March 17, 2016 | Written by: Reena Jana
Categorized: Finance | New Thinking
Ask 643 chief financial officers from around the world what challenges they face and how they are solving them, and what would you discover? IBM’s Institute for Business Value (IBV) did just that, and the new research has identified key areas that successful CFOs are mastering.
In the just-released study from IBV, “Redefining Performance: Insights from the Global C-suite Study—The CFO Perspective,” CFOs discussed how they are innovating in their industries and within their roles. You can download the study in its entirety from this page (see the right hand column of this page). We have also pulled out three of the key points from the study and curated articles on the topics from the THINK Leaders recent archives so you can dive deeper and learn from experts.
1. Learn from unseen disruptors
CFOs around the globe are aware of competitors from outside their industries beating their competitions in the race to create fresh business models to generate more revenue for their organizations.
“The boundaries of competition are becoming ambiguous,” says Yong Eurm Ban, CFO of JoongAng Media Network in South Korea, as quoted in the new CFO study from IBV.
“We have to see whether new rivals from different industries will enter our sector and take counter measures,” says Koichi Takahashi, Member of the Board, Senior Executive Officer, General Manager, Finance and Accounting Division, Daikin Industries, Japan, in a quote published in the study.
In this article, THINK Leaders lays out clear, step-by-step advice on how to identify and learn from hidden competition.
2. Consider how you will make new business models real
The IBV identified CFOs who have robust infrastructures and superior analytical abilities and dub the Performance Accelerators. The research found that 86% of Performance Accelerators surveyed are considering new revenue models and partnerships. A CFO’s job is often to figure out how to finance such initiatives. In this article, THINK Leaders offers a how-to on aligning innovation costs with business benefits.
3. Use predictive analytics to manage risk.
All of the Performance Accelerator CFOs surveyed rely on predictive analytics to plan and manage risk—yes, 100% of those surveyed by the IBV indicated this is their strategy. In this THINK Leaders profile of Cordell B. Sweeney, CFO of Pabst Brewing Company, we discuss his real-world strategies for deploying predictive analytics.