Study: CFOs Igniting the Digital Transformation Charge at Their Companies

CFOs and Controllers are increasingly relied upon to lead the charge to advance digital transformation.

Specifically, 69% of finance leaders now play a direct role in digital transformation efforts at their companies, says a recent benchmark study by the Controller’s Council. And 46% are involved in IT operations, 28% supervise IT departments and 14% manage corporate digital transformation initiatives.

Expanding roles like this are partly a response to ongoing economic pressures, such as inflation, supply chain challenges and labor shortages. These issues have highlighted clear needs for better technology and automation across departments. Finance leaders are well-situated to lead these changes, as they manage both the numbers and the system that houses them.

Automation Is Still a Priority

The trend toward automating financial functions is continuing to gain momentum, with an increasing number of businesses adopting tools to streamline processes and gain better data insights.

Many CFOs and Controllers are making automation a key part of their strategy. They’re focusing on everything from basic bookkeeping to more complex tasks like financial planning and analysis. But this move is not just about keeping up with the rest of the industry, it instead focuses on staying ahead of the competition. Automation technologies, like AI and machine learning, transform the way these teams operate, which allows for faster decision-making and added efficiency.

Additionally, 58% of CFOs have integrated AI into their finance functions, according to a recent Gartner report. This is a significant increase from previous years and shows that AI technologies are becoming a core component of finance operations.

Another Gartner survey also mentions that 78% of CFOs plan to maintain or boost company-wide digital investments over the next two years, even as they consider cost reductions in other business areas.

Finance Leaders Are Broadening Their Roles

Many finance leaders are also expanding their roles to include overseeing a broader range of digital transformation efforts, beyond the standard finance and accounting categories. CFOs and Controllers are getting increasingly more involved in evaluating and deploying technologies like AI, machine learning, and IoT systems.

In addition to finance systems, here are some key areas where finance leaders are playing a pivotal role:

• Cybersecurity solutions
• Cloud infrastructure
• Data storage technologies
• Customer relationship management (CRM) and marketing automation platforms
• Project management tools

This expanded scope emphasizes the cross-departmental perspective that experienced finance leaders bring to the table. By moving into these new areas, they are helping ensure that digital transformation efforts remain cohesive and follow the company’s overall strategic goals.

Common Setbacks and How to Stay on Track

Finance leaders are also taking the lead in evaluating the ROI of these digital initiatives. With added pressure to prove the value of every investment, CFOs are prioritizing tools that deliver measurable outcomes (ex, reduced close cycles, improved forecasting, and enhanced visibility). 

Digital transformation doesn’t happen overnight, nor should it. New systems can be disruptive when they’re not implemented with the right strategy. To avoid common issues and make sure you get the most from your investment, keep these tips in mind:

• Figure out your top automation priorities
• Set clear priorities for what you want to automate first
• Compare vendors to find the right solution within your budget
• Ask for use cases that are relevant to your industry or company size
• Ensure compatibility with your existing systems and workflows
• Plan for onboarding and training, especially if the tools are new to your team
• Create a change management plan to help with adoption

Digital transformation is a lengthy process, but finance leaders who play an active part in implementation can help their organizations adapt faster and continue to stay competitive.