Rimini Street reveals the results of its latest global survey of more than 1,500 CFOs and financial leaders from various sectors and industries representing companies with annual incomes of at least $200 million, in 13 countries, including Brazil, the United States, Germany, the United Kingdom and France among others. other countries. The study was conducted to determine CFOs’ perceptions of digital transformation, their priorities for IT investments, how they measure ROI for technology investments, and views on the CFO-CIO partnership.
According to the results of the survey, in the Brazil section, which was conducted with about 105 leaders, 89% of Brazilian CFOs interviewed believe that investments in digital transformation are the key to the success of companies, while the global average is 71%.
When it comes to digital transformation and its importance among corporate priorities, 37% of CFOs mention it among the top three, while among Brazilian CFOs this percentage rises to 46%. Regarding the financing of a digital transformation project that will generate a significant return on investment, 32% said they would assist the CIO in finding means for this financing, while 37% of Brazilian CFOs would join the CIO to persuade the board of directors to secure this funding. Additionally, when mentioning cost cutting, 80% of CFOs interviewed in Brazil consider CIOs to lack flexibility when the moment calls for cost cutting, versus 32% of the global average.
Brazilian CFOs prioritize digital transformation more than the average global CFO
CFOs understand technology and its potential to deliver greater returns than ever before. However, when it comes to digital transformation, the global average (37%) shows that Brazil is the country that prioritizes the topic the most and places it among the priorities of the three companies (46%). As priority No. 1, Brazil also comes out on top, at 30%, while the overall rate is only 22%. When asked about the main driver of the increase in technology costs this year in Brazil, more than half (51%) answered that it was new investments in digital transformation technology, compared to 46% of the global average.
Due to the pandemic, consumer behavior has changed dramatically, as more and more online channels are adopted for consumption, and thus companies have increased their digital investments. While digital transformation was on many companies’ radar before 2020, the pandemic has removed internal barriers and accelerated the adoption of technologies to support critical business, from remote work, digital interactions with customers to supply chain capabilities.
More than half (53%) of Brazilians who took part in the survey said that improving investments in existing technologies adds more value to the business and leads to increased ROI – when compared to the global average, again the difference is found, with an overall of 44% indicating With the same phrase. In terms of not planning or adopting new IT initiatives, Brazil has the highest percentage of not canceling any IT initiative, at 37% – versus only 17% of the global average.
CFOs refuse to waste IT resources on low value-added projects المشاريع
One of the most important considerations for CFOs to spend on IT is prioritizing projects that generate positive business outcomes. When asked about IT projects that would be canceled when there is no significant business value or return on investment, responses included “disruptive next-generation technology initiatives” and “key ERP migration and redeployment projects.” When there is no justifiable ROI, situations such as simply changing technologies or changes being made by ERP manufacturers do not generate any value for IT investments.
Large investments in low value-added technology such as some mandatory ERP migrations and upgrades can be deferred or avoided. Additionally, ERP systems can be improved through strategic changes such as moving to standalone support, for example, allowing resources to be released to help accelerate digital transformation and innovation projects in general.
CFOs also expect ROI on IT investments to be rapid, with 42% estimating ROI within 1-2 years, and 41% within 3-5 years.