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.
Ireland 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.Â
Ireland's tech sector is one of the fastest-growing industries in the country with it already being home to 16 of the top 20 global tech companies, nine of which are the top ten US technology companies. So needless to say the tech employment market in Ireland is extremely strong with a high demand for skilled professionals despite some employment corrections by US multinationals over the last couple of years. Â
Why Ireland bucks the trend as a highly productive location is significantly driven by FDI Ireland’s productivity per hour is the highest of any country at $119.10, with full-time Irish employees working on average 39.7 hours per week. In addition, Ireland’s high concentration of multinationals drives its largest productivity gains.
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.
Nobody has a crystal ball, but we can all get better and more effective at predicting key trends and being able to react to them faster.
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 Baker Tilly, 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.Â
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 Baker Tilly International today. Let’s work together to build a more resilient, global, and innovative business for the future.
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