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STAMFORD Conn., June 22, 2021

Gartner Says More CFOs Intend to Increase Digital Investment Than Any Other Area in FY21

The COVID-19 Pandemic Has Forced the Acceleration of Digital

CFOs plan to increase technology investments, with 82% saying they intend to increase investment in digital capabilities in fiscal year (FY) 2021 compared to FY20, according to survey by Gartner, Inc. The survey of 115 CFOs was conducted by Gartner between July – December 2020, and it also revealed that 70% of respondents intend to increase spend in information technology in this fiscal year.

“As COVID-19 lockdowns were imposed, most finance organizations tried to digitize as many processes as possible to move to a virtual work environment,” said Alejandra Lozada, senior director analyst in the Gartner Finance practice. “CFOs also view technology as a competitive differentiator that can widen the performance gap between their businesses and those of their peers.”

Lack of Clarity on Digitalization
“While CFOs are planning to increase their digital investments (see Figure 1), our survey also showed that they are less clear on what digital business means and the technologies with the most significant impact on their businesses. This could be a challenge.” said Ms. Lozada. “CFOs need a clear digitalization language and vision to focus their teams on the key investments and initiatives required to accelerate transformation. This clarity is needed to make coherent technology investments that enhance one another.”

Figure 1. Investment Change in FY21 Versus FY20

Gartner experts have three recommendations for CFOs planning their next digital steps:

1)    Maintain a balanced technology investment portfolio: The technology portfolio must balance technology opportunities that can yield long term business value with low-effort, low-complexity initiatives (such as piecemeal automations) that have shorter payback periods.

2)    Select technologies based on finance’s needs: Instead of picking technologies based on market trends, CFOs should begin with defining their business and finance objectives and then look for technologies that will assist in achieving those objectives.

3)      Involve cross-functional stakeholders early: Limited visibility into the wider organization’s IT efforts will lead to overlaps and conflicts with other business units. CFOs can avoid this by consulting with other business units and central IT at each step of the technology roadmap, and this has the added benefit of facilitating buy-in at later stages.

Gartner clients can read more in: 2021 Gartner CEO Survey: The CFO Perspective

Non clients can learn more here: 2021 Gartner CEO Survey: The CFO Perspective

CFOs and finance leaders can participate in Gartner research and get complementary access by joining the Gartner Research Circle.

About the Gartner Finance Practice
The Gartner Finance practice helps senior finance executives meet their top priorities. Gartner offers a unique breadth and depth of content to support clients’ individual success and deliver on key initiatives that cut across finance functions to drive business impact. Learn more at https://www.gartner.com/en/finance/finance-leaders. Follow Gartner for Finance on LinkedIn and Twitter using #GartnerFinance to stay ahead of the latest expert insights and key trends shaping the Finance function.

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About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s most critical priorities. To learn more, visit gartner.com.