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Key takeaways
- CFOs as strategic value drivers: The Chief Financial Officer’s role extends far beyond cost control and risk management. Through deliberate steering, finance leaders can orchestrate capital flows, data, and partner networks—actively driving digital value creation across the entire organization.
- Integration of finance, data, and processes: Successful digital value creation requires integrating financial management, operational processes, and strategic partnerships. This creates transparency, accelerates decision-making, and enables agile management across the entire value chain.
- Capital as a lever for innovation and competitiveness: Through data-driven investment decisions, collaborative financing models, and digital performance indicators, capital becomes an active driver of growth, innovation, and resilience—securing business success beyond its purely financial role.
In the manufacturing industry, competitiveness is no longer defined solely by production efficiency but increasingly by the ability to deploy capital strategically.
Many companies initiate their digital transformation programs driven by innovation or efficiency goals. Yet one decisive lever often remains underused: the CFO’s potential to actively shape digital value creation beyond traditional financial management.
From cost guardian to value architect
Traditionally, the CFO’s role has been understood as that of a guardian of costs, risks, and compliance. However, digitalization has fundamentally changed the rules of the game. Data, platforms, and connected supply chains generate a new form of capital that extends beyond purely financial resources: Employed Net Working Capital. It represents the ability to orchestrate capital flows, information, and relationships in real time—thereby unlocking the growth potential of digital ecosystems.
“The CFO of tomorrow will not only manage finances but shape value creation—this new role connects capital, data, and partner networks to unlock digital potential across the enterprise.”
Dieter Machlet
I have worked in the private equity environment for many years. In this context, CFOs have long focused on the question of what return on investment (ROI) individual projects deliver. The next step will be their evolution into active value drivers.
It will no longer be only about the ROI that digital initiatives deliver today, but also about how each investment contributes to the company’s long-term strategic development. Projects thus become a core part of strategic portfolio management.
This development is particularly evident in the manufacturing sector. More than three-quarters of CFOs report that their role is shifting increasingly toward digital value creation, while cost efficiency remains relevant. Yet many organizations still see untapped potential, especially in linking financial strategy with operational transformation.1
Employed net working capital as a strategic lever
Companies that actively “connect” their capital lay the foundation for a new understanding of value. In this context, employed net working capital refers to the deliberate allocation of financial and intangible resources along digital value chains—the targeted linking of cash flow, data, know-how, and partner networks.
When a CFO no longer views investments in isolation but as part of a dynamic network of partners, suppliers, and customers, the contribution to value creation changes fundamentally. Instead of tying up capital, it becomes an active instrument for growth, innovation, and resilience.
Coordination between sales and operations is a key factor, but typically does not fall within the CFO’s direct area of responsibility. In practice, I have rarely seen truly effective Sales and Operations Planning (S&OP). The quality of this discipline is an indicator of an organization’s level of silo thinking.
Why S&OP matters for CFOs
Knowing precisely what to produce, when to produce it, and when customers expect delivery enables more efficient supply chains. Early information exchange with suppliers allows for optimized structures and mutual value creation—true co-creation.
The direct impact on CFOs is reflected in the optimization of inventory, delivery performance, raw materials, batch sizes, production structures, and workforce planning. The question for CFOs: Is it time to establish S&OP within the company and initiate such a project?
According to analyses by McKinsey & Company, industrial companies that manage their capital using data-driven strategies and digital control tools typically increase their EBIT margin by four to eight percentage points while simultaneously improving operational flexibility.2
From financial function to digital control center
The next stage of development lies in integration. CFOs who connect financial, data, and operational logic create transparency and speed—two essential prerequisites for digital value creation.
This includes:
- Data-driven investment decisions: Real-time insights into cash flow, project progress, and ROI of digital initiatives.
- Capital as an innovation accelerator: Flexible budgets for experimentation and partnerships that allow short-term adaptation.
- Connected control systems: Use of cloud ERP, AI, and advanced analytics for dynamic resource allocation.
Successful leadership requires breaking down silos, developing a cross-functional understanding of business processes, and moving away from a purely controlling role. The CFO thus becomes a designer of processes and a mediator between functions.
This also means reconciling sometimes competing goals among C-level executives and building the right alliances to drive strategically essential initiatives. The CIO will be a key partner in this endeavor.
Capital as a connecting element
A proven best-practice approach combines financial transparency with strategic networking. By synchronizing capital flows with partner and data networks, companies can identify value potential along the entire value chain, for example, through:
- Predictive cash-flow management that integrates market and production data in real time.
- Collaborative investment models with partners to jointly finance innovation.
- Digital performance indicators that measure each project’s contribution to long-term value creation.
These practices transform not only the financial architecture but also the organizational mindset: capital is no longer merely managed—it is employed to unlock new value streams.
CFOs as architects of digital value creation
CFOs in the manufacturing industry stand at a turning point. Their ability to connect capital flows with data and partner networks increasingly determines the competitiveness of their organizations.
The CFO of today is rooted in finance; the CFO of tomorrow will become a co-creator of value. They will assume responsibility for the company’s process landscape, its efficiency, and—most importantly—its alignment with corporate strategy.
Moreover, the CFO must be able to answer the CEO’s key question: Are we doing the right things for today and for the next five years?
Final thought
Digital value creation in manufacturing emerges where capital is intelligently combined with knowledge, data, and networks. CFOs who recognize this potential secure not only efficiency but also open up new dimensions of value creation—for their company, their partners, and the entire industry.
Sources
- Deloitte, “CFO Signals Survey 2024”
- McKinsey & Company, “Boosting machinery sector profitability via cloud-aided digitalization,” 2023
Cover image: Jakub Żerdzicki on Unsplash
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice—it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.
