Mr. Erdmann, how have your tasks changed and what will be at the top of the CFO's agenda in the future?

According to a study by PwC, 86% of CFOs are convinced that they will add the most value in 2025 by providing data-based strategic advice to management. This assessment is in line with what I experience in my work and what colleagues from other companies tell me. In addition to recommendations for action based on refined data analyses, managing the quality of products and processes is also becoming increasingly important. Overall, we CFOs are becoming more involved in corporate management.

What are the main reasons for the change in the role of the CFO?

In general, these are the same changes that affect companies as a whole: The emergence of cognitive technologies and artificial intelligence is just as important as changing customer needs. At the same time, new competitors are emerging, some of whom come from completely different markets. Data is also playing an increasingly important role in the value of companies. All of these challenges need to be considered from multiple perspectives. The CEO needs the CFO as a "sparring partner" in the decision-making process.

What are the requirements for the CFO resulting from these changes?

Cost and efficiency pressure is increasing more than for any other decision-maker. If you want to keep pace with technological developments, you have to invest. The CFO should create the scope for this. In order for this to work faster and more efficiently, they must quickly digitalize their traditional areas of responsibility of accounting and controlling. They should also help shape the digital transformation of the company as a whole.

How can CFOs master the balancing act of fulfilling existing tasks and helping to shape new ones?

The good news here is that digitalization, which is one of the triggers of this development, also provides us with the means to control it. All that matters is that we recognize and use our digital possibilities. For example, we can automate reporting. Forecasts based on AI not only update themselves, they also become more accurate as the amount of data increases because they use self-learning algorithms. In addition, consistent automation can uncover existing efficiency potential because technologies such as robotic process automation include permanent monitoring of all processes.

And, of course, the CFO must continue to delegate. Human resources who are familiar with the new technologies play an important role in this context. Security in the use of AI or cloud-based tools, for example, is an issue that requires highly specialized employees or external service providers.

What specific improvements do new technologies offer?

Let me give you three brief examples that are already available today. Firstly, cloud computing simplifies the setup and management of IT infrastructures. Not only are new resources available more quickly, they are also more cost-effective and more secure than in the conventional on-premise model. Secondly, analytics helps to specify requirements and prioritize the multitude of daily demands on the CFO and his team. This increases productivity.

And thirdly, the automation of routine tasks frees up capacity - also for the CFO himself - which is required for the core business and new tasks.

What obstacles need to be overcome and how can this be achieved?

The biggest hurdle is the enormous time pressure that companies as a whole are under. In addition, the automation and data analysis technologies already mentioned are still not being used enough. Companies are investing too much in existing structures and processes and too little in digital transformation.

To change this, the CFO must first of all develop a clear profile of the finance department. This can start, for example, with clearly defined targets for the degree of automation of operational activities. We also need to say goodbye to entrenched corporate structures and roles - such as that of the accountant. The financial accounting of a typical medium-sized company could already be fully automated today. The technology is available. But even if the CFO initially only automates 30 percent of accounting processes, he or she will become a pioneer of change management in terms of digital transformation.

Once the change process is underway, the CFO also has the freedom they need for their new tasks. Digital planning approaches and tools are ideal for making effective use of this freedom. Predictive analytics, process mining and prescriptive analytics are methods that are geared towards the continuous improvement of processes. It is the responsibility of the CFO to use them consistently and thus sustainably increase the company's profitability and competitiveness. Of course, close cooperation with the CTO and CIO is required. And this also works better if the CFO can quickly present and explain reliable analyses thanks to modern technology.

Mr. Erdmann, how do you yourself perceive the changing role of the CFO?

As the CFO of a technology company, I have of course been confronted with these changes for some time. Everything I have said about the new challenges, I am also experiencing myself - as well as the positive effects of digital processes. And I look forward to helping shape the future of Sage as CFO.