CFOs want to see value from digital transformation investments
Digital transformation is a priority for 80 percent of CFOs and 71 percent believe that these investments are key to their company's success.
This is according to a global survey of more than 1,500 CFOs and senior financial leaders by enterprise software services company Rimini Street which also shows that CFOs are keen to see IT investments deliver value.
Of those surveyed 77 percent say they would help the CIO find a way to fund a new digital transformation project if the initiative delivered strong ROI. In addition, 67 percent say they refuse to waste precious dollars on IT investments that don't 'move the needle.'
Of those who cite digital transformation as a top-five priority compared to other corporate initiatives, 59 percent say it's in their top three priorities. In addition, of the 80 percent of CFOs who expect their technology spending to increase in 2021, almost half (46 percent) say this growth in spending is being driven by new digital transformation investments.
Unsurprisingly there is evidence of a COVID-19 effect; 73 percent say that the global pandemic has increased their digital transformation investment, and 95 percent agree that technology investments are key to recovering from the business impacts of the pandemic.
The report also highlights that a strong relationship between the CFO and CIO is needed for success. 69 percent of CFOs have a favorable view of their CIOs, with 47 percent saying that their CIO is a partner 'that helps connect the dots between technology and business decisions' and 22 percent stating that their CIO is an 'innovative change-agent that drives business strategy.' More than three in four CFOs (77 percent) say that last year's challenging business landscape has served to strengthen their relationship with their CIO.
"This report highlights the heightened importance of digital transformation for CFOs but reinforces that IT investments must have clear business value to receive CFO support. It’s not surprising that CFOs want to cancel IT projects that lack a strong ROI, like many software vendor-forced ERP re-implementations and migrations, given that resources can be liberated for new technology investments that accelerate achieving the businesses digital goals," says Seth A Ravin, Rimini Street CEO. "By switching to Rimini Street Support, our clients are uniquely enabled to take back the control of their IT roadmaps, maximize the lifespan and value of current ERP investments and free up significant funding and internal resources to help fund those critical digital transformation initiatives that create competitive advantage and growth."
The full report is available on the Rimini Street site.