CFO Insights: How to Navigate Inflation and Other Signs of Economic Change

Finance leaders are adapting their economic outlooks to the ever-changing landscape. While global interest rates and inflation have eased somewhat, challenges like tariffs and cross-border tensions continue to disrupt the expectations of CFOs, business leaders, and the markets.

Our recent research reveals that 41% of finance leaders view worsening economic conditions as their top external challenge, with 37% citing geopolitical tensions as a primary concern.¹ This uncertainty underscores the necessity for finance leaders in organizations of all sizes to continuously innovate their processes and technology while effectively managing costs. Rather than instinctively cutting IT budgets, leaders should focus on strategic investments in technology. The right solutions can automate tasks to mitigate labor costs and inflation, provide cloud-based flexibility in pricing, and incorporate third-party resources to reduce upfront expenses.

To learn best practices that can help finance teams navigate today’s conditions, we interviewed CFOs across SAP offices worldwide. Here are three core focus areas that are helping SAP develop the right strategies to protect its financial position:

1. Rethink priorities to get ahead of change.
2. Align actions with long-term goals.
3. Invest in people when transforming digitally.