Oracle published an article on Digital transformation and more precisely, the way it affects the finance function.
Digital Transformation : new changes to face
Today, in a company, data is becoming more and more important! It allows CFO to have a vision of all the operations and transactions of the company. By having access to figures and by analyzing them, CFO have a perfect position to discover new opportunities, new information and to make strategic decisions.
But, with all the changes we have observed in the society (technological, economical, social…), it is more and more difficult for the finance department to mobilize new skills.
How to get the most out of the technological investment? This a question that the finance department has not had to think about before. Today, they have to mix their knowledge with new innovative approaches that are often unfamiliar. They have to combine their finance skills with all the changes that have occurred in the company, such as the digital transformation.
However, even if the finance department has to adapt to these new changes and deliver relevant information by analyzing data, it can’t bring all the answers to the company. The reason is beyond their capacity, because the amount of data to be processed is too greatt!
The digital transformation requires involving all the departments of the company
The digital transformation of a company requires a close collaboration between all the departments: finance, marketing, HR, IT, Sales… This means a close cooperation between the managers. More than one third of the financial teams said that the lack of coherence between them and the rest of the company prevents the success for change.
Finance and IT : a closer collaboration
Last year, Ernst & Young, a global leader in transaction and advisory services, assurance and tax interviewed more than 650 CFOs around the world. They concluded that the digital transformation in the organization involves a closer collaboration between 2 departments that have been distant for so long: Finance and IT.
It seems that 1 year later, the observation is still the same. The article written by Oracle highlights that it is necessary to increase collaboration between the finance and the IT department. In many organizations, the data extraction is made by the DSO. the DSO has to include numerous changes in his IT strategy. 73% of CFO said that a close collaboration between the finance and IT department is vital for the success of the digital transformation of the company.
Creation on a new position : the CDO
According to Oracle, the next step is to create a new position: CDO (Chief Data Officer). Many organizations already have one!
The CIO has to maximize the impact of the technology on the company. the CDO understands data. They have a more strategic approach and know how to analyze data.
Gartner considers that, by 2019, 90% of huge organizations will have a CDO to get the most out of data!
To conclude, it is important to underline that the organization needs employees to be involve in the digital transformation of the company. For without internal transformation there can be no external transformation. All other functions in the organization must be made aware of the necessity of digital transformation. They have to accept transversal, collaborative management of these changes.