New technology is disrupting every industry. Companies are scrambling to respond by investing in this technology, embracing digital transformation and big data initiatives. Successful execution of this change lies in the hands of the IT departments, who are now high-touch business partners moving from back-office to front-office.
A NEW RELATIONSHIP FOR FINANCE AND IT
Finance business partners need to understand the language of IT.
Not surprisingly, the role of finance as business partners to IT also is changing. The partnership is changing from providing the day-to-day expense management of the company to providing a strategic direction for the IT function that will impact the performance of the company. Finance business partners need to understand the language of IT, latest development in the digital world and connect it to the strategic direction of the company. They are the conduit between the financial performance, cash and capital needs and P&L commitments and strategic investments needed in digitization.
FINANCE WILL LEAD DIGITAL TRANSFORMATION
Strategic valuation of the digital roadmap is now an essential part of any company’s investment priorities, and finance must bring the financial discipline of proving the business value of an investment and collaborating with IT. It is also imperative for finance to help change IT’s view of investments to a more long-term perspective. This perspective ultimately will help IT explain its role in the growth of the company.
DIGITAL INVESTMENT KPIS
It is important to measure the success of digital investments through a set of standard Key Performance Indicators. This long-term trend analysis will also help explain the evolution of IT expenses as related to company’s P&L. The finance team needs to work closely with the CIO and learn the language of IT and help them develop and message their story to the business.
To learn more about how to drive success through finance, please join me at FinNext 2019 and attend my session "Being a Finance Business Partner to a Digital Organization". Looking forward to seeing you there.
Global IT Finance Lead