Technology Literacy Will Determine a CFO’s Success

The one thing that will majorly influence the fate of CFO aspirants is their tech skills. According to a Gartner survey of 173 CFOs in November 2020, digital investments topped CFO agendas. Technology literacy is key to making informed decisions about digital investments.

“CFOs are leaning into the ‘digital mandate’ and are investing heavily in next-generation technologies,” said Alexander Bant, chief of research in the Gartner Finance practice. “However, they must remember that digital transformation is a two-part equation involving not only the technologies themselves, but also ensuring they have the staff who know how, when, where, and why to leverage these new technologies.”

According to a study conducted on behalf of Billtrust by Paradoxes Inc, CFOs and aspiring CFO candidates must be technologically literate in order to advance their companies. Being comfortable with data, technology, and cross-disciplinary collaboration was crucial to the success of CFO candidates. Another survey by Sage that polled 1,900 finance leaders across industries and countries revealed that CFOs are seen as key drivers of change and profit. Hence, CFOS must be capable of prioritizing technology with financial experience.

The report by Sage details the need for CFOs to be a jack of all trades and not just a master of finance. CFOs with technology literacy are also able to read the market better and predict upcoming changes that will impact the organization. Almost two in five expect AI and machine learning to have a major impact on their organization’s ability to create or maintain a competitive advantage in the future. Nearly 60% said that they feel they are aware of every aspect of business operations.

The Digital Wave

The ability to understand how digital technologies interact with finance will help companies gain better insight into consumer needs and growth prospects. Furthermore, Alexander Bant, Gartner’s chief of research for CFOs, said 69% of boards have highlighted digital acceleration as their number one objective. Understanding how to exploit technology gives CFOs the required edge to manage things during changing times. Gartner found that CFOs plan to spend even more aggressively on technology, with 52% of CFOs scaling up digital investments, while 38% said they intend to protect their current investment levels.

The pandemic brought to light the shortcomings of companies that had not adopted best technological practices. CFOs share that as the world adopts a new normal, nothing can be streamlined without relying heavily on technology. Automating some processes also helps organizations minimize risk and human error. The CFO relationship with technology will translate business problems to manageable solutions.

Nearly 89% of candidates who participated in the Paradoxes Inc. study agreed that financial leaders should have a deep understanding of how data and technology interact in their companies. 

Randeep Rathindran, vice president of research in Gartner’s finance practice, believes a CFO’s relationship will drive future investments and play a key role in the firm’s success. However, he mentions that less than one in three CFOs actively spend time learning about new technologies for finance and their applications.

A KPMG-Forbes survey of 549 top executives from six continents showed that almost one in three CEOs worry that their CFO isn’t prepared for the challenges ahead. Today, CFOs are true business partners with CEOs, sharing relevant financial data to chalk out a roadmap for the future. Aspiring candidates for the CFO seat must be aware that they carry the fiscal responsibility of an entire organization and must use it to influence operational decision making and strategy.

As organizations become more tech-reliant, digital investments spearheaded by technology literacy and financial mastery will decide the fate of a company and its employees. 

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