Chief financial officers (CFOs) plan to increase technology investments, with 82% saying they intend to increase investment in digital capabilities in fiscal year (FY) 2021 compared to FY20.
A survey of 115 CFOs was conducted by Gartner between July – December 2020, and revealed that 70% of respondents intend to increase spend in information technology in this fiscal year.
“As Covid-19 lockdowns were imposed, most finance organizations tried to digitise as many processes as possible to move to a virtual work environment,” sasy Alejandra Lozada, senior director analyst in the Gartner Finance practice. “CFOs also view technology as a competitive differentiator that can widen the performance gap between their businesses and those of their peers.
“While CFOs are planning to increase their digital investments, our survey also showed that they are less clear on what digital business means and the technologies with the most significant impact on their businesses. This could be a challenge,” adds Lozada.
“CFOs need a clear digitalisation language and vision to focus their teams on the key investments and initiatives required to accelerate transformation. This clarity is needed to make coherent technology investments that enhance one another.”
Gartner experts have three recommendations for CFOs planning their next digital steps:
* Maintain a balanced technology investment portfolio: The technology portfolio must balance technology opportunities that can yield long term business value with low-effort, low-complexity initiatives (such as piecemeal automations) that have shorter payback periods.
* Select technologies based on finance’s needs: Instead of picking technologies based on market trends, CFOs should begin with defining their business and finance objectives and then look for technologies that will assist in achieving those objectives.
* Involve cross-functional stakeholders early: Limited visibility into the wider organisation’s IT efforts will lead to overlaps and conflicts with other business units. CFOs can avoid this by consulting with other business units and central IT at each step of the technology roadmap, and this has the added benefit of facilitating buy-in at later stages.