Five Things Keeping CFOs Awake at Night in 2019

In a recent LinkedIn article, Marco van der Kooij discussed five things keeping CFOs awake at night this year. We met him over the top of his 25 years of experience in enterprise performance management and business intelligence to explore how, during his career, he has helped more than 250 customers across Europe to modernize their financial processes.

 

How is the role of the CFO changing and what can CFOs do to manage their new responsibilities?


MVDK: Today, companies expect the office of the CFO to guide operational and business units, like sales, marketing, supply chain, and HR, while providing improved operational and financial results. But they provide data-driven guidance without the right technology, which historically hasn’t been robust enough to meet their needs.

To help direct organizations, the office of the CFO needs to adopt technology that enables them to produce data-driven business insights. I think that CCH Tagetik’s Analytic Information Hub is the answer to this need. It can store and synthesize both financial and operational data in a platform owned by Finance.

 

If technology is the answer to managing the new demands on Finance, what should progressive CFOs look for?


MVDK: CFOs need to seek out systems that enable artificial intelligence and predictive analytics in the near-future. While these technologies will inevitably become mainstream, they are still currently in their infancy. You can get a head start by creating a foundation for them. The first step? Implement an information-centric data hub with a single data point model that serves both finance and operations.
This is exactly what CCH Tagetik provides with the Finance Transformation Platform, and its Analytic Information Hub. I have seen the power of the Platform in action especially when combined with SAP HANA’s advanced analytics.

Five Things Keeping CFOs Awake at Night in 2019  

In addition to new responsibilities, how is the tumultuous regulatory landscape adding to the CFOs’ unrest?


MVDK: New regulations like IFRS 9, 15, 16 and 17, country-by-country reporting for taxes, new trade policies, and the upcoming Brexit have created a lot of uncertainty. The software vendor you choose should be committed to staying ahead of the curve, releasing updates and new modules to help you comply.

I have experienced with my customers as CCH Tagetik an excellent track record in providing content for various regulations like Finrep and Corep for banks, Solvency II and IFRS 17 for insurance, and lease accounting to name a few. Also, partners like PwC are providing prepackaged solutions for tax to release the CFO’s office from some of the burden.

 

Security, data governance, and data protection are big challenges for the CFO and CIO, where the number of users and the magnitude of data is increasing. How can CCH Tagetik help?


MVDK: First, CCH Tagetik eliminates the need to copy data to multiple applications or even within it for things like scenario analysis. CCH Tagetik also uses life-cycle management within its single system to maintain the data model. Second, CCH Tagetik’s strong workflow, process management cockpits, and audit trail tools allow users to have full visibility into what happened to data every step of the way. This addresses the CFO's requirements for data governance and ownership Third and last, CCH Tagetik is an ISO-certified cloud, so they take care of security, reducing the company’s risk and containing costs.

 

Many companies are hesitant to make changes to their systems, even if that change is markedly better. What’s your advice for dealing with change management?


MVDK: While change management is mainly in the hands of the customer and the project team, the software vendor can influence some factors to increase user acceptance namely a user-friendly software and education for both administrators and end users. CCH Tagetik provides an easy-to-use metadata and data loader to support a smooth transition and reduce implementation time. Its modern HTML5 user interface makes it possible to run CCH Tagetik on any device, which also increases user acceptance.

 

Interesting reading on how to go “Beyond Historical Financial Management”.

cch tagetik solutions

Share this post!