CFOs: Architects of the

Digital Boardroom
Contents
As data-driven insights cause a revolution in the boardroom,
what does this mean for the future of the CFO and the role’s
evolving strategic importance?

03
The CFO and the
06
Finance as a
digital boardroom strategic forecaster
As technology transforms the In order to turn data into action,
boardroom, how can the CFO how can CFOs overcome
lead from the front and reap traditional expectations and
the rewards? become a strategic forecaster

08
Integrating tomorrow’s
planning, today
Given their unique central
position, CFOs are ideally
placed to steer integrated
planning across the business
10
Stress-testing for
future success
What role does the digital
transformation of the finance
function play in helping to
combat business uncertainty?

12
The digital transformation
of the customer experience
In a digital world, delivering
value to customers is a key
competitive advantage. How
can finance act as a catalyst
that spurs customer-centric
innovation?
3 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M
COMMERCIAL FEATURE

DIGITA L Clare Gascoigne

The CFO and

e live in a digital age, with all the infor-
W mation we could ever need available

the digital
at the click of a mouse. But in board-
rooms around the world, the C-suite is still being
asked to discuss issues or make decisions based

boardroom
A digital boardroom, providing valuable real-time
data and analysis, is key to the chief financial officer
becoming a strategic business partner
on pieces of paper handed around the table.
A recent study, Innovation in Financial
Reporting, from finance forum FSN, found that
56 per cent of finance professionals believe their
reporting is not “responsive” to ad hoc queries
in the boardroom. A similar number (58 per
cent) said their board reporting is simply not
“insightful” enough and does not deliver useful,
forward-looking insights.
It seems the digital revolution has touched
every department except the boardroom, the
place where, arguably, the ability to interrogate
data would be most valuable.
“Even when working with enterprise organ-
isations, we continue to see many companies
that support the boardroom with static rather
than real-time reporting,” says Gavin Fallon,
general manager, UK, Nordics and South Africa,
 4 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M
COMMERCIAL FEATURE

at Board International. “Too often, the board

remains focused on the traditional statutory
profit-and-loss structure, useful for review-
ing historical performance, but offering little
insight into what might happen in the future.”
A digital boardroom – one built using soft-
ware that puts data at the C-suite’s fingertips
for real-time reporting and easier data inter-
rogation – offers this opportunity, taking into
account everything from strategic key per-
formance indicators (KPIs) to operations and
distilling instant insights, which provide an
unprecedented view of the business to improve
decision-making across every function.
“Reporting should be so clear that the
answer to ‘what happened’ is obvious,” says
Mr Fallon. “Most of the discussion should be
about what actions to take to move the KPIs
that really matter, to progress the company’s
strategy and vision.”
Sitting at a unique crossroads within the
business, the chief financial officer (CFO) is
becoming more strategically important, wrap-
ping analytical, operational and strategic value
into a single role. This makes the CFO an ideal
candidate to transform the boardroom.
Yet to realise this potential, organisations
must take a leap and empower the CFO to
become a digital leader by implementing
technology that enables the finance function
to be more agile. Few are currently managing
this transition with ease.
“For years CFOs have been behind the tech-
nology curve. Yet now they are expected to
lead the technology transformation,” says Mr

