Two R-words define the worries of the typical Chief Financial Officer: regulatory and risk.
While regulatory pressures will always be a constant in any market, the slowly improving economy minimizes the risks that CFOs have to worry about. As risk diminishes, CFOs can rethink the way they approach business expansion, particularly when it comes to implementing technological approaches. New technology that streamlines workflow processes creates the opportunity to fuel business work engines.
This is accomplished when the CFO:
- Establishes a strong relationship with the CIO. As the realm of CFO responsibility and influence grows, it’s important for CFOs to work in tandem with other executives and leaders, especially the CIO. This minimizes risk by allowing the CFO to better understand the needs the IT department has and what can be done to reduce costs while boosting productivity.
- Defines needs on a regional, national, or global basis. When it comes to technology, specific needs and requirements are demanded in order to appropriately implement a solution. CFOs have a particularly challenging duty in that not only must they satisfy the demands of senior management, but they must also balance efficiency with costs.
- Considers mergers and acquisitions. If your company is about to merge or acquire another business, then the information technology landscape will shift dramatically, as a new entity will be brought into the equation.
Furthermore, CFOs must also keep in mind that technology is but a tool to help businesses achieve their full potential. But what exactly is hindering businesses? According to an Accenture and Oracle survey of the nation’s leading CFOs, the economic environment, time factors, and inner-business division are the top three reasons a business will flounder toward its goals.
By keeping these in mind, CFOs will better understand the convergence of old and new technology and how the company must reorganize its efforts moving forward to address these concerns. For years, Chief Financial Officers have been recognized for their ability to successfully drive business, but now their role includes transformative initiatives that rely heavily on new technology.
In other words, technology for the sake of efficiency and productivity isn’t the goal. Rather, technology should be adopted to address specific needs and concerns, which in turn shape and strengthen corporate strategy moving forward.