Finance systems 'reaching breaking point', new study claims
Over-customised and complex financial systems, coupled with a fear of making the move to cloud based applications, is holding back businesses, according to a new study.
A survey commissioned by Oracle found that 61% of finance leaders have customised systems in place which are continuing to grow in complexity, and over half believe these systems are unlikely to cope effectively with the near future demands of their organisation.
Despite the threat that these legacy systems pose to their business, and the fact that three quarters of finance leaders believe that financial software in the cloud is critical for them to realise their broader digital transformation goals, 69% still believe that moving to the cloud poses a risk to their business.
The report also states that 32% of those surveyed expect the cost of running a customised system to exceed that of moving to a standardised one in less than a year.
Loïc Le Guisquet, President of Oracle, says that businesses must recognise that heavily customised systems are “reaching their breaking point”.
“Finance should not be the ball and chain holding the company back from progress. It should be the engine pushing it forward.”
Need for CFO and CIO collaboration
In addition to moving on from outdated systems, the report found that another key factor in helping companies achieve financial transformation goals is for CIOs and CFOs to work closer with each other.
73% of finance leaders agree closer CIO/CFO alignment is crucial as finance departments are increasingly called upon to raise productivity, drive growth and reduce operational costs.
Loïc went on to say: “As the nerve centre of the organisation, the finance department lies at the junction of all these relationships. Their unique oversight of the business has made CFOs and their teams instrumental in helping the boardroom achieve its vision for the future.”