The speed in which technology evolves can be a little overwhelming. Think about what was considered innovative and cutting edge just over two years ago. They may not have that same claim today because of consistent evolution and efficiency. This is what digital transformation is about. It is when companies see themselves changing alongside current technologies to help them better their business and stay competitive.
However, this does not happen overnight and there will always be some pushback to change. This is true especially for companies that relied on traditional business strategies and have difficulty transforming themselves digitally. As the old saying goes for them, “if it ain’t broke, don’t fix it.” The new reality is that businesses are broader, more global and more accessible than ever before. To put it bluntly, not embracing and adapting to these changes will cause companies to fall behind with their reduced competitiveness.
This also highlights the importance of having leadership within digital transformation. In the finance industry for instance, CFOs should be some of the first people to welcome new technologies and the perks digital transformation can bring.
Data Drives Business
Today’s business world is defined by data. No matter how you look at or cut it, data is an important resource for all businesses today. CFOs in particular are responsible for handling sensitive, financial data each day. 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. CFOs must know this and make real-time decisions to real-time problems through digital data visualization.
Many CFOs that do not adapt digitally will struggle on how to handle the weight of too much data. This includes preserving data integrity. Ideally, having a data-centric organisation that works from one source of information requires a holistic understanding of the business’ data needs and output from a strategic and operational point of view.
Modern Challenges Require Modern Solutions
When finance roles were first outsourced, they mostly focused on the administrative side. In the past, companies only looked at cash flow accounting and reporting to stakeholders. Today however, finance roles are in a consultative capacity that set objectives and solve issues across the business. By providing accurate forecasting and budgeting data, finance roles have steadily evolved into what they can truly bring.
As the industry evolves, so do the roles of many CFOs. They create strategic decisions based on a company’s financial outlook. Their views of cost and revenue drivers for protecting profit margin are valuable as they help grow the organization. CFOs can effectively do this by having access to real-time information to make better data-driven decisions.
Leading the Business
Finance functions are a critical part of any business and the decision making that goes into it. CFOs must take on the roles of being enablers of change. Becoming leaders in the digital transformation allows them to do this and adapt their functions. They have the most comprehensive visibility into their organisation’s data foundations. In turn, this visibility lets them become the eyes and ears of a business when making better data-driven decisions. They also determine any future data needs for digital transformation and resource requirements.
As exciting as it sounds, digital transformation does not happen instantly. It is a gradual process that requires focused commitment from everyone in a company, not just the CFO. 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.