Cracking the code: Evolving CFOs from passive observers to tech-driven change enablers

In today’s fast-paced world, where technology increasingly dictates the tempo of business, it is impossible to overlook the pivotal role finance leaders must play. This transformation was front and centre during a compelling panel discussion at our 13th Annual CFONEXT100 Conference on digital transformation titled “Cracking the Code: Evolving from Passive Observers to Tech-Driven Change Enablers”. The session, moderated by Anuradha, gathered a distinguished panel of Chief Financial Officers (CFOs) including Anil Suneja of Medtronic, Yashpal Jain of Sandhar Technologies, Prabin Dokania of GSTN, and Anand Agarwal of V-Mart Retail.

Their discourse on the shifting responsibilities of CFOs in the digital age shed light on how finance leaders have transitioned from being financial custodians to strategic enablers of change within their organisations.

The shifting role of CFOs in the digital era

Anand talked about how digital transformation is no longer just an agenda item; it has become an integral part of our everyday lives. For him, the digital age has brought unprecedented opportunities, but also the need for CFOs to embrace new responsibilities. “We need to become part digital leaders,” he added, underscoring the importance of understanding and leading digital initiatives to propel organisational growth.

A journey from reactive to proactive leadership

One of the key points raised during the session was the changing nature of financial leadership. Yashpal reflected on how the role of CFOs has evolved over the last two decades. “Earlier, CFOs were more focused on number crunching and ensuring the balance sheet tallied. Today, we are the front-runners in driving digital transformation,” he said.

This shift from being passive observers to proactive leaders was further illustrated by Anil, who remarked, “The role of finance has evolved from hindsight to insight to foresight.” In his view, the modern CFO must not only react to current challenges but anticipate future risks and opportunities, using digital tools to mitigate them today.

Embedding technology in finance: Strategic and measured approaches

One of the challenges discussed was how much technology to embed within an organisation. Anuradha posed a thought-provoking question: should CFOs adopt technology reactively, based on what is available, or should they inspire technological advancements to solve future problems? The consensus seemed to be that a balance is necessary. Anand highlighted that the journey of digital transformation is continuous and ever-evolving. “We need to be insightful about what we use and how it benefits the organisation,” he said.

Prabin added that adopting technology is not just about efficiency but about maintaining compliance and meeting regulatory requirements. He cited the successful phased rollout of the e-way bill and e-invoicing in India as an example of how digital tools can drive both compliance and efficiency. “Necessity is the mother of invention,” Dokania quipped, underscoring the agility required for organisations to adapt to regulatory changes.

The role of data in driving decisions

The panel repeatedly emphasised the importance of data in today’s decision-making processes. As Prabin noted, “Any decision in today’s leadership teams must be data-driven, and CFOs play a key role in enabling this.” Whether in managing cash flow projections or regulatory compliance, data and digital tools have become indispensable.

However, data alone is not enough. Yashpal pointed out the need to ensure data quality and security. “The data extracted must be useful to the organisation,” he said, stressing the importance of filtering valuable insights from raw data to make informed decisions. Security is another crucial concern, especially as organisations handle larger volumes of data. “While 100% security can never be guaranteed, it must be prioritised in digital transformations,” Jain noted.

Bridging the digital divide

One of the most critical challenges identified during the discussion was the digital divide within finance teams. While younger employees are often more adept at using new technologies, there is still a skills gap among more senior finance professionals. Anand admitted that this digital divide has been a perennial problem. “It has always been an issue, especially in the finance domain,” he said, adding that younger professionals are generally more adaptable due to growing up in the digital age.

To address this, he shared how he has encouraged his finance team to embrace technology by holding regular workshops and leading by example. “I need to lead the change,” he explained. Praveen echoed this, describing how GSTN’s leadership has helped other CFOs in India adopt technology quickly through phased rollouts of new digital tools. “When something has to be done, agility follows,” he said.

Inspiring innovation: CFOs as tech enablers

Anil offered a compelling example of how CFOs can inspire innovation within their organisations. He recounted how a PVR cinema chain identified a problem in tracking popcorn sales and implemented a digital solution that used barcodes to monitor each transaction. “They didn’t wait for a technology to solve their problem—they identified the problem and sought a solution,” he said.

Equipping finance teams for a digital future

The session concluded with a discussion on how CFOs are preparing their teams for the increasing integration of technology into the finance function. Yashpal described an innovative approach he is experimenting with—rotating finance employees into other departments, such as supply chain, to help them understand the broader business and how technology is applied across functions. “This not only improves efficiency but also builds a holistic understanding of the business,” he said.

Anil took this a step further, predicting that digital skills will soon become “table stakes” for CFOs. He emphasised the need for both top-down and bottom-up approaches to digital transformation. “We need to create platforms for our teams to develop digital acumen,” he said. In this way, finance teams can proactively identify pain points and apply digital solutions.

Leading the digital revolution

In today’s disruptive business landscape, CFOs are no longer passive observers—they are the architects of change, leveraging digital tools to drive transformation across their organisations. As finance leaders evolve into tech-driven enablers, their role in shaping the future of business has never been more critical.

The journey has only just begun, but one thing is clear: the CFO of tomorrow must be both a financial steward and a digital innovator.