Finance and financial leaders are embracing the trend towards automation in the industry, particularly as economic conditions become more challenging in 2023 and beyond. Drawing from past downturns, it is evident that industry frontrunners excel by prioritizing investments in pivotal initiatives during times of adversity.
Right now, investment decisions are all about the digital.
According to Gartner´s survey of leaders in the finance and financial sector for 2023, a full 64% of the CFOs surveyed believe that an automated finance industry will become a reality within the next six years.
Their focus shows how they are transforming the function to provide better and faster insights, easier compliance, and more flexible financial strategy. This helps organizations cope with financial fluctuations and discover new ways to earn more.
When the economy gets tough, leaders' decisions are truly tested. In this challenge, the CFO, or finance director, is critically important.
But in a digital world, what does a modern CFO do when the economy goes south?
In the past, the primary focus of the CFO was to save money and secure the company's finances. But in the digital age, it's no longer just about cost-cutting. A modern CFO must also be forward-looking, especially when it comes to investments in technology.
But in a digital world, what does a modern CFO do when the economy takes a downturn?
In the past, the primary focus of the CFO was to save money and secure the company's financial health. But in the digital era, it's not just about cost-cutting anymore. A modern CFO must also be forward-thinking, especially regarding investments in technology.
Why digital investments?
Even in challenging times, forward-thinking CFOs see the potential in digital investments. Technology can streamline processes, provide up-to-date insights, and elevate the customer experience.
When utilized correctly, technology can boost efficiency and profitability, even during tough times.
Short-term Savings vs. Long-term Vision
It's easy to cut IT budgets when times get tough. But the savviest CFOs know that short-term savings can lead to long-term losses. By maintaining or increasing investments in critical digital initiatives, they position the company for quicker growth once the economy rebounds.
Data Insight for Better Decision-Making
Modern technology doesn't just bring efficiency; it also provides invaluable insight. With advanced analytics tools, CFOs can gain a clearer understanding of the company's financial health, identify trends, and anticipate challenges before they arise.
The role of the modern CFO has undoubtedly evolved. In downturns, it becomes more important than ever to balance traditional financial prudence with a bold approach to digital investments. Those who can navigate this balancing act will not only help their companies through challenging times but also lay the foundation for future success.
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