Richard McLean Regional Chief Financial Officer SAP Asia Pacific Japan
Finance professionals have long been the trusted advisors that both CEOs and shareholders have relied upon for an accurate view of the business. As the digital economy introduces new business models and a demand for faster, deeper insight, finance is being called on to find new solutions.
Study after study shows finance’s boardroom influence is increasing, the job scope expanding and salaries rising. The majority of finance executives (84%) agree that, over the next two years, the demand for ad hoc decision support and analysis from finance is likely to increase.
We are witnessing an unmatched era of true business innovation. Breakthrough technologies have matured and hit scale together. In order to survive in this digital economy CFOs need to evolve or be left behind. Here are five defining trends that every CFO should incorporate into their skill set:
Hyper connectivity – Every consumer, every supplier, every partner is connected, disrupting all the established processes and rules around finance. Connectivity is creating opportunity and eliminating work across finance.
Supercomputing – The limits of the 20th century finance systems are gone. Networking and in-memory computing allow for on-the-fly analysis, dynamic planning and simulation, real-time situational and risk awareness, and infinite new business models.
Cloud computing – Cloud computing allows for rapid technology adoption at reduced cost. B2B transactions are moving to new cloud based collaboration platforms, where millions of businesses and users are connected. The lowering of barriers to entry results is faster innovation times for finance and business.
Smarter World – The new economy is replacing products and services with outcomes. For Finance, managing profitability and working capital becomes extremely precise. With embedded sensors, robotics (automation), and artificial intelligence, today’s finance has the tools to eliminate the mundane and focus on the highest value added outcomes.
Cyber Security – Trust remains the ultimate currency, giving security-focused businesses a significant advantage in brand reputation. Bad actors have expansive new capabilities to attack, undermine and disrupt businesses. Today’s fraud detection capabilities manage this risk and provide holistic views into real-time business exposures.
In today’s digital economy, finance has the data-driven insights necessary to be a guide to business success, and a key driver of business value. CFOs just need the right tools, technologies, and skill sets to do so. These technologies are breaking down the traditional boundaries that have held finance back and are now allowing a complete reinvention of the profession.
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