Global survey reveals CFOs prioritising digital transformation

CFOs want to cut spending on non-essential IT investments that lack clear value, preferring to optimise existing technology investments.

Global survey reveals CFOs prioritising digital transformation

When it comes to digital transformation and its significance among other corporate priorities, 80% of CFOs globally cite it is within the top-five of their list of priorities, according to a recent survey of more than 1,500 CFOs and senior financial leaders across 13 markets.

Conducted by Rimini Street, a global provider of enterprise software products and services, other key results include: 71% of CFOs believing digital transformation investments are key to their company’s success; and 77% saying they would help the chief information officer (CIO) find a way to fund a new digital transformation project if the initiative delivered strong return on investment (ROI).

In addition, of the 80% of CFOs who expect their technology spending to increase in 2021, almost half (46%) said this growth in spending is being driven by new digital transformation investments.

The survey also said that a primary consideration for CFOs in terms of IT spending is prioritising those projects that yield positive business outcomes. Two-thirds (67%) of CFOs surveyed agree that they “refuse to waste precious dollars on IT investments that don’t move the needle”.

Large technology investments that may not have a clear business case, such as some vendor-forced enterprise resource planning (ERP) migrations and upgrades, may be better deferred or avoided. Instead, ERP systems can be optimised through strategies like third-party support, enabling the CIO to free up IT resources to help accelerate digital transformation programmes.

In addition to providing a clear business case on new transformation projects, CFOs also expect the ROI on technology spending to be swift, with 46% expecting to see ROI on their technology investment within two years, and the vast majority (82%) within three to five years.