# The Evolution of the Tech CFO Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-03-26 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Why CFOs Must Embrace Technology to Drive Strategic Change Meta Description: Discover how CFOs are shifting from traditional roles to more strategically significant positions within the boardroom, empowered by technology and data. URL: https://financedigest.com/the-evolution-of-the-tech-cfohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/future-proofing-your-business-its-time-to-listen-to-your-customers-needs-1736838930603-compressed.jpg) _By_ **_Gavin Fallon,_** _General ManagerUK, Nordics & South Africa Board International_ Chief Financial Officers (CFOs) have traditionally been seen as behind the technological curve – the luddite of the boardroom, too attached to their Excel spreadsheets to move with the times. But the role of the CFO is now shifting and becoming more strategically significant to the business, putting them in the ideal situation to make much needed changes in the boardroom. Despite many business functions being [transformed by data](https://www.financedigest.com/is-the-road-to-data-transformation-slowing-digital-transformation.html "Is the road to data transformation slowing digital transformation?"), the boardroom remains a place where paper presentations are annotated around the table and, when it comes to finance, the focus is placed on the traditional statutory profit and loss structure. This may remain useful for reviewing historical performance but provides no [insight into what may happen in the future](https://www.financedigest.com/airless-pump-market-to-grow-by-1-8x-as-demand-in-personal-care-cosmetics-industry-picks-up-pace-future-market-insights.html "Airless Pump Market to Grow by 1.8x as Demand in Personal Care & Cosmetics Industry Picks Up Pace: Future Market Insights"). As global events – from political upheaval to health crises – have an impact on organisations, the ability to react in real-time becomes more [important than ever](https://www.financedigest.com/when-not-if-why-a-data-breach-response-plan-is-more-important-now-than-ever.html "When not if: why a data breach response plan is more important now than ever"). It is here that CFOs have the [opportunity to make seismic changes in their business](https://www.financedigest.com/electric-vehicle-transmission-market-emerging-growth-analysis-future-demand-and-business-opportunities-2027.html "Electric Vehicle Transmission Market Emerging Growth Analysis, Future Demand and Business Opportunities 2027"). **CFOs now sit in a unique position** CFOs now sit in a unique position, where the traditional responsibility of keeping an eye on the [bottom line](https://www.financedigest.com/how-high-performers-can-increase-a-bottom-line.html "How high performers can increase a bottom line") is wrapped with analytical and operational knowledge to create a far more strategic role. It is by sitting at this unique crossroads and holding a huge amount of knowledge about every area of the organisation that CFOs have the potential to change many aspects of how the boardroom operates. However, in order to fully realise the potential, [CFOs must](https://www.financedigest.com/10-questions-cfos-must-ask-themselves-about-privacy.html "10 questions CFOs must ask themselves about privacy") be empowered to take a digital lead. A lot of the CFO’s most important work takes place on Excel and Essbase, [systems that remain rife with risk](https://www.financedigest.com/demystifying-us-feds-approach-on-systemic-climate-risk-stress-testing.html "Demystifying US Fed’s approach on Systemic Climate Risk Stress Testing"). In fact, 56 percent of finance professionals believe the spreadsheets they use in their reporting processes are well-controlled and error free, which may well be why 40 percent also believe their reporting is based on potentially inaccurate information ( [FSN](https://fsn.co.uk/app/uploads/2019/01/Innovation-in-Financial-Reporting-Global-Survey-2018.pdf) 2018). Not only prone to [human error](https://www.financedigest.com/outthink-raises-10-million-to-tackle-human-errors-behind-data-breaches.html "OutThink raises million to tackle human errors behind data breaches"), spreadsheets are also static and do not allow for real-time forecasting or modelling. While CFOs are well aware of this challenge, the fact they have for too long been tied to legacy systems has led to an unintentional knowledge gap about the technology available to enable them to [move 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 making decisions based on what happened last year, quarter or week. **Seeing the bigger picture** With a greater understanding of the [technology available](https://www.financedigest.com/advertys-multi-patented-and-industry-leading-in-game-viewability-technology-brainimpression-now-available-within-oracle-moat.html "Adverty’s Multi-patented and Industry-leading In-game Viewability Technology BrainImpression™ Now Available Within Oracle Moat") comes an evolution and expansion of the CFO’s role within a business. It is no longer enough to make decisions based on [static reporting](https://www.financedigest.com/asia-pacific-region-to-lead-the-global-static-shielding-bags-market-fact-mr-report.html "Asia Pacific Region to Lead the Global Static Shielding Bags Market: Fact.MR Report"), focusing on the traditional statutory profit and loss structure. Instead they need to use the tools available to play a strategic role with a keener