FINANCE-Research. The Value of IT. Business IT between driving costs and driving value

Transcription

1 The Value of IT Business IT between driving costs and driving value

2 The Value of IT Research proposal Today, there is virtually no business that can run without the usage of information technology (IT). IT is essential for smooth production, customer relationship management, accounting and controlling, to name but a few key areas. However, it often also is one of the largest single areas of spend in an organization. Hence, the net value of IT for businesses is surprisingly hard to measure and subject to regular debate between Chief Financial Officers (CFOs), concerned about the cost of IT, and Chief Information Officers (CIOs), concerned about staying abreast of technological developments. In many cases, CFOs lack clear indicators on the value added by IT, while CIOs, in turn, lack clear guidelines from the finance department about how their added value is being measured. In recent years, for example, IT departments saw their budgets shrink considerably. While this was partly due to the economic crisis, it also reflected the disappointment many CFOs feel with regards to past IT investments. What is needed is an integrated approach to enhance the dialogue between the two camps and to ensure that IT is correctly valued from a strategic business perspective. In essence, IT needs to move from being a facilitator to business processes to becoming a central part of business strategy. For this to happen, CFOs and CIOs need to agree on the fundamentals of how to measure value added by IT. While CIOs are an essential part in this equation, CFOs constitute the more critical group as they will be, on average, more skeptical and will ultimately decide on future IT budgets and investments. Hence, FINANCIAL GATES believes that in order for IT to become a central part of business plans, winning the minds and hearts of CFOs will be the foremost and bigger task. To achieve this, we suggest an integrated approach consisting of round-table discussions based on an exclusive survey with CFOs and CIOs as well as agenda setting in various print and online outlets from the FINANCIAL GATES product family. Timing (all dates: 2012) >> Agree on agenda and research design: by end of June >> Conduct in-depth survey: July - September >> Compile results and draft research paper: October >> Publish editorial presentation of results in FINANCE magazine: October >> Publish and market research paper throughout Germany: October >> Conduct round-tables with selected communities: November February 2013 Pricing EUR including research design, implementation, documentation, write-up and marketing, excluding printing costs and follow-up events such as roundtables/roadshows. 2 / 5

3 The Value of IT About us FINANCIAL GATES GmbH is a member of the publishing group Frankfurter Allgemeine Zeitung (F.A.Z.) GmbH and the leading German publishing company specializing in corporate and public finance as well as general business management topics. In 2001, FINANCIAL GATES launched FINANCE, the German magazine for CFOs and other financial executives in large and medium-sized companies in Germany. Since 2008, it has expanded its reach with English-language publications to financial executives across Europe and an editorial office in London. Its well targeted readership in financial departments stands at 45,000 executives across Europe, with a core of 20,000 financial executives in Germany. With an up-to-date database of more than 80,000 executives, classified in more than 100 sub-communities, FINANCIAL GATES provides unique market penetration in the German corporate and public finance community. We address these communities regularly through various, mutually reinforcing channels such as print and online magazines, newsletters, annual events, targeted round-tables and market research. With the renowned brand of FINANCE in the German market, the studies perform the double function of providing unique market intelligence and of playing an agenda-setting-role on the German market, especially when combined with round-tables and other events. With this integrated approach, FINANCIAL GATES has not only become a central part, but an integrating force of the German and European CFO community and related corporate functions. References has so far published more than 30 studies. Among them: Private Equity in German Mittelstand companies, The agile CFO, Deconstruction of the Deutschland AG and Public Takeovers. In all cases, the empirical research was exclusively conducted by. The studies have been widely covered by German media, leading to TV and radio as well as newspaper and online interviews with the studies sponsors. For these projects, FINANCE has worked, inter alia, with the following partners: 3i, AK Coface, Apax Partners, Deloitte, Ernst & Young, Fortis Bank, HypoVereinsbank, IBM, ING BHF Bank, KPMG, Linklaters, Mayer Brown, Royal Bank of Scotland, WestLB, IntraLinks, CMS Hasche Sigle and many others. 3 / 5

