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.