Lakshminarayanan Hariharan, PMP Vice President at MyCFO India
It is an assumption that implementation and use of technology – hardware, software and tools – will result in fueling growth to business. Growth must not be merely defined as top-line growth. It should be inclusive of efficient supply-chain management for inventory control, cash management, fast-tracking period closing and performance management.
The leverage of technology is very diverse from industry to industry. Aerospace, medical, digital, media, research & development etc. witness higher adoption of technology to provide an edge for companies. On the other hand, companies in retail, manufacturing and BFSI segments leverage technology for efficiencies in business process and delivering quality customer services.
There is a conscious effort across industries to eliminate or limit the amount of in-person services that the organization used to provide and instead the customer is being provided the platform to use / source the products or services, get data and analytic’s , and provide intelligence for decisions, all through the leverage of technology. The following graph gives an industry-wise representation of IT spending as a percentage to revenue, providing an insight on the extent of IT leverage across the board. Continue reading →
Wealth Tree Partners, which runs the online CFO servicing business through MyCFO.in, is looking to raise capital from private equity funds next year, said a senior company official.
“We want to raise growth capital from a fund that has had experience of scaling services business and can help us expand. From next year, we want to start implementing our plans of offering specific products and industry vertical based services, for which we would require Continue reading →
A CFO is amongst a rare breed of people who is not just responsible for his own function/ department but is also required to contribute to the other functions within an organization. The CFO now has to straddle and importantly contribute to the company’s business functions. The CFO is often labelled as someone who is conservative, takes a very ‘numerical’ view of the business and does not understand the business intricacies.
Companies think hard when it comes to investments or spends relating to diversification to new geographies, new product introduction, Capex, R&D, marketing spends, M&A activities etc. While there is always a sense of optimism associated with any new initiative, these need to be viewed from a stand point of whether the spends will generate reasonable returns over a finite time frame. This is where the role of the CFO becomes crucial. The CFO here not just need to look at situations like these from a numerical stand point but also need to understand the underlying business assumptions that make up the spreadsheets.