CFOs Need Greater Real Time Data to Pivot from Measuring to Creating Value Amid COVID-19, Accenture Report Finds
18 December 2020 - 12:59AM
Business Wire
Despite one-third of finance budgets
being allocated to real-time processes, many companies still lack
the talent, technology and processes to support this model
As chief financial officers (CFO) continue to grapple with
ongoing business disruptions from COVID-19, a new report from
Accenture (NYSE: ACN) found finance leaders need more real-time
data to pivot from measuring to creating value.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20201217005571/en/
The new report from Accenture surveyed 450 CFOs and other
finance leaders at companies with at least $1B in annual revenue. A
key finding: While nearly all (99%) respondents believe operating
with real-time data is critical to navigating disruptions, such as
COVID-19 or the threat of a recession, just 16% of respondents are
being informed by such data at the scale that’s needed.
“CFOs have more data at their fingertips than anyone else in the
company,” said Manish Sharma, group chief executive of Accenture
Operations. “Operating with real-time data puts the CFO in a unique
position to drive positive change for the business, pivoting the
finance function from measuring value to creating value and driving
growth.”
When asked about the greatest areas of concern to their business
for 2021, CFOs most often cited the potential impact of rising
interest rates (cited by 49%), disruption from the pandemic (47%),
economic recession (47%), and hiring and retaining the right talent
(42%). Given the complexity of these challenges, the majority (68%)
believe that a real-time financial model — which makes use of AI,
machine learning algorithms and real-time, diverse data sets — will
be critical to enabling better business decisions, more-accurate
forecasting models and improved data accuracy.
Even during the pandemic, respondents said they’re investing, on
average, 33% of their finance department’s budget this year to
building real-time operations and processes. Large U.S. companies —
i.e., those with at least US$10 billion in annual revenue — appear
even more committed to such a capability, saying they intend to
invest at least 50% of their (2020-2021) finance-department budgets
in this area. Roughly two-fifths (44%) of respondents said they
plan to have nearly all finance processes and operations in
real-time over the next three years.
“If recent history has taught us anything, it’s that businesses
that thrive in an unpredictable environment do so by being agile
and swiftly adapting to change,” said Dr. Christian Campagna,
Ph.D., who leads Accenture’s CFO and Enterprise Value network. “Not
only do finance leaders need to outmaneuver uncertainty, but also
leverage an intelligent finance operating model that draws upon
data, applied intelligence, digital technologies and human talent
to give them the speed they need to make the enterprise
succeed.”
While these advantages are well-known, finance leaders also face
a variety of challenges in implementing these processes. For
example, real-time scenario planning topped the list of CFO
priorities for 2021 (cited by 34% of respondents), but 58% of
respondents expressed concern about identifying or hiring the right
talent to implement this capability. While roughly a fourth (24%)
of respondents cited real-time insights as highest priority for
their company’s finance function, roughly two-fifths (43%) believe
that technology is the most significant barrier to implementation,
with slightly fewer (39%) citing the same for strategy know-how.
Technology was also seen as a barrier to implementing continuous
close (43%) and continuous accounting (40%).
“Implementing real-time processes isn’t easy, but CFOs today
must move at the pace of their business to minimize risk and
uncertainty and open up new opportunities for business growth,”
said Manoj Shroff, who leads Accenture’s intelligent finance
operations offering. “By embracing change and pivoting to
intelligent operations, the role of the finance function is
increasingly elevated while positioning the company for
growth.”
Learn more about intelligent finance operations.
About Accenture
Accenture is a global professional services company with leading
capabilities in digital, cloud and security. Combining unmatched
experience and specialized skills across more than 40 industries,
we offer Strategy and Consulting, Interactive, Technology and
Operations services—all powered by the world’s largest network of
Advanced Technology and Intelligent Operations centers. Our 514,000
people deliver on the promise of technology and human ingenuity
every day, serving clients in more than 120 countries. We embrace
the power of change to create value and shared success for our
clients, people, shareholders, partners and communities. Visit us
at www.accenture.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201217005571/en/
Jenn Francis Accenture +1 630 338 6426
jennifer.francis@accenture.com
Tourang Nazari Accenture +1 202 322 4640
tourang.nazari@accenture.com
Accenture (NYSE:ACN)
Historical Stock Chart
From Apr 2024 to May 2024
Accenture (NYSE:ACN)
Historical Stock Chart
From May 2023 to May 2024