Jobs and the Future of Work

Why do CFOs need to focus on digital strategy?

James Kosur
C-Suite editor, Business Insider

This article is published in collaboration with Business Insider.

Chief financial officers are taking over an increasing amount of operational roles that directly involve them in far-reaching company strategies.

Despite their evolving role, many CFOs are failing to recognize the impact the digital shift is having on their business and operating models.

EY’s Global Capital Confidence Barometer survey of 652 CFOs, in addition to in-depth interviews with CFOs and CEOs, revealed that only 50% of CFOs are making the shift to a digital business model a priority over the next three years.

Less than half (49%) said they will make a high or very high contribution to the company’s digital shift.

The study suggests that many CFOs do not fully understand the impact that a digital shift will have on their business in the short and long term.

“It’s surprising that few CFOs are placing a high priority on digital because the digital transformation is arguably one of the biggest challenges and opportunities facing firms today,” said Laurence Buchanan, EY’s digital leader for Europe, Middle East, India, and Africa. “The consequences of ignoring the shift to digital are far too great for only half of CFOs to be embracing it.”

“It has the power to transform some organizations from market leaders to irrelevance in a frighteningly short timeframe,” he said. “CFOs who don’t embrace this shift will be caught playing catch-up as their competition takes advantage of the digital culture to gain traction in the industry.”

When asked what the biggest concern for disruption was for their business, only 12% of finance leaders said advances in technology and digitization.

CFOs and digital businessEY

CFOs were also asked how cybersecurity was affecting deal-making. Half of CFOs said cyber attacks were high on their list of concerns, while 42% said it posed a medium risk, and 8% placed little concern on cyber security.

Surprisingly, 38% of CFOs said they only perform a medium amount of due diligence regarding cyber security during mergers and acquisitions, and 6% place very little emphasis on it.

Digital strategy and cybersecurityEY

Publication does not imply endorsement of views by the World Economic Forum. 

To keep up with the Agenda subscribe to our weekly newsletter.

Author: James Kosur is the C-suite editor at Business Insider.

Image: Share trader reacts on share price development on the trading floor of the stock exchange. REUTERS/Kai Pfaffenbach. 

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

The Digital Economy

Share:
The Big Picture
Explore and monitor how The Digital Economy is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

How ports can lead a just transition for workers in an automated future

Allyson Browne

November 14, 2024

2:25

Half of Iceland’s workers have moved to shorter working hours, such as a 4-day week

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum