CFOs are Large and in Charge of Tech Purchase Decisions?

CFOs are now more influential and more in charge over IT spending decisions, this according to a recent article from Baseline Magazine.

Studies by Gartner concur, revealing a 44% increase in CFO influence over IT purchase decisions. Over 41% of CFOs indicate that they are now the leader of the group responsible for IT investments and 26% of IT investments are directly authorized by CFOs (with only 5% by CIOs).

There are three key factors you should be aware of that are driving more CFO control:
  1. Disruptive - CFOs believe that disruptive technologies can drive growth, with CFOs involved in spending decisions for big data, cloud computing, mobile and social media as growth enablers.
  2. Risk – If you get technology wrong, it has a bigger impact on the business. Just ask Target about the impact of their security breach and its no wonder why CFOs are more involved.
  3. Frugalnomics - We are still operating in a “Do more with Less” economy, with the CFO assuring that precious investments like you are proposing are low risk / high reward and are perfectly aligned with realizing business objectives.

 For IT solution providers like you, the expanding influence of the CFO means that engagement is more difficult, involving more financially focused stakeholders with expanding influence and control.

With the CFO taking more control in setting technology strategy, it becomes essential for you to:
  1. Engage earlier with the CFO in order to help them recognize important challenges they should be addressing (Why Consider a Change), and the tangible impact of “do nothing” (Why do so Now)
  2. Speak the language of the CFO – business objectives, risks, business benefits and financial impact / ROI - developing provocative content to fuel CFO engagement sand sales conversations
  3. Deliver CFO-ready business cases to communicate the story of your value and quantify the investment versus benefits  / ROI.

 Are you ready to win in an environment where the CFO is more influential and in control of IT purchase decisions?
  • Is your content speaking to the CFO?
  • Are you arming your sales reps and channel with the provocative value messaging and quantification needed to gain early CFO access?
  • Do you proactively deliver CFO-ready business cases to gain CFO approval?

 If not, we should talk!


Sources:
CFOs are the New Technology Evangelists

Gartner Reports that CFOs are Large and in Charge

The CFO as Technology Evangelist

CFOs Alone Are Making 26% of IT Spending Decisions, Gartner Survey Finds

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