CFO’s digital challenges in 2021 (and how to overcome them easily)

I bet you’re sick and tired of bringing the pandemic topic to the table every time you need to make a strategic plan. However, like it or not, this is still “the name of the game” and we (all) are forced to keep an eye on this topic and see what’s happening next.

In 2020 digital transformation was accelerated, being suddenly perceived by many businesses as a safety belt during COVID 19 storm. It is not just a hunch. A series of statistics fully demonstrate it. Paradoxically (or not), while cutting costs, companies decided also that investing in digital transformation is the next best thing to do.

For instance, I’ve just come across an interesting stat the other day about pre and post COVID-19 digital transformation spending growth worldwide 2020.

“The pandemic has resulted in businesses worldwide embracing digital transformation technologies and services, although some still predict that the digital economy may likely endure a long-term revenue loss like the overall economy.” (Source: Statista)

NOTE: If you came across my LinkedIn profile at some point, you might notice that I’m a marketer for a development company. So, at first glance, I have (almost) nothing in common with the financial field and especially with a CFO’s challenges.

You are fully entitled to ask me, therefore:

“What’s the catch? What do you know about the challenges a CFO should expect this year?”

It happened to be close enough to some financial projects in the past year and see how CFO’s challenges get shaped into specific, custom-build digital apps.

(And by “CFO’s challenges” I try to underline not only the fact that we managed a large number of financial projects, but also that the decision-maker in these financial projects were usually CFOs from medium to large companies).

And this made me realize that this domain is struggling more than ever to overcome some bottlenecks and adapt to this fast forward digital transformation process. It also made me more aware of the responsible role you have to play as a key position in the operating committee and a critical digital transformation driver.

2021 CFO’s digital challenges defined based on some inside projects stories matched with market trends

So, by putting stats, trends, and experience together, I’ve identified 8 major challenges that will continue to impact your work in 2021

Building a digital strategy became a leitmotif lately for almost every company (from start-ups to medium and large ones). It sounds like a great and helpful thing to be done. But also a precarious and challenging one.

While CFO’s role seems to be more and more about reshaping investments strategy according to market changes, building an efficient digital strategy continues to depend strongly on:

• understanding how technology is going to change your business;
• anticipating big disruptions and being prepared for dealing with them;
• taking into account new businesses.

And, speaking of disruptions, it becomes more obvious that 2020’s dramatic changes echoes will shape this year’s trends. Here are some examples:

• synchronized technologies become a must-have — from integrated apps working as a harmonized orchestra to developing platforms that are able to provide analysis and forecasting;
• digital transformation is limited by the chaos of fractured markets and economies, while audiences are expecting solution able to provide agility and responsiveness;
• users (external customers/employees) become more digitally focused and expect personalized and relevant experiences in both virtual and physical environments.

#1 INSIDE STORY: How do our customers cope with this challenge?

“What if some new and out-of-control disruption happens (again)? What are the chances to adapt fast my existing solutions to new requirements?” In the past year, our clients expressed these concerns more often than ever during the consultancy sessions.

Our advice was (almost) always the same: find a stable and reliable dedicated software team to develop custom solutions (even made from scratch) to ensure that you can make any time updates and changes (new features, integrations, interfaces, etc.) without risking blockages, data loss or difficulties of use.

For instance,12 years ago, one of our current clients requested a financial web app to transfer data and documents between individuals and financial organizations. Of course, these projects’ key requirements were robust security, 99,99% uptime, and a bug-free system. Today the platform looks quite different, but it has never been inaccessible to users. The solution? Stable development team who constantly maintain the platform, extended and updated it according to users’ needs, contexts, etc.

2. “How should I approach the legacy code to help internal and external systems to still respond to our current needs?”

A legacy system could mean many things: your digital solution may only run in a legacy environment, security flaws that can compromise not only your company’s activity but also sensitive data stored, disseminated flaws, security vulnerabilities that have been exposed for years to hackers, outdates usability, etc. In other words, legacy code is challenging from both a security and functionality perspective.

Most systems were purchased from a vendor that is no longer interested in investing in an outdated product. And that’s another major issue.

How should you approach the legacy code to help internal and external systems still respond to our current needs?

#2 INSIDE STORY: Deblocking internal processes through a refreshed solution

There are many cases in which customers come to us with outdated digital solutions, which are neither secure nor efficient. I won’t lie to you: it isn’t easy at all to take over an outdated project and turn it into something fresh, intuitive, and functional. There is not such a thing as magic in the development software field. Just hard work and solid experience for doing things right.

That was the case for the nGage HR project. When the client decided to work with us, he had an outdated platform that was created based on a framework (developed by the former provider) that wasn’t built to support complex solutions, features, and add-ons. After only two days of knowledge transfer, we took over the project and began to optimize the application, which initially hadn’t been designed for speed and performance on a high data volume.

