Dive Brief:
- Approximately 89% of senior executives find there are obstructive barriers between CIOs and CFOs, according to a Forbes and Dell EMC survey of 500 international CEOs, COOs, CIOs and CFOs. Three-quarters of respondents agree IT cost reduction is a top priority.
- About 90% of respondents said the relationship between a CIO and CFO is either critical or important, but only 36% of CFOs say their relationship with their CIO is excellent, and 38% of CIOs say the same of their CFO.
- Automated IT services are an investment area for 69% of enterprises, followed by the installation of new servers. But without CFO/CIO collaboration, CIOs may be unaware of their company's "overarching financial goals," according to the report.
Dive Insight:
IT is intrinsically woven into the cost-efficiency of a company's entire budget, but IT cannot be seen solely as a cost center.
An organization's success is dependent upon the transition to modern tech applications. Modernizing tech with a coordinated strategy eases workloads, eliminates legacy systems and reduces overall production costs. But CIOs have to assert their place at the C-suite table to ensure core IT is seen as an innovative force in a company.
The report found that some CIOs feel their CFO has an "outdated" perception of the IT department, and their "conflicting responsibilities" remain the most prominent barrier. When there is a disconnect among C-suite leadership, initiatives could be at a standstill.
More traditional views of technology perpetuate the notion of IT serving more as a cost function than a proponent of innovation, but IT transformation disrupts the standard forms of daily operations for the better.
Every company is becoming a tech company and cannot afford not to include the CIO into its budgeting. Without a company's financials transparently displayed for the CIO, it could further the misconception that CIOs measure success in terms of innovation instead of finances.
