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How does your #finance department make decisions? See results from our latest survey in this #Epicor #ebook
Instinct meets InsightDo CFOs have the tools they need to make the best decisions for business growth?
Instinct Meets Insight 2 Instinct Meets Insight 3
What’s Inside…
[email protected] www.epicor.com/uk
Survey methodology and demographics4
CFOs want to embrace digital innovation5
3 Executive summary
CFOs are forced to rely on instinct6
Collaboration is a must-have9
Epicor ERP: giving CFOs the tools to make better decisions for faster growth10
‘More advanced IT’ isn’t enough8
CFOs need more accurate data—but they can’t get it7
Did you know that 46 percent of CFOs are making important decisions
based only on instinct? And, that a third of companies cite not having
access to internal data quickly enough as a key cause of decision-
making mistakes?
These were just a few of the insights revealed during the latest research,
commissioned by Epicor Software Corporation, into the decision making
challenges CFOs and financial decision-makers face, especially when it comes
to the role IT systems play in the process.
The picture painted is complex: while CFOs value their instinct and intuition in the
decision-making process, they’re increasingly being used to make decisions that
should be made based on hard facts. The primary culprit seems to be inadequate
IT systems: 60 percent of CFOs and financial decision-makers still rely on Excel
spreadsheets to interpret data, suggesting that their current systems are unable
to give them the insight they need.
Crucially, the survey showed that profits increased for the majority of
organisations who had managed to overcome these challenges. In this eBook,
we’ll look at the results of the survey in closer detail and explore how a modern
financial IT infrastructure, which delivers the right data to the right people and at
the right time, can help CFOs and financial decision-makers back up instinct with
relevant data they can rely on to help their businesses grow.
Executive summary
Instinct Meets Insight 4 Instinct Meets Insight 5
The 2015 research, commissioned by Epicor Software and conducted
by Redshift Research Ltd., is based on interviews conducted with more
than 1,500 finance business professionals in 11 countries.
At every turn, advances in digital technology are changing the
landscape CFOs operate in; consequently CFOs and financial
decision-makers are endeavoring to best prepare themselves and
their organisations to adapt to these changes.
The increasing pace of business, driven by technological advances, means that
a third of CFOs said business planning and forecasting was a major challenge
for their organisation in 2015.
However, many organisations are finding the sheer velocity of this ‘digital
disruption,’ and the process of developing effective strategies and systems to
address it, overwhelming. Organisations can no longer plan and budget on an
annual basis; they have to become more flexible and responsive to changes in
the market, requiring a step-change in the finance department’s relationship
with technology.
It’s no surprise, therefore, to see that the top two issues that CFOs and financial
decision-makers saw impacting their departments in the next two-to-three
years were big data and investment in new financial IT systems. Clearly, as
the digital world continues to change how we do business and exchange
information, CFOs are eager to harness new innovations and put them to
work for their organisation.
BIGDATA
33%
28%of CFOs saybig data is one ofthe top issues impacting their department in the next 2-3 years
27%of CFOs say investment in new IT is one of the top issues impacting their department in the next 2-3 years
planning &forecasting
investment
a top issue
of CFOs say planning and forecasting is a major challenge for 2015
Survey methodology and demographics CFOs want to embrace digital innovation
of organisations with between 100 and 249 employees
of organisations with between 250 and 499 employees
of organisations with between 500 and 999 employees
of organisations with more than 1000 employees
distribution/logistics companies
retail companies
manufacturing /engineering companies
21%
24%
18%
36%
14%
37%
12%
37% service companies
Company size
Industries surveyed
of organisations with between 100 and 249 employees
of organisations with between 250 and 499 employees
of organisations with between 500 and 999 employees
of organisations with more than 1000 employees
distribution/logistics companies
retail companies
manufacturing /engineering companies
21%
24%
18%
36%
14%
37%
12%
37% service companies
Company size
Industries surveyed
Respondents to the survey may or may not be using Epicor ERP solutions. Nearly
two fifths of respondents worked in the manufacturing industry, with the same
number coming from the service industry; the remaining 20 percent were involved
in the retail and distribution industries. In terms of industry size, the largest number
of respondents worked in organisations with more than 1,000 employees.
