Critical Success Factors: Data, Digital, and Strategic Leap of Faith

The Tech CFO's Role in Driving Innovation

In today’s fast-evolving business landscape, the role of the Tech CFO is more critical than ever. From internal functions to supply chains and customer relationships, a Tech CFO must be more than just a financial leader—they need to be a tech-savvy collaborator with the entire C-suite. This article explores the key success factors for Tech CFOs around data, digital innovation, and the strategic leaps of faith required to propel businesses forward in an increasingly competitive world.

UK vs. US Productivity: Why It Matters

A lot of attention is placed on productivity, especially in the context of the United States, which consistently outpaces other G7 nations in productivity growth. Since the financial crisis of 2008, the UK has struggled to keep pace with stagnating productivity levels. This gap has resulted in slower wage growth, lower living standards, and a loss of talent in more dynamic markets. For businesses, the lesson is clear: companies that achieve higher productivity will attract the best talent and create a cycle of continuous improvement.

Investing in Tech and Talent

For a Tech CFO, supporting the business’s growth means looking beyond traditional financial metrics and focusing on modernisation and innovation. By fully utilising data and digital tools, companies can achieve significant productivity gains, but this requires investment—not only in technology but in the right talent to maximise its potential.

• Streamlining Operations: Implementing digital tools can help streamline back-office operations, allowing companies to operate more efficiently. This, in turn, creates the capacity for innovation.
• Better Data, Better Strategy: Access to high-quality data enables more informed decision-making. CFOs can use data insights to help the business identify trends, predict key shifts in the market, and respond faster to opportunities and risks.

Taking Strategic Leaps of Faith - Balancing Risk with Innovation

No business can grow without taking risks, but not all risks are created equal. The Tech CFO has a crucial role in helping the business take calculated leaps of faith. Using improved data analytics and an awareness of megatrends, CFOs can guide leadership to make bold, informed decisions while avoiding reckless gambles. One example of a strategic risk is decentralising the supply chain. While traditional models focused on centralised control, today’s global disruptions demand greater flexibility. A Tech CFO can support the business in adopting a more resilient, decentralised supply chain model.

Global Process Ownership (GPO) and Glocalisation

A Global Process Ownership (GPO) model allows a growing international business to align its processes across borders, promoting greater resilience and agility. But how does this align with the need for decentralisation, particularly in supply chains? It may seem contradictory, but a GPO model can coexist with decentralised operations, particularly when supported by great data and cutting-edge technology. The GPO model encourages alignment of processes across the organisation while being sensitive to local cultures and needs. This creates a unified business that can respond faster and more effectively to global changes.

Collaboration is Key

One of the most important lessons for any business is not to go it alone when making large investments or strategic changes. CFOs should collaborate with advisors, peers, and other professionals to gain insights and avoid common pitfalls. Leveraging external expertise can make all the difference when trying to stay ahead of market trends and industry shifts.

At MHA, as part of the global Baker Tilly International network, we have some brilliant teams who can support you, be it on your international tax affairs and restructuring, with our international tax team, generating the required finance to take your business to the next level with our banking and finance team, or changing your business structure to raise greater leverage and opportunity with our corporate finance team.

Building a Resilient, Global Business

In today’s rapidly changing world, businesses need to be nimble, tech-driven, and prepared to take risks. The Tech CFO plays a pivotal role in ensuring that these risks are data-driven and aligned with broader global trends. By investing in technology, aligning processes across borders, and collaborating with industry experts, your business can not only survive but thrive.

If you’re looking to future-proof your business and make a positive mark, reach out to MHA today. Let’s work together to build a more resilient, global, and innovative business for the future.