The role of CFOs in the digital transformation: from number crunchers to strategic technology experts
Traditionally, CFOs were responsible for financial stability, budget planning and reporting. Today, their role has expanded. Digitalisation and the integration of IT systems in all business areas require CFOs to have a deep understanding of technological developments.
And this is not just a trend. According to a study by PwC, 73% of CFOs see the digitalisation of the finance department as a high priority. This focus on IT and data management shows that modern CFOs must not only be financial strategists, but also architects of digital transformation. Especially in global industries, where complex supply chains and multinational processes play a role, the close integration of finance and IT departments is essential.
Automation: efficiency through digital solutions
One of the main reasons why IT skills are so important is to increase efficiency through digital finance processes. Finance teams that utilise digital tools such as Robotic Process Automation (RPA) and Artificial Intelligence (AI) can automate repetitive tasks such as accounting, payroll and tax calculations. This not only results in cost savings, but also significant efficiency gains.
A study by Kanaparthi (2024) examines the integration of blockchain, artificial intelligence (AI) and machine learning (ML) into financial accounting practices. The results show that the use of these technologies reduces accounting costs, increases accuracy and enables real-time financial reporting and faster audit processes. In addition, repetitive tasks can be automated, reducing the need for additional staff and thus saving costs.
These benefits allow CFOs to focus their resources on more strategic issues such as risk management and business planning.
Data expertise: the key to the future
Another key argument in favour of IT skills in the financial sector is the ability to use large amounts of data effectively. In the world of finance, which is increasingly based on data-driven decisions, analysis tools such as Tableau, Power BI or specialised ERP systems are indispensable. With their help, CFOs can create more precise forecasts and recognise trends at an early stage.
The challenge? These tools must not only be implemented but also understood. This is where IT skills come into play. Finance employees need to know how to extract the crucial insights from a jumble of figures.
Data also plays a crucial role for the HR department. In our blog article "Data-based HR management: How CFOs and CHROs can work together to ensure the company's success", you can find out how data-based HR management achieves measurable success in employee retention, productivity and cost management.
Cybersecurity: protecting sensitive financial data
Digitalisation also increases the risk of cyberattacks. Finance departments that work with sensitive data such as salary information, tax data and annual reports are particularly at risk. According to a study by the digital association Bitkom, 74% of German companies were affected by data theft, with the total damage caused by cybercrime estimated at 178.6 billion euros. This makes it clear how important it is to integrate IT competences within the company in order to develop and implement security protocols.
CFOs play a key role here: they not only need to ensure that the right technologies are used, but also that their teams have the necessary skills to recognise and ward off potential threats.
Necessary IT skills for finance teams
In order for finance teams to successfully tackle the challenges of digitalisation, they should have the following key IT skills:
- Data analysis and visualisation: Ability to use tools such as Power BI, Tableau or Excel at an advanced level to create reports and analyse trends.
- Automation and process optimisation: Knowledge of Robotic Process Automation (RPA) and workflow management tools to automate repeatable tasks.
- ERP systems: Expertise in the use and implementation of enterprise resource planning systems such as SAP or Oracle, which integrate central financial and operational data.
- Cybersecurity: training in the detection and defence against cyber threats as well as knowledge in the implementation of security protocols.
Talent management: recruiting the right specialists
Digitalisation requires not only technological investment, but also a change in HR strategy. Finance teams need specialists with both financial and technological expertise. This is a challenge, as the market for such talent is highly competitive.
More and more companies are finding it difficult to find employees with a combination of financial and IT skills. It is therefore important not only to invest in recruitment, but also to offer targeted training programmes to qualify existing employees for digital tasks.
This is where CFOs are in demand: it is no longer enough to wait for the perfect candidate. Instead, they need to invest in training programmes to develop existing talent. Training on digital tools, data analysis and cyber security should be standard today. Companies that invest in their employees will not only have better performing teams in the long term, but will also be more attractive to new talent.
