Companies focused on spurring improvements in time to market, customer responsiveness, inventory management and supply chain logistics. More recently the focus shifted to increasing cash flow. In the emerging New Economy, however, corporate value is increasingly tied up not in physical assets but in intangible assets. This is affecting even traditional companies. New Economy companies have accelerated this trend dramatically.
Cash flow remains vital.
As a new e-business model takes off, cash is invested in acquiring new customers, developing the brand, hiring new talent and building websites. Short-term profits are less important than growth and sustainability. At some point, cash burn becomes a crucial performance measure. To learn more about the CFO's role in the New Economy, read chapter one of eCFO in its entirety or view a summary of the book.