CFO 4.0 | Challenges, Priorities and Indispensable Technologies
The CFO has become the designated leader for Digital Transformation in any company. He or she needs to face and overcome the challenges of the Revolution 4.0 and this can only be done by embracing advanced technologies. Standardization, Automation and Cloud have become the 3 key elements that the CFO needs to initiate in order to guarantee autonomy and fluid business processes.
CFO 4.0 Challenges: Acceleration of new strategies and business models
The role of the Chief Financial Officer (CFO) has undergone more strategic changes than any other corporate function in a company. In this area of digital dominance, the CFO has become crucial in supporting the CEO for prudent business decisions.
In a dynamic and interconnected business environment, the CFO becomes augmented and agile by moving hand in hand with technologies such as Artificial Intelligence, Internet of Things (IoT), Machine Learning, Analytics and Business Intelligence. In other words, the Finance Executive today uses automated and Big Data processes and insights in real-time to make informed, targeted and reliable decisions and thus guarantee a competitive advantage for the company.
CFO 4.0 Priorities: Data Analysis, Advanced Technologies, and Sharing
With the 4.0 revolution, the CFO needs to evaluate not only the overall corporate strategy, but also the many components of the organization from Sales to IT. Among its priorities:
1) ANALYSATION OF DATA AND PROVIDING IT IN A TIMELY WAY
It’s important that the CFO is able to provide a clear, complete and updated financial framework easily and timely. For this reason, digital instruments need to be in place for him/her to evaluate overall company performance with precision and thus be in a position to make quick and effective decisions.
2) SUPPORT AND HELP OVERALL STRATEGY THAT DATA SCINETIST AND CIO NEED TO ADAPT
Assist in the adoption and use of new technologies and make sure Change management is a part of the plan for success. Make sure models are developed using data analysis as this will help increase productivity and flexibility within the financial team and across the organization.
3) PROMOTE THE COLLABORATION AND SHARING OF INFORMATION
Information sharing between the teams is imperative in creating a positive work culture and meeting common objectives.
Cloud Technologies are essential for CFO 4.0: ERP and Analytics
The CFO needs to have access to key technologies in the Cloud which allows him/her to organize new paradigm processes for company growth. This also helps to automate repetitive activities like accounting, transactions and reporting with low added value. Let’s see what technologies are available.
ERP Cloud Management Software
Thanks to the ERP Cloud, a CFO is able to do the following:
- Manage all key processes with a single secure and scalable integrated solution
- Simplify tasks, accelerate productivity, and reduce IT costs
- Improve decision-making processes and operational planning
- Reduce time to market
- Improve communication and collaboration between teams
- Optimize data security.
Analytics and Business Intelligence software
A modern BI tool can help CFOs turn data into insights to support strategic decisions. A good example is Tableau Software, leader of Business Intelligence according to the Gartner quadrant. This data visualization tool integrates with Oracle JD Edwards ERP solution and it meets the needs of reporting, planning and Visual Analytics in real time.
Cloud technology is here to stay and will be fundamental in transforming companies into digital savvy enterprises. The CFO fits in as the catalyst for making this happen and supporting and guiding management to meet the challenges of the 4.0 revolution.