The Evolution of the Digital CFO
For the first time in history, technology is nearly inseparable from business drivers, and with this change, the role of the CFO is radically evolving into a Digital CFO. This transformation is being driven by a combined set offorces that include changing technology, shifting markets, and risks that go beyond traditional borders and regulations.What is truly transformational isn’t the applications, platforms, or the number of devices. The evolution is about the exponential connections between them that affects every functional business process and Finance’s ability to support business objectives. As business drivers move to the cloud, CFOs should be assessing the capabilities needed to:
•Deliver against business objectives with speed, agility, and scale
•Engage our mobile and tech savvy millennial workforce and provide them tools that leverage their capabilities
•Streamline costs and make them more predictable and transparent
“Core modernization extends opportunities for commerce and speed”
Digital technology, which includes mobile, IoT, Social, and Web lets organizations take advantage of the ecosystems available in the cloud to forge relationships and invent new ways of doing things based on highly sophisticated analytics. Core modernization extends opportunities for commerce and speed, delivering increased efficiencies in supply and demand changes to create value.
Digital business transformation often means a need for a new organization design, culture, and behavior, as well as the right leadership and talent. As companies target shifting markets, they are realizing an increase in demands for a more sophisticated customer experience, which depends heavily on extended ecosystems, globalization, and competitive ‘first mover” advantage.
Core systems that drive back, mid, and front offices are often decades old, comprising everything from the custom systems built to run the financial services industry in the 1970s to the ERP reengineering wave of the 1990s. Current on-premise ERP systems are often difficult to use cross-functionally and can be frustrating with business silos and systems that do not easily integrate with each other. When financial executives were asked by Deloitte to select one key driver for moving to the cloud, the top three responses were: 32 percent of surveyed CFOs wanted to streamline cross-functional business processes, 23 percent wanted to reduce high IT costs, and 17 percent wanted to better support a distributed organization.
CFOs are faced with today’s reality for Financial systems: aging systems that have never realized the potential of integrated data, multiple systems that have led to data warehouse workarounds, and fragmented reporting that is high cost and low value with significant risk of inaccurate and inconsistent data.
Many roads lead to digital innovation through the cloud and becoming connected, integrated, and efficient. Organizations are now developing strategies for reimagining their core systems that involve moving from multiple systems to one unified platform. With this change, they are transforming the bedrock of the IT footprint to be agile, intuitive, and responsive in order to meet business needs today, while laying the foundation for tomorrow.
Broad systems transformation involves bringing together sales, operations, supply chain, and service information to redefine underlying processes and inform new products, services, and offerings.
Where do you start?
Most applications are based on 20-30 year old technology and aren’t structured to respond to new digital demands. Organizations are evolving their system roadmaps to approach the core not as an anchor, but as a set of customer-focused, outcome-driven building blocks that can support the business in the digital age and beyond. Deloitte Digital has created CloudMix as an architecture that allows the building blocks such as NetSuite, Salesforce, and others to be quickly assembled to provide speed to value for the CFO.
Deloitte’s CloudMix features and capabilities include:
•Pre-configured leading industry capabilities on cloud solutions
•Pre-packaged cloud integrations across leading application providers
•Cloud and cloud-to-ground integration with multiple platforms
•Industry tailored business processes and capabilities, including Tweet to Cash
•Agile implementation approach for a rapid deployment
Deloitte Digital is dedicated to helping our clients build tomorrow by solving today’s complex business problems involving strategy, procurement, design, delivery, and assurance of technology solutions. To learn more about our practice www.deloittedigital.com.