CFOs & CIOs in ANZ align to optimise tech investments
According to a new report conducted by Censuswide for Rimini Street, Chief Financial Officers (CFOs) and Chief Information Officers (CIOs) in Australia and New Zealand (ANZ) are collaborating more closely to scrutinise technology spend in an effort to deliver tangible business results.
The report, titled 'C-suite Imperatives: Evolving IT and Enterprise Investments,' surveyed nearly 3,000 global CFOs and CIOs, including over 250 in ANZ.
It aimed to understand the dynamics between these roles concerning their technology investment decisions and the driving factors behind these investments.
The survey highlighted the increasing influence CFOs have on enterprise technology decisions, driven by mounting IT costs and the necessity for a strong return on investment (ROI). According to the report, this collaboration between CFOs and CIOs has fortified their relationship, with 94% of respondents in ANZ acknowledging an improvement in their partnership.
Nevertheless, some challenges remain.
The data indicated that 90% of CFOs believe that CIOs need to be more business-savvy to enhance communication, while 96% of CIOs feel that CFOs should become more knowledgeable about technology.
A significant finding was the more assertive role CFOs are taking in technology decisions, with 60% of CFOs claiming responsibility for technology choices aimed at achieving business results. CFOs are increasingly willing to increase IT budgets and seek board approval if necessary, but with an emphasis on clear, ROI-driven outcomes.
Despite this assertiveness, CFOs are still reliant on CIOs due to the complexity of IT decisions.
CIOs, on their part, are focusing on adopting emerging technologies to combat rising IT costs. The report found that 37% of CIOs are investing in technologies like generative AI to address gaps in IT talent. CIOs are expected to serve as "innovative change agents" within their organisations, bridging the gap between technology and business.
The survey showed that the vast majority of respondents are investing in emerging technologies, with heavy investments in AI to manage escalating IT costs. However, 96% of CIOs acknowledged that historical data is essential for maximising the value of AI projects within Enterprise Resource Planning (ERP) systems.
CFOs are pushing for technology innovations that yield measurable results. They want CIOs to target IT initiatives that enhance risk management and compliance (34%), improve customer success and engagement (33%), and generate revenue (33%). Only 23% of CFOs are satisfied with the current impact of technology investments on their business. The top five factors influencing CFOs' technology investments include their strategic value to the business (38%), sustainability (35%), ROI (31%), ease of maintenance and support, and considerations regarding capital and operational expenditures (both 29%).
Commenting on the report, Michael Perica, Rimini Street CFO, said: "Survey findings suggest that CFOs and CIOs in ANZ are working together to be pragmatic in their emerging technology decisions, and it is clear they are depending on guidance from one another more than ever to create a sustainable balance between innovation and business results."
"As a trusted outsourced support and managed services provider to leading organisations like Officeworks, NBN Co and MYOB, we help CIOs and CFOs on their IT roadmap journey, providing solutions and cost savings that fund innovation and growth."
