Chief Financial Officers (CFOs) have been warned they need to rethink the way they measure the health of their companies in digital age.
Since majority of the companies take into consideration intangible assets such as customer sentiment and brand while measuring the health of their companies, they need to adopt new Key Performance Indicator (KPIs) to better measure value of intangible assets.
According to a new research by Chartered Global Management Accountant (CGMA) sponsored by Oracle, measuring the business value of intangible assets through innovative Key Performance Indicator ( KPIs) is expected to gain more importance as digitally enabled business models flourish.
Around 76% of the respondents believe the top value drivers for their businesses is customer satisfaction, while 64% gave priority to business processes, and 63% valued customer relationships.
However, only 15% of the respondents reported that they have dedicated finance in their organisation to fully engage with regards to ‘providing non-financial measures of progress towards strategic intent’.
Oracle Applications Development senior vice president Rondy Ng said: "Finance is running the risk of sitting on the sidelines while more digitally-savvy lines of business deliver the insights that management needs to differentiate and grow.
"By unlocking the value of data using a modern and complete cloud-based ERP and performance management system, finance can seize the unique opportunity to become the new digital guidance system for the enterprise."