Instinct Meets Insight 6 Instinct Meets Insight 7
Our survey indicates that it’s the manufacturing industry that
stands to gain the most by addressing these challenges.
Manufacturing was the most likely sector to have a combination of
pressure-motivated leadership (a belief that tough targets and tight
deadlines bring the best results) and basic IT infrastructure, leading to
a high reliance on instinct rather than data for decision-making. As we’ll
see, this state of play is one that CFOs and financial decision-makers are
eager to address in their organisations to safeguard growth and to stay
ahead of the competition.
Nearly half of our survey respondents said that they had to rely on their
instincts and experience to make decisions, to make up for the lack
of hard facts. Of course, making decisions without having the facts to
hand increases the chances of mistakes being made, and correlates with
a separate study which revealed that more than a fifth of office workers
feel that uninformed decisions have led to loss of revenue in the past.
However, many survey respondents stated that instinct has a valid role to play in the
decision-making process. The problem is that, all too often, they are forced to use
those instincts to plug the gaps left by inadequate data, rather than using them to
provide creative and strategic thinking to drive the business forwards.
When asked what the most important factor was for good financial
decision-making, the most popular answer CFOs gave was ‘accurate
data.’ Despite this, nearly half of CFOs see mistakes occur as a result
of missing or false information, and 37 percent of them highlighted
inaccurate data as the biggest cause of mistakes in their decision-
making process.
of workers...
%22Manufacturing businessesstand to gain the most by changing how they make these decisions:
They’re most likely
to have a pressure- motivated leadership style...
...a basic IT infrastructure...
...feel thatmaking decisions without data could be resulting inloss of revenue
...and therefore
rely on instinct more than data
44%
of CFOs seemistakes occur as a result of missing or false information
37%
of CFOs said that inaccurate data was the biggest cause of mistakes
60%
of CFOs are still using spreadsheets alongside other systems
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46% of CFOs make #decisions based on gut instinct. See our #ebook for more results from our #CFO survey
CFOs need more accurate data—but they can’t get itCFOs are forced to rely on instinctManufacturing in the pressure cooker
So what is the cause of these inaccuracies? The survey threw up one consistent
answer: the IT systems CFOs use. A quarter of respondents told us that their
IT systems struggle to provide them with the information they need, and a full
60 percent of our survey respondents still rely on Excel spreadsheets for their
information—despite having ERP and other IT systems at their disposal.
The financial confidence to go
boldly forward
Nearly half of respondents said
that decisions are often made
opportunistically, to exploit
situations as they arise.
With that in mind,
having IT systems that
can deliver the right
data, to the right people,
at the right time and in
the right way will allow
CFOs to confidently
take advantage of these
windows of opportunity.
46%of CFOs
rely on gut feel and instinct to make decisions
Instinct Meets Insight 8 Instinct Meets Insight 9
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1/5 of #CFOs struggle to extract meaningful insight from their data. Learn more in our latest #Epicor #ebook
A closer look at collaboration
Collaboration is a Must-Have
Collaborative decision-making was found to be prevalent in just over
half of CFOs’ organisations.
Interestingly, the number of CFOs for whom this was the case increased among
high-pressure industries—such as manufacturing—to 59 percent, and increased
again to 70 percent in organisations where decision-making relies on instinct. This
suggests that collaborative decision-making is sometimes used as a substitute for
missing data.
In light of this trend, it’s important that the IT solutions CFOs use to enhance their
decision-making need to fully embrace collaborative working, by disseminating
information to a wide audience and giving them the right information to aid in
the decision-making process.
