A CFO during digital transformation gives a lot of help to their company. He will play a vital role in it. How so? Let us know below.
CFO During Digital Transformation
A Chief Financial Officer or CFO is the person who is responsible for the financial matters of the organization. The CFO is considered to be the “keeper of the company cash”.
Digital transformation can be defined as a set of strategies, tactics, and methods that are adopted by an organization to transform its business processes into digital. It is also known as enterprise 2.0 or next-generation business model or bimodal IT.
CFOs helping the digital transformation has several benefits like digital business transformation helps in:
- improving operational efficiency
- reduces human mistakes
- reduces costs
- improves customer relationships
- allows businesses to grow at an exponential rate
A CFO during digital transformation gives a lot of help to their company. He will play a vital role in it.
CFO During Digital Transformation: What Do They Do?
So, what does a CFO need to do during the digital transformation? CFOs need to help develop a strategy that can be implemented in the overall digital transformation of the company. He should have a clear understanding of the strategic plan.
CFOs should have a clear understanding of the top priorities that should be taken up first.
The CFO also needs to understand the budget that is required for the implementation of various strategic plans and priorities.
They should also assist in developing a plan for the effective implementation of digital transformation while taking into consideration the constraints and limitations that may come up while doing so.
The CFO should also ensure that all financial data is stored securely and safely across all devices at all times. He should also make sure that backups are regularly done for secure storage and restoration in case any data loss occurs.
CFOs should make sure there is proper financial reporting done for all the new digital channels of communication like social media or email or chat or SMS or any other digital communication channel.
CFOs should make sure there are proper financial controls put in place for all these new communication channels to check on any misuse of these channels by any employee.
Thus, CFOs play an important role in helping the company achieve its goals through digital transformation.
What Are The Skills They Need to Have?
These CFOs should have the following skills:
- Good business acumen. He should be able to identify the key business challenges faced by the company and come up with solutions to tackle them.
- Technical knowledge about IT systems like ERPs, CRMs, and more. He should know how these systems work and how they can be used to achieve the company’s objectives.
- Communication skills. The CFO should be able to communicate effectively with all employees, especially those employees who are involved in the implementation of the digital transformation plan.
- Leadership skills. A CFO should be able to lead his team properly through the digital transformation plan.
Thus, the role of a CFO during digital transformation is an important one as he will be helping in achieving the company’s goals.