Finance and technology: a confident partnershipDriven by technology 1 The finance department is not normally viewed as a hotbed of technological innovation.. It is unsurprising, then, th
Trang 1Finance and technology: a confident partnership
Driven by technology 1
The finance department is not normally viewed as
a hotbed of technological innovation
“Finance has traditionally been a nuts-and-bolts type of department, where you report the numbers,” explains Robert Cornella, finance director at Coca-Cola Germany “There hasn’t been a great deal of showmanship.”
It goes without saying, though, that it is heavily reliant on technology Core tasks such
as calculating rolling estimates, recording monthly actuals, producing quarterly financials, consolidating profit-centre profit and loss (P&L) statements and producing balance sheets would all be impossible for small businesses, let alone giant corporations, without software
It is unsurprising, then, that 60% of finance leaders surveyed for this report believe that
their department’s business processes are more reliant on technology than those of most other business units Almost one-quarter (24%) of IT leaders surveyed agree that finance is the most technology-dependent department, although slightly more (26%) pick marketing as the most reliant
In fact, technology has played a crucial supporting role in the rise of the finance department as a key adviser to the business “It’s only in the last 10-15 years that finance people have become proficient at presenting data and really becoming true business partners,” says
Mr Cornella “Finance leaders are increasingly viewed as a business partner to the CEO and other teams, not only because of their financial expertise, but also their ability to help guide decisions in the business.”
Technology therefore permeates the finance function’s work, and its power to fulfil its strategic objectives is linked to its ability to influence technology selection and deployment decisions
Luckily, finance is perhaps the department most intimately involved in technology decision-making In any well-run company, finance will examine the costs and potential benefits of any technology project or investment Indeed, in many organisations the chief information officer reports to the chief financial officer
According to Wolfgang Schäfer, the chief financial officer of the German vehicle parts manufacturer Continental, the contribution that finance makes to IT decision-making goes beyond simply
How important is technology to your business unit’s processes?
(% of respondents)
Our business processes are more reliant on technology than those of most other departments in the organisation Our business processes
are no more or less reliant
on technology than those
of most other departments
Our business processes are less
reliant on technology than those
of most other departments in
the organisation
Chart 1
Source: The Economist Intelligence Unit.
60%
36%
4%
Trang 2Finance and technology: a confident partnership
counting the numbers—
it imbues the technology design and selection process with a vital business focus
“Technology decisions today have to consider
a broader perspective—operational as well as financial aspects,” he says “That’s why finance is already involved today in system definition and tool decisions Given the amount of money spent
on IT solutions and their influence on how we are running our business, finance involvement is vital.”
How confident are you in your
business unit’s ability to manage
technology?
(% of respondents)
Very confident
Somewhat confident
Chart 2
Neutral
Source: The Economist Intelligence Unit.
48%
38%
14%
How do you expect the way in which technology decisions that affect your business unit are made will change in the next two
to three years?
(% of respondents)
My business unit will have significantly more influence
My business unit will have slightly more influence There will be no change
The IT department will have slightly more influence
The IT department will have significantly more influence
Chart 3
Source: The Economist Intelligence Unit.
36%
32%
20%
6%
6%
Given their high reliance on technology and their regular involvement in technology decisions,
it stands to reason that finance leaders are especially confident of their department’s ability
to manage technology In this survey, 86% described themselves as “very” or “somewhat” confident, a higher proportion than leaders of any other department