PERCENTAGE OF CFOS WHO HAVE WIDER BUSINESS FUNCTIONS/ACTIVITIES REPORTING INTO THEM

Risk management 67%

Internal audit 58%

Corporate strategy 51%
Investor relations 46%

Regulatory compliance 46%

Enterprise transformation 44%

Board engagement 42%

Digital 28%

McKinsey, 2018
 5 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M
PERCENTAGE OF FINANCE ORGANISATIONS’ WORK THAT HAS BEEN DIGITISED AND/OR AUTOMATED IN THE PAST 12 MONTHS
None 1%-25%
12% 54%
Fallon. “This creates an unintentional knowl-
edge gap about the potential of current tech-
nology, the returns it can bring to the company
and the ease of adoption.”
Technological gap
In practice, this means too many CFOs are still
doing some of their most important work on
Excel, systems that are hardly risk free. Subse-
quently, CFOs are unable to bridge the techno-
logical gap that would move the finance func-
tion to where the organisation needs it to be.
However, the technology exists to bring com-
plex modelling and analytical capabilities into
the boardroom, allowing the CFO to better inter-
pret data and forecast strategic possibilities.
Consider a board meeting that is discussing
strategy and the company’s direction. With
multiple routes available, how should a decision
be made? The digital boardroom provides the
answer. Such a decision-making platform ena-
bles the CFO to perform complex scenario mod-
elling and build strategic plans on the fly, shap-
ing the debate around the table in real-time.
Want to know what happens to revenue, book-
ings, cash and EBITDA if sales staff increase by
10 per cent in three out of ten markets and cus-
tomer success representatives increase by 20
per cent across all markets? What would be a
laborious scenario to calculate in Excel instead
becomes available with a few clicks of a mouse,
quickly modelled and clearly displayed.
COMMERCIAL FEATURE
26%-50% 51%-75% 76%-99% 100%
3%
0%
14% 14%
McKinsey, 2018
“With the technology available to us today,
it’s inconceivable that decision-makers
can’t react at the speed the business might
require,” says Mr Fallon. “Implementing a
digital boardroom is a key step of a digital
transformation journey and the best way for
the CFO to be recognised as a main strategic
73%
player by the most important stakeholders.”
The radical transformation of the CFO’s role
is putting them at the forefront of an organ-
of CFOs say they isation’s digital transformation. Mr Fallon
will implement agrees, concluding that “if the CFOs role as
technology to
replace talent
a key strategic partner in the boardroom is
to evolve, then it is imperative to embrace
Deloitte, 2018
technology now available. Only then will the
CFO be empowered to fulfil the critical new
demands being placed upon the role.”
If the CFO’s role as a key strategic
partner in the boardroom is to
evolve, then it is imperative to
embrace technology now available
Gavin Fallon
General manager, UK, Nordics and South Africa, Board International
6 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

S TR ATEGY

Finance as
a strategic
forecaster
Chief financial officers have greater access to
data and better analysis techniques than ever
before, yet some have been slow to embrace
real-time forecasting

Joe McGrath

echnology is revolutionising the

T finance function in business, moving
the financial team from a back-of-
fice accounting role to an enabler of corporate
change and opportunity. To turn data into
strategic action, the chief financial officer (CFO)
should help enact a culture change within the
department, repositioning it to involve more
future-gazing.
While that sounds like a simple task, Rich-
ard Hilton, managing director, Europe, Mid-
dle East and Africa, at Miller Heiman Group,
explains the reality for CFOs in the board-
room. “Data analysis is integral to the CFO’s
role of forecasting and meeting the business’s
strategic goals,” he says. “However, some have
been stuck making business decisions track-
ing on the quarter behind.”
Mr Hilton says that while reflection on past
events can be useful, techniques now enable
data to be viewed as a driver for future corpo-
rate behaviour.
 7 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

“We’re seeing marginal movement to this way

of working, but CFOs really need to be pushing PROPORTION OF FINANCE FUNCTIONS RECEIVING REQUESTS
FOR BUSINESS INSIGHT AND ANALY TICS IN KEY AREAS
business units to collect real-time data so they
have an up-to-date view of how the company is
High-growth firms Other firms
operating” he explains.
“To get them on board, they need to demon-
strate the value it will deliver to them too, oth- Market data (price and
74% 52%
erwise it’s viewed as an admin job, with CFOs trade related-data)
consistently struggling to get accurate data; a
laborious task.”
Bigger, Faster, Stronger, a joint CBI and Oracle
Social media data
report, found that many larger UK businesses 74% 51%
(sentiment analysis)
are struggling to transform digitally as a result
of issues such as skills scarcity, complex legacy
systems and a greater threat of cyberattacks.
This means that as the CFO role continues to Marketing (including web traffic)
74% 47%
evolve and organisations place an ever greater and CRM data
emphasis on the insights that data and infor-
mation can generate, so the skill set of the CFO
needs to grow also.
Yet to enable this, organisations need to Financial data 72% 54%
invest in empowering the CFO by ensuring easy
access to both the information and technology
required to generate these insights.
Risk and compliance data 72% 49%
Economic boost
According to the research, greater adoption
of technology, alongside better management
practices, has the potential to boost the UK Operational data 69% 45%
economy by £100 billion and slash income
inequality by roughly 5 per cent. However,
just 54 per cent of UK companies consider
disruptive technologies to have an important Macroeconomic data 66% 42%
role within their organisation.
Curt Anderson, CFO of Icertis, explains: “The
speed and scale of business is accelerating Accenture, 2018

