# The CFO and mastering the art of Digital Process Transformation
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-01-23
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: How CFOs Drive End-to-End Transformation in Digital World
Meta Description: Discover how Genpact's CFO Services are revolutionising the role of CFOs in enabling end-to-end transformation through digital innovation.
URL: https://financedigest.com/the-cfo-and-mastering-the-art-of-digital-process-transformationhtml

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_**Shantanu Ghosh** is global business leader, CFO Services, and Transformation, at_ [_Genpact_](http://www.genpact.com) _, a global professional services firm focusing in delivering digital transformation_

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Shantanu Ghosh

The changing role of the CFO has often been discussed and written about with much of the rhetoric focused on the CFO becoming a more effective business partner. That concept of business partnering has taken a fundamental shift in the wake of digital transformation, which most companies are either finding themselves going through or about to embark on. For most large corporations, in a slow [revenue growth](https://www.financedigest.com/blood-bag-tube-sealer-market-to-witness-excellent-revenue-growth-overview-emerging-trends-and-forecast-by-2028.html "Blood Bag Tube Sealer Market to Witness Excellent Revenue Growth, Overview, Emerging Trends and Forecast by 2028") world, the importance of generating competitively differentiating performance is on dramatically changing the customer experience, and making the value chain more nimble to cater to changing customer demands.

In our experience of working with [global corporations](https://www.financedigest.com/g20-to-back-global-corporate-tax-deal-says-french-finance-minister.html "G20 to back global corporate tax deal, says French finance minister"), more and more CFOs are stepping up to take the pivotal role in enabling end to end transformation. Consequently, we have observed the CFO taking on three distinct roles to achieve success.

1. **The catalyst for** [driving transformation through “matrix” performance management](https://www.financedigest.com/personalized-digitization-to-drive-the-scoliosis-management-market.html "Personalized digitization to drive the Scoliosis Management Market")

Continually reshaping customer experience and ensuring it delivers [competitive advantage](https://www.financedigest.com/how-automation-gives-fs-leaders-a-competitive-advantage.html "How automation gives FS leaders a competitive advantage"), means companies need to have the much discussed “one office” approach in place – the ability to drive value chain transformation as a flow of goods, information and money. This is intuitive but also unbelievably hard given the way corporations are structured in functional divisions, where financial performance [management is done discretely in different groups and units](https://www.financedigest.com/sacyr-shortlists-four-bidders-for-its-service-waste-management-unit-expansion.html "Sacyr shortlists four bidders for its service, waste management unit – Expansion"). This is a legacy of 19th-century corporation design.

Organisations try and overcome this by promoting matrix working and balanced scorecards.However, our experience shows that one of the biggest impediments is still the traditional [budgeting mechanisms and dichotomy of costs](https://www.financedigest.com/ireland-dips-into-budget-surplus-to-ease-cost-of-living-squeeze.html "Ireland dips into budget surplus to ease cost of living squeeze") and benefits, which reside in different budgets.This can either derail or slow down the “one office” transformation approach. For example, in a recent conversation with a global manufacturing transformation leader, he explained the unsatisfactory [progress his company had made](https://www.financedigest.com/sweden-finland-and-turkey-have-made-progress-on-nato-membership-sweden-says.html "Sweden, Finland and Turkey have made progress on NATO membership, Sweden says") in improving cash flow throughout the year. This was in spite of it being called out as one its key [focus areas](https://www.financedigest.com/three-areas-of-focus-for-financial-service-cisos-in-2022.html "Three areas of focus for Financial Service CISOs in 2022") and a strategic imperative.

We see this story replayed on too many occasions where great [opportunities for revenue and cost](https://www.financedigest.com/modified-flour-market-overview-cost-structure-analysis-growth-opportunities-and-forecast-to-2032.html "Modified Flour Market Overview, Cost Structure Analysis, Growth Opportunities And Forecast To 2032") maximisation, beyond functional overheads, do not get the traction they deserve.

However, the same company is hopeful that 2018 will be different.The CFO is changing the scorecards across the company by embedding “cash” across the organisation. This sounds simple but is hard to do. There are choices to be made on [investments and ensuring each group feels it has control over their own performance](https://www.financedigest.com/esg-investing-does-that-mean-sacrificing-performance-is-the-uk-the-right-place-and-how-to-do-it-properly.html "ESG Investing – Does that mean sacrificing performance? Is the UK the right place? And how to do it properly"), and are involved in the transformation. And that choice is not just based on astute understanding of the dependant, the output variables, and the right set of metrics but equally on the organisations working, compensation and change culture. In most cases where we see success, we find the CEO and [CFO combination creating the burning platform and the performance management model](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model") to make the initiative happen.

2. **The guide through digital chaos**

There is no corporation of significance which is not currently discussing “digital transformation”.In most cases this has started with the front end of customer interaction and then connecting the middle and back office into the “one office” approach. One of the fundamental shifts we have observed is corporations [moving away](https://www.financedigest.com/exclusive-eu-to-move-away-from-emergency-phase-of-covid-pandemic-document.html "Exclusive-EU to move away from emergency phase of COVID pandemic – document") from an elusive single integrated tech stack (the “one instance all functionality ERP” paradigm) to a mosaic of micro-services/platforms.

This shift has been driven by the development of focused use case based applications, which combine cloud based computing, mobility driven, AI embedded models, and the relative ease of data exchange between applications through flexible APIs. Even the leading ERPs like SAP are adopting this mosaic architecture for their end to end functionalities. And then there is the drive to implement [robotic process automation](https://www.financedigest.com/the-aquaculture-feed-and-pharmaceutical-market-to-move-ahead-on-rpa-robotic-process-automation.html "The Aquaculture Feed And Pharmaceutical Market to move ahead on RPA (Robotic Process Automation)") with machine learning and cognitive computing.

