In today’s dynamic business environment, CFOs are required to manage complex regulatory requirements, while being proactive advisors to the business and maximizing profits. It’s paramount they balance risk management, automation, and business growth, while delivering increased process agility at reduced cost of operations.
In simple terms – they are increasingly expected to achieve more with less.
To meet these challenges, however, requires CFOs to leverage the power of digital to deliver a solid transformation strategy for their organization. Digital technologies can help CFOs reimagine the finance function and add value to the business, while simultaneously balancing business performance, risk, and efficiency.
Any digital transformation journey starts with the process of digitization – capturing, storing, and utilizing the right data, in the right data structure, for use by key digital tools deployed by the organization such as predictive analytics and robotic process automation (RPA).
The challenges of digital transformation…
While there are multiple benefits of digital transformation, CFOs struggle to overcome some key challenges. These include employee pushback and resistance to change, the lack of a digitalization strategy and expertise, and the time needed to prioritize and initiate digitalization processes and functions, as well as the challenge of outdated technology that might not necessarily deliver the benefits envisaged at the time of investment.
In addition, CFOs need to be able to mitigate the risk of cybersecurity and data privacy breaches, and be able to understand and leverage the new world of data and analytics to not just find new markets and new segments for revenue generation, but also to control cost.
If you’re a CFO, you need to be both business and tech savvy in order to make sound strategic recommendations to the business.
… and how to overcome them
Digitalization is a necessity for every organization. Here are some key aspects to consider when implementing digital transformation across your organization:
- Run employee awareness and training programs – highlight the importance of digitalization to your people, how it will change their lives, and the support you require from them
- Prepare a robust data and analytics strategy – define a strategy implementation roadmap that you can review, adapt, and correct on a periodic basis
- Deploy adequate controls – implement vigorous cybersecurity and data privacy controls, depending on the data exposure and extent of personal data available within your organization
- Implement a governance framework – establish accountability and a strong governance framework to monitor performance of your various initiatives
- Prioritize and realign your resources – as the need for people to learn and get trained on data analysis and forecasting technology increases, roles evolve. Organizations must prioritize the most pressing initiatives on the basis of cost, complexity, time to results, and projected benefits
- Plan for automation and innovation – make and implement an automation plan prioritizing your various initiatives based on cost and importance
- Review your digital investments – identify the relevance and value of your ongoing innovation projects; monitor cost reduction and productivity improvements, and link them to your digital objectives; and review the relevance of your current investment, and plan changes required to your technology architecture
- Exercise patience – success is a long journey and implementing change management will improve your results and outcomes.
To sum up, digitalization is the price we pay for enhancing competitive advantage and ensuring sustainability in our business operations.
To learn how Capgemini can help your organization analyze the risks prior to RPA implementation, contact: email@example.com
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Ajay Gupta has diversified and rick experience in risk management, governance, risk, and compliance, automation and process transformation. He is currently the Head of Shared Service for Nordic countries at Capgemini.