Dive Brief:
- CFOs and CIOs differ on how aggressively they think their businesses should invest in technology, one of several points of contention between finance and tech chiefs, according to KPMG data released Wednesday. The company surveyed more than 100 CFOs, CIOs and employees for the report.
- Nearly one-third of finance chiefs say technology innovation spending is excessive, compared to just 16% of CIOs. Nearly 1 in 3 CIOs say tech budgets are currently insufficient, while just 12% of CFOs say the same.
- CIOs flagged the assessment of tech ROI as the top point of contention between finance and IT, according to the survey. CFOs identified understanding tech tool capabilities as the top issue with their counterparts in IT.
Dive Insight:
Businesses expect IT and finance departments to work together as operations rely more heavily on technology. Largely, executives are getting there, as more than 9 in 10 CIOs and CFOs describe their relationship as collaborative despite friction.
“The most successful CIOs are the ones that are saying [to CFOs] ‘how can I help you make better decisions, or use that information or technology to become more efficient across the organization?” said Sanjay Sehgal, KPMG U.S. Advisory head of markets.
Differing executive viewpoints on tech spend can actually be healthy for organizations, according to Sehgal. The tension can help boards ensure tech spending drives value.
“Transformational success is only realized when CFOs and CIOs join forces, basically steering the technology to meet the business needs,” Sehgal said.
Rising adoption of resource-intensive technologies, like cloud and generative AI, has pushed organizations to look closely at their tech spending. The shift to infuse operations with AI led to “unmanageable” cost spikes, according to a Tangoe report published in October.
Most finance chiefs highlight the CFO-CIO relationship as a potential driver of operational efficiency, according to the KPMG report. Strong connections between finance and tech chiefs can also help improve financial performance.
General Mills Chief Digital and Technology Officer Jaime Montemayor highlighted the work of the finance team amid the company’s push to deploy AI, speaking during a CIO Dive virtual event in October.
“The finance team is the one that is helping us keep the score,” Montemayor said.
