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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 – Study Objectives

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 – Respondent Profile n=237

All respondents provide input to IT decisions.

Project Summary – Key Findings

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

n=237

Projected Movement to the Cloud

ERP and BI/Analytics cloud deployments will increase.

n=237

Projected Mobile Device Usage

Use of mobile devices gain clarity.

n=237

Investment in Business Analytics

Corporate Performance Management top area for investment

Project summary Study objectives Methodology Organization & Respondent Profile Findings

Summary of Results IT Financials Technology Use The Role of IT

n=237

Role that Authorizes Technology Investment Decisions

CFO continues to lead IT investment.

CIO or Most Senior IT Executive Reports to…

n=237

CFO continues to own many IT departments.

Expectation of IT

n=237

Only 13% view IT as transformational

“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 Foundationbsinnett@financialexecutives.org