CFOs list data overload as biggest challenge
Three-quarters of business leaders have said in a recent survey that CFOs struggle to prioritise business growth due to an overwhelming volume of data and information.
CFOs are struggling the most with data overload with 79 per cent of chief financial officers identifying the management of data as their biggest challenge in a recent survey by finance management platform OneStream Software.
OneStream's Finance 2035: Return to Investment report surveyed 2,000 business leaders including 1,000 CFOs and 500 investors and found finance departments were facing challenges in managing ever-increasing data volumes.
Three-quarters of chief executives said CFOs were struggling to prioritise business growth due to an overwhelming volume of data and information.
Despite the challenges with managing the high volumes of data, three-quarters of CFOs believed that by 2035, data would be their organisation's most valuable asset.
A similar number of CFOs also believed it was important for the finance function to evolve to drive business forecasts and initiatives over traditional record keeping.
OneStream said data governance was increasingly important for ensuring data quality, security, and consistency across an organisation, as well as building investor confidence.
The survey also found that 75 per cent of Australian CFOs were struggling to drive organisational strategy and growth due to an ever-expanding brief.
The research also revealed the growing importance of the CFO function, with a CFO's competence considered the second-most important factor for investors when deciding whether to invest in an organisation, outranking the competence of the CEO.
Market expansion opportunities were identified as the number one factor influencing decisions on whether to invest in an organisation.
The study found that investors increased their initial investment by 2.6 per cent in organisations where the CFO was the main strategic growth driver.
For the world’s largest asset managers, there was a 3.6 per cent increase in investment where the CFO was the main driver of strategic growth.
Managing director of OneStream APAC, Thomas Palmer, said the research reveals how the strategic importance of the CFO was growing.
"Yet, Australian CFOs are facing increased pressure to deliver on investor expectations during a time of economic uncertainty and shifting market dynamics," Palmer said.
OneStream said as the role evolved from financial steward to strategic visionary, their ability to harness data, navigate complex regulatory environments, and lead with purpose would be crucial.
"By 2035, the finance function will not only be a cornerstone of financial success but also a critical enabler of technological advancement and sustainable growth."
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