A series of articles looking at everyday challenges CFOs are facing and how finance functions can embrace the change and thrive on opportunity. The articles are written in collaboration with PwC, the ACCA and Jens Madrian – CFO, Reactive Technologies.
Business is changing more rapidly than ever
Digital is reshaping the global economy and changing the face of today’s workplace. In PwC’s 20th Annual CEO survey 75% of business leaders expected advances in technology to significantly impact or perhaps even total reshape their business.
Four significant changes are shaping how businesses operate:
- channels to market are being transformed,
- traditional customer bases are eroding, and new ones are emerging,
- product and service line profitability is dramatically shifting, and
- barriers to entry are falling;
As a result of these factors, disruptive competitors are appearing from nowhere.
With increased risks and opportunities in the face of digital, many established businesses are pushed to innovate rapidly, rethink their vision and refocus on the capabilities core to the organisation. There is pressure to become more efficient, agile, forward looking and faster to adapt. Disruptive entrants into a market, in contrast, have an obvious advantage; they have no heritage and can quickly develop business models with no legacy challenges. They can scale quickly with processes that have been built first and foremost with the customer in mind.
This rapidly changing landscape for businesses means the pace at which organisations can grow or fail is faster than ever before and navigating through these changes to identify profitable growth opportunities is more important than ever.