“My biggest joy is having software and systems that can quickly utilize great datasets,” Redgate Software CFO Steve Mitchell said last year in a financial and accounting technology briefing.
Mitchell not only spoke about the internal financial system, but also spoke on behalf of his clients. As a database management tool provider, UK-based Redgate is at the heart of faster, easier, broader, yes, cheaper access to operational and financial data faster, broader, and unprecedented demand.
We asked Mitchell how global economic uncertainty, the rapid pace of AI investments, and international compliance requirements force high-tech organizations and their CFOs to pivot quickly.
What new challenges are you facing in your sector?
One important issue is the increasing global economic and political uncertainty. This is not new, but it has been strengthened recently, making long-term investment decisions more difficult and making capital expensive. Nevertheless, it presents us with some commercial opportunities.
We can accelerate growth by demonstrating a robust and fast return on investment that potential customers can expect from using our products. For Redgate, that means focusing marketing campaigns on the cost savings that database-related software can provide, focusing on improving database performance and security.
Another important issue is the pace of technological change, especially with regard to AI. The technology that was expected to be three to four years from now at the beginning of 2024 is already here. This rapid advance will help you identify the most effective locations to invest your money and effort.
Lack of key skills, increased information security threats, and accelerated regulatory requirements are both risks and opportunities for high-tech companies.
How do high-tech companies adapt to rapid market changes and technological advances?
It's all about building up capital structure and flexibility into the decision-making process. This flexibility allows you to respond quickly to changes and potentially drive those changes yourself. What's more, it's essential to leverage your data with amazing tools available today, including AI. In many cases, inaction is the most important risk.
How do you balance it with the need to meet evolving regulatory and compliance requirements?
The European General Data Protection Regulation (GDPR) and the US California Consumer Privacy Act (CCPA) establish high standards for data privacy and protection. These regulations allow consumers to take control of their personal data more strongly and impose large penalties for non-compliance violations.
Learn more about Steve Mitchell and Redgate software
- Company Sector: Database Management Tool
- Headquarters: Cambridge, UK. US offices in Austin and Jersey City, New Jersey
- Mitchell's first CFO job:2014
- Previous companies to watch: T-Mobile, Eir Ireland, Six Degrees Group
Prioritizing your compliance and regulatory investments can be challenging. However, businesses need to address this in order to avoid information security breaches or damage to the brand due to poor ESG practices.
As a CFO, you can prepare your CEO by investigating regulatory and compliance requirements through three lenses: legal obligations, business improvements, and customer expectations. Identifying initiatives along all three makes it easier for CEOs to justify increased spending, so organizations view it as an investment in growth rather than just compliance costs.
Data is becoming a top priority and asset for organizations of all sizes. How will CFOs change the way in which they not only use data in decision-making, but also establish effective data management processes?
Data, along with people, has become one of the most important assets. Those who can leverage their data are to make faster and better decisions.
However, all businesses struggle to some degree with data availability and quality. CFOs should ensure that incomplete data does not paralyze the tissue. In many cases, 80% to 99% accurate data is sufficient to facilitate decisions and set instructions. The cost of indecision and inaction is often [the cost of] Use slightly incomplete data.
CFOs should model their ability to make strategic decisions using incomplete data and encourage others to do the same. The quest for the perfect data warehouse can be counterproductive. Doses of pragmatism can accelerate decision-making.
Another order? Data security. As more people across the business use data to drive decision-making, they naturally demand more access. CFOs must define and control processes for data access, use, storage and deletion. AI adds the complexity of this as dataset access requests for training models or integration of new AI-enabled software exponentially increases.
CFOs need to ensure that businesses invest in information security, appropriate expertise, systems, policies and processes in the context of ever-changing external risks and increasing internal demand for data access.