eye on the future, seeing the bigger picture, anticipating what is next, and having the correct contingency plans in place to [mitigate risk](https://www.financedigest.com/new-isla-standards-provide-the-foundation-for-resource-optimisation-efficiency-and-risk-mitigation.html "New ISLA Standards Provide the Foundation for Resource Optimisation, Efficiency and Risk Mitigation"). Technology can provide CFOs with full visibility of the entire company at a single glance, with [data at their fingertips enabling them to take into account everything from KPIs to operations](https://www.financedigest.com/libor-reform-should-trigger-a-major-reassessment-of-corporate-treasuries-data-operations.html "LIBOR reform should trigger a major reassessment of corporate treasuries’ data operations"), distilling instant insights. This offers a level of clarify that means the answer to ‘what happened’ is obvious, allowing for more attention to be [placed on ‘what will happen?’](https://www.financedigest.com/so-you-have-the-dream-job-nice-car-and-big-house-but-is-your-lifestyle-sustainable-do-you-have-the-products-in-place-if-the-worst-were-to-happen.html "So you have the dream job, nice car and big house, but is your lifestyle sustainable? Do you have the products in place if the worst were to happen?"). Consider a board meeting that is discussing headcount requirements based on the [launch of a new product](https://www.financedigest.com/new-product-launches-to-put-the-marker-pens-market-in-a-good-stead.html "New Product Launches To Put The Marker Pens Market In A Good Stead"). Using traditional methods, a [business may well make presumptions based on experiences when previous launches took place](https://www.financedigest.com/esg-investment-making-your-business-a-more-sustainable-place.html "ESG investment: Making your business a more sustainable place"). But [since that time](https://www.financedigest.com/sterling-slides-below-1-15-for-first-time-since-2020.html "Sterling slides below .15 for first time since 2020"), there is likely to have been a whole host of changes, both within the company itself as well as in the wider market – from market conditions for the product to the salary expectations of potential recruits. The use of such technology, however, does not solely require the buy-in from the CFO, or even the [finance function](https://www.financedigest.com/easing-the-burden-of-data-overwhelm-in-finance-functions.html "Easing the burden of data overwhelm in finance functions"). To fully realise its potential in fundamentally changing how an organisation operates, the value will need to be seen by the entire board to, in effect, [create a digital](https://www.financedigest.com/how-to-create-value-in-digital-transformations.html "How to create value in digital transformations") boardroom. While such technology has an impact on all areas of the business, allowing senior leadership to understand the impact of a factory in the [supply chain](https://www.financedigest.com/volkswagen-sticks-to-outlook-as-size-offset-supply-chain-woes.html "Volkswagen sticks to outlook as size offset supply chain woes") closing, for example, it is the finance function that is best placed to show the value and drive adoption. **[Primed to integrate the business](https://www.financedigest.com/prime-bank-and-agam-spark-lending-revolution-for-individuals-and-business.html "Prime Bank and AGAM spark lending revolution for individuals and business") like never before** The CFO is [becoming more strategically](https://www.financedigest.com/azerion-set-to-become-european-digital-powerhouse-following-strategic-acquisition-of-inskin-media.html "Azerion set to become European digital powerhouse following strategic acquisition of Inskin Media") important, combining analytical, operational and strategic value into a single role. They are primed to [integrate the business](https://www.financedigest.com/the-collective-power-of-partnerships-integrating-payment-solutions-to-drive-business-success.html "The collective power of partnerships: integrating payment solutions to drive business success") like never before, acting as the central thread that ties all aspects of decision-making together in a single, unified process. To do so, requires a radical transformation of their role, as the [pioneers of new technology](https://www.financedigest.com/adnami-to-receive-six-figure-sum-of-investment-from-danish-government-in-recognition-of-its-pioneering-technology-and-strategy.html "Adnami to receive six-figure sum of investment from Danish government in recognition of its pioneering technology and strategy"). Already a trusted advisor, CFOs can now elevate their role with the ability to effectively forecast and help spearhead the organisational culture change that is [required for the shift in mindset that comes with such digital transformation](https://www.financedigest.com/how-to-fulfil-the-digital-transformation-requirement-in-banking.html "How to fulfil the Digital Transformation Requirement in Banking"). To maximise the [potential of this unique position](https://www.financedigest.com/grab-and-go-containers-market-anticipated-to-have-positive-potential-during-the-forecast-period-fmi.html "Grab and Go Containers Market anticipated to have positive potential during the forecast period.: FMI"), the CFO must be equipped with the technology that provides them with the full visibility of the company and clarity in decision-making they require. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---