new research in financial performance management reveals midsize companies must make better use of it before finance organizations can become more strategic
san mateo, calif.–(business wire)–in a new research study “finance and innovation in midsize companies,†ventana research reveals that finance managers in midsize companies want their organization to go beyond bean counting to a more strategic role in management.
use of mainstream information technology (sometimes simply using what they already have) is critical to meet this business need.
“our study found that lack of time is the biggest business challenge faced by finance organizations in midsize companies,†said robert d. kugel, cfa, svp & research director – financial performance management & erp at ventana research. “proven technology such as analytics, reporting, budgeting and planning, and scorecards is vital to free up time to tackle higher value tasks, increase employee effectiveness and reduce costs — leading to a leadership position in the company for finance.â€
among the key research findings, ventana research reveals:
— poor use of information technology hinders finance. lack of innovative it use results in longer and inaccurate reporting, less visibility into company operations, inefficient use of time.
— finance organizations are not doing as well as they think. half (50%) of respondents with finance titles say they go beyond accounting and play a leadership role in the company’s operations, while only 24% of those with other titles made that assessment.
— effective use of it equals better business processes. the data shows that companies using it effectively have better insight into key processes such as managing costs, production and the workforce.
— spreadsheets contribute to ineffective performance management. time spent coordinating stand-alone spreadsheets and correcting mistakes prevents finance from performing more strategic tasks.
— smart companies use budgeting and planning technology effectively. those companies using budgeting and planning to its full potential have better operating visibility and are better able to assess their performance.
the research, sponsored by technology providers lawson and prophix, is based on an analysis of 351 validated respondents of companies with between 100 and 4,999 employees. the survey was conducted with the assistance of media partners that included business finance, institute of management accountants, intelligent enterprise and mri’s midmarket strategies.