Why the CFO Should Lead Digital Transformation (Not the CIO or CMO)
For years, we’ve assumed that digital transformation belongs to two roles: the CIO or the CMO.
If it’s about technology, IT owns it.
If it’s about customer experience, marketing leads it.
That logic made sense when digital was limited to websites, apps, and user experience. But the reality today is very different and that’s why I believe the CFO is the most qualified person to lead digital transformation.
Digital Transformation Is No Longer a Marketing or IT Problem
Digital transformation didn’t start as an enterprise-wide initiative. Early on, it was about making things look better, feel smoother, and work faster for customers. Marketing teams focused on seamless journeys, while IT made sure the systems stayed online.
Today, digital transformation touches every part of the organization:
Operations
Supply chains
Finance
HR
Risk management
This is no longer about isolated improvements or standalone tools. It’s about how the entire business operates end to end. And when transformation becomes enterprise-wide, leadership must come from someone who understands the entire enterprise.
CFOs See the Business Differently
What makes CFOs uniquely powerful in this role is visibility.
CFOs have access to data across every function revenue, costs, inefficiencies, operational bottlenecks, and performance metrics. They see how decisions in one part of the organization ripple through the rest of the business.
That holistic view allows CFOs to identify opportunities that go far beyond surface-level optimization. They can connect financial outcomes with operational realities and push for changes that actually move the needle.
Digital transformation isn’t about improving one department. It’s about redesigning how the organization works and CFOs are already positioned at that intersection.
Transformation Should Be Exponential, Not Incremental
One of the biggest mistakes companies make is aiming too low.
They chase 5% improvements.
They optimize existing processes.
They digitize inefficiencies instead of eliminating them.
That’s not transformation.
True digital transformation should aim for five to ten times better outcomes, not five to ten percent better ones. It requires rethinking processes from the ground up and using technology to unlock entirely new levels of performance.
CFOs naturally push for this level of ambition because they’re accountable for results. They ask tougher questions. They demand scale. And they focus on impact, not activity.
Strategy Without the CFO Is Incomplete
Digital initiatives fail when they operate in silos.
If CFOs are only brought in at the end to approve budgets, the organization misses the opportunity to align digital transformation with real business strategy.
When CFOs are actively involved in strategic conversations:
Digital investments are tied to enterprise goals
Risks are understood and managed
Resources are allocated with intention
Digital transformation becomes disciplined, focused, and sustainable, not experimental and fragmented.
Digital Transformation Is an Ongoing Process
Another important shift is recognizing that digital transformation isn’t a project with a finish line.
It’s continuous.
It evolves.
It becomes embedded into how the organization operates.
That long-term mindset aligns naturally with the CFO’s responsibility for financial sustainability, governance, and enterprise performance. Leading transformation isn’t just about innovation it’s about ensuring those innovations scale responsibly.
Rethinking Who Should Lead
This isn’t about replacing CIOs or CMOs. Their roles remain essential.
But when digital transformation touches everything, strategy, operations, finance, and culture leadership should come from the role that already sees everything.
If organizations want digital transformation that delivers exponential value, not incremental change, it’s time to challenge old assumptions.
That’s why I believe the CFO should lead digital transformation.
Frequently Asked Questions
Q1. How is digital transformation different from digitization?
Digitization means converting manual tasks into digital ones. Digital transformation goes deeper by rethinking processes, business models, and value creation. It focuses on how work is done, not just which tools are used.
Q2. What skills are needed to lead digital transformation?
Leaders need business understanding, data-driven thinking, financial awareness, and the ability to manage change. Technology knowledge helps, but strategic thinking and cross-functional leadership are more important for long-term success.
Q3. What is the role of the CFO in digital transformation?
The CFO plays a key role by deciding where to invest in digital initiatives. They evaluate which projects create real value, manage budgets, and balance short-term gains with long-term impact. Their focus ensures digital transformation supports business goals and financial stability.
Q4. What is the biggest challenge in digital transformation?
The biggest challenge is changing how the organization works. Technology is easy to buy, but changing processes, mindset, and decision-making across teams is difficult. Successful transformation requires leadership, clarity, and long-term commitment.
Q5. Why do CFOs need a bigger role in business transformations?
CFOs ensure transformation efforts improve profitability, not just efficiency. They connect digital investments to financial outcomes and help teams work together by removing silos. This alignment helps businesses scale transformation in a structured, measurable, and sustainable way.
About the Author:
Shawn Kanungo is a globally recognized disruption strategist and keynote speaker who helps organizations adapt to change and leverage disruptive thinking. Named one of the "Best New Speakers" by the National Speakers Bureau, Shawn has spoken at some of the world's most innovative organizations, including IBM, Walmart, and 3M. His expertise in digital disruption strategies helps leaders navigate transformation and build resilience in an increasingly uncertain business environment.