a 2021 guide for Digital Transformation Beyond Financial Management

Digital Transformation Beyond Financial Management

Those at the start of their accounting journey are at the level of CFO 1.0. This is the traditional model of the Chief Financial Officer, who would keep track of cash flow and financial planning as well as analyze the company’s financial strengths and weaknesses. Many of the day-to-day tasks are still manual and any corrective actions they propose for the running of the business are based on out-of-date statistics and figures. In this guide, we discuss digital transformation Beyond Financial Management.

The CFO 1.0 is, for all intents and purposes, looking backward, in the rear-view mirror— running processes and making use of financial reporting tools that traditionally show what happened yesterday (or last week, or the previous month). Their focus is on reporting accurately what has happened, and often this is their only focus.

But in the last few years, we have seen a transformation in the way people work. They are mobile, social, flexible, and adept at change. The millennial generation is always on and data-savvy, open to sharing their information with the world. They trust data and expect technology to provide a solution for almost everything.

The effects of the changing forces of digitalization cannot be underestimated. During the past decade, many jobs for which people were trained and educated have significantly evolved because of digital technologies.

It’s not just increasing interaction between Baby Boomers and the digital-native Millennials and Gen Z, who often lead adoption. It’s also a rapid adaptation of technology that’s more and more intuitive in the first place. Importantly, we largely trust the technology.

This is the mindset that is changing the world. It has led to the rise of challenger banks that own no branches; rental companies that own no rooms; transport companies that own no transport. As companies change, so too has the role of the CFO. The role has undergone significant changes in the last five years – probably more than seen in the last 50 years put together.

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Digital Transformation Beyond Financial Management in 2021