It’s time for CFOs to embrace frontier tech!
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It’s time for CFOs to embrace frontier tech!

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To future-proof the role of finance in a rapidly changing world, successful CFOs are using frontier technologies to build value in their business partnering. The role of finance relies on the collection of data, its authentication and verification, and its interpretation to deliver valuable decision-making insights.

The frontier technologies we have examined in this series, Artificial Intelligence, the Internet of Things, and Blockchain, are the tools we need to make this happen. Specializing in new areas of technology will become a strength of the finance function, bringing in revenue-generating and business partnering opportunities for CFOs and businesses who choose to embrace them.

We are on the cusp of a paradigm shift in the role of finance, re-defining the essentials of value creation and establishing a partnership between humans and machines. This is not vanity but a necessity. The volume of data to which we have access is doubling every two years, and without moving forward we risk being submerged. To continue to add value, new tools are essential.

The golden triangle

The key frontier technologies we have reviewed form a natural three-way relationship. They are all effective, but stronger together, and CFOs need to understand how each complements the other in driving value creation.

  • The Internet of Things collects data from billions of sources. The tech-savvy CFO has to be ready to define what data is needed, what should and should not be collected, and how it can be interpreted to add value to strategic decision-making.
  • Blockchain acts as a verification layer for the data that is collected. By recording each touchpoint in an honest ledger of transactions, we arrive at a single, trusted, golden copy of the information. This can be shared far more widely than a single siloed organization without compromising commercial confidentiality and showing the audit trail and source of data. It is also the repository of rules of engagement, elements such as supply chain acceptance criteria enshrined in smart contracts.
  • Artificial Intelligence is the business partner of the business partner! By combining the strengths of humans and machines, the data native CFO can release value trapped in siloed documentation and unlock trends and insights from big data that might escape human observation. The finance function can harness Robotic Process Automation to focus staff on complex tasks, and use Machine Learning to refine and improve processes.

There are other technologies running alongside these, of course. A clear understanding of cybersecurity is an essential part of delving into data and the digital realms. The emergence of the Metaverse and the role of virtual and augmented realities will have an impact upon data collection and interaction with customers. Crypto assets in all their forms will become increasingly important. A CFO who embraces frontier technologies will take these in their stride.

Over to you!

Professional accounting and finance bodies are already training their members to adopt a digital mindset. Members can access courses on IoT, AI, and Blockchain through most CPD providers, part of the industry’s drive to meet the challenges of fast-moving business environments.?

What does the future hold for you? Have you already adopted that digital mindset? Do you consider yourself a data native? Have you started the transformation of your finance function to deliver better business partnering through new technology? Please share your experiences, and help all of your peers to embrace frontier technology as a driver for successful business partnering, now and in the years to come.

This was the tenth and final article in my latest series "Frontier Technologies for Finance". You can read the previous ones below. Remember to click subscribe to be notified about future articles.

How are frontier technologies impacting the world of Finance?

Why CFOs are well-placed to understand Blockchain and Distributed Ledgers

It's time for CFOs to get a grip on cryptoassets

CFO, here are your blockchain use cases

How blockchain is shaking up your financial statement

What CFOs need to know about the Internet of Things

CFOs and the Metaverse: What role should they play?

Will AI replace humans in Accounting?

Why CFOs need to become data natives

Continue reading below for more articles about how digital is impacting Finance.

Why The Digital Revolution Hasn’t Caught Onto Finance Yet

Tech vs. People. Where Should Finance Invest?

A Digital Reality Check Of The Finance Function

How To Make Robots A Part Of The Finance Family?

Why You Should Only Robotize Standard Processes ?

Robots and Humans. A Marriage Made In Heaven Or Hell?

A Tale Of Robots: From Assembly Lines To Knowledge Workers

Robots Must Solve Business Pains To Be Successful

What AI Competencies Do Your Finance Team Really Need?

Here's How To Test If Your AI Solution Will Be A Success

You're The User Of AI. Yes You, So Take Charge!

Blip. Blop. Accounting Robot. Are You Ready?

Are You Ready For Robotics Process Automation?

Have You Met Your Robot Accountant Yet?

Robots Are The Future Of Analytics

Your Robot Accountant Has A Name, It's Dixie

Anders Liu-Lindberg ?is the co-founder and a partner at the?Business Partnering Institute ?and owner of the largest?group dedicated to Finance Business Partnering ?on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk . I am the co-author of the book “Create Value as a Finance Business Partner ” and a?long-time Finance Blogger ?on LinkedIn with 70.000+ followers and 150.000+ subscribers to my blog. I am also an advisory board member at?Born Capital ?where I help identify and grow the next big thing in #CFOTech.

Robert Jaeger

Writer / Optimist / Servant Leader / Quality / Controlling Specialist / Manufacturing Expertise / Experiences in Sales / Father / Husband / Lover of Life ??

2 年

Hi Anders, we as a larger broad organization are trying to implement this. Within certain divisions they are faster than others. I am trying to push this from the bottom up and trying to also help with making this change. I have found that it is difficult to get this culture shift sometimes. I try to push even a low technology tool like PowerBI by using an intern and teaching, and allowing him to make a new model, to help show others that we should be embracing new technology. The absolute difficulty though is this change needs to be made from the top, as we need experts in both these new technologies so that we have a position that is focused on this shift as opposed to employees that have the skills to help build these programs. I think companies realize this. I work in manufacturing and we tend to spend a large amount of capital on new machinery and expansion, because it is easy to do an IRR to really show how well we can recoup money. It is much more difficult to do an IRR to show how hiring a new person or position will help Finance reduce costs in a plant as the savings sometimes are not concrete to people that are so used to seeing concrete things.

Christian Wattig

Director Wharton FP&A Certificate Program | Corporate FP&A Trainer | ex. P&G, Unilever, Squarespace | 100k Finance Audience

2 年

What can't be stressed enough is that CFOs need to make sure not to be left behind with embracing AI, IoT, and blockchain tech. Take RPA (Robotic Process Automation) as an example. It has been around for over 20 years. And yet, I witnessed even large, multinational companies only starting to roll it out in the last 5 years. As a result, competitors easily out-innovated them because they had all the additional time on their hands. Great food for thought. Thanks for sharing Anders.

Paul Barnhurst

Helping FP&A Professionals provide value to their businesses | Founder of The FP&A Guy | Host of 3 popular Finance podcasts | Microsoft MVP

2 年

Anders, thanks for sharing this post, and I agree adopting frontier technologies is important. The three technologies you mentioned are all growing rapidly and have the ability to drive efficiency and streamline the way the finance department of the future works. Driving these efficiencies through technology will free up time for resources to focus on driving value for the business.

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