Seventy-eight percent of CFOs plan to maintain or increase enterprise-wide digital investments in the next two years, according to a Gartner, Inc. survey of 199 CFOs and senior finance leaders on May 13, 2022. The findings come even as CFOs indicate they are planning cost reductions in other areas of the business if inflation persists this year.

“Companies that drive the right digital investments have 2.7x higher customer retention, 1.6x higher customer satisfaction rates, and 1.9x higher average order value,” said Alexander Bant, chief of research in the Gartner Finance practice. “Leading digital companies are also 3x more likely to achieve above-industry revenue and margin growth. We have also found that 67% of consumers will pay more for a great digital experience.”

Gartner asked CFOs about their intentions for technology spend through 2023, both within their function and across the enterprise. At the enterprise level, 46% of respondents said they are scaling up their digital plans, while 32% said that no changes were planned (See Figure 1). 

Keeping Pace, Despite Disruptions

The survey data indicates that CFOs plan to accelerate the momentum in digital transformation investments that were launched in earnest at the start of the pandemic, in line with Gartner’s IT Spending Forecast of an overall increase in worldwide IT spending in 2022. According to Bant, inflation is a new catalyst driving CFOs to ramp up digital investments with the aim of lowering the cost of doing business and identifying new sources of profitability.

“CFOs know to never waste a crisis or downturn. It’s a time to reinvent, make better investments, and reduce inefficiencies,” said Bant. “Winners on the other side of this cycle will have continued to accelerate the right digital initiatives across their organization even as there are mounting pressures on profitability.”

Within their own departments, CFOs plan to spend even more aggressively on technology, with 52% of CFOs scaling up digital investments, while 38% said they intend to protect their current investment levels.

CFOs’ increasing focus on automation as an inflation mitigation strategy aligns with findings from Gartner’s Finance Technology Innovations Survey, which polled finance leaders on their investment plans for specific finance technologies over the next two years. The data indicated a planned increase in investment in robotic process automation (RPA), reporting automation and process mining, technologies critical to streamlining routine processes and freeing up staff to focus on higher value activities and increased productivity.

Gartner analysts will be presenting the latest technology investment roadmap for CFOs at the Gartner CFO & Finance Executive Conference, June 6-7, 2022, in National Harbor, MD.

Gartner clients can learn more in: CFOs’ Digital Investment Plans Remain Ambitious for 2022 and 2023. Nonclients can learn more in: 3 Ways to Mitigate Margin Pressure from Input Price Inflation. CFOs and finance leaders can participate in Gartner research and get complementary access by joining the Gartner Research Circle.

About the Gartner CFO & Finance Executive Conference

Gartner experts will provide additional insights on the key issues facing CFOs during the Gartner CFO & Finance Executive Conference, June 6-7, 2022, in National Harbor, MD. The Gartner CFO & Finance Executive Conference delivers actionable, objective insight to CFOs and their teams to help them leap-frog forward on their digital journey by understanding what successful teams are, and are not, building, buying, and borrowing in the market. For the full agenda and to register visit: https://www.gartner.com/en/conferences/na/cfo-finance-us.

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. Visit the Gartner Finance Newsroom for more information and insights.