Why should Finance drive Digital Transformation for your organization?
We associate Digital Transformation with the Application of advanced technologies to re-imagine business models and processes to realize greater value for the enterprise. But why would the CFO’s office drive Digital Transformation?
Its not just a buzzword – its an imperative in a constantly evolving market place – where customers are changing, the eco-system is disrupting and new rules of engagement are being framed.
The CFO’s office is at the intersection of strategy, technology and financial management – strategy that drives corporate action to meet business goals; technology that drives innovation and digitalization and finally, financial management that provides the insights and guidance into resultant business impacts.
Every CFO’s office is therefore interested in furthering the cause of digital transformation for any company that looks at growth not only in the top line but also in the mid-line (gross margins) and in the bottom line.
As an example, when a company is redefining business models by selling services and solutions instead of widgets (think managed printing services instead of printers and ink), the ability to minimize cost to serve and maximize EPS without compromising customer satisfaction is one that the CFO cares about.
Another example is when the CEO of a large retailer decides to add eCommerce capabilities to add new and non-traditional customers (think millenials vs babyboomers), it is the CFO’s team that provides guidance on the most optimal action – is acquisition better than organic growth and why? Ultimately the decision would be driven by the most logical of reasons – numbers. Cost of customer acquisition, Time to market and EPS.
Who else than the CFO to drive home the financial truths of digital transformation?
For a more interactive dialogue on this and other topics and understand how SAP can accelerate your company’s Digital Transformation, check out this Session – Pave the Way for Digital Transformation Success with CFO Sponsorship at SAPPHIRE NOW and ASUG Annual Conference in 2017