The FinTech revolution has shaken up the traditional role of a CFO. As their role begins to extend beyond finance, they are beginning to tackle risk management. Most importantly, CFOs are now expected to lead the charge into the world of automation.
“To meet those expanding requirements, CFOs and their teams require immediate access to the right data, in one place, available in real time.” – EY
Here are three steps that are crucial to leading a successful digital transformation.
- Choosing the Right Solution
Not all cash management tools are built equally, and they each bring different value to a business. APIs can provide real-time access to cash and bank data. Automation can streamline processes like cash flow forecasting and increase efficiency.
It is important to understand what sections of your business you want to improve and where you plan to implement different aspects of your digital strategy.
- Funding Mechanisms
A common misstep is over-investing in digital or under-investing in analysis and vice versa.
What’s the difference? Digital is the process redesign and underlying tech support. Analytics is the process of collecting and organizing data. Over-investing or under-investing in either can leave holes in your system.
Companies at the beginning of their digital journey should place an emphasis on building the digital infrastructure necessary to be able to later utilize analytics. This means spending money on digitizing files and information.
In an interview with Forbes, Deloitte’s chief digital officer and head of innovation, Ragu Gurumurthy said, “The first thing companies should do is focus on data mastery and infrastructure…”
- Involve Your Investors
Fill in the investors. Digital transformation is a crucial investment and your investors will want to follow the shift. Link technology to business strategy, and business strategy to business model. Then, educate investors on upcoming technological changes, and the expected outcome in respect to earnings.
Want to keep reading? Downliad “A Strategic CFO’s Guide to Digital Transformation.”
