Digital Process Transformation (DCP) is where the CFO gets pivotal. The CFO has traditionally had a more limited role when it comes to investing in digital processes. Today’s challenges, however, have brought this role into focus. Here are some of the changes we’ve seen in the role of the CFO.
Companies are increasingly investing in digital process transformation because of the obvious advantages of doing so. They include: increased productivity, simplified supply chain, reduction of capital expenses, reduction of waste, and accelerated growth. All of these advantages translate to significant return on investment. However, investing in this kind of transformation requires a different mindset of budgets and investments.
Today’s CFO has to be willing to look at the “big picture” and invest in not only forward looking technologies but also those that will reduce their expenses in the future. This means that the CFO must be willing to be flexible and willing to evolve as their organization develops and adapts to changing conditions and trends. The CFO can no longer depend on antiquated tools and outdated infrastructures towards cloud computing. Modern CFOs must embrace the prospects offered by cloud computing if they are going to fully realize the benefits of digital process transformation.
In order to address some of these challenges, today’s CFOs have to reexamine their company’s investments in traditional IT and determine how those investments can support digital process transformation. The most common investments that need to be examined are: SaaS, platform, mobility, enterprise data migration, and executive suite. By examining these investments, a CFO can better understand their company’s future dependency on these traditional IT investments. This will help the CFO to set up an appropriate structure for continuing support of these technologies.
The mobility of a company’s workforce is an integral part of its ability to effectively utilize its technological assets. Today’s CFO can utilize their IT staff to help design an effective process integration strategy that involves a variety of digitalization techniques. The CFO can also coordinate with their staff on the implementation of mobility solutions. A key component of this strategy is the engagement of the employees to participate meaningfully in the digital transformation initiatives.
On the other hand, the enterprise data migration is a critical component of the digital transformation initiative. EDRM is an important capability that will enable organizations to effectively move data from on-premises systems to the cloud. The EDRM will enable businesses to take advantage of the advantages offered by digitalization in order to benefit from the increased efficiency of cloud-based applications and infrastructure. The chief benefits of EDRM are cost reduction and improved security. By incorporating digitalization into their business transformation strategy, CFOs can effectively leverage their IT staff’s digital work skills to help them achieve their customer-centric business goals.
Data analytics is another key component of the digital transformation initiative. The main function of data analytics is to reduce costs associated with manual processes. It is a highly applied scientific method that employs various tools such as performance dashboards, operational dashboards, quality dashboard, financial dashboard, and others. The main advantage of data analytics is that it enables businesses to make the most of their in-house technical capabilities in formulating business process improvements.
These four key transformation strategies focus on four specific areas of business: learning management, customer experience management, enterprise data management, and business process modeling. These four areas are intimately related. They are intimately related because they are based on core competencies of the business. Therefore, if one area of business is affected by a change, it will have an effect on all the other areas. Digital transformation encompasses four key transformations that need to be understood, implemented, and leveraged for organizations that are facing the digital age.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.