New technologies promise vast increases in growth and efficiency. For CFOs, they require balancing stability and transformation.
Disruptive technologies are not only reshaping the business landscape but forcing CFOs to rapidly evolve their strategies and embrace innovation. From the various flavors of artificial intelligence (AI) to digital ledger technology (DLT) and cloud computing, these new tools offer immense potential for growth and efficiency but also present significant challenges.
As CFOs navigate this complex terrain and adapt their business processes, and decide how large a financial commitment to make to it, they must understand the implications for their financial models, risk management practices, and overall business operations.
‘Disruptive technology is an accelerator to transformation,’ says Kyle McNabb, vice president and principal, research at The Hackett Group. ‘It’s also an equalizer when it comes to transformation, and on the third end, it’s an incredible disruptor to this as well.’
Deirdre Ryan, global finance transformation leader at EY, shares that many EY clients have tested these technologies and developed proofs of concept, often in finance, marketing, and product development.
‘It’s critical that finance executives get their hands dirty and understand these capabilities,’ she argues. ‘They’re the ones who weigh in heavily on capital allocation, which is required to drive those programs. They need to understand what capabilities and return-on-investment will be delivered.’
Leading technologies like AI, machine learning, and generative AI (genAI) promise improved financial forecasting, better data-driven insights, and greater efficiency via automation.
‘Generative AI is fundamentally changing the approach to business transformation by driving innovation, improving efficiency, and enabling entirely new business models,’ states Monica Proothi, global finance transformation leader at IBM Consulting.
This year alone, market intelligence firm IDC estimates that AI spending could jump to $337 billion globally from $235 billion, or nearly a 50% year-on-year increase.
Meanwhile, DLT is increasing the transparency of supply chains and adding another level of information security. Precedence Research estimates that the global economy spent $27 billion on DLT investment last year, expecting a 52.9% CAGR to 2034.
Cloud computing, the most mature of the disruptive technologies, has seen the greatest investment, with an anticipated global spend of $723 billion in 2025, for a 21.5% increase from last year. IDC estimates that 90% of organizations will have hybrid cloud deployments—mixtures of public cloud, private cloud, or on-premise internal infrastructure—by 2027.
‘Cloud computing is having a significant impact on organizations and especially the CFO, where it’s allowing for real-time access to financial data,’ reports Craig Stephenson, global head of Tech, Ops, Data/AI, and InfoSec Officers Practice at Korn Ferry. ‘It’s improving reporting accuracy and it’s reducing time for turnaround on some of these reports and responsibilities for public company CFOs.’
Managing The Transformation
Implementing disruptive technology effectively requires a corresponding change in the company’s business model, as EY’s Ryan emphasizes.
‘We don’t always see that happen,’ she comments. ‘Transformation is not just about slamming in some software. It’s about changing the mindset of the people in the organization to adopt the technologies and leverage the capabilities that the technologies deliver.’
CFOs will have a chance to change mindsets as approximately two-thirds of CEOs believe they need to rewrite their organizational playbook to remain competitive, according to a 2024 study of 2,000 CFOs published by the IBM Institute for Business. These rewrites will require new skill sets, technologies, and operating models.
CEOs expect their CFOs to balance stability with transformation, working closely with tech leaders to modernize technological infrastructures and create value.
CFOs are increasingly taking on strategic roles in technology adoption, often incorporating the chief data officer and chief analytics officer into their departments while delegating the critical role of deploying new technology to the chief information officer (CIO).
Successful organizations pursue a clearly defined vision for business transformation. Understanding both existing processes and desired outcomes is key in determining which technologies can enable the transformation and where human capital will be repositioned for greater value.
McNabb suggests that the best indicator of success involves setting up a formal transformation office and reshaping C-suite expectations, moving beyond traditional three-year plans.
‘They’re setting yearly targets and reviewing everything quarterly,’ he adds. ‘Firms that adopt this approach find themselves better positioned to navigate change.’
Embracing The Journey
Implementing business transformation projects is not a one-off task but requires holistic conversations about process, technology, and operating models, reinforcing that transformation is a continuous journey.
‘What defines success today may look different tomorrow,’ Proothi notes. ‘Successful transformation depends on an organization’s capacity to evolve, learn, and stay agile. Business leaders must adapt strategies to unlock sustainable growth in an ever-changing landscape.’
Financial firms like JPMorgan Chase and Jane Street Capital constantly reinvent themselves, McNabb notes: ‘If you do not embrace it, you have just been disrupted.’
Conversely, smaller firms can leverage agility, positioning themselves advantageously against larger competitors burdened with legacy technologies.
‘If smaller firms navigate well, they can use genAI to differentiate and quickly leap ahead of larger firms,’ he asserts.
A Moving Target
The rapid evolution of disruptive technologies poses a challenge for businesses. AI is experiencing exponential growth, with computing resources needed for training doubling every three to four months, leading organizations to move away from traditional best practices towards more flexible emerging practices.
McNabb emphasizes that any business transformation will encounter significant hurdles, necessitating active leadership intervention. ‘Almost all transformation initiatives (96%) will face crossroads events requiring leadership to prevent deviation from project goals,’ he states.
Successful interventions raise the success rate of transformation initiatives significantly, while failing interventions exacerbate underperformance and employee morale issues. ‘Creating an environment where individuals can thrive, experiment, learn, and own their efforts is fundamental to successful transformation,’ conclude the authors of the Oxford/EY study.’
- 0 Comments
- CFO Strategies