To succeed in today’s competitive business environment and in a world of increasing complexity, companies are increasingly going to rely on the technological and strategic prowess of their financial leaders, who must explore a slew of new demands and challenges, reporting on the past, managing the present, and designing the future.
We’ll look at eight emerging trends that every CFO should be aware of.
They should be aware of the future of finance in order to better assess and manage risk, develop innovative corporate strategies, and expand their businesses.
- IoT and artificial intelligence will provide better data:
Unlike some other trends discussed in this section, this one is much more macro in nature and has an effect on each of the following trends. It is a trend that is as much about individual elements as it is about the whole; particularly, the Internet of Things (IoT) and artificial intelligence (AI). IoT and AI have had a significant impact on every aspect of the new business. Companies that have implemented IoT can provide more comprehensive data to AI tools. It enables the systems to provide the most accurate information and deliver better data to all parts of the business, leading to better decision-making.
To remain competitive and innovative, financial managers must connect business data and leverage new AI techniques. Reliable real-time data enables managers to make data-driven decisions. Cloud-based solutions provide visibility across the organisation, and intelligent analysis tools transform data into actionable intelligence and optimised operations.
- The workplace and the contribution of finance managers are changing:
As the business world is becoming more complicated, so does the function of the CFO and those who work in the financial sector. According to trends, the role is increasingly being tasked with ensuring the company’s growth. It includes, among other things, taking on more liability for the organisational strategic direction, investing in new technology, performing risk assessments, and driving business creativity and transformation. Furthermore, they should manage a dynamic workplace that is changing constantly. Modern companies rely on the financial and strategic competence of financial managers for everything from hiring and work interaction to product development and mergers and acquisitions. The CFO’s role is becoming widespread, with growing influence throughout the organisation and as a leader in the organization’s transformation.
The CFO’s position can be summed up by two simple truths:
1) if something impacts the bottom line, it is the CFO’s responsibility, and
2) everything impacts the bottom line.
- Excellent customer service is a top priority:
Client satisfaction is always critical to a successful business. In today’s market, this focus has begun to take on a new shape. As a result, their goals have changed. It includes, among several other things, a high degree of control, future value, and simple and practical engagement with businesses.
In line with these expectations, a rising number of managers are utilising modern technology to achieve a better understanding of their needs. There are new ways to make interactions easier and more enjoyable for the client, like mobile and flexible functions. Because this allows companies to tailor customer experiences to each person, it helps build long-term relationships with customers.
- Intelligent data is the new driving factor:
Technology has long been a main driver in the financial world, and economists have been early adopters of various digital workplace innovations for decades. Intelligent data is extremely important in business, and today’s CFOs are increasingly utilising new, cutting-edge technologies like artificial intelligence and blockchains.
Modern financial managers necessitate more reliable information, insight into company profits and trends. New digital technologies allow you to, among other things, streamline operations, predict the results, evaluate risks, and create strong long-term strategies. By cutting prices, increasing processing capability, improving quality assurance, and freeing time for more strategic tasks, AI and robotic process automation can help with this.
- Fintech has become a tremendous opportunity:
Today’s business environment is characterised by fiercer competition than before, and the line between successes and failures is razor thin. A small change in input can lead to significant changes in output and performance. CFOs are constantly looking for ways to achieve a competitive edge, and many are turning to new financial technologies to improve their ability to do so.
Even though Fintech is not a new concept, it has emerged as a powerful key differentiator for businesses that understand how to do it effectively, and it is one of the market trends that everybody in finance should be aware of. Many of these technologies are mini and better targeted, but even slight technological changes can have a significant impact. As a result, businesses invest more time and money in this growing field of financial technology.
- Business models are being reimagined:
Today’s business models are progressing in tandem with the market, and financial managers have started to transform their organisations in response to these changes. CFOs must constantly find new opportunities to interact with their customers and create long-term relationships with them. Many businesses have found that by utilising the cloud and, for instance, converting their products into license-based services, they could more easily meet the needs of their customers. This entails, among other things, a foundational shift in the business model and an understanding of how to better achieve the requirements of clients. Moreover, this provides businesses with a significant advantage in a rapidly changing business market.
- Businesses adapt to geopolitical risks:
As per a recent study, data management and data integrity are now at the top of managers’ lists of problems and concerns when it comes to managing cybersecurity. With more data sources than before—and more systems and people both in and outside of the organisation who can possibly access the information—many firms are starting to enhance or manage patches of various data security measures.
Even though executives report that digitalization and cyber security are top priorities for their organisations, the two features are commonly not well integrated. As a consequence, businesses frequently fail to think about the impact that modern technology can have on their customers’ data security. People in the financial world are looking for new ways to deal with uncertainty in the face of new cybersecurity threats, geopolitical moves, and new rules.
- A renewed perspective on ethics:
Modern companies are increasingly working on social issues that affect their staff, clients, and society as a whole. It is done on ethical grounds as well as because the market is starting to demand it. Consumers today are increasingly fighting for greater ethical standards in businesses, while modern technology and increased use of social media are increasing company transparency. As an outcome, even minor ethical steps could be costly.
Even so, it is not the fear of negative publicity that motivates businesses to act more ethically. Several business owners have found that ethical operations offer significant benefits. Whether it’s through cost-cutting metrics or increased creativity and achievement through work diversity, As a result, they would be able to meet the growing pressure on sustainable practices from clients, regulators, and shareholders, among others.
Put your knowledge into action:
With Dynamics 365 Finance, you can digitise and modernise your financial operations. Dynamics 365 Finance assists your firm in finding patterns, predicting opportunities, and offering in-depth insight through in-depth analysis and data visualisation. It also gives you the tools you need to deal with new challenges and acquire new skills, as well as effortlessly report on the past, handle the present, and create the future. Automate and modernise all of your business’s financial operations, and use great analytical tools to make smart decisions and stay on top of changes in the economy.