The transition from CFO to CVO... new challenges for CFOs

Digital transformation, new regulations, the emergence of urgent ecological issues, consumer awareness and the predominance of communication are all challenges that need to be taken into account when implementing a corporate growth strategy. 

These changes have an impact on all departments within a company, and lead to the emergence of new skills. However, the pressure of these changes is mounting on the finance department, which is responsible for a key strategic decisions of the company. Against this backdrop, the role of the CFO is undergoing a significant change. So, how can an ERP system help them? 

CFO vs CVO: what's the difference? 

In recent years, financial services have undergone a decisive change, driven by digital transformation. The scope of the activities of this department has broadened to include environmental and social aspects to a greater extent. This change is having an impact on the role of the CFO, which means that his or her skills are evolving. 

What is a CFO? 

he CFO, or Chief Financial Officer, is the guarantor of a company's financial, administrative and legal equilibrium. His role involves implementing financial strategy and monitoring reporting to management. CFOs today are faced with changes they have never had to deal with before: access to massive amounts of data and technological innovations. 

The CFO focuses on the finances of the company, while the value of the company is not limited solely to its financial results. As a result, the CFO needs to adopt new dimensions and skills, and his or her role is changing to become the Chief Value Officer (CVO). 

What is a CVO? 

The role of a Chief Value Officer goes beyond the management of financial information and extends to multi-capital accounting and value creation. The CFO will ensure that all value-creation aspects of a company (financial, social and environmental impacts) are measured and communicated to management and external stakeholders. 

This expert must combine the skills of the CFO with knowledge of new technologies in order to propose an effective business development strategy. Faced with digital transformation and rapid organisational change, the CVO is a strategic partner for management. 

What are the challenges facing finance directors? 

Today, the finance sector is facing its own challenges, both in terms of optimising its activities and supporting the growth strategy of the company. The CFO must develop his or her skills and increasingly adapt new technologies to create an effective business transition plan. 

Act as a strategic partner 

The CFO has an increasingly central role in the strategic direction of the business, particularly in areas of investment linked to digital transformation, value creation and risk management. The need for strategic advice from finance will only increase, as changes force companies to accelerate their digitalisation. The CFO must therefore anticipate trends and become a player in the transformation of the company. 

Improving business agility 

Faced with these rapid changes, the CFO must be able to reassess priorities, redistribute resources and make strategic shifts. In this context, CFOs are leaving behind traditional approaches to forecasting financial requirements. These experts are able to adopt broader and more flexible future scenario plans to make the company more agile. Organisational change is leading to greater integration of finance with other business processes, so that the CFO can analyse, forecast intelligently and manage risk across the business. With a holistic view of the business, the CVO is an essential strategic driver of expansion. 

ERP for finance: a tool to support CFOs in their missions 

Today, companies can benefit from adopting the right tools to support the role of the CFO, who must manage costs and investments rigorously while driving innovation. ERP software for finance gives the CFO visibility across operations and more accurate data to drive business results. 

Optimum cash flow management 

In a changing environment, CFOs need real-time visibility of raw material prices, transport costs, production costs and information on supplier activities. By centralising a set of internal and external data, an ERP system enables the finance department to Optimise cash flow management and maximise profitability. This management tool ensures reliability and accuracy of the information gathered, a crucial asset in cash flow management. 

Une diversification des opérations commerciales

Face aux bouleversements des habitudes de consommation, les directeurs financiers doivent s’adapter et réorienter les dépenses vers de nouveaux marchés ou de lignes de produits et technologies pour prospérer. En effet, il est essentiel pour une entreprise d’améliorer de façon continue la manière dont elle conçoit, vend et personnalise ses produits ou services pour ses clients. La mise en œuvre d’un logiciel ERP offre ainsi toutes les connaissances et l’intelligence nécessaire au directeur des finances pour gérer en temps réel l’intégration de nouveaux processus à mesure que l’entreprise développe de nouveaux produits et services.

Diversification of sales operations 

Faced with upheavals in consumer habits, finance directors need to adapt and redirect spending towards new markets, product lines, and technologies to prosper. It is essential for a company to continually improve the way it designs, sells and customises its products or services for its customers. Implementing ERP software gives the finance director all the knowledge and intelligence needed to manage the integration of new processes in real time as the company develops new products and services. 

Data-driven decision-making 

With the integration of a management system, the CFO has at his disposal dashboards, key performance metrics and other tools to measure the overall activity of the company, which are useful for optimising operational processes. Monitoring these metrics enables performance to be measured and potential investment opportunities to be identified. 

In the race for digital transformation, companies may be under pressure to transform their obsolete systems, and need to make the best investment decisions to ensure the long-term future of their business. The data centralised by an ERP tool also provides the CFO with the information needed for financial, technological, and market analysis, with the aim of assessing the opportunities and risks of digital transformation. 

Today, it is no longer just a question of interpreting financial data; the approach must be more global and value-creation must be at the heart of the company. In this context, a management solution can be of considerable help to any growing business whose operating model is becoming increasingly complex. This tool will enable both internal and external data to be structured, with the aim of providing the finance department with a precise overview in real time. 

As a result, the role of the CFO is shifting towards new objectives: becoming a strategic advisor, ensuring that cash flow is optimised, supporting decision-making and projecting the company into the future. It will help the company to identify opportunities to increase revenues, reduce costs, and deploy investments strategically to maintain ongoing growth. To support the CFO in his day-to-day work, it is preferable to opt for an ERP tool that is as flexible and modular as possible.