Risk & Reward:
The Technologies
that Count to a
CFO
“The more you know your
customers,
the more accurate the
assessment you can make of
risk
.”
Risk & Reward:
The Technologies that Count to a CFO
Overview
A recent report by Gartner noted that 29% of CFOs sign off on IT
projects. Comparing this to the 5% of CIOs, it is obvious that the CFO has a large interest in technology at the fiscal level. But has the role of
technology within the workplace spawned a degree of genuine engagement from CFOs?
The answer to this question is yes. CFOs must be interested in the way technology is operating within its firm. According to another CFO survey conducted by Deloitte, over 45% of CFOs have their IT department report directly to them. From an organisational perspective the CFO is starting to oversee IT departments as IT teams morph from the traditional
‘Information Technology’ divisions to ‘Business Technology’ powerhouses.
With technology influencing the way companies spend and create product, it was only a matter of time before the CFO became a key area of concern for the IT industry. Engaging with a CFO about technology is about understanding the context of discussions. Executives charged with managing finance are forced to take an analytical approach towards assessing the efficiency of operations. On top of this, they are also tasked with uncovering creative solutions in order to create greater levels of ROI.
This being said, a great way to look at the relationship of technology with the CFO is to assess it through two basic financial management concepts: risks and reward.
Risk:
A key role of the CFO is to provide insight into the inherent risks associated with an organisation that is not meeting its objectives. To achieve this insight, a myriad of strategies are put in place in order for a CFO to have the most crystallised version of their organisations position. All of these strategies have a reliance of technology to provide the most complete picture of an enterprise.
Key areas of Risk Technology
Real-time reporting:
Software that provides insight in real-time is integral to the CFO of the 20-teen era. CFOs need information that best represents the reality of their business operations and to be able to conduct risk assessment accordingly. Data analytics and forecasting as well as performance
management technologies that have the ability to offer real-time insights and assessments are of core interest.
Innovation
More often than not the risk in an organisation taking on a new piece of technology is not what it would lose if it were not to work, rather what the organisation stands to lose its competitors if it is NOT implemented. Technology that can re-engineer the way a business operates is of
fundamental importance to the CFO with reference to risk.
Take mobile. There are companies today who are still attempting to grapple with the importance of mobile technology to their business operations. Having a CFO engaged with innovation means that when
movements such as mobile technology occurs, they will have the insight and appreciation for how much of an impact these technologies could have to the market environment that may be just around the corner.
Big Data:
Data has grown so substantially that the meaning of what data is has changed. Data is now infinite, ever homogenising, re-creating the story of an institution in real-time. The CFOs objective of continuous oversight has become increasingly difficult as they attempt to work through these constant re-creations.
Enter out of the box Big Data solutions. Without the tools that enable a complex assessment of a myriad of different data sets, the CFO cannot calculate the financial health of an organisation, nor assist in making strategic decisions based on key metrics.
Business Process Management (BPM):
Like real-time analytics, BPM technology looks at the metrics of a business and creates tangible insights for the CFO to reach executive decisions. BPM solutions are continuously being affected by Big Data and real time analytics tools. However, as a principle task of a CFO and the Executive team, BPM is still a major conversation.
Reward:
Another way that CFOs look at technology is to assess the ROI of a
technology. If a technology can reduce liabilities or increase the value of assets, the CFO needs to assess and recognise this. The beauty of
technology is that by definition it represents an ability to innovate process and create efficiencies. All technology solutions foster some elements of cost benefits. Here are some that are key to the CFO:
Out-of-the-box solutions:
Out-of-the-box solutions enable CFOs to be able to quantify the true cost of technology implementation from the onset. If a CFO is able to do this, they are able to calculate the true cost of the solution over a period of time.
Doing this limits the amount of future liabilities and also allows the CFO to depreciate the cost of a solution evenly. The CFO feels as though they have the power given they understand the true value of the financial commitment.
Cloud:
Assuming security and risk is appreciated, cloud computing should be a split business decision for the CFO. The reason for this is that Cloud is one of the biggest out-of-the-box solutions available. Organisations have the ability to completely outsource their infrastructure and software
needs. On top of this, the subscription based models, which many solutions have available, means that upgrades and future investment becomes obsolete.
Telecommuting:
The cost of desk space is vast becoming an area on the balance sheet which the CFO is starting to question and seek innovative solutions. The technologies available to connect a displaced workforce has
re-engineered the way organisations assess space. The CFO understands the cost benefits to telecommuting, however there may a business case
around the impact this will have on operations and process.
Ecommerce:
Ecommerce has been in the vernacular of the CIO and CMO for some time. However it is important to appreciate the level of engagement the
traditional CFO has had with technology. It was not too long ago when technology for a service division of the business.
It is the job of the technology industry to continuously showcase how much benefit ecommerce can create for organisations. Whether it is in the form of mobile technologies streamlining the sales process, or a web-portal that reinvents distribution, ecommerce is the intersection between technology and the sale and also integral CFO discussions.
CFOs need to know.
It is important to respect that CFOs need to know about technology but that they are not technologists. Outlining the risk and return benefits of technology enables a conversation to develop from a discussion about technology to one about solutions to business operations.
Given the increasing importance that technology now has in all aspects of the business, understanding these nuances is integral to achieving the desired outcome for all parties.
About OmniChannel Media:
OmniChannel Media is an ICT media company. We assist technology firms with the conceptualisation, production and execution of high-level strategic engagement with their target market. We are C-Suite
engagement specialists. We do this via custom-built, face-to-face events and digital marketing initiatives. Put simply, we streamline the go-to-market process and provide you with a platform to build
relationships with decision makers.