Yet our experience shows a dramatic difference in leveraging these micro services/platforms and [transformation results between companies in similar industries](https://www.financedigest.com/signal-transformer-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-in-industry-by-2027.html "Signal Transformer Market| One the Most Booming Industry in Upcoming Years Due to Global Demand in Industry by 2027") and similar contexts. At the heart of benefitting from [digital advances](https://www.financedigest.com/the-advanced-wound-management-technologies-market-to-grow-based-on-customized-digitization.html "The Advanced Wound Management Technologies Market to grow based on customized digitization") is an ability to continuously experiment with different solutions, and have the ability to discard initiatives and pick up new ones.It’s important to be comfortable with the notion that the technology lifecycle is now down to months as opposed to [years and to understand what that means in terms of investments](https://www.financedigest.com/halfway-through-2021-what-can-you-do-now-to-finish-the-2021-investment-year-strong.html "Halfway through 2021, what can you do now to finish the 2021 investment year strong?") and ROI models. In short, the ability to thrive in digital chaos. For example, a CXO for a leading life sciences company explained that the finds it hard to [invest](https://www.financedigest.com/intelligent-investment-in-digital-transformation-driving-change-from-the-grassroots.html "Intelligent investment in digital transformation: Driving change from the grassroots") in “digital transformation” because of two things – (a) the sheer confusion across many choices of the long-term “tech vision” and (b) the associated ROI models to justify those choices.

This is where the [CFO’s role](https://www.financedigest.com/the-new-role-of-the-cfo-the-de-facto-chief-growth-officer.html "The New Role of the CFO: The De Facto Chief Growth Officer") is becoming pivotal. Investing in digital process transformation needs a very different mind-set of investments and budgeting.It needs to allow for experimentation, continuous gatekeeping, and the revision of choices. This is hard and very different from the more established practices of capital allocation and budgeting, [moving towards](https://www.financedigest.com/the-orange-essential-oil-market-to-move-towards-constructive-advancements.html "The Orange Essential Oil Market To Move Towards Constructive Advancements") “option modelling” and venture funding practices.

3. **The futurist leveraging data**

It’s rightly said that [data is the new oil](https://www.financedigest.com/wall-street-pushes-stocks-oil-higher-on-promising-data-2.html "Wall Street pushes stocks, oil higher on promising data"). And the ability to use data from all sources – internal, external, structured, unstructured in a meaningful way to make [future business](https://www.financedigest.com/title-homeopathic-veterinary-medicines-market-growing-at-a-cagr-of-5-business-and-future-opportunity-2031.html "Title: Homeopathic Veterinary Medicines Market Growing at a CAGR of ~5% | Business and Future Opportunity – 2031") decisions is now at the core of competitiveness for companies. Our [market surveys](https://www.financedigest.com/projector-lamps-market-surveys-opportunity-growth-and-forecast-by-end-use-industry-2021-2031.html "Projector Lamps Market Surveys, Opportunity, Growth and Forecast by End-use Industry 2021-2031") point out that most CFOs and other CXOs are deeply dissatisfied with how much leverage they are getting with the data they have. We see evidence of some CFOs beginning to take the lead in [transforming the way](https://www.financedigest.com/three-ways-blockchain-is-transforming-payments.html "Three ways blockchain is transforming payments") they think about EPM, and that shift has three characteristics:

(a) A redefinition of the operating model from traditional financial [planning and analysis](https://www.financedigest.com/analysis-energy-market-turmoil-shakes-europes-green-power-plan.html "Analysis: Energy market turmoil shakes Europe’s green power plan") organisation to data/analysis. Organisations are using [big data technologies and different skill sets including data scientists andanalysts with good business](https://www.financedigest.com/how-china-became-big-business-for-twitter-from-blocking-to-blue-checks.html "How China became big business for Twitter, from blocking to blue checks") acumen beyond financial expertise

(b) A clear focus and drive to [future forecasting and predictions](https://www.financedigest.com/covid-19-impact-on-attitude-and-heading-reference-systems-market-volume-analysis-future-prediction-industry-overview-and-forecast-2028.html "Covid-19 Impact On Attitude and Heading Reference Systems Market | Volume, Analysis, Future Prediction, Industry Overview And Forecast 2028") versus reporting on the past; leveraging analytic workbenches, simulation tools and using data from all relevant parts of the organisation.

(c) [Focusing on the delivery](https://www.financedigest.com/unicredit-focused-on-internal-delivery-open-to-ma-in-all-its-markets.html "UniCredit focused on “internal delivery”, open to M&A in all its markets") and use of analysis and insights for design making.

In our work with many different customers in this area, we see real variation in the speed and ambition of [digital transformation](https://www.financedigest.com/the-handheld-marijuana-medical-vaporizer-market-to-justify-the-digital-transformation.html "The Handheld Marijuana Medical Vaporizer Market To Justify The Digital Transformation"), but little difference in the intent from most CFOs. Overall we believe this area is still nascent in adoption and it needsthe CFO – in all his or her ‘roles’ – to be the driver for dramatic change. There has never been a better time and [opportunity for CFOs to make the biggest difference to competitive performance through digital](https://www.financedigest.com/an-analysis-of-vc-investment-in-the-defence-sector-and-the-mods-readiness-to-exploit-digital-opportunities.html "An analysis of VC investment in the Defence sector and the MOD’s readiness to exploit digital opportunities") process transformation.


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