CFOs today are recognizing that delivering strategic guidance and insight to the business requires updated technology and the benefits of cloud technology are starting to win over CFO and IT stakeholders. As a result, CFOs find themselves vying for the financial technology leadership position in their organizations.
A recent survey report, Empowering Modern Finance: The CFO as Technology Evangelist Executive Summary, published by Oracle, Accenture and Longitude Research, states that CFOs are creating the foundation for the treasury organization to be the company champion for financial technology. The survey polled 1,275 finance and line-of-business executives.
The research confirms that CFOs are building the business case to sponsor technology that will transform treasury projects, creating operational efficiency, intelligent analytics and enterprise collaboration. CFOs are getting started by identifying areas that technology can have an immediate impact, for example; standardizing processes and moving outdated disparate systems to a cloud-based solution. More than two-thirds of respondents within and outside of the finance organization agreed that the CFO is an advocate for technology.
The study reveals that more than two-thirds of executives surveyed claim to have either already adopted a cloud-based system in some part of their organization for core financials (24%), or are planning a road map for doing so (45%). Those CFOs who are planning to implement new technology recognize the positive impact it will have on their organization. However, there are challenges and obstacles that they need to overcome. In the study, 44% view new technology and the process to integrate it as a risk, while 38% cite lack of internal skills as an issue and 5% cite lack of senior management support. For these needs, cloud-based treasury solutions are becoming more and more desirable. Cloud treasury solutions, particularly SaaS solutions are designed to integrate with standard technologies web like services. In addition, they require minimal IT and resource involvement allowing you and your team to focus on what’s more important.
In the treasury space, CFOs should consider the following basic treasury solution capabilities in order to be successful:
- Managing cash and risk holistically
- Ability to scale to future business needs
- Streamline and enable enterprise-wide financial collaboration
At Reval, a SaaS Treasury and Risk Management (TRM) solution provider, many of the CFOs we work with are experiencing the benefits of a SaaS TRM. However, there is some confusion in the market between SaaS and ASP. There are distinct differences between the two. ASP is commonly referred to as a “hosted” solution. SaaS is also hosted, but it is not at all an ASP. Hosted means the vendor manages the hardware, software, security etc. remotely. This applies to both SaaS and ASP, but the fundamental difference is in how they are delivered. Only SaaS delivers the same application to all of its customers at once. This one-to-many delivery model means that you can leverage the power of an entire community of users to your benefit. To learn why this makes a difference to you click here to read the “Power of Community.”
As a Treasurer or CFO you are focused on delivering strategic insight to drive business growth. What are your plans to move your treasury out of their traditional functions to be a more proactive business partner?
To review the executive summary of Empowering Modern Finance: The CFO as Technology Evangelist Executive Summary, survey click here.