on every front. Finance is no exception; we

have to keep up and even try to get ahead.
New digital processes allow us to automate
many time-consuming and repetitive func-
tions, for example tracking contract expiry
The speed and scale of dates, allowing the finance department to
business is accelerating focus on supporting and driving long-term

63%
value creation.
on every front. Finance “Because many of the new tools are
is no exception; we have designed for the modern workforce – self-ser-
vice, mobile enabled, easy to use, customisa-
to keep up and even try of CFOs believe
that within three ble – they are having a positive impact on the
to get ahead. years the focus of
finance will shift
corporate culture. Employees in finance and
towards analysis, across the company want to be able to do their
prediction, and jobs quickly, efficiently and with a high degree
decision support
Curt Anderson of impact, and the best tools are the ones that
CFO, Icertis Deloitte, 2018 enable them to do this.”
 8 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

TR ANSFORMATION

Integrating tomorrow’s
planning, today
As technology has evolved,
so too has the day-to-day
responsibilities of the finance
director. But with more choices
than ever, how does the modern
chief financial officer take
corporate planning to the
next level?

Joe McGrath

he chief financial officer (CFO) holds

T a unique position, acting as a cross-
roads for nearly all aspects within
the business. Now, empowered by the digital
boardroom and wider business digital trans-
formation, the finance function is primed to
bring the business together and integrate it
like never before, acting as the central thread
that ties all aspects of planning together into
a single, unified process.
However, this level of integration requires
high-level strategic planning, as well as lead-
ership from the top, and for the entire busi-
ness to be aligned.
Curt Anderson, CFO at Icertis, says it is good
planning that will bring people and functions
together and drive alignment.
“Technology that gives finance and operat-
ing teams a comprehensive view of the com-
pany’s entitlements, opportunities and risks
is highly valuable in the planning process.
The key to adoption of technology is to create
value for its users, and make the experience
streamlined and intuitive,” he says.
 9 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

The role of the CFO in relation to technology digital transformation, while ensuring it is
has changed dramatically. As little as 15 to 20 economically sound, who can steer engage-
years ago, the responsibility for IT and systems ment at both a board level and with func-
sat firmly at IT’s table, whereas now people tional heads, and ultimately who can build
across the entire business can have an input. relationships and buy-in at all levels of the
“Where the CFO of the past could consider organisation to deliver results.
changes over longer timeframes, a modern

