Top 5 Emerging Technologies for CFOs, CFO News, ETCFO

The role of financial leaders is defined for the new challenges of this decade. Fundamental changes in business strategy and workplace management have prompted CFOs to become agents of change in an organization. According to a McKinsey survey, nearly two-thirds of CFOs say they are responsible for digital business, up from 44% in 2016. Along with strategic leadership, organizational change and finance capabilities, CFOs are increasingly focusing on crisis management.

Top 5 Emerging Technologies for CFOs

As a catalyst for overall business growth, CFOs are now expected to shape their traditional responsibilities with the digital and technological advancements present in the new normal. They are deeply involved in determining how businesses adapt to significant change and how work gets done, especially where digital and finance converge.

With the adoption of technology in finance having a lasting impact on an organization’s overall resilience, a finance leader role currently requires a proactive and shared vision that orchestrates actions across the enterprise. The CFO’s responsibility is to ensure that each function understands the steps needed to achieve the vision, providing a line of sight to the end goal. CFOs’ focus on disciplined innovation will increase the likelihood of achieving breakthroughs by creating the ideal conditions for innovation to flourish. As drivers of innovation and R&D, CFOs play a critical role in managing and directing R&D decisions. They are essential to ensure seamless transactions between suppliers and customers as processes evolve with new technologies and offshore and onshore
patterns change. Organizations are now operating with renewed metrics and greater customer satisfaction with a greater digital orientation. Therefore, CFOs are poised to have more impact in this digital economy as strategic partners and digital enablers.

Read on as I decode the top emerging technologies for CFOs.

Hyperautomation

Research estimates that by 2024, businesses will reduce operational costs by 30% through automation. This will be supported by the combination of hyper-automation technologies, namely Robotic Process Automation (RPA), which apply to re-engineered business processes. But hyperautomation is limitless and can be scaled to automate larger finance processes and does not limit CFOs. Emerging technologies, including intelligent business process management suites (iBPMS), will be widely used in a few years.

AI, ML and big data

AI, ML and Big Data are the basis of most of the technologies used today. With his broad familiarity with organizations, CFOs should be aware of prioritizing finance automation by creating a multi-year roadmap. CFOs have traditionally processed data by tracking cash flow and analyzing performance. The application of technology tools makes CFOs best positioned to champion big data to drive growth. Developing a business-led approach to adopting automation through AI, Big Data and ML becomes essential. These tools allow finance managers to focus on measurable improvements in business results rather than automation-only goals. This way, CFOs will be able to leverage AI, ML and Big Data Tech to their advantage and avoid repetitive tasks while reducing risk and error rates.

Robotic Process Automation (RPA)

RPA is widely used due to its crucial role in increasing back office productivity and efficiency. RPA does not work by replacing existing ERP systems, but integrates with them to link and automate manual interfaces. With RPA, CFOs are laying the foundation for future scale and performance management. In a nutshell, RPA greatly reduces and enables exception handling.

blockchain

Blockchain is a system of linear blocks of records that are chained to its neighboring blocks, making it a robust option for ledgers. Additionally, blockchain information cannot be tampered with and the inherent transparency makes it very attractive for business use. This technology offers CFOs great potential to revolutionize the finance function by streamlining contract execution and increasing the security of an organization’s IT systems.

Data science

The volume of data generated by businesses today is unprecedented, and the information it can provide is of great value to a business. Data science is a trending tool for CXOs as it helps provide research and analysis on the past and future of organizations’ business scale, purpose and vision, based on all available data. Today, CFOs work closely with CXOs to predict outcomes and calculate strategies; this data science tool provides invaluable help in overcoming obstacles. Additionally, it gives the CFO a unique insight into the state of the organization, which helps in identifying KPIs.

About the Author: Mayank Khandelwal, Executive Vice President and Chief Financial Officer, NEC Corporation India

Disclaimer: The opinions expressed are those of the authors alone and ETCFO.com does not necessarily endorse them. ETCFO.com will not be responsible for any damage caused to any person/organization directly or indirectly.

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