This year’s outlook has radically changed from predictions a year or so ago. At the end of 2021, executives were focused on the recovery phase from the pandemic and overall confidence in the economy was quite positive. While predictions with rising interest rates, accelerated technology integration and struggling labour markets did occur, the economic outlook for the coming year isn’t as positive as previously anticipated.
Despite stricter financial policies to alleviate economic concerns, many executives still focused on growth. As businesses implement more human-focused management plans, the work environment and company culture, the predominant efforts are integrating technology into business systems and processes. Despite concerns about technology use and costs, digital acceleration, particularly in corporate finance, has risen significantly.
The progression of human resources
With the core of HR transformed by technology, the coming year will inevitably bring more automation and leveraging of data. Automating business processes will be vital for employer and employee relationship for 2023. Simplifying activities is a priority for HR employees. Whether enhancing reliability or expanding the benefits of applying banking as a service (BaaS), CFOs using a people-focused approach must consider what technology is out there to make their work more productive and flexible for their employees.
Leveraging New Technology
Studies have suggested that SaaS products are heavily dependent but often underused and typically very costly. Furthermore, using multiple tools or products to tackle the same problem is a big concern. These problems results from ‘SaaS Sprawl’ caused by the simplicity of implementing and managing software within a business. It often results in a company-wide lack of clarity in the technology stack.
While many leaders recognise the importance of selecting and delivering the right technology, it can be challenging. As fintech continues to transform daily activities in corporate finance, senior leaders should look for the right software for them and their business and not necessarily the most recognised or highest rate tool available.
Enhancing Reliability of Data
The increase in remote and hybrid working and dependence on the cloud has resulted in less reliable and secure data. CFOs must focus on data accuracy and ensuring they can predict, forecast and measure large data sets to ensure continued growth and success.
Nearly half of CFOs in a recent study claimed they lack accurate cash flow data, so utilising technology that makes financial data analysis accessible and easy will be critical in a disruptive economy. As our work conditions continue to change, the generation and management of data are essential. Regardless of industry, CFOs regularly forecast their information, as data reliability can vary. If frequent measuring happens with unreliable data, it impacts the productivity of a CFO and means important decisions and capital allocations are made on inaccurate information.
The Importance of Cybersecurity
Significant cybersecurity breaches have become commonplace in digital environments. Over a third of CFOs reported that cybersecurity is a top priority, and protecting their business, customers, and associated data continues to be of prime importance this year.
Ensuring your business has a response plan is paramount for this year, but having a cyber resilience plan in place will enhance the ability to manage a potential attack and ensure systems remain operational. Recognising the need to manage and plan a cybersecurity strategy is required. With new regulations on data breaches appearing, senior leaders must focus on managing risks that impact growth and take a closer look at their time and investment spent on security measures. Cybersecurity is no longer an optional element of business practice. It is an essential part of the business infrastructure.