March 17, 2016 | Written by: William Fuessler
Categorized: C-Suite | Research
Yesterday we officially released the 2016 CFO Perspective – Redefining Performance from IBM’s Institute for Business Value. These insights, from more than 600 CFO’s around the world, reveal what matters to CFOs today, and how they see their role changing as their organizations deal with the “Uber Syndrome” –the digital disruptors and technology innovators that are causing major shifts in business models.
CFOs tell us they’re particularly interested in influencing their enterprise’s ability to Integrate, Analyze and Adapt, as they plan for the future and look for ways to reduce risk. And the top 4% of the CFOs interviewed, labeled Performance Accelerators also revealed that in addition to addressing the needs of their Financial and Risk Management processes, they also recognize their expanding roles as major influencers of identifying new growth opportunities to produce top line revenue growth.
Once again, we saw how Performance Accelerators use predictive analytics far more extensively to plan for the future, forecast revenues and manage risk. 88% of Performance Accelerators use predictive analytics to identify new products and services, compared with only 25% for other finance teams; they also use predictive analytics to assess mergers and acquisitions (93%) and refine their firms’ pricing and promotional strategies (89%).
So what should CFOs do?
First, embrace their roles as major influencers of Corporate Strategy by integrating the information across the enterprise to produce a single version of the truth. Next, incorporate both structured and unstructured data into the information framework and apply new advanced analytics techniques including predictive and cognitive analytics. Finally, enhance their management information systems to produce competitive intelligence.
Once this has been accomplished, the CFO will have achieved two major goals. They will help their organizations in becoming more adept at identifying the emerging digital disruptors. At the same time, they will truly be key architects on how to optimize revenue growth and profits – essentially fulfilling his/her role as “Chief Analytics Officer”.
To learn more and draw on the insight from these self-aware CFOs, download the CFO Perspective now.