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Releasing Resources
to Support Growth
The Long-Term Benefits of
Finance Transformation
A report prepared by CFO Research Services in collaboration with ConcurReleasing Resources
to Support Growth
The Long-Term Benefits of
Finance Transformation
A report prepared by CFO Research Services in collaboration with ConcurCFO Research Services
CFO Research Services and Concur developed the hypotheses for this research jointly. At CFO Research Services, Celina Rogers directed the research and wrote the report.
Releasing Resources to Support Growth: The Long-Term Benefits of Finance Transformation is published by CFO PublishingCorp., 253 Summer Street, Boston, MA 02210. Please direct inquiries to Kate Britt at (617) 345-9700, ext. 264 orkatebritt@cfo.com.
CFO Research Services is the sponsored research group within CFO Publishing Corporation, which produces CFO magazine in the United States, Europe, Asia, China, and India. CFO Publishing is part of The Economist Group.
October 2007
Copyright © 2007 CFO Publishing Corp., which is solely responsible for its content. All rights reserved. No part of this reportmay be reproduced, stored in a retrieval system, or transmitted in any form, by any means, without written permission.Releasing Resources to Support GrowthThe Long-Term Benefits of Finance Transformation 1
Contents
Introduction 2
The growth imperative 4
Investment in automation 6
Savings and improvement through 8 automation
Investing for growth 9
Reallocating savings effectively 11
Conclusion 14
Sponsor's perspective 15
© 2007 CFO PUBLISHING CORP. OCTOBER 2007Releasing Resources to Support Growth2 The Long-Term Benefits of Finance Transformation
Introduction >> AAbboouutt tthhiiss rreeppoorrttIn August 2007, CFO Research Services (a unit of CFOIn recent years, finance has worked hard to drive cost, Publishing Corp.) conducted a survey among seniorcomplexity, error, and risk out of its routine business finance executives in North America to examine theirviews on the long-term business benefits of transac-processes. New technology systems for transaction pro- tion-processing automation, and its impact oncessing and streamlined business processes have often resource allocation.formed the cornerstone of these improvement cam- We gathered a total of 179 responses from seniorpaigns. Finance has made gradual, often sustained finance executives representing a broad cross-sectionprogress in improving its ability to execute routine trans- of company segments:actions through technology and process improvements Annual revenuein recent years. . Less than $100 million: 3 percent. $100 million-$500 million: 36 percent. $500 million-$1 billion: 14 percentWhile more of this work remains to be done, CFO . $1 billion-$5 billion: 24 percent. $5 billion+: 22 percentResearch Services undertook this study to discover howcompanies have deployed the savings they've realized Title. Chief financial officer: 35 percentso far through their transaction-processing improve- . EVP or SVP of finance: 3 percentment efforts. Our survey of senior finance executives in . VP of finance: 16 percent. Director of finance: 19 percentNorth America reveals that the finance function has . Controller: 16 percentfreed time and resources to pursue high-value activities . Other (including CEO, president, or managing like decision support and financial planning and analysis director): 12 percentas a result of transaction-processing automation. Respondents work for companies in nearly everyindustry. The manufacturing, financial services,transportation, and wholesale/retail trade industriesWe find that transaction-processing improvements are are particularly well represented.not only valuable because they help companies reducecost, error, and risk-they're valuable because theyallow finance executives to turn their attention to thehigh-value activities that advance a critical organization-al objective: promoting sustained, profitable growth.
Our survey of senior finance executives reveals that the finance function has freed time and resources to pursue high-value ac... [download for more]
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