Transformation of the finance function: what roles for the CFO and DSI?
For many years, CFOs and CIOs have clashed over the allocation of IT investment budgets. The transformation of the finance function, and of the company more generally, now reinforces the need for cooperation between these two departments. From now on, CFOs and CIOs must work together to meet the challenges of digital transformation, especially when an IT project is about to be launched.
Strategy FINANCE
The role of CFOs is changing
The financial department decides on the budgets allocated to each project. The company’s digital transformation represents a significant investment: the CFO must therefore define the priorities. But it’s not just about the budget. All company activities are concerned by this evolution and the finance function is no exception.
The finance department will not only be interested in the budgetary aspect, but will also be really involved in the project. Data, the true wealth of the company, is at the heart of digitalization. The CFO must ensure that they can be properly used by all departments that need them, by putting in place all the necessary consultation and management control tools. Cross-functional dashboards must allow everyone to obtain the same level of information.
CFOs and CIOs need to work together
To succeed in its transformation, the finance function will have to rely on all the tools offered by new technologies. Cloud computing, artificial intelligence, machine learning, big data and ERP software are all tools that must be mastered. To do this, the CFO must be able to rely on the CIO to select and deploy them and to involve all employees.
The CIO can guide the CFO in his technological choices and help him select the best solutions to implement to meet the growing needs of the company. He will also be able to assist him in related areas that he does not necessarily master, such as security issues or the legal aspect of data storage and processing.
The CFO can inform the IT department and the project teams about the business processes and the data exchanged. It can help them better control their expenses and obtain the necessary financing.
Transformation of the finance function: meeting the challenges of tomorrow
The multiplication of financial information flows in the company leads to a considerable increase in the amount of data to be processed. Traditional tools, such as spreadsheets, are now obsolete. The use of big data, associated with artificial intelligence and machine learning, will necessarily make its appearance in the company.
The concepts behind these tools and their potential applications are still unclear to many professionals. Effective cooperation between the CFO and the CIO on these subjects is therefore, more than ever, essential to meet the challenges of the future.
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Also read in our " ERP Finance project " file:
- What are the key challenges facing finance managers today?
- What are the key regulatory issues for CFOs in 2019?
- Digital transformation of the finance function : where do you stand?
- Digitization of the finance function: what should we expect in the future?
- What changes does dematerialisation bring to the finance function?
- Finance management: what technological tools are available to CFOs?
- ERP software definition: what is an ERP?
- What is the use of an ERP solution for the finance function?
- ERP finance: what do you need to know as a finance manager?
- CFO: what are the advantages of an ERP for the finance function?
- Finance software: which ERP to choose for your company?
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- Should you consider a Postmodern ERP solution?
- The challenges of a post modern ERP
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