Are you managing digital disruption or is it managing you?

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Digital readiness

Only 50% of CFOs see the shift to digital as a high priority for their organization. Is it a priority for you?
  • CFO digital readiness, a global perspective

    CFO digital readiness, a global perspective

    EY - CFO digital readiness, a global perspective

     

    Digital is the defining megatrend of our time. It creates both opportunities and threats, and has the proven potential to directly impact companies from top to bottom. This is especially true for the CFO as digital is disrupting financial models, operations and valuations, and the overall capital agenda at an accelerating pace.

    Yet surprisingly, our most recent survey, Partnering for performance Part 5: the CFO and the chief executive officer revealed that only 50% of the 652 CFO participants consider the shift to digital to be of high or very high priority for their organizations in the next three years. The same study showed that only 49% believe that they have a major contribution to make as organizations make the shift to digital.

    If CFOs want to fulfill their agenda of growing, protecting and transforming their organizations, they need to address their organization’s digital readiness and the gaps that exist. And they need to do it with a sense of urgency.

    By neglecting to react to a digital business model accordingly, CFOs risk allowing inefficiencies to continue that digital could help address. Because of these inefficiencies – and the relenting advances digital continues to make – CFOs risk losing profit potential because they have no insight into the organization’s overall digital budget. They also risk falling behind their competitors, and exposing their organizations to regulatory and contractual compliance issues. Additionally, they risk missing the significant changes occurring across the international tax landscape, which has a direct impact on a company’s bottom line.

    Digital is fundamentally changing how companies do business. By understanding their organization’s digital maturity, identifying the digital priorities and creating a holistic and strategic approach to their current financial framework, CFOs can get the best return on their digital investment. Of equal importance, CFOs can leverage digital to build trust within the organization, and among clients, regulators and shareholders.

  • CFO digital readiness in media and entertainment

    CFO digital readiness in media and entertainment

    EY - CFO digital readiness in media and entertainment

     

    For media and entertainment CFOs their digital strategy needs to be synonymous with their business strategy.

    Developing a business strategy built for a digital world means looking holistically at all aspects of the business, the internal organizations, the customer experience and the business model that drives it. Making digital a priority means understanding how it is changing business models — and how fast change is happening.

    Consumer behavior is changing and how companies deliver media to audiences is being transformed. The march of digital is also driving changes in advertising and consumer revenue streams. These alterations are happening today, are irreversible and show no signs of relenting in the near future.

    A business strategy built for a digital world means fundamentally shifting the culture within the organization to one of innovation, agility and speed. Successful M&E CFOs recognize that digital change is too disruptive for incremental approaches, and that what helped to build them to this point will not continue to drive the organization forward. Done correctly, CFOs can unlock real value, can understand more about their customers, their organizations and how to drive growth.

  • CFO digital readiness in health

    CFO digital readiness in health

    Within the health care industry, like almost every industry, digital is driving opportunities and challenges. Even as health care takes an increasingly larger share of a country’s GDP, digital technology — computational power, artificial intelligence and cognitive analytics — threatens to fundamentally disrupt the way health care is delivered. Because of this, health organizations are feeling the pressure to catch up even as their R&D capabilities lag behind, forcing consolidations and de-consolidations to innovate and adapt more quickly. These pressures are further exacerbated by the rise of the super-consumer — payers, providers, patients and policymakers — who are leading the demand from an industry that is used to supply.

    However, among these challenges, digital enables unique opportunities for health care organizations to deliver customized medicine. It is well-known that only circa. 30% of patient therapies are actually effective. By using digital technology to align therapies to a specific human genome, the potential to heal patients advances dramatically.

    CFOs can help drive their organization’s business strategy to enable these possibilities by using digital technologies to optimize and improve the efficiency of traditional business processes in the current value chain. They can also seek to collaborate with new entrants to disrupt the ecosystem in an effort to accelerate, innovate and facilitate patient-led transformation.

    The winning health care CFO is one who changes his or her mind set around what their organization can deliver and the value they can create. The CFO needs to collaborate with other players who reach beyond traditional approaches to health care.

  • CFO digital readiness in tax

    CFO digital readiness in tax

    EY - CFO digital readiness in tax

     

    In today’s global digital economy, technology is rapidly transforming a multitude of industries and blurring industry boundaries. Companies must move fast and act from a position of strength, with confidence in their strategies and operating models. Yet, this much-needed digital confidence is often shaken by ongoing international deliberations and inconsistent national rules for new, digital economy taxation around the world.

    The sheer volume, pace and complexity of tax change can be overwhelming. CFOs need to be ready to address the global tax implications of how goods and services are sold, where companies base their operations and how they connect with customers in an increasingly borderless digital economy, even as policymakers are grappling with the challenge.

    And CFOs must stay alert to the trends including new technologies such as the internet of things, digital disruption, and faster globalization of markets. Cost efficiencies and growth strategies in these areas rely on the rigorous management of increasingly tax-sensitive global supply chains as well to ensure a fair, balanced taxation of profits. Notably, value-added taxes (VAT) and other sales taxes are becoming a bigger part of the cross-border tax picture and often do not apply to profits, but to gross revenue transactions – an unwelcome surprise if not anticipated.

    Tax knowledge and preparation must underpin strategic planning for a digital world so that companies can make decisions that produce the right results. CFOs can increase their opportunity to deliver value to the business by taking a collaborative, enterprise-wide approach that combines tax with law, operations, technology and transactions.

    On the other hand, taking a short-sighted or silo approach to digital opportunity may create gaps in a company’s digital strategy that could prove costly, as more proactive CFOs gain advantage and take market share.

View our latest resources on digital readiness