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Mahesh ShettyEncore Enterprises Inc.
Bill SinnettFinancial Executives Research Foundation
Tech Trends for CFOs and Controllers
Convergence 2013
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The New Reality: The CFO
• CFOs are involved in most IT decisions today, and we don't see that changing.
• CFOs see room for improvement in terms of how they use IT to run the business, and are willing to spend on IT.
• CFOs increasing seen as information gatekeeper.
• CFOs recognize the strategic importance of IT
The Nexus of Forces
Each force is powerful; however, the convergence of these forces is on a different order of “disruption magnitude”
Disruptive products will leverage the combination of these forces
Top Technology Trend - Convergence
Project summary Study objectives Methodology Organization & Respondent Profile Key Findings
Summary of Results IT Economics Technology Use The Role of IT
Project Summary – Methodology
• Gartner collected 237 US online surveys from October 2012 to January 2013.
• Methodology:- Online surveys were distributed to qualified financial
executives that understand their organizations business strategy and the role information technology plays in supporting their business.
Project Summary – Organization Profile
Primary IndustryEducation/ Government 6Financial Services 18Healthcare 20Professional Services 34Technology Providers 35Manufacturing-Discrete 30Manufacturing-Process 36Retail 13Wholesale Distribution/ Transportation 14Other 31
Annual revenue< $50M 70$50M to <$250M 53$250M to <$1B 36$1B+ 41Median $175M
n=237
Project summary Study objectives Methodology Organization & Respondent Profile Findings
Summary of Results IT Economics Technology Use The Role of IT
n=237
Change in IT Spend
Average change in IT
spend compared to 2
years agoOpex: +2.9%Capex: +3.7%
Anticipated change in IT spend 1 year
from nowOpex: +1.9%Capex: +2.2%
Spending up, but slightly less so next year
n=237
Influence over IT Investments Compared to 2 Years Ago
CFO Influence up 44% compared to 2010-11.
n=237
Currently Need Improved Technology Support
Current needs can mostly be addressed by improved BI, Analytics
Project summary Study objectives Methodology Organization & Respondent Profile Findings
Summary of Results IT Economics Technology Use The Role of IT
n=237
Top Technology Initiatives Today: Entire CompanySum
55%
43%
31%
26%
22%
21%
19%
16%
15%
15%
15%
8%
7%
Large increase from 2012 for Cloud/SaaS and Mobile.
n=237
Top Technology Initiatives 1 Year from Now: Entire Company
Sum
56%
32%
31%
27%
26%
23%
19%
18%
15%
13%
11%
11%
10%
Nexus growth projected in 2013-14
n=237
Top Technology Initiatives Today: FinanceSum
78%
65%
46%
23%
19%
17%
16%
15%
10%
6%
Analytics rank higher in Finance.
n=237
Top Technology Initiatives 1 Year from Now: FinanceSum
77%
54%
45%
22%
22%
21%
21%
15%
10%
6%
Consistent with the enterprise, Nexus increases.
n=237
Timing to Support More than Half of Transactions on a Cloud Infrastructure using SaaS
Increase in SaaS projection 2012 v. 2013, more clarity
2012
Project summary Study objectives Methodology Organization & Respondent Profile Findings
Summary of Results IT Financials Technology Use The Role of IT
“We routinely realize the business benefits of IT spending/ investments and we are improving over time”
n=237
CynicsRating: 1 or 2
9%
PassiveRating: 3 to 5
63%
AdvocatesRating: 6 or 7
28%
1:Strongly disagree
7:Strongly agree
Mostly passive rating of IT, but more can support transformation
IT Organization’s Performance should be Measured…
n=237
But no one measures IT on their ability to transform enterprise.
Organization’s Minimum ROI Required for IT-Enabled Business Investments to be Seen as Successful
n=237
Majority do not measure ROI of IT investments.
• Nexus of forces forecast to increase- SaaS acceptance/increase forecast- Mobile usage is being defined
• CFO continues to significant influence IT• BI/Analytics have greatest need in enterprise, while..• BI/Analytics and applications continue to dominate
investment• CPM leads BI/Analytics investment• Few view IT as transformational, but advocates are
there and should be leveraged• Only 49% measure IT investment ROI
Top Observations - Summary
Investigate Upgraded Technologies
• In-memory computing options enable granularity for planning, cost, and profitability modeling
• New cloud-based options are available for new and existing solutions and can reduce deployment complexity
• Vendors are increasingly supporting both analytic and process-oriented mobile capabilities
• New embedded capabilities exist for predictive analysis and advanced information visualizations
RecommendationsBuild the mind-set that there are no IT projects —only business projects.Implement or increase the maturity of processes that foster communication (e.g., relationship management, project management and advanced technology group).Become a key strategic partner with finance/CFO to steer the information technology function.Benchmark your organization make plans to target improvementsEducation of your CFO on technology must be a prime focus to improve partnerships
Stay in Touch
Bill SinnettSenior Director, ResearchFinancial Executives Research [email protected]