Advancement in Technology Is Transforming the Role of CFO

Advancement in Technology Is Transforming the Role of CFO

The rapid advancement in technology and an uncertain economic future have transformed the role of the CFO.

The pandemic has accelerated the transformation in the roles of C-suite executives more than ever before. This has forced them to take on multiple responsibilities that pushed them to their extent, including the Chief Financial Officer (CFO).

While the numbers associated with performance metrics and their bottom line are still the primary area of focus, today’s CFOs are still being asked to play a critical role in driving the organization’s broader strategy. This includes objectives such as digital transformation as organizations seek to take advantage of artificial intelligence, the Internet of Things, and other technologies to gain a competitive advantage in today’s dynamic business environment.

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Today, it is not uncommon for CFOs to stand at the forefront of these efforts. In fact, as per a 2022 US Pulse survey from PWC, over 49% of the finance leaders are planning to leverage digital transformation initiatives. Moreover, they have become a strategic advisor on digital change, talent development, and enterprise innovation. While today’s CFOs are in a better position than ever to influence the board, they also have the responsibility to effectively execute the crucial changes in their organization. Here are a few steps for CFOs to evolve and help their organizations attain their objectives:

Strengthen their analytical capabilities

Financial experts can efficiently generate and interpret numbers and reports that provide them with clarity to business decisions. While this often leads to organizations viewing them from a negative aspect, the number-backed insights are a big piece of what has made today’s CFOs more influential in their enterprise. Since they can interpret data and reports with confidence compared to their counterparts, they should be able to apply these abilities to other aspects of business operations. They should do an in-depth analysis of the entire organization and concentrate on factors that can help them to add the most value to their financial skillset.

Also Read: Seven Ways Enterprises Can Benefit from Augmented Analytics

Build a diverse group of mentors

Succeeding in their initiatives and keeping themselves up to date requires today’s CFOs to network with people who can act as their mentors. CFOs, early in their career, should begin to identify people in their network that have diverse backgrounds and can serve as strategic advisor. They can also reach out to former and present CFOs as they are indispensable and intimately familiar with the challenges and decisions that one is facing. CFOs should also leave their comfort zone behind and start networking with those not involved in the financial industry. Doing so can provide them with a fresh perspective on business.

Develop robust technology abilities that support their evolving role

While CFOs today have more to say and influence business decisions, they are also expected to get equipped with technology and take a more active role in technology decision-making. For many CFOs, this is a massive change and demands a lot of new expertise. However, if they can learn and master the technology, it can quickly become their most vital asset in their new demanding role.

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Vishal Muktewar is a Senior Correspondent at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.