The digital economy affects traditional companies differently to how it affects new ventures. Sara Daw
explains the FD's role in helping businesses succeed in the digital world.
Digital Economy and Financial Directors
The digital economy for me has two elements to it. I think there are those new businesses right now who are new ventures, emerging technologies and they are trying to do business in the new economy with that at the centre of their business model. So those businesses are basically fighting for funding because they’ve all got new ideas that are going to go to market. So there’s one element there is which are the ones that are going to succeed and which ones do you back. There’s also really understanding what business models they’re going to operate. And I think that’s the key thing that an FD can bring, the funding and understanding the business model and getting that working for those new businesses. Then on the other side there’s traditional businesses that have never operated in the digital economy before. Yet they know those businesses have to embrace it in some way. And those businesses also have to develop a business model if you like for the digital economy. And they have to fund it. But I don’t see that as their main issue. What I see as their main issue is winning the hearts and minds of the people in the business to make the change. And therefore that’s the FD’s role in some respects in working with the entrepreneur in understanding the business case to put that forward to people so that they do feel that it is worth them changing and embracing that economy.
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