From Chief Financial Officer to Chief Value Officer
The next evolution in business is upon us. In an increasingly global and digital society, technological advancement will continue to play a significant role in the continued progress of entire industries and set the stage for the emergence of new ones. “Enterprise 4.0” is the term used today to define the combination of digital technologies, data, and analysis tools found throughout the design and production chain. The impact of Enterprise 4.0’s digitalization will be significant in all sectors such as manufacturing, retail, service, healthcare, utilities, and transportation. The CFO will provide vital support for the company’s strategic and business decisions, with a broader professional horizon and vision enabling him or her, almost naturally, to undertake a growth process potentially leading to the role of CEO. In the 4.0 era, the CFO has the opportunity to increasingly become a Chief Value Officer, focusing on the creation of value for the business. The next wave of digital technologies will bring profound changes to the responsibilities, size, and shape of the CFO role. In a 4.0 world, the Finance Department will be a smaller function than it is now, but with more highly skilled staff and more competencies. As companies prepare to further integrate digitalization into their day-to-day processes, cost-reduction efforts can play an integral role in shoring up the cash flow needed to make necessary investments in new technologies.