As the world changes and embraces technology, businesses and professions are changing. Many CFOs have extensive experience and skill in profits and losses, Excel spreadsheets, and more, but their careers are subject to extinction as the younger people enter the workforce. The new technology offers opportunities for companies to have access to the data they need through better analytics.
Trends in Finance
Although organizations use finance in the traditional role, many companies are starting to focus on new technology that allows intelligent data analysis through smart automation, cognitive computing, machine learning, and more. Companies are using these tools to increase profits and growth.
Certain functions are critical for businesses that transition to the new finance functions. First, they use an Agile Operating Model to promote collaboration between the company’s finance executives and others. They also look to make business decisions by looking at the future rather than analyzing the past. This is important in a world that is rapidly changing with tech advancement.
These new functions need to be balanced with past models, but automation is critical to allow finance execs to focus on more valuable analytical tasks. This new approach will allow companies to draw young talent who learn these skills before they enter the workforce.
Changes at the Top
Making these changes gives the CFO a new definition. The CFO will be able to measure predictions using more than past numbers. They can access technology to combine numbers with other areas such as customer retention and customer satisfaction. This changes the role to more of a venture capitalist looking at how to grow and increase profits. The CFO also needs to be well versed in technological advances so that they can look for the right young talent when they are hiring.
As technology moves forward, changing the world, businesses need to update their finance departments. Finance departments and CFOs can use financial data combined with other important information to predict how to increase customer retention, procurement, and satisfaction.