Closer alignment between the CFO and CIO is crucial if finance leaders are to effectively help the business achieve its transformation goals.
This is according to a recent Oracle study, which notes 73% of finance leaders agree closer CIO-CFO alignment has become more important to a business that wants to successfully achieve its finance transformation.
The study surveyed 1 905 finance decision-makers across Europe, Middle East and Africa.
Oracle says the digital transformation of a business requires greater levels of collaboration between every department in the organisation.
This begins with closer alignment among line-of-business leaders, whose approach to working will ultimately be reflected across the entire company, it says.
The digital age has redefined business roles - CFOs and their finance teams are now being asked to help define and implement new, digitally enabled business models, says Oracle.
Also they are required to expand their existing competencies with in-depth knowledge of technology and analytics, as well as broader leadership and business partnering skills, it adds.
Until recently, finance chiefs played only a narrow role in strategic decision-making and virtually no role in business transformation, says Accenture.
However, today their influence over determining and setting strategy is growing and also their influence on business transformation efforts has increased, it notes.
EY says in today's digital economy, the CFO-CIO relationship is becoming closer and more collaborative.
This mission-critical convergence of technology, investment strategy and risk has elevated the relationship to new levels of importance, it says.
Any disconnect between the CFO and CIO will have profound consequences for the organisation, and jeopardise digital transformation, adds EY.
But there are two threats to this critical union.
Cost discipline, rather than strategic value, still defines the IT investment mindset, and lack of mutual understanding between CFOs and CIOs is still an all too common problem, says EY.
Oracle President Lo"ic Le Guisquet says finance systems which have been heavily customised over the years are reaching their breaking point.
For the many businesses rethinking their strategies to stay ahead of growing competition, being able to speed up innovation and adapt quickly to change are at the top of the corporate agenda, he adds.
Finance should not be the ball and chain holding the company back from progress - it should be the engine pushing it forward, says Le Guisquet.
"Rather than adding complexity to already-overloaded systems, companies are beginning to see the advantage of running their finance applications in the cloud and simply configuring these to suit their needs.
"As the nerve centre of the organisation, the finance department lies at the junction of all these relationships."
CFOs' unique oversight of the business has made them instrumental in helping the boardroom achieve its vision for the future, says Le Guisquet.
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