TCS 2020 CFO Study Master Report - How real-time intelligence will separate the agile from the irrelevant
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The TCS 2020 CFO Study focuses on how future-ready CFOs leverage real-time intelligence and technology to enhance business performance and agility. It highlights that only 20% of businesses can effectively act on critical financial data and identifies four pillars of CFO transformation: leadership, technology innovation, front-to-back transformation, and agile finance. The report emphasizes the importance of embracing new technologies and strategies to overcome challenges in forecasting and drive organizational change.
TCS 2020 CFO Study Master Report - How real-time intelligence will separate the agile from the irrelevant
- 1. February 2020 Master Report How real-time intelligence will separate the agile from the irrelevant TCS Thought Leadership Institute TCS 2020 CFO Study How Future-Ready CFOs Are Driving Real-Time Business Performance
- 2. TCS 2020 CFO Study Master Report • Transform enterprise data into real-time insights that drive growth across the entire business? • Manage organizational change, control, responsibility and accountability to support future-ready digital business models? • Leverage new technologies—blockchain, analytics, machine learning and AI—to enable new forecasting models and create a truly agile finance organization? • Act as a catalyst for growth? • Embed front-to-back transformation? • Assess new technological investments? More than 500 CFOs in North America and Europe were asked if their finance organizations were able to: The TCS 2020 CFO Study asks: How Are Future-Ready CFOs Driving Real-Time Business Agility?
- 3. TCS 2020 CFO Study Master Report Framing the CFO Study 1 Leadership & Skills 2 Front-to-Back Transformation 4 Technology & Data Innovation 3 Agile Finance The survey results break down the results into these four pillars:
- 4. TCS 2020 CFO Study Master Report Only 1 in 5 businesses are able to access and immediately act on 90% to 100% of key financial performance data. Defining Agile Leaders in the Study The CFOs at these organizations are known as “agile leaders” — and they are significantly outperforming their traditionalist counterparts. Read More
- 5. TCS 2020 CFO Study Master Report Which Areas Will CFOs Play A Critical Role in Five Years? Leadership & Skills Technology-enabled business model evolution Capital allocation for digital transformation initiatives New product and service development Embedding new cultures and ways of working Enterprise-wide analytics governance Enterprise-wide data governance Blockchain evaluation and adoption Enterprise-wide talent management Non-traditional risk management 44% 40% 37% 33% 33% 31% 29% 28% 26% Read More
- 6. TCS 2020 CFO Study Master Report What Are the Future Skillsets for Finance Teams?* Long-term strategic planning z43% z33% z32% z29%z29%z30%z31% z27% z27% z19% Change management delivery strategies Data governance Soft skills Core financial capabilities Understanding of advanced technologies Process optimization Enterprise-wide data analytics Lateral & innovative thinking Data modeling & simulation *Agile leaders = 98; Total sample = 508 Read More
- 7. TCS 2020 CFO Study Master Report Are CFOs Satisfied With Their Organization’s Task-Performance Speed? 45% predict the CFO will play a critical role in technology-enabled business model transformation over the next five years Futurist leaders vs Traditionalist followers Financial reporting Adjustment of budget forecasts Moving talent to higher-value tasks Adjusting customer-facing messaging Freeing cash for growth initiatives Monitoring and optimizing supply chain Read More
- 8. TCS 2020 CFO Study Master Report What Are the Effective Ways of Changing Employee Behavior? Front-to-Back Transformation Empowering internal teams for digital change Adding new performance metrics Establishing cross-enterprise key performance indicators Investing in employee education and training Appointing employees to pilot new applications Incentivizing executives to take on unfamiliar tasks CEOs sponsoring change management strategy 47% 43% 42% 42% 38% 35% 34% Read More
- 9. TCS 2020 CFO Study Master Report Which Initiatives Have Been Fully Implemented Across Your Enterprise? Adding new performance metrics to measure progress in adopting new ways of working Futurist leaders vs Traditionalist followers 58% of CFOs look beyond finance and take responsibility for driving the digitalization of the entire business Empowering internal teams and making them accountable for digital change in their part of the business Incentivizing executives to take on unfamiliar tasks and responsibilities Establishing cross enterprise key performance indicator to avoid conflicting stakeholder priorities Investment in workshops, employee engagement and other education and training CEO sponsorship of change management strategy Appointing “champions of change” to pilot new applications and communicate and communicate benefits Read More
- 10. TCS 2020 CFO Study Master Report Between Now and 2025, Which Aspects of Forecasting Will be Most Important for Your Organization? Technology evolution Agile Finance Financing/capital Customer demand Payments landscape Business partnerships Talent/skill needs Product/service lifecycles Business model lifecycles Political stability/instability Competitor landscape Acquisition candidates 40% 39% 29% 28% 26% 26% 25% 24% 24% 23% 16% Read More
- 11. TCS 2020 CFO Study Master Report What Are the Biggest Challenges of Compiling Accurate Forecasts? Skills shortage and weak recruitment pipeline Workforce resistance to new ways of working Difficulty of collaborating with C-suite Cost control across different business functions Inconsistent or inaccurate enterprise-wide data Siloed business functions lack cross-collaboration Difficulty of integrating newer technologies FP&A systems are inflexible Inability to model future business scenarios Inaccessible enterprise-wide data 40% Futurist leaders vs Traditionalist followers 41% 32% 40% 38% 24% 36% 30% 32% 23% 32% 32% 31% 37% 27% 32% 5% 26% 21% 22% Read More
- 12. TCS 2020 CFO Study Master Report Which Technologies Will Have a Positive Impact in FP&A Capabilities? 45% of agile leaders (vs 27% of traditionalists) expect to have used blockchain to secure access to more reliable data within the next five years Cloud 42% Advanced analysis 35% Automation 35% AI/Machine learning 32% Internet of Things (IoT) 32% Blockchain 22% Read More
- 13. TCS 2020 CFO Study Master Report How Often Are CFOs Using Data for Decision Making? Technology & Data Innovation Always Ad-hoc Rarely Never Enterprise data 49% 16% 1% 35% Ecosystem data 43% 41% 15% 1% Universe data 1% 22% 49% 27% Read More
- 14. TCS 2020 CFO Study Master Report How Confident Are You With Forecasting Investment Requirements for New Technologies? 45% of CFOs believe that developing a formal process for integrating external data will be critical for future growth Within the next 12 months Between one and three years Between three and seven years More than seven years 84% 70% 57% 47% Read More
- 15. TCS 2020 CFO Study Master Report 60% North America 40% Europe 11 Sectors Survey Methodology 500+ CFOs $1 Billion Annual Revenues Download the TCS 2020 CFO Study for more actionable insight into the challenges and opportunities ahead. Read More
- 16. Copyright © 2019 Tata Consultancy Services Limited Sign up to get each report as soon as they are released Download the full survey Read the Master Report now- How real-time intelligence will separate the agile from the irrelevant TCS 2020 CFO Study How Future-Ready CFOs Are Driving Real-Time Business Performance Copyright © 2020 Tata Consultancy Services Limited