Why CFOs Are Collaborating More With CIOs

 
 
By Dennis McCafferty  |  Posted 05-22-2015 Email
 
 
 
 
 
 
 
 
 
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    Why CFOs Are Collaborating More With CIOs
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    Why CFOs Are Collaborating More With CIOs

    By Dennis McCafferty
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    Evolving Partnership
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    Evolving Partnership

    61% of surveyed CFOs said they've increased collaboration with their CIO over the last three years, and 23% said they've done so to "a much greater extent."
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    IT Influencer
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    IT Influencer

    71% said they've gotten more involved with IT over the last three years, and 35% said this involvement has significantly increased.
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    Consensus Agreement
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    Consensus Agreement

    55% said they are either "significantly" or "completely" aligned with IT's broader agenda on data.
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    Top Reasons Why CFOs Are Collaborating More With CIOs
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    Top Reasons Why CFOs Are Collaborating More With CIOs

    To obtain more accurate, available and accessible data: 32%, To improve business intelligence/analytics capabilities: 31%, To consolidate IT systems and infrastructure: 28%, To better understand the business value of IT: 25%, To shift to digital within the business: 24%
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    Biggest Contributions That CFOs Make to IT
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    Biggest Contributions That CFOs Make to IT

    Managing costs/profitability: 35%, Setting budgets/costs: 33%, Building business case for new initiatives: 28%
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    Biggest Barriers Within the CFO/CIO Relationship
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    Biggest Barriers Within the CFO/CIO Relationship

    Insufficient understanding of IT issues among finance execs: 44%, Absence of a clear set of key performance indicators (KPIs) to link financial performance to the IT agenda: 42%, Incompatible processes and tools: 36%
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    Threat Awareness
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    Threat Awareness

    66% of CFOs said cyber-security is a high or "very high" priority.
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    Data Determination
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    Data Determination

    53% said they make either a significant or "very significant" contribution to determining where analytics efforts can add the most value.
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    ROI Factor
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    ROI Factor

    50% of those who have highly prioritized the transitioning of the IT function to a digital world report earnings growth of 10% or greater over the last three years.
 

CFOs are increasingly collaborating with CIOs while playing a greater role in IT strategy overall, according to a recent survey from EY (formerly known as Ernst and Young). From a tech perspective, such involvement on the part of CFOs can help better manage costs while building business cases for new initiatives. From the CFO's perspective, a closer relationship can enable finance to acquire more useful and accessible data, improve analytics capabilities and gain a better understanding of the business value of IT. These efforts are apparently paying off too, as a significant share of organizations in which CFOs value the digitalization of functions are seeing considerable earnings growth. "In today's digital economy, the financial well-being of an enterprise is dependent on the health of the CFO-CIO relationship," said Julie Teigland, leader of the CFO program for EY's Europe, Middle East, India and Africa (EMEIA) practice. "In order to succeed, organizations must make bold technology investment decisions that are driven by corporate strategy, while managing a range of severe risks, such as cyber-security and data privacy concerns. This mission-critical convergence of technology, investment strategy and risk has elevated the CFO-CIO relationship to new levels of importance." More than 650 CFOs took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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