Microsoft Dynamics 365
The role of the CFO is evolving. As finance leaders take on greater responsibilities—from technology to strategy—the modern finance department is shifting. Unified data and smart technology are just two of the eight key trends CFOs should look out for.
The CFO's role can be summed up in two simple truths: one, if something affects the bottom line, it is CFO's responsibility. And two, everything has an impact on the bottom line. While this has not changed, many things have changed. Here he is share highlights from our full report on eight trends that affect the role of the CFO.
1. Unified data, intelligence everywhere
Fully connected businesses are able to provide AI tools with more complete data. This helps these systems provide more accurate outputs and deliver intelligence to every corner of the business.
Global spending on digital transformation efforts is projected to reach $2 trillion by 2022.
2. The CFO’s role and workforce are evolving
As finance leaders take on greater responsibility—from technology to strategy—the modern finance department is shifting.
- 55% of CFOs report that enterprise risk management is part of their role.
- 33% of CFOs report managing cybersecurity as part of their role.
3. Intelligent technology powers finance operations
As finance leaders work harder to meet rising demands, they are turning to technologies such as AI, blockchain, and digital assistants, to help improve operations and work smarter.
74% of AI adopters agree that AI will be integrated into all enterprise applications within three years.
4. Customer experience is a top priority
As customer expectations rise, finance leaders are turning to technology to help their businesses deliver the personal experiences that help build lasting customer relationships.
1/3 of consumers say they would consider switching companies after just one instance
" Customer service should not be a department. It should be the entire company.”
-Tony Hsieh - CEO Zappos
5. Business models get redefined
As the business landscape changes, finance leaders are transforming their organizations to grow and engage with customers in new and meaningful ways.
Tesla, a car manufacturer, now offers auto insurance to drivers at rates up to 20% lower than traditional auto insurers.
6. Fintech emerges as a major opportunity
As businesses fight for a competitive edge, fintech is providing them with new options and opportunities to turn small improvements into massive returns.
Investment in fintech is expected to grow to $310 billion by 2022, a 25% annual growth rate.
7. Businesses place a renewed focus on ethics
With mounting pressure from consumers, regulators, and shareholders, businesses are investing in more ethical, sustainable practices.
56% of Gen Z consumers say that companies demonstrating social responsibility strengthen their trust.
8. Businesses adapt to global uncertainty
With new cyber risks, geopolitical shifts, and new regulations, finance leaders are looking for ways to navigate the uncertainty.
Global economic recovery from the COVID-19 pandemic is expected to take years.