77%
According to recent research into digital trans-
CFO can find themselves bombarded with formation, 47 per cent of finance function heads
ideas for new systems and changes that agreed it is important to use data and analytics
should be made on a daily basis,” says Adrian collected across organisational functions in
Talbot, global CFO at communications of CFOs believe it strategic ways. This is indicative of the elevation
is within their remit
agency Hotwire. to drive business- of the CFO from a primarily reporting role to one
Lars Nyland, managing director, Europe, wide operational that offers cross-functional, strategic value.
at Trintech, agrees that technology is open- transformation As technology takes over the heavy lifting of
ing new doors for the CFO. “Technology has Accenture, 2018 analysing, interpreting and modelling data,
brought together more and more information the finance function is freed up to adopt a
in increasingly standardised formats,” he more overarching role that not only offers
says. “The ability to see the bigger picture, insight on the status quo to decision-makers,
mitigate risks and seize opportunities has but one that can actively advise on where the
given CFOs the ability to be much more pro- business needs to go.
active in driving the strategic direction of Empowered by the digital boardroom, CFOs
the business.” must embrace a new palette of soft skills
to drive and deliver change throughout
Transformation champion their organisation.
Advances in, and the adoption of, new tech-
nology has not only streamlined processes,
but is now pushing CFOs to adopt the man-
tle of a transformation champion, a role that
PERCENTAGE OF CFOS THAT HAVE INITIATED
seeks to identify the economic viability of
AN ENTERPRISE-WIDE TRANSFORMATION
digital processes, enables these throughout
the business and is focused on business-wide
strategy, all critical issues with high
stakes attached. 50% 23% 27%
Simon Niesler, vice president and gen- Transformation of Transformation of Transformation
finance organisation entire enterprise of specific
eral manager, UK, Ireland and Benelux, at alone division or
Infor, explains: “It is a new hat to wear for business unit
some CFOs, but one that is a good fit for
individuals who understand the value of
investing capital back into the facilities,
expanding market presence and growing
through modernisation.
“Many CFOs certainly have the background,
insight and understanding of the market
landscape needed to advise the company as it
moves forward through new terrain.”
But new hats require new skills and as tech-
nology enables the CFO to play a more strategic
and future-gazing role in the digital board- 0%
Transformation
room, these individuals will need to possess,
of function other
or develop, new, soft skills that enable them to than finance
enact the necessary transformational changes
across the business.
These digitally minded CFOs must embrace
their unique central position in the business
and act as storytellers, who can champion McKinsey, 2018
10 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M
PLANNING
Stress-testing for
future success
Planning for the unknown has always been a tricky
task for chief financial officers. New technology
offers many solutions, but also brings greater
responsibilities for directors
Joe McGrath
ontingency and disaster recovery
C planning has evolved considerably
over the past two decades. Once
nothing more than a handbook put together
by IT and facilities departments, disaster
recovery planning has become far more stra-
tegic, with new technology platforms and
services enabling businesses to map out cor-
porate contingency plans in more detail.
“Digital transformation and the adoption
of new technologies will help chief financial
officers (CFOs) better manage financial risk
and its impact on the overall business,” says
Andy Power, CFO at Digital Realty.
“Instead of relying on manual processes
fraught with the potential for human error,
the finance function will be more precise and
technology will help surface insights from
vast sets of data to help make more informed
decisions.”
The UK’s possible departure from the Euro-
pean Union has sharpened the thinking of
finance directors, contemplating which busi-
ness areas should command their attention
in contingency planning.
For many, the prospect of a breakdown in
their supply chain has been front of mind, and
improvements in forecast modelling and pre-
dictive technologies now enable businesses to
get a much clearer idea of how events could
play out.
“We’ve entered a new age in business when
guesswork no longer has any place in finance,”
says Guido Torrini, CFO at Celonis.
Mr Torrini explains that techniques such
as process-mining – predicting future trends
by mining existing datasets – can estab-
lish patterns within company data by using
machine-learning to predict outcomes.
 11 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

“Finance leaders are able to assess the

risks and compliance implications of each
decision, stress test them in advance and
pre-emptively act to mitigate any negative
Finance leaders are able to assess the
consequences,” he says. risks and compliance implications of
each decision, stress test them in
Integrated planning platforms
The ability of businesses to update contin- advance and pre-emptively act to
gency plans and business forecasts in real mitigate any negative consequences
time is one of the greatest advantages of
digital transformation. Integrated business Guido Torrini
CFO, Celonis
planning platforms, for example, enable busi-
nesses to use real-time workforce and inven-
tory data to construct accurate, updated
plans at the touch of a button. Digital transformation is giving CFOs the
Such platforms can vastly improve proac- ability to access and model data, to stress test
tive planning within the finance function, decisions proactively and ensure the business
enabling a better oversight of evolving busi- can effectively respond to the unforeseen
ness risks and trends in order to improve the with contingency planning based on real
speed of decision-making. data-driven insights.
But while there are now more tools to assist
CFOs, it certainly doesn’t mean their job will
get any easier. If anything, the role of finance
director has evolved, with the head of the
finance department now responsible for keep-
ing up to date with technological innovations
that will protect their company in the future.
“CFOs will be faced with new challenges,
including anticipating what’s next and keep-
ing up with continuous advances in technol-
ogy,” says Digital Realty’s Mr Power.
Tim Wakeford, vice president of financials
product strategy at Workday, says by embrac-
ing cloud computing services, CFOs are now
much more capable of stress testing their
recovery plans.
He adds: “It also becomes easier to analyse
and report on data using dimensions such as
a region, department or customer, strength-
ening compliance with audit and regional
regulatory reporting requirements.”