4 Deutschland 7, Euro Österreich 7,80 Euro Schweiz 13,40 sfr 5 October 2010 The smoke has cleared on the financial markets. Even the real economy is humming along again. But the risks for businesses have not diminished. On the contrary: Some of the biggest challenges facing treasurers lie in risk management, the respondents of the fifth Treasurer Panel say. The treasury is not the only department response to how this should be carried veyed, 40 percent stated that they had responsible for managing risk: More out, 46 percent of those surveyed voted modified their guidelines to fit the new than three quarters of those surveyed say for increased cooperation with other departments on the subject of risk manage- centralised risk management and intro- external conditions. Many also further their company has a centralised risk management function. As a rule, it sits at ment. In practice, though, this point duced higher hedge ratios. Additionally, the highest hierarchical level and is seems to be the biggest shortcoming: almost every other company is now either the responsibility of the CEO, or Almost one-third of the treasures surveyed would also like to gain more re- financial crisis. holding more liquidity than before the in larger companies of the Chief Risk Officer. While central risk management sponsibility for individual tasks related is a matter for the boss, financial risks to risk management. are the domain of the treasurer. This applies above all to currency and interest power with regard to financial risk man- Few treasurers have discretionary rate risks and to a lesser degree to agement. Just under 85 percent of companies that took part in the panel report credit risk, commodities and insurances. Many treasurers still see room for having written risk management guidelines. But compliance is rarely checked, improvement in the interaction between central and financial risk management. usually once a quarter or even less frequently. Even though few treasuries lean Just short of 60 per cent of panel participants report that the treasury towards activism, many companies have Most of the participants see interest rate, function should be more integrated into changed the way they manage their financial risks. Of those treasurers surinant financial risks. The extent to which currency and credit risks as the predom- a company s risk management. In companies hedge against these varies considerably. Where do you currently see your biggest challenges? Surprisingly enough, every tenth (Figures in %, more than one response possible) treasurer says they are willing to enter into profit-oriented hedging transac- >> Liquidity and cash management 60 Risk management 41 Relationships with banks 39 Financing 34 Treasury IT 24 Sponsored by Asset and pension management 17 Capital market 16 N=70 Quelle: Treasurer-Panel. 1,50 Euro The Value of IT Product Brands Print Magazines (selection) Das Magazin für Finanzchefs März/April Retten war gestern Warum Pleitekandidaten nicht mehr auf Staat und Banken zählen können China-Expansion Im Reich der Mitte finanzieren EuroShop CFO Olaf Borkers über das Aus handeln von Großkrediten Russland nach den Wahlen Die Schwächen des Systems Putin German 8 issues per year 20,000 copies Den Banken treu Peter Holder über die Finanzierung von Wincor Nixdorf Schwerpunkt Systeme Treasury in der Cloud BayWa Nicht um jeden Preis Wirecard Das Treasury mit der doppelten Brille Karriere Tue Gutes und rede darüber German Quarterly 8,000 copies English Quarterly 30,000 copies Online Magazines (selection) German bi-weekly 6,000 copies German Monthly 4,000 copies English daily Onlineportal FINANCE Research (selection) Treasurer-Panel Results from a survey of leading treasurers Risk management challenges Results of the fifth Treasurer Panel >> It makes sense to have and independent and coordinated risk management department. << FINANCE-Studien Marktforschung für Finanzchefs Die Ablösung von Standard- Mezzanine Umfrage und Expertenbeiträge: Wie deutsche Mittelständler Standard-Mezzanine refinanzieren FINANCE-Studies Marktforschung für Finanzchefs M&A market Renewable energies A look at the past, present and future 4 / 5

5 a brand of Contact Armin Häberle Executive Editor Head of Research FINANCE Magazine Mainzer Landstrasse Frankfurt am Main Germany Phone: +49 (0) 69 / Fax: +49 (0) 69 / armin.haeberle@cfo-insight.com