The following blog was recently posted by SAP’s Thack Brown on the Huffington Post web site and contains an interesting dialogue between a finance leader and his company’s CIO. Since many midmarket IT leaders report to or work closely with their CFOs this blog will be of interest to the greater MES audience. Brown, the GM, Global Head of Line of Business Finance at SAP, sat down with SAP CIO Americas, Michael Golz, to hear Golz’s perspective on the evolving role of the CFO and the relationship between finance and technology leaders. We edited this article for brevity’s sake so please read the entire interview here http://www.huffingtonpost.com/thack-brown-/a-cio-perspective-on-the-_b_1...?
In my past life as CFO of SAP Latin America, I saw the impact advances in technology were starting to have on the finance function, and continue to witness this evolution as I work closely with finance executives at customers around the globe today. As the role of the CFO continues to be influenced by technology, I sat down with SAP’s CIO Americas, Michael Golz.
Brown: From your perspective, how has the digital economy influenced the evolving role of the CFO?
Golz: CFOs today are tech-savvy and engaged with how IT can power business decisions. Truly successful CFOs aren’t just running cost comparison and reporting the figures, they embrace their role as a respected voice when it comes to business strategy and company direction, driving the value of company investments. The types of insights needed for making this type of high-level decision making cannot be realized without technology, it requires integrated, real-time business processes in finance and the overall enterprise.
Gone are the days of pouring over spreadsheets. CFOs are turning to technology solutions that can help them expedite and dive deeper into forecasting and reporting. Expectations from peers and key stakeholders are driving this transition. The demand for real-time insights for board meetings or executive sessions is key to success for enterprises today.
Brown: With so much crossover, how do the IT function and finance function work together? How has the interaction between the CFO and CIO role changed?
Golz: The CFO and CIO are more linked now than ever before. The finance-IT relationship used to be ‘order-taker,’ where IT would receive requirements from finance, and reciprocate tools and insights that they can pass along for informed business decisions. Now, IT is enabling the digitalization of the finance function so that CFOs and their teams can be much more self-sufficient. Finance and IT need to work together to remove latency from disconnected process steps and complex reporting, moving towards real-time insights and simplified processes.
Brown: Outside of the influence of technology, what other factors are shaping the CFO’s role today?
Golz: We are living in an unprecedented era of economic and regulatory volatility. Whether managing the impact of Brexit on the global market, navigating the M&A landscape or even responding to the outcome of the U.S. presidential election this fall, the world we live in today is rapidly changing, and any one of these factors can have a huge impact on a company’s business results.
Brown: As advanced technology and data analytics continue to play an increased role in the enterprise, what changes do you expect we will see in the C-suite more broadly? How will the CFO fit in?
Golz: The digital era is expanding the role of every C-suite member, and enabling a much more collaborative and strategic atmosphere in the boardroom. Data analytics is not solely the domain of IT anymore, but rather penetrates every aspect of the business. The CFO is leading the charge in this regard - truly transitioning to become a strategic visionary, and a wingman to the CEO. Armed with previously untapped insights, the CFO can provide unmatched strategy and insight for informed business decisions, and ultimately help sustain and grow the company.
Thack Brown is General Manager and Global Head for SAP’s Line of Business Finance. In this capacity, he is responsible for the full suite of SAPs solutions for the Office of the CFO. SAP has the market’s most robust portfolio of solutions for finance professionals, covering all the major financial process, including: Financial Planning and Analysis, Managerial and Statutory Accounting, Treasury, Risk and Compliance and core finance operations such as Shared Services, Real Estate, Travel and Expense Reimbursement, Accounts Payable and Accounts Receivable, etc. Follow Thack Brown on Twitter: www.twitter.com/SAPFinance
