Technology continues to improve and develop at a very rapid pace. What was once considered cutting edge some two or three years ago may not have the same claim today. Because of its constant evolution, companies often find themselves changing alongside technology. At its core, digital transformation means adapting to new technology to better your business.
The old saying goes “if it ain’t broke, don’t fix it.” It’s understandable for many companies that have relied on and found success with traditional business strategies to find it difficult transforming themselves digitally. On the other hand, the new reality of doing business today is that it is broader, more global and more accessible than ever before. Not adapting to these changes will severely hamper growth and reduce competitiveness. This is especially true for CFOs and those in the finance industry.
In this article, we will discuss three fundamental reasons why digital transformation should be welcomed.
Modern Expectations in Favor of Traditional
In the past, finance was considered as an administrative function. Accounting focused on cash flow and reporting to stakeholders. In today’s interconnected world, finance increasingly works in a consultative capacity to solve problems and set objectives across the business by providing accurate forecasting and budgeting data.
As technology evolves, so does the role of many CFOs. Finance is now at the forefront of making strategic decisions across the organization. CFOs are expected to add strategic value, using their view of cost and revenue drivers to protect profit margin while helping grow the organization. CFOs can effectively do this by having access to real-time information to make better data-driven decisions.
Realising the Importance of Data Integrity and Insight
Many CFOs continue to struggle on how to handle the weight of too much data, including preserving data integrity. Ideally, having a data-centric organisation that works from one source of information requires a holistic understanding of the businesses data needs and output from a strategic and operational point of view.
A centralised data flow that includes not only finance but also marketing, sales, and pricing, CFOs have the most comprehensive visibility into their organisation’s data foundations. Having visibility to this information make CFOs as their CEOs’ eyes and ears when making better data-driven decisions as well as in determining future data needs for digital transformation and resource requirements.
Looking Beyond the Numbers
There are no two ways about it: data is the biggest commodity in today’s fast-paced business world. If companies want to stay relevant and competitive, they must be aware of how important accurate data is. With the amount of data needed to be processed already, it will surely increase in the coming years, and CFOs must be able to make real-time decisions to real-time problems by embracing digital data visualization.
For CFOs, acting as leaders in the digital transformation allows them to adapt their functions and become enablers of change. Finance functions are a critical part of any business and the decision making that goes into it.
As exciting as it sounds, it’s important to remember that digital transformation does not happen overnight. It is a gradual process that requires commitment and focus from everyone in a company and their processes. It can be adapted as a new kind of business model which means a different type of customer engagement. Through offshoring, adapting to these fast-paced changes has never been easier and more productive.