This Future of Finance Leadership edition summarizes the key points from one of our most popular CFO Talks, The CEO/CFO Relationship. I interviewed a seasoned CEO for his perspective on the CFO’s role and what makes a successful CFO/CEO relationship.
Extracting tangible business benefits from data and analytics projects, including those involving AI, has proven challenging for most enterprises. In 2019, VentureBeat reported that 87% of data and analytics (D&A) projects failed to reach production [1]. In 2022, Gartner found that only 20% of insights derived from analytics translated into business outcomes [2]. Despite various reasons for this low success rate, many firms struggle to build a compelling business case to secure investment in data and analytics initiatives. So, how can one effectively use the right KPIs to showcase the business benefits of these D&A projects?
A successful business plan is built on accurate data, but few numbers are so important—and so difficult to get right—as projected revenue. Growing revenue powers income growth which is what fuels future business expansion.
Complicating things further, “revenue” is a word that represents many moving parts. How do you keep track of them all? How do you make your projection as accurate as it can be?
In their eagerness to get to market, companies may be rash in selecting financing and take the first solution they come across. A sound financing strategy is one of the most important pillars of corporate growth, and – done well – it can benefit your company long into the future.
In Parts 1 & 2, we wrote about capital planning and using debt to finance your business. Here we explain equity financing and when you should consider it.
Companies seeking capital need to plan and shop wisely. Not doing your homework or making the wrong choice may leave you empty handed, burdened with unnecessary costs or shackled with the wrong capital structure for years to come.
In Part 1 of this series on Treasury, Capital Planning, we wrote about capital planning for your business. The planning process will identify how much outside capital you expect to need in the coming years. The financial position, risk profile and objectives of the company will determine if that capital is in the form of debt or equity. This week we explain debt financing options and when you should consider them. Debt financing allows you to maintain ownership and control of your business while being less expensive than equity. In many countries interest payments on debt are deductible for tax purposes. 1
