrying accountancy, analytical, business and strategic-thinking skills into one package. However, the report reveals that up to 31% of CFOs are concerned about their lack of digital skills.
Finance leaders have a unique opportunity to lead digital change in their organizations. Investment in a trusted financial management platform like Sage X3 can serve as the foundation for CFOs to build on, creating efficiencies and building productivity that spreads to all areas of the organization.
The Answer Company works with companies to build their digital transformation strategy and assists throughout every stage of their digital transformation. Contact a member of our consulting team with your questions and click here to download the full CFO 3.0 report.