(MENAFNEditorial) Modern CFOs and Finance Executives In EMEA Are Adopting Emerging Technologies to Help Transform the Role of Finance
News Fact
€¢ To define and benchmark the key attributes of modern, technology-enabled finance, Oracle and Accenture co-sponsored a global study with Longitude Research, entitled "Empowering Modern Finance: The CFO as Technology Evangelist.
€¢ Respondents included 1,275 CFOs, senior finance executives and line of business executives from organizations around the world, 670 of which are employed by businesses of varying sizes operating across multiple industries in EMEA.-- 100 of those surveyed in the region were senior non-finance executives. The study found that
O The modern CFO is a technology evangelist who recognizes the value of digital and cloud technologies for the finance function and the business as a whole, but a gap remains between CFO ambitions and reality;
O Finance departments recognize that cloud capabilities will be useful for budgeting, planning and forecasting as they fulfill modern finance's mandate to be a strategic partner and help drive business growth; an
O To act as a strategic partner to the business, forward-thinking finance teams are using sophisticated analytical tools, modern applications and the latest social, mobile, cloud and collaboration tools to stay closely linked to the vision, strategies and activities of their peers across the enterprise
€¢ While the study found that many CFOs are making major strides towards creating a more productive and efficient technology-enabled finance function, it is clear that much work lies ahead. For example, too many companies still rely on outdated data for key decision-making, not least due to the challenges of consolidating numerous disparate systems.
€¢ This report demonstrates that CFOs have made progress over the past year, since an earlier study from Oracle and Accenture, The CFO as Catalyst for Change, which found CFOs across the world wanted more strategic engagement but instead were focused on battling costs, economic volatility, and organizational complexity.
Key Findings
€¢ CFOs are seen as technology evangelists, but a gap remains between ambition and reality:
O Over two-thirds of respondents agree the CFO is a strong evangelist for the transformational potential of technology and nearly three-quarters of finance executives believe new technologies such as the cloud, mobile technology and social media will change how finance is structured and run.
O However, only 20 percent of C-suite executives believe that their finance organizations have adopted leading-edge technologies, in contrast to sales organizations, in which 43 percent of C-suite executives say they have already having done so.
€¢ New skills and analytics capabilities are needed to execute on modern finance's mandate:
O 50 percent of respondents in the region saw an increase in the number of finance analysts hired over the past two years, reflecting the growing need for finance talent with a deeper and broader range of business and analytical skills.
O For example, 41 percent of respondents feel that the ability of finance to provide an up-to-date view of performance against budget "falls below expectations"
€¢ CFOs are embracing the cloud to modernize finance:
O Survey respondents clearly see the potential for the cloud to deliver new insights through advanced analytics and business intelligence. More than a quarter of respondents (28 percent) are already using the cloud to support budgeting, planning and forecasting, and another 33 percent plan to move them into the cloud within the next year
O In addition, more than two-thirds of executives surveyed have either already adopted a cloud-based system in some part of their organization for core financials (24 percent), or are planning a road map for doing so (45 percent).
€¢ CFOs continue to focus on automating processes, consolidating system and real-time reporting to drive operational excellence, but more progress is needed:
O While about 30 percent of finance and line of business executives that responded agree their processes are still paper-based, there is a clear trend toward automating and digitizing processes, with nearly 44 percent now using mobile apps and 53 percent leveraging web-based systems.
€¢ We've reached a technology tipping point:
O Findings from the report indicate that the maturation of big data analytics, cloud, mobile, and social media has led us to a new tipping point at which businesses must reevaluate their digital strategies
O 70 percent of respondents believe these technologies will change the way they run and structure the finance function in their businesse
O With more than half of respondents citing increased flexibility, faster response times, improved analytics, and lower operating costs as their highest priority for the future, organizations are increasingly turning to CFOs to weigh in on their IT investment decisions and help focus them.
O 66 percent of respondents agree that finance fully understands the opportunities for transformation offered by emerging technologies. With their extensive skillset and analytics background, CFOs are well placed to identify the "sweet spot" for IT purchases and help businesses align their digital transformations with their future goals.
€¢ Senior management backs the technology vision:
O Only 5 percent of respondents cite lack of senior management support as a barrier to adopting new technologies in the finance function. Ability, rather than willingness, seems to be a greater factor, with 38 percent of respondents citing lack of internal skills as a key barrier.
Webcast: The CFO as Technology Evangelist: How Effectively Are You Using Technology to Drive Strategy and Set the Growth Agenda
€¢ Oracle and Accenture hosted a webcast to discuss the study's findings on March 19. The webcast featured Oracle Chairman of the Board Jeff Henley, Scott Brennan, managing director in Accenture Finance & Enterprise Performance, and Stuart Brown, senior vice president and CFO, Red Robin International, Inc. To listen to a recording of this event, it is available at: http://www.cfo.com/webcasts/index.cfm/l_eventdetail/14705976?pcode=ORA031914_a.
Supporting Quote
€¢ "Empowered by data insights and collaborative new ways of working, modern finance organizations are no longer content to focus on containing costs and instead are looking at new ways to deliver insight and value to the rest of the business," said Dee Houchen, Senior Director of Applications, Oracle, "While the study highlights how finance executives are increasingly leveraging operational knowledge and analytical expertise to provide data-driven insight and forward-looking guidance on where to drive innovation and growth, an important gap still remains between aspirations and reality.
€¢ "CFOs today are creating modern finance organizations that are adopting the cloud and other disruptive technologies to realize the power that digital can wield and help propel the enterprise forward," Scott Brennan, a managing director, Accenture Strategy in Finance & Enterprise Performance, "This study shows how modern finance leaders can help craft corporate strategies that drive profitable growth.
€¢ "It is encouraging to see the progress and foresight that finance leaders have demonstrated as they break down traditional operational barriers and harness new technologies," said Brennan, "These new modern finance organizations will want to train and hire professionals with robust analytical skills and business knowledge to help today's CFO realize the full potential that finance has to offer.
Supporting Resource
€¢ Oracle CFO Centra
€¢ Longitude Research Study: Empowering Modern Finance the CFO as technology evangelis
€¢ Register for Webcast: The CFO as Technology Evangelis
€¢ Longitude Research Study: The CFO as Catalyst for Chang
€¢ Accenture Finance and Enterprise Performanc
€¢ Accenture High Performance Finance Repor
€¢ Eight Top Issues for CFOs in 201
€¢ The CFO as Chief Innovator
€¢ The CFO as Corporate Strategis
€¢ Measuring the True Profitability of Products, Services and Customers
€¢ About Longitude Researc
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