As IMA found in its recently released 2014 Salary Survey, salaries remained stagnant or declined for accounting and finance professionals in traditional areas of responsibility, such as taxation and audit. The finance function is evolving and CFOs are expected to know more about the trends affecting businesses today, including big data and technological innovations. I recently spoke with Krish Venkataraman, CFO and COO, of Syncsort about this “new breed” of CFOs.
This interview has been edited and condensed.
Jeff Thomson: You left
Krish Venkataraman: Syncsort is a thriving organization with a 40-year track record. It has reached a point where I can add significant value as it positions itself for aggressive organic and inorganic growth. It’s a case of it being the right role, at the right company, at the right time.
Over the next decade, big data is going to be a game-changer and a truly disruptive force across the globe, and Syncsort is poised to continue its role as a leader in this charge. The company’s management team knows how to deliver on its promises and I have a track record of doing the same, so it’s a great fit.
Thomson: How would you describe the CFO’s relationship with the CIO? How can CFOs open the lines of communication with the CIO, as their roles continue to converge?
Venkataraman: The relationship between the CFO and CIO is crucial. As a CFO who also understands technology, I know this first-hand. After all, I came from an organization with over 2,000 engineers at NYSE Euronext. So when engineers come to me with an idea for a new product that requires financing, I don’t just see it as a cost, but as a potentially lucrative investment. On the flip side, because I understand technology, I can also smell a bad investment.
Back to your original question: How can CFOs and CIOs strengthen their relationship? For the longest time, CFOs and CIOs spoke different languages. Now, with the level of investment that companies are making in technology and the amount they must invest to protect themselves from a regulatory and security standpoint, CFOs and CIOs have to learn to talk to each other.
Here at Syncsort, I’m not only responsible for the traditional finance roles like treasury, banking, and M&A but, more importantly, I’m also responsible for the operational aspects of the business, from IT to legal. It really helps me keep the right balance between innovation and operational stability. I’ve learned that when finance and technology intersect, you can do great things.
Thomson: CFOs are increasingly looked to as bean “sprouters,” as opposed to just bean counters. How can the CFO leverage his/her understanding and use of technology to drive business strategy?
Venkataraman: As companies become more and more reliant on technology, and as technology becomes the driver of competitive advantage, it’s not enough for CFOs to just be audit folks anymore. They have to be drivers of innovation who are able to see technology not just as a cost center, but as a key driver of that innovation.
The role of the CFO has fundamentally shifted in the last decade. With more focus on bringing operational stability and efficiency into an organization, CFOs in many organizations are now championing this transformation. Here at Syncsort – as in my prior role at NYSE Euronext -- I wear two hats and have two titles. I believe the role of a CFO is to be both a good steward and a good strategist. I have to provide strategic and implementation expertise, understand how to innovate through technology, and ensure that the firm’s risks are managed not only on the financial spectrums, but more critically on the operational aspects, as well.
In short, I am a hands-on CFO who believes in the power of understanding the business from within and helping the CEO and the management team transform the organization. I like to say that I am part of a new breed of CFOs who operate at the intersection of financial services, technology and big data.
Thomson: In late 2013, IMA released a report on the top 10 technology trends that have potential to significantly reshape the business landscape, including mobile, big data and the cloud. What do you believe are the most important tech trends CFOs should be aware of and why?
Venkataraman: Two words: big data. Over the next decade, big data has the potential to be a real game-changer. But it’s just rows and columns on a spreadsheet without the right tools. We have gone from a world in which firms have too little data to a world in which firms have so much data they have difficulty making sense of these data and drawing insights from them.
Here at Syncsort, we use our own technology to analyze what types of acquisitions we should be considering, and reduce the risk associated with acquiring companies that won’t be profitable in the future. That’s an example of how companies can harness the power of big data and predictive analytics to position their companies for success.
Thomson: How can aspiring CFOs prepare for the greater emphasis on technology? What skills are most important?
Venkataraman: CFOs have to get out of their comfort zones and learn to speak the same language as CIOs. In the past, CFOs viewed technology as purely a cost center. But it can also be the biggest driver of innovation at a company.
As a CFO you have to make sure that you approach technology from both angles. Both sides of your persona – the steward who contains costs and the strategist looking for lucrative investments and innovations – must be working at the same time, all the time. It’s a balancing act. CFOs who get it right will be transformational leaders inside their organizations.
