CFOs to go Techno in 2014
CFO Group

Greater reliance on technology could see the rise of the chief financial and technology officer (CFTO) in 2014, says ACCA and IMA at the start of CFO Month in January.

CFO Month recognises the central role finance chiefs play in business strategy, as well as raising awareness of the challenges and opportunities they face now and in the future. ACCA and IMA are marking the annual campaign, which champions the work of the chief finance officer role, with a technology-focused theme.

According to ACCA chief executive, Helen Brand OBE, ACCA and IMA’s Futures research in 2013 pointed to greater technological involvement for CFOs across the world.

“Their involvement in big data and technology trends is critical to business growth and profit; as CFOs take on a more strategic and globally-focused outlook within business, technology will loom larger in their remit,” Ms Brand said.

“Cyber security, cloud technology, virtual and augmented reality, digital service delivery and even artificial intelligence and robotics are featuring more and more in business strategy. Chief finance officers are agents of change within today’s businesses, which means they are at the forefront of technological change. Who would have thought 10 years ago that these trends would become part of the CFO role? They are and will continue to do so. We could see the rise of the CFTO as a regular seat on the board.”

Two key reports from ACCA and IMA in 2013 showed how technology was impacting upon the CFO’s role. Digital Darwinism: thriving in the face of technology change pinpointed 10 technologies impacting finance professionals’ roles and the businesses they work in. According to the findings, mobile technology and cybercrime are just two such technology trends that are changing the role of the CFO.

A second report, Big data: its power and perils highlighted the potential for business of all sizes, governments and regulators to harness the wealth of unstructured information. The report found that 62% of CFOs across the world cited big data as hugely important to the future of business, potentially giving savvy businesses an edge on their competitors. The volume and variety of data available to be collected by businesses and governments is increasing at an intense rate, providing a potential treasure trove of information. The ability to organise, make sense and analyse it is at the core of the substantial investments that corporations are making.

Jeff Thomson, IMA president and CEO, said big data has yet to reach its full potential, but CFOs will need to be at the forefront of using such data.

“Its value is vital to a business, but potential legal and ethical pitfalls remain,” said Mr Thomson. “Finance professionals have a public duty to act within the parameters of the law and are responsible for using big data in an appropriate way.”