Connect Collaborate InnovateThe business benefits of social ERP
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Ready for #Social #ERP? Find out with this #ebook from @Epicor #collaboration32% of CFOs
say their finance systems
need updating
23% of CFOsstruggle to
extractmeaningful insight from data28%
of CFOssay decision making is
hampered by inability to
make effective use of
information
23%of CFOs
with high-functioning infrastructure say this
‘More advanced IT’ isn’t enough
A third of CFOs believe that their current IT systems need updating,
and indeed we’ve already seen that this is a priority for CFOs and
financial decision-makers in the near future as they keep pace with
digital innovation. However, a closer look at the problems CFOs
have with IT reveal that simply implementing a more advanced IT
infrastructure isn’t enough.
Download our eBook, Connect, Collaborate, Innovate: The business
benefits of social ERP to discover how a collaborative ERP system can
help you connect employees in diverse locations and even on the move,
empowering you to make better decisions, faster.
52%of CFOs
say decisions are often made collectively, involving people outside the finance department
Even for CFOs who rate their IT infrastructure as high-functioning or advanced,
the challenge isn’t just about getting accurate data—it’s about getting that data
in a format that allows you to extract insight from it. Rather than looking for
systems which simply deliver financial data en masse, CFOs should be looking for
systems which deliver this data in an easy-to-understand, contextual format that
helps them see what they need to know, when they need to know it, and in the
format that will be of most use to them.
Instinct Meets Insight 10 Instinct Meets Insight 11
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Modern financial IT and #ERP systems must provide the right data, to the right people, at the right time. Learn more:
Epicor ERP not only provides large volumes of accurate data, but presents it
to users in meaningful and easy-to-understand ways. By connecting all areas
of your business, Epicor ERP is able to collect accurate data in real time from
across the organisation and create a single source of truth from which insight
can be extracted. Data is presented to users via dashboards designed for
specific functions including financial planning, financial reporting, and business
intelligence, helping you to make decisions based on complete and accurate data,
aligned with the KPIs of your business.
Epicor ERP has been designed to support you as you modernise your finance
department. More efficient accounting processes help you achieve shorter period
closes and deliver key information to decision-makers across the business, and
you can choose between various deployment options to create a system that
meets your specific needs.
We’ve seen in our survey that nearly half of CFOs and financial
decision makers are relying on instinct to make decisions where they
should be relying on hard data. We’ve also seen that a third of them
are looking to update their IT systems to address that lack of data in
their organisation. However, we’ve also seen that they place value
on their instincts and experience in helping them make decisions,
whether alone or as part of a team.
To overcome these challenges, financial IT systems must:
• Provide accurate data to individuals, when they need it,
in the format they need it.
• Allow CFOs to focus on using their experience and
intuition to add value to the business instead of
shoring up gaps left by bad data.
• Facilitate collaboration between individuals within
and outside of the financial department.If your financial systems aren’t giving you the support you need, we should talk. Interested in learning more?
Contact us at:
Epicor ERP: giving CFOs the tools to make better decisions for faster growth
www.epicor.com/uk
+44 (0) 1344 468468
Instinct Meets Insight 12
About EpicorEpicor Software Corporation is a global leader delivering business software solutions to the manufacturing, distribution, retail, and service industries. With more than 40 years of experience, Epicor has more than 20,000 customers in over 150 countries. Epicor solutions enable companies to drive increased efficiency and improve profitability. With a history of innovation, industry expertise and passion for excellence, Epicor inspires customers to build lasting competitive advantage. Epicor provides the single point of accountability that local, regional, and global businesses demand. For more information, visit www.epicor.com.
The contents of this document are for informational purposes only and are subject to change without notice. Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically disclaims, to the full extent of the law, any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of its date of publication, June 2015. The usage of any Epicor software shall be pursuant to the applicable end user license agreement and the performance of any consulting services by Epicor personnel shall be pursuant to applicable standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Epicor, Business Inspired, and Mattec are trademarks or registered trademarks of Epicor Software Corporation in the United States, certain other countries and/or the EU. All other trademarks mentioned are the property of their respective owners. Copyright © 2015 Epicor Software Corporation. All rights reserved.
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