In an increasingly digital environment, existing business models are being forced to adapt faster and faster through two factors that are totally determining for the company:
- The quality of decision making.
- And the constant improvement of the results.
In this new environment, the role of finance is increasingly a business partner and, its leader, a key piece.
Therefore, it is essential that the financial director of a company in this context is a figure that goes beyond the person responsible for planning, executing and reporting an organization.
What should the CFO be like?
In addition to a strategic and comprehensive vision, the Chief Financial Officer (CFO), is primarily expected to:
- Disseminate the financial criteria applicable in the decision-making process throughout the organization.
- Get involved in the development and implementation of new digital business models.
- Expand your skills with knowledge of analytics technologies and systems, as well as your leadership and skills as a business partner creating value.
Business strategy development
In this new environment, CFO services in India and their departments are aware that they must be even more oriented towards the company’s strategy within the development of their functions.
And what does this imply?
- Goal setting.
- Decision-making criteria and actions on how to meet the demands of current and potential customers and how to improve and maintain competitive advantages.
- Choice of sectors, markets and segments in which the company will compete.
Digitization offers the opportunity to create new business models and sources of income. But in order to transform the business, the organization must adapt to the competition and become more agile than it.
Financial leaders are expected to understand digital and smart technologies and to be comfortable with sophisticated data analysis, transposing and embracing a value-added digital business model.
In short, a good CFO is expected to play a key role in the priority adaptation to new digital models.
Relying on the numbers
Big Data and Artificial Intelligence have changed the way CFOs approach data analysis, opening new opportunities and challenging accepted and entrenched organizational beliefs.
Financial leaders now have the power to define a role for themselves and for the finance department that goes beyond purely financial data analysis and creates a competitive advantage for the company.
Minimization of risk and uncertainty
Today, organizations and their financial leaders are challenged by a constantly changing landscape that ends up translating into uncertainty, complexity and risk and this ends up affecting factors such as market volatility, income tax return filing in India, hyperconnectivity, cyber threats, crises geopolitical and regulatory reforms, among others.
To minimize risk and uncertainty, sound strategic risk management is required through the effort and leadership of business leaders.
And how can the CFO help minimize risks? Well…
- Providing enough certainty to be able to make decisions.
- Thinking beyond foreseeable risks and investing in training of specialized risk management talents.
If an expanding or even established company needs to know something, it is finance. It is a vital area for the success or failure of an organization.
Therefore, those companies that have powerful financial teams and aligned with the objectives defined by the general management, start with a great advantage over other similar businesses.