53%
of CFOs worry that the finance
function is reactive or that data-
sharing processes are not streamlined

Accenture, 2018
12 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

INNOVATION
Clare Gascoigne

Digital C
orporate success is driven by custom-
ers; no one has a business without the
customer. But customer expectations

transformation
for service are higher than ever, with digital
transformation forcing companies to adapt
to a new reality. What begins as a disruptive

of the customer
force when businesses such as Amazon or Uber
offer a new level of interaction, soon becomes
the norm and changes customer expectations.

experience
Much of the buzz around digital transformation
deals with internal processes and business models,
so it’s all too easy to forget what the real focus
should be: the customer
Other companies must then conform or die.
Customers want personalised and relevant
content; 61 per cent of customers said they are
more likely to buy from companies delivering
custom content, according to research from
consultants Accenture. They want access at
any time, any place and on any device, with 70
per cent of app users preferring added func-
tionality over “look and feel” of an app. They
want instant service; three quarters of online
customers said they expect help within five
minutes, as well as a consistent experience.
But it is the totality of the customer jour-
ney which generates the kind of satisfaction
all businesses want, the kind that brings the
13 CFOS: A RCHI T EC TS O F T HE DIG I TA L BOA RDRO O M

customer back time and again. The customer already using predictive analytics, according
experience spans the whole journey, with to 2018 Gartner research. But while the sheer
numerous touchpoints from first contact to quantity of relevant data about customers
post-purchase relationship. now held within the finance department is
According to consultant McKinsey’s CEO astonishing, too many companies fail to use
guide to customer experience, too many com- this data successfully. Too often departments
panies focus on individual interactions rather work in silos, failing to share data insights.

53%
than the overall journey. “Even if employees The trick is to free the data for use through-
execute well on individual touchpoint inter- out the organisation and this demands a
actions, the overall experience can still dis- change in mindset throughout the com-
appoint,” the report points out, adding that of finance leaders pany. The PwC 2018 Global Digital IQ Survey
“customer journeys are significantly more are responsible or describes true digital transformation as a
accountable for
strongly correlated with business outcomes mindset that “embraces innovation, less
their organisations’
than are touchpoints”. customer-focused bureaucratic decision-making and the broad
A digital transformation that adds little or no initiatives integration of technology”. It’s a big change,
value to the customer experience is likely to be dun & bradstreet, 2017
but only then will the focus on customers
an expensive failure. But how can you know really pay off.
which touchpoints are good, bad or indifferent?

Strategic insights
It is the chief financial officer (CFO) who can
offer the bird’s-eye view of the customer jour-
ney that is necessary to see where change has
to happen. As Accenture highlights, CFOs are
now “powerful digital stewards, leveraging

63%
data to drive value, improve efficiency and It is the chief financial officer
empower CEOs with strategic insights”. This
makes them perfectly placed to break down who can offer the bird’s-eye
boundaries and help the organisation evolve. of CFOs say their view of the customer journey
Finance functions are already savvy in teams are resisting
using the kind of powerful analytics that
digital innovation that is necessary to see where
can transform a business; 50 per cent are EY, 2018 change has to happen
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Publisher Flavia Brown Contributors

Project manager Tom Watts
Clare Gascoigne Joe McGrath
Editor Peter Archer Formerly on the staff of Financial journalist and editorial direc-
Designer Celina Lucey, Kellie Jerrard the Financial Times, she tor of Rhotic Media, he has written for
Head of production Justyna O’Connell is now a freelance jour- Bloomberg, Financial Times and Dow
Publication sponsored by nalist specialising in City Jones, and was previously asset man-
Digital marketing manager Kyri Rousou
and financial features. agement editor at Financial News.

Although this publication is funded through advertising and sponsorship,all editorial is without bias and sponsored features are clearly
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