Engaging Your CFO in Business Analytics  | Palestrante: Celso Chapinotte
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Engaging Your CFO in Business Analytics | Palestrante: Celso Chapinotte

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Engaging Your CFO in Business Analytics | Palestrante: Celso Chapinotte

Engaging Your CFO in Business Analytics | Palestrante: Celso Chapinotte

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Engaging Your CFO in Business Analytics  | Palestrante: Celso Chapinotte Engaging Your CFO in Business Analytics | Palestrante: Celso Chapinotte Presentation Transcript

  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity." Gareth Herschel Presented by Celso Chapinotte celso.chapinotte@gartner.com To the Point: Engaging Your CFO in Business Analytics
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 1 The Digital Tsunami Is Upon Us
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. We Need a Three-Part Response to Face the “Digital Tsunami” Renovate the core of IT Create powerful digital leadership Build bimodal capability • Clear digital roles • Savvy digital executives • Digital vision & digital legacy • Information • Cloud/Web-scale infrastructure • Talent • Sourcing • Agile development • Multidisciplinary teams • Innovative partnerships • New risk/speed trade-offs DigitalizationIT Industrialization 2
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. We Need a Three-Part Response to Face the “Digital Tsunami” Renovate the core of IT Create powerful digital leadership Build bimodal capability • Clear digital roles • Savvy digital executives • Digital vision & digital legacy • Information • Cloud/Web-scale infrastructure • Talent • Sourcing • Agile development • Multidisciplinary teams • Innovative partnerships • New risk/speed trade-offs DigitalizationIT Industrialization CFO 3
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Why Must the CFO Be Your Ally for Business Analytics? • The CFO determines investment levels • The CFO oversees capital budgeting • Increasing role in Financial Governance • The CFO (and the finance team) are struggling to get the information they need about business effectiveness from ERP and other business applications • The CFO has a great deal of influence • The CFO may be your boss Investments Business Processes Influence 4
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How is the influence of the CFO changing? 2. What does our CFO study tell us about their role in business analytics? 3. How do you enable your CFO to be more strategic through technology? 5
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How is the influence of the CFO changing? 2. What does our CFO study tell us about their role in business analytics? 3. How do you enable your CFO to be more strategic through technology? 6
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Titles/Job Functions CFO, Executive VP, Senior VP, VP-Finance 60% Controller 14% Treasurer 7% Other Titles 19% Company Size: Annual Gross Sales Under $50 million 21% $51 million to $499 million 38% $500 million to $999 million 10% $1 billion to $9.9 billion 24% $10 billion or more 7% Financial Executives International N = 237 7
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Influence Over IT Investments Compared to 2 Years Ago Decreased significantly 0 Decreased slightly 7% About the same 49% Increased slightly 23% Increased significantly 21% 7% 7% 10% 10% 11% 16% 38% To lower enterprise costs of the IT portfolio requires your concentration Risk impact on the enterprise IT portfolio requires more of your attention IT needs additional senior executive support as it competes for funding IT has been mismanaged and it needs to align more with corporate goals/objectives To ensure ROI on IT investment decisions To increase efficiency with finance applications and finance enablement You are an enabler of corporate strategy and see IT is key to that strategy Reasons for Increased Influence CFO influence up 44% compared to 2010-2011. N = 237 8
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 1% 3% 14% 52% 27% 4% 2% 15% 39% 35% Business Unit Leader Chief Administrative Officer Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Executive Officer (CEO) Current Recommended • CFO continues to own many IT departments. • Most CFOs think IT should report to them. CIO or Most Senior IT Executives Report to … N = 237 9
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Role That Authorizes Technology Investment Decisions 2% 4% 7% 8% 24% 24% 26% Steering Committee of IT and Business Area Operational Managers COO CIO CIO and CFO Together CFO CEO Steering Committee of IT and Business Area Executives N = 237 CFO continues to lead IT investment. 10
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 29% 26% 31% 10% 3% IT is responsible for managing and operating technology systems and resources efficiently IT is responsible for enabling business operations by building and operating technology systems defined by the business IT is responsible for contributing to the enhancement of business operations by using technology proactively to raise business performance IT is responsible for being the primary source of the enterprise’s competitive advantage as technology is a differentiator in enterprise products or services IT is responsible for the transformation of the enterprise’s business model and the creation of new markets and rules of competition Expectation of IT Only 13% view IT as transformational. N = 237 11
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How is the influence of the CFO changing? 2. What does our CFO study tell us about their role in business analytics? 3. How do you enable your CFO to be more strategic through technology? 12
