Why CFOs Must Guide Alignment Between Digital Transformation and Financial Stewardship

It’s no secret that CFOs often find themselves at the intersection of innovation and financial stewardship. The pressure to invest in technology is higher than ever, but so is the demand to demonstrate a clear return on those investments. A recent report revealed that 65% of CFOs are under significant pressure to deliver ROI on tech investments—an all-too-familiar challenge. With tech spending reaching a two-year high, it’s clear that companies are ramping up their digital investments. But the real question is: how do you ensure these investments fuel sustainable growth?

Answering that question requires CFOs to play a key leadership role in driving business transformation. That’s because every company will be different when you start looking at short-term and long-term gains. For example, a private equity firm may be more interested in seeing ROI within a year, but a family-owned business might be more interested in larger gains that can be achieved within three to five years. Ultimately, you have to decide how fast your ROI should happen and why, with a particular emphasis on ‘why.’

Align Tech Spend with Strategic Goals

Recent tech spending shows that companies are placing big bets on innovation. While it’s encouraging to see the renewed focus on technology, it’s also important to ensure that these investments are more than just a response to industry trends. They must be strategic, tied directly to business outcomes.

At NTT DATA Business Solutions, we would never recommend looking at technology for the sake of just keeping up. We help you evaluate each investment through the lens of how it supports your long-term goals. Whether it’s improving operational efficiency, enhancing your capabilities and customer experience, or enabling new revenue streams, the focus remains on clear, measurable outcomes. Any technology investment should be a means to an end—not the end itself.

Prioritize ROI, But Take a Long-Term View

CFOs are constantly asked to show ROI, especially in the face of rising tech investments. But ROI isn’t always immediate, and it shouldn’t be the sole measure of success. Some of the most transformative technologies—like artificial intelligence or cloud-based infrastructure—may take time to fully pay off. You need to balance short-term cost control with long-term strategic benefits.

To do this, it’s essential to have a robust financial framework for evaluating tech investments. Are you improving operational efficiency? Are you enhancing decision-making with better data? Are you driving revenue growth? By tying these outcomes to clear financial metrics, you can demonstrate the value of technology initiatives over time.

Lead Transformation, Don’t Just Support It

You are not just a gatekeeper of financial performance. You have a critical role to play in shaping the future of your organizations, especially as technology becomes a core driver of competitive advantage.

Moreover, successful business transformations happen when financial strategies align with technology and operational goals. It’s not just about approving budgets. It’s about leading from the front—ensuring that technology decisions are made with the long-term financial health of the company in mind. Collaboration with other C-suite leaders, especially the CIO and COO, is also important. Together, you can create a holistic strategy that harmonizes innovation and profitability.

Take a Proactive Role in Risk Management

With every technology investment comes risk—whether it’s related to cybersecurity, integration challenges, or the overall financial health of the organization. And taking a proactive role in managing these risks is certainly part of the job. This means being involved early in the decision-making process, ensuring that the financial and operational risks are understood and mitigated.

Aligning strategy and risk tolerance can not only help you prevent contradictory decisions or unnecessary risks, it can also ensure that you don’t hinder growth by being overly cautious. At the same time, this collaborative teamwork helps you develop a scope, project plan and agile team that can better keep abreast of the evolving landscape of technology and regulatory changes, as well as minimize any surprises that come up due to market shifts or anything else.

The Path Forward: Driving Value through Leadership

While the surge in tech spending is a clear signal that companies are betting on digital transformation to drive growth, company leadership needs to ensure that these investments are not just big bets, but smart ones—investments that deliver real, long-term value to businesses and shareholders.

As you continue to push for ROI, it’s also important to recognize that the journey toward digital transformation is a marathon, not a sprint. As leaders, it’s your responsibility to guide your companies through this transformation, ensuring that every dollar spent on technology supports your broader goals of growth, innovation, and sustainability.

Closing Thought

As the CFO role continues to evolve, there are more opportunities to shape the future of your organization. By leading with a balanced approach to technology investment—focused on both short-term ROI and long-term growth—you can help drive successful transformations that create lasting value.