The role of the chief financial officer has undergone significant transformation in recent years.
That’s according to a panel of technologists, who were discussing the matter at the July gathering of the Enterprise Forum (a CIO-focused community initiative, supported by ITWeb Brainstorm and BCX), held at the Maslow Conference Centre in Sandton.
The panel included Lungile Mginqi, group CIO of Sasol, and chair of the Enterprise Forum; Mohammed Gause, CIO of Tiger Brands; Advocate Dirontsho Mohale, Group Data Privacy lead at Standard Bank; and Shadi Makhuvele, Executive Finance Business partner, BCX.
This discussion, which featured as part of the event’s wider agenda focused on technology’s role in cost optimisation, centred on the shift from ‘Traditional’ CFOs to ‘Transformed’ CFOs.
“Transformed CFOs combine traditional financial duties with a more strategic and forward-looking role,” said Makhuvele.
According to the panel, traditional CFOs are primarily concerned with financial oversight and focus on historical financial data, cost control, and internal operations. While both traditional and transformed CFOs handle core financial tasks, such as reporting and compliance, the transformed CFO goes beyond this. They are strategic, forward-thinkers and leverage advanced technologies for the organisation’s benefit.
Traditional CFOs often rely on manual processes and conventional financial systems, whereas transformed CFOs harness technologies, including artificial intelligence, big data analytics, and automation, said Mohale.
As well as leaning into data-driven decision-making, transformed CFOs are more progressive because they use flexible budgeting, interdepartmental teamwork, value-driven spending, and industry best practices, to enhance cost optimisation, agreed the panel.
As a more strategic executive, the transformed CFO will focus on partnerships, such as collaborating closely with the CEO and other C-suite executives, to shape and execute the company’s long-term vision, and drive business strategy.
This means they are often key drivers in digital transformation initiatives, fostering a culture of innovation and continuous improvement within their teams.
And this is often reflected in their outlook. Transformed CFOs understand the need to invest to evolve, and to drive digital transformation for competitive advantage. Of course, the challenge is investing in the right areas. “At certain times, investing in innovation is essential to prevent the business from becoming obsolete,” said Mginqi.
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