3. “We are investing in digitalization by developing several apps. What should we do to make them work together?”

Developing a digital solution every time a new need appears it’s as common as risky. Many CFOs discover that they have invested in several apps and still don’t have a clear overview of what works, what doesn’t, and how to analyze the overall performance.

Disparate sources and lack of integration between apps are a powerful signal that digital strategy has not a clear main objective. And this creates a risky context from many perspectives: security, coherence of activities, data management, communication between multiple parties, etc.

#3 INSIDE STORY: What solutions did an integrated system bring for a bank?

The bank works with a network of partners who prepare the loan application on behalf of the SME. Initially, the process was based on using various apps and platforms — with poor synchronizations between them. This lack of unified systems generated a high risk of errors, data loss, and delays during the process.

So, what our client needed was an online solution that allows easy and secure management for loan applications at multiple levels: Partners (accountants, corporate finance advisors, law firms, tax advisors, private equity funds, and other banks), Borrowers, and Loans Provider (the bank).

4. “How to surpass employees’ resistance and substitute their lack of digital skills?”

All companies face resistance to change — especially when it comes to digital. Adapting to a new work system, to new platforms is always viewed with fear by both employees and employers. If we were to see something good in the pandemic, it is the fact that it forced us to turn our eyes to digitalization and to accept new work systems as solutions, not as challenges.

Still, mixing physical interaction with virtual ones and keeping data and processes all together remain big challenges — especially for medium and large companies. The new way things are done requires an entirely different cadence of change and entirely different skill sets.

#4 INSIDE STORY: How to bring on the same platform clients, financial institutions and internal staff?

Our client — FGCR — constantly receives a large volume of requests for obtaining guarantees from the financing institutions.

Initially, the process of collecting/storing/synchronizing the transmitted data and documents was difficult and time-consuming.

Updates and data processing were mostly done manually, while documents were transmitted using traditional digital tools (for example, e-mail) — which led to delays and difficult trackings along the process.

We’ve created for FGCR a dedicated web app (with a focus on user experience — UX) that allows dynamic management for financial data (collection, storage, and synchronization) through an online module connected to an existing app.

5. “From which point should I stop investing in digital transformation and start seeing returned value?”

As you may already anticipate, investing in digital transformation seems to be an endless story. Still, you don’t have to think of these investments as overwhelming ones. If you do these on time, using the right resources and the right IT teams — digital solution costs will be perceived more like maintenance ones.

6. How should I turn insights and data (provided by apps) into benefits for my company?

Smart CRM apps, analytics systems, and BI dashboards are the most common solutions companies are interested in developing, implementing, and using.

The great challenge is getting these solutions working together and getting controlled access to intuitive insights, also.

Several analytics-powered insights could help you easily understand the next product you must develop or give you a sense of when to redirect consumers to a different channel or when a consumer is trading or leaving your brand.

7. How to avoid over/underinvesting in digital transformation?

Scaling insights up and splitting digital transformation by theme will help you clarify the true value. It is essential to evaluate your existing solutions and resources correctly to prioritize your investments and avoid over or underinvesting in digital transformation.

INSIDE STORY: How to match existing solutions with new apps?

When CIM Bank requested our services, they already had a web solution, and they were interested in developing a mobile one as an extension (through new functionalities). The mobile app allows customers to:

• securely log into their accounts. (the client had an existing responsive website that the application would load after login);
• use the device biometric features to bypass the existing 2-factor authentication;
• interact with the existing website and use the mobile device’s built-in security features to authorize transactions;
• enrich the current website’s functionality with extended capabilities like Invoice payment through QR or document scanning.

8. Predict the unpredictable and adapt fast while running out of time. How to make it possible?

Pandemic worked as a digital accelerator for companies around the world. So, almost overnight, technology modernization became not only a must-have but also a great challenge for them. A lot of the technology for big companies was built decades ago in an old legacy-system model that’s very hard to adjust.

An important lesson learned by companies in the past year is that it’s essential to work with flexible digital systems adapted and updated fast when needed.

How to do that?

By choosing wisely your development team. Staff fluctuations and salary costs involved in an internal team can be overwhelming in the long run. And what you need is stability at costs you can afford.

Working with an external team — provided by a software development company — is a great idea as long as the team is able to understand your company’s specific needs and it sticks with your company for a long time.

If you are about to choose a software service company to work with, pay close attention to the following details:

• developed projects (does it have in its portfolio relevant projects for your industry, the app needed, etc.?)
• stability on projects (for instance, in our company, the main projects developed with dedicated teams last for over 15 years — services covered: maintenance, extended functionalities development, updated, etc.)
• reviews on relevant external websites (Clutch, GoodFirms, The Manifest, etc)

As Peter Drucker used to say:

“Do what you do best and outsource the rest!”

Originally published at https://www.linkedin.com.