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Currently Need Improved Technology Support 18% 24% 26% 27% 33% 34% 43% 43% 45% 45% 50% 59% Managing business risk/controls to ensure accuracy in compliance Ensuring consistency between transactional data and analyticals Understanding and managing the drivers of profitability or cost of service delivery Integrating the financial function with the overall enterprise Creating/maintaining an enterprisewide view of business relationships Developing business plans and budgets Reducing enterprise operating costs Measuring product and customer profitability Quality of the data used for business decisions Creating an effective environment for sharing relevant information Ongoing monitoring of business performance Facilitating analysis and decision making • Can largely be addressed by improved BI, analytics. • Emphasize data-driven decision making and transparency. N = 237 13
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 1% 3% 3% 2% 4% 3% 11% 17% 19% 36% 2% 3% 8% 8% 8% 9% 3% 12% 16% 29% 3% 4% 5% 11% 9% 11% 7% 16% 18% 12% Social networking Disclosure management solutions (to work with publisher and establish XBRL tags) On-demand spplications/software as a service (SaaS) Reconciliations management applications Mobile technologies Governance risk and compliance applications (GRC) Cloud computing Business process management (BPM) Integrated financial management applications/ERP Business intelligence, analytics, performance management Ranked 1st Ranked 2nd Ranked 3rd Sum 77% 54% 45% 22% 22% 21% 21% 15% 10% 6% Top Technology Initiatives 1 Year From Now: Financial Organization N = 237 BI, Analytics and PM Consistent YOY 14
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Investment in Business Analytics 16% 18% 22% 30% 35% 43% 45% 54% Statistical analysis Predictive modeling Big data Customer and product profitability Data warehouse Budgeting, planning & forecasting Financial reporting and consolidation Performance measurement/scorecard/dashboard N = 237 Corporate performance management is the top area for investment. 15
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Why Do These Trends Exist? The CFO needs to: • Report WHAT happened. • Explain WHY it happened and explain deviations from targets. • Analyze HOW these results may affect future performance. • Advise WHICH strategic changes are needed to meet future performance expectations. The CFO requires transparency, personalized decision support; however, these responsibilities affect the performance of the entire organization. 16
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How is the influence of the CFO changing? 2. What does our CFO study tell us about their role in business analytics? 3. How do you enable your CFO to be more strategic through technology? 17
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Understand the CFO Focus Will Evolve CFO Focus CFO Needs Financial Info & Tools Financial Stewardship and Compliance • "Give me transparency and reporting tools" • Core finance and regulatory tools, a "single version of the truth" Performance Optimization • "Help me work with LOB heads to tune the business" • Advanced analysis, reporting and portfolio management tools to enhance decision making • Benefits realization Visionary Leadership • "Give me time, and give me tools to think about the future" • Corporate performance management tools • Scenario modelling tools (personalize information requirements) 18
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. What Gets in the Way The CFO-CIO relationship has the potential to be a powerful contributor to business success; however, there are three primary reasons it often doesn't reach this desired state: • Poor perceptions of IT performance • A CFO or CIO with a parochial view • Failure to invest in the CFO-CIO relationship 19
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Recommendations Build the mindset that there are no IT projects — only business projects. Implement or increase the maturity of processes that foster communication (e.g., relationship management, project management and advanced technology group). Become a key strategic partner with finance/CFO to steer the information technology function. Education of your CFO on technology must be a prime focus to improve partnerships. 20
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Framework for Cost Optimization Technology Procurement Get the best pricing and terms for your purchases Cost Savings Identify opportunities to reduce Technology costs Joint Business and Tech Cost Savings Implement cost-saving technologies with the business Business Restructuring and Innovation Process improvement, reorganization, new methods Complexity VALUE 21
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Framework for Business Analytics 22
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 23 Gartner Framework for Business Analytics 23
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Recommended Gartner Research  A Business Analytics Framework for Finance Business and Decision Processes Nigel Rayner (G00234579)  Impact of the Nexus of Converging Cloud, Information, Social and Mobile Forces on CPM Applications and Strategies Christopher Iervolino (G00237712)  Align CPM and Analytics Within a Broader Business Analytics Framework for Best Use Christopher Iervolino (G00237223)  Magic Quadrant for Corporate Performance Management Suites Christopher Iervolino, and others (G00238924) For more information, stop by Gartner Research Zone. 24
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Falando de próximos eventos Gartner EUA & Brasil 25
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Reserve sua Agenda! 5 a 9 de Outubro Orlando - FL www.gartner.com/technology/symposium/orlando/register 26
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 27
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 28 The Digital Tsunami Is Upon Us
  • © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner delivers the technology-related insight necessary for our clients to make the right decisions, every day. Obrigado!!! 29