The Redefined Role of a CFO with Digitization, GDP and GST
It is a well-known fact, that an enterprise’s greatest asset is its workforce. The key areas of growth and performance are essentially driven by the employees of an organization and the merits of talent, knowledge, and skills are much more valuable than any other physical asset. With the recent exponential growth in business around the world, the need for human capital is even more pressing and this is where a CFO steps in.
With the evolution of the needs of an organization, CFOs too will have to play a more active role and take responsibility for forecasting and personnel planning, strategically. Hence, here’s taking a look at how various factors such as Digitization, GST and GDP are redefining the role of a CFO within an organization:
- Digitization and the CFO as a Business Intelligence Unit: With digitization affecting business practices and governance alike, the role of a CFO too is evolving into something akin to a business intelligence unit. The focal point hence, for a CFO becomes two pivotal areas. Firstly the CFO needs to make a company analytics ready, and employ metrics in real-time to ensure maximum client/customer satisfaction. The second area of focus is the creation of an infrastructure that enables the recruitment of the right fit for the organization.
- GST as an opportunity: The implementation of GST, seeks to bring about considerable changes for businesses in India. With a lasting impact on making businesses more macroeconomic, in nature. Further trickle downs like lesser boarder burden, a simpler flow of goods all will result in the potential growth of the GDP, opening up more opportunities for the CFO to tap into, across several sectors.
- Correlation with GDP: The impact of GDP though not a direct one on the sector, its largely felt by the creation of a flexible workforce that can sail through times of uncertainty. Hence, the prospects of permanent recruitment and creating the right workforce, still have massive opportunities in the country, which remain untapped. Hence, the focus of the CFO here lies in employing available resources, to this end.
What do you think has been the impact of Digitization and GST on the role of a CFO? Tell us more about your views, in the comments section below.