More than half of CFOs (58%) surveyed in the TCS 2020 CFO study said they are not only in charge of digitizing the finance function, but they also play a key role in digitizing the entire business and taking advantage of larger digital ecosystems.
Faster innovation, flexible resources, and economies of scale – and that’s towards the ideal business scenario for every supply chain organization. CFOs- being a strategic segment to every organizational structure, keep adding continuous efficiency improvements in order to maximize value across the board. Navigating all their efforts towards driving growth and meeting economic challenges, CFOs need to respond faster - in ‘real-time’, faster than ever.
And this is where cloud-based digital capabilities can provide the required leverage to supply chain organizations and their CFOs. The cloud platform is well known for its cost-effectiveness and the ability to scale.
When it comes to a CFO and various organizational functions, cloud solutions are not to be adopted in singularity. In fact, they become a holistic pathway for the eventual transformation that comes via clearly implemented cloud strategies – simultaneously. Each cloud initiative has to be well-justified for the spend thereof and return calculated in terms of the value proposition. However, CFOs or other finance leaders viewing cloud spends as tools of cost reduction is a flawed point of view. Cloud initiatives, in all stages, are value drivers that deliver a bigger edge in the market.
The benefits - you ask?
Organizations are able to scale, innovate, and launch new products and services quickly—and assess their impact in real-time. Any fluctuations in demand can be managed with much ease.
Faster and better insights:
Agile business model leads to faster innovation in products/services and customer experience; a pathway that leads to profitable growth for functions and overall enterprise.
Cloud represents a fundamental shift in how technology
solutions are developed and delivered. Say 'Hello' to data solutions, advanced analytics, machine learning, and more.
All organizations that exist in the supply chain domain are in a certain phase of their growth journey. And with the awareness and resources around, these organizations definitely want to let go of the legacy setups and practices. However, rebuilding the technology setup while halting operations is not affordable. Hence, avoiding a large up-front technology investment is the key. So, when it comes to considering the cloud, here’s what should be the course of action.
- Begin with a clearly laid out comparative study between on-premises vs cloud costs, driven by the benefit of value against cost.
- CFOs need to make sure that they are able to build the additional cloud investment on top of the ROI of existing IT investment
- Initiate the change by moving certain functions in place of the entire departments/enterprise. Also, remember that mere lifting and shifting of certain parts won’t serve as a band-aid against the functions/departments suffering from legacy damages.
- The key to successfully implementing the cloud in core enterprise strategy is via a transformative roadmap delivering cloud advantages to all functions, in a sustainable yet scalable approach.
|CFOs, CIOs, and CTOs – together can begin 'cloud-thinking' by asking the following decisive questions.|
|Q. What are the exact advantages offered when the new capabilities are in place?|
|Q. What critical/decisive information isn’t available in a timely manner? Is the cloud investment going to change that?|
|Q. How much is the investment in cloud going to cost and what is going to fund the same?|
|Q. What are the top benefits that your organization can start realizing in the first six months?|
|Q. Is the investment driven by the ideals of cost savings or value proposition?|
|Q. How will the new investment impact the existing and future operating model?|
Given the various disruption at play, organizations are in a cost-cutting mode, and that applies to any big, upfront investment as well. However, the ones that realize the need of the hour and are confident on focusing on the long-term gains brought about by digital capabilities, are at advantage. A poorly planned digital capabilities adoption initiative can wreak havoc in the organization. This is where the careful evaluation and study of a CFO comes into play for a strategized cloud migration roadmap.
Companies that make the move now and invest in a transformative roadmap delivering a cloud business technology platform are going to reap the benefits in terms of innovation, agility, and cost. With a collaborative, cross-functional approach, the CIO/CTO and the CFO can work together for absolute organizational success in today’s and tomorrow’s business world.