It says that the CFO 4.0 has a deep, holistic understanding of the competitive advantages of digital transformation, the competencies required to identify, evaluate and implement new business models for Industry 4.0, and the essential capability to drive and enable the transformation process.
Respondents to the SFS research identified five key competencies that the CFO 4.0 needs to exhibit, in order to enable successful digital transformation in manufacturing. They are:
1. A comprehensive understanding of available financing options that can enable a commercially sustainable transition to Industry 4.0
2. The ability to introduce relevant financing options at an early stage of the strategic Industry 4.0 process, in order to access and take advantage of the full range of potential solutions
3. Specific Industry 4.0 knowledge and expertise – related to financial, technology, operations and market analyses – in order to accurately assess digitalization opportunity vs digitalization risk
4. The capability to build predictive Industry 4.0 business models, return-on-investment metrics and performance monitoring processes
5. The proficiency to create an effective phased plan to operationalize the business’s move to Industry 4.0
The report says that the deployment of these competencies and capabilities allows each CFO 4.0 to enable tangible competitive and commercial gains for their company. Moreover, the commercial gains that the CFO 4.0 is enabling are considerable and can, to an extent, be reliably modelled.
Previous research from SFS has highlighted measurable improvements in manufacturing productivity – entitled the Digitalization Productivity Bonus - as an important evidential starting point for the digital transformation business case, typically delivering returns of between 6.3% and 9.8% of annual turnover. The core competencies of a CFO 4.0 are critical in achieving these returns. When applied to a selection of UK manufacturing sectors, the Digitalization Productivity Bonus equates to the annual efficiencies listed in this table.
Comments Brian Foster, head of Industry Finance at Siemens Financial Services in the UK: “The CFO 4.0 is now ensuring that financing options are considered right at the start of digital strategy development.
“Using smart financing techniques, usually from specialist and expert financiers, firms can often find that their range of affordable technology options widens considerably – and that can make the difference in gaining significant competitive edge in your marketplaces through digitalisation and transition to Industry 4.0.”