Horváth CFO study: Digital transformation puts CFOs under pressure

The Horváth CFO study underlines the clear tendency that 77 percent of CFOs see the biggest "construction site" in the digital transformation. In second place, at 64 percent, is the reorganization of the finance area to adapt to predominantly digitally driven new business models. This change is driven by new developments in basic technologies such as in-memory and in the area of advanced analytics, according to the findings of the Horváth CFO Study 2018.

The Horváth Resource Barometer measures, in addition to the above-mentioned study, the number of advertised vacancies (full and part-time) on Swiss corporate websites. It records more than 2,500 advertised vacancies in Switzerland every month in the selected functional areas of organisation, purchasing, finance and controlling using Webspider. The data provides indications of the areas in which Swiss companies of all sizes have a need for resources and thus currently set thematic priorities. Horváth sees a particular need for action in the area of finance, which needs to be digitized.

Incorrect, incomplete data

Today, more than one in two CFOs has to deal with incorrect or incomplete data (53 percent). The proportion has increased by 19 percent compared to the previous year. The main reasons for this are the use of different systems and the manual consolidation of different data sources. However, structured, standardized and, above all, valid data is a basic prerequisite for further analyses. According to Dr. Mario Stephan of Horváth & Partners, the number of CFOs who make decisions based on insufficient data is high.

This realisation is leading to an increasing demand for finance professionals with in-depth data handling and systems skills, such as those needed for data security, cyber security, business intelligence and advanced analytics respectively. This is the driving factor behind the increase in advertised finance jobs requiring explicit IT skills (YtD +7%).

The increased transformation to digitalization solutions is challenging the finance areas of companies and requires additional competencies in dealing with data and systems. An increase of seven percent in advertised finance jobs requiring explicit IT expertise was recorded by the Horváth Resource Barometer between January and September 2018.

"In the digital transformation, CFOs should nevertheless not lose sight of their classic topics. In order to achieve the actual efficiency goals, it is becoming increasingly necessary to make the best possible use of the opportunities offered by digitalization. This by CFOs pushing the issues such as automation, standardization and integration of systems. In the next few years, most companies will have to further develop their CFO organization with the help of optimized processes as well as strengthen it with new competencies and skills," advises Horváth expert Dr. Mario Stephan.

For the "CFO Study 2018: identifying opportunities for digitalization and mastering the digital transformation of the finance function" Horváth & Partners surveyed companies in Germany, Austria and Switzerland. A total of 200 CFOs and other finance executives provided insight into their agendas in the first quarter of 2018.