For CFOs, technology investment of any kind is a matter of dollars and cents, not access controls and business progress. Sure, they want the entire company to do things more efficiently, but the real question is whether operations will run more profitably.
Earlier this year, Deloitte released a perspective on eight tech trends that will test the strategic and disciplined nature of finance organizations. But as Estelle Lagorce, director of Global Partner Marketing at SAP, noted in her blog “2017 CFO Primer: 8 Emerging IT Trends That Will Redefine Finance,” CFOs should avoid taking extreme positions to mitigate potential risk at all costs. Instead, they should collaborate with CIOs to determine probable and acceptable levels of risk and better understand exposures, tradeoffs, and impacts of new technology.
In the spirit of finding opportunities to reduce costs and do more with less, CFOs are beginning to realize that an on-premise IT landscape is not a financially stable option for keeping up with the pace of new technology adoption and continuous innovation. In response, CFOs are eyeing the potential of increasingly reliable and secure cloud environments. In fact, IDC estimates that 75% of 2017 enterprise infrastructure and software spending will go toward cloud offerings.
The growing maturity of the cloud earns CFOs’ attention
After years of automating low-value tasks and making better-informed decisions with advanced analytics, the finance organization is still trying to crack the code for optimizing capital and reducing risk while driving business transformation, expanding business models with agility, entering geographies with flexibility, and accelerating business growth and innovation. As new applications are added to the existing on-premise IT landscape, additional layers of complexity get in the way of setting up systems and adapting business processes quickly.
With an enterprise cloud platform powered by in-memory computing technology and managed services, finance organizations are gaining an entirely scalable and secure solution to overcome the hurdles of IT complexity to accomplish its mission. Meanwhile, the reference architecture and cloud expertise delivered through this one-stop solution allow rapid deployment of standardized and customized capabilities needed to compete in an increasingly digital marketplace.
For example, Rexel Group, a French electrical-supplies distributor, migrated its IT infrastructure to the cloud when its on-premise systems became obsolete. Immediately, the smart, energy-saving solutions provider realized a simplified IT landscape. As a result, the company adopted an IT operational-expenditure model to lower costs by 35%, increase flexibility, and generate financial reporting five times faster. Outsourcing the management of its cloud allowed Rexel to dedicate more time toward innovating and delivering energy solutions for a greener future.
Change comes fast–and it’s enabled by the cloud
The degree of change happening today is unlike anything seen before. Go-to-market timelines are shorter, and competition arises without warning. Plus, the continued evolution of everything from business models to operational processes and decision-making will be accelerated.
To stay competitive, companies need to allow every business function to work together to deliver differentiated value to all customers. Finance teams can choose to accept this opportunity to become a strategic partner in enabling the business to work faster, more strategically, and with more agility and innovation. But first, a single platform—accessible anytime, anywhere in the cloud—is needed to align the IT infrastructure and supported applications to unlock real business value.
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