Key points:
- CFOs are facing a choice of either using data in new ways or risk falling behind.
- Many CFOs have been slow to adopt technology and develop data analytics skills.
- Building the right data capabilities within the finance team is crucial in maximizing impact.
- Investment in technology is necessary to create a strong data culture within organizations.
- Poor data and systems can hinder CFOs’ ability to engage younger generations and utilize new systems.
- Implementing new technologies can mitigate challenges in prioritizing and analyzing data.
In the face of rapid technological change, CFOs are having to make a decision: either embrace technology and use data in new ways or risk being left behind. The adoption of technology and development of data analytics skills has been slower than expected, with many CFOs prioritizing organic business growth and mergers and acquisitions over transformation. However, to effectively analyze the stacks of data at their fingertips, CFOs need to harness technology to deliver meaningful analysis and insights. To do so, they must lead the way in seeking data to support decisions and be willing to look for different approaches and share success stories. CFOs and their finance teams need to collaborate with the business to bring together datasets, ensure their reliability, and be a catalyst for change and growth.
Building the right data capabilities is critical in maximizing impact and developing skills. Data needs to be seen as an asset worth investing in, and targeted investment is necessary to create a strong data culture. However, poor data and systems can hinder CFOs’ ability to engage younger generations and utilize new systems. While CFOs recognize the need for teamwork, relationships, and communication to overcome business challenges, technology and data are rarely mentioned. Some CFOs believe there is an overload of data and struggle to prioritize the right types to be analyzed, but implementing new technologies can help mitigate these challenges. For example, implementing AI technology can automate manual costing processes and accelerate decision-making.
To succeed in the future, CFOs must embrace technology and utilize data effectively. They need to think about the level of data needed to run the business, how it can be integrated across functions, and what format it should be in. CFOs should also consider the infrastructure in place and what needs to change to achieve their goals. Ultimately, it’s not just about the data, but what CFOs do with it that matters.