A Heidrick & Struggles survey of C-Suite executives found that most CFO respondents indicated their organizations have yet to use AI in crucial areas
|
|
|
|
|
Editor’s Note—Tech is hard. We get it. To help, StrategicCFO360 and The CFO Leadership Council are launching a new effort—starting with this free newsletter—to help finance pros make more confident technology choices and help software providers understand and more successfully serve their needs.
On October 29-30, we’ll also hold our inaugural Finance and Accounting Tech Expo at the Javits Convention Center in New York City. Join us!
We could use your help, too: If you have feedback, ideas or product, people and company news to share with the community, email us at vince@CFOlc.com—Vince Ryan, editor
AI Use Cases: Only Fools Rush In
A Heidrick & Struggles survey of C-Suite executives found that most CFO respondents indicated their organizations have yet to use AI in crucial areas like auditing, accounting, financial reporting or FP&A. A Teradata survey published this week showed only 12% of very large companies have deployed AI company-wide.
But these "studies" make a big assumption: AI products and services are battle-tested, and all CFOs need to do is plug them into the organization for them to work. In finance, for most midsize companies, that's just not true. For them, job one is a solid foundational understanding of the current wave of AI technology. "Many CFOs are falling behind because they don't know where to begin," says Wayne Berson, chief executive of BDO USA.
While descriptions of "use cases" abound, CFOs need more context before delving in that deep. Before rushing into AI deployments in finance, finance chiefs should consider the following points.
- Develop awareness. The primary goal of accounting firm Marcum's AI initiative was to "become an AI culturally aware organization, says Peter Scavuzzo, Marcum's chief information & digital officer. That required getting the employee base comfortable enough that it could contribute to the firm's "AI journey." Marcum is now far beyond that, putting an internal AI tool into the hands of knowledge workers, so it can crowd-source accounting and advisory use cases.
- Reframe expectations. Many business executives expect absolute answers and unassailable facts from AI output. When they don’t get them, they’re apt to think AI isn’t useful at all. But part of learning about AI is understanding what it can and cannot do. Scavuzzo compares using AI to an American football team advancing down the field. You can't go 100 yards, endzone to endzone, using AI, but it will get you in field-goal range nearly 100% of the time. "Who wouldn't want to advance 70 yards at the snap of a finger?" he says
- Rethink ROI. Running an AI can be expensive, and for now, costs vary widely. The inputs to total cost may become somewhat more apparent in the next 12 to 18 months, says Vivek Saxena, a senior vice president and leader of finance and accounting services at Genpact. For now, they may be hard to quantify. CFOs need to consider whether new ROI measures will be required to justify spending, particularly when trying to gauge AI contributions to worker productivity.
- Be patient. "Without question, there are AI use cases very beneficial to finance organizations," says Jotham Ty, founder and CEO of Gappify, an accrual automation provider. But many of them are a year or more from becoming reality. In finance and accounting, the market is still sorting out which use cases to tackle and how they get rolled out. Gappify knows what AI functionality it will incorporate into its products. Still, the company is first creating clear messaging for prospects and customers on how to adopt them and ensure auditability of the transactions they generate, says Ty.
But don't be caught napping, either. Armed with AI tools, diminutive, agile competitors with much less capital may take advantage of the technology to level the playing field in a market, says Scavuzzo. Or an outside player may spot an opportunity to disrupt a sector because the sector's entrenched competitors have been too slow to leverage AI. As a result, says Scavuzzo, CFOs need to think broader than "how can AI help me solve the problems I have today?"
From our partner:
Drive Business Success with the CFO's Ultimate KPI Checklist! Unlock the secrets to leveraging KPIs effectively in your business with this comprehensive ebook. Packed with customizable templates, process maps, and expert advice from industry guru Bernie Smith, this resource is your key to achieving consistently excellent performance in 2024 and beyond. Download Now!
|
|
|
|
|
|
|
|
Evan Kolter is CFO of Simpli.fi, a programmatic advertising and agency workflow software provider. We asked him to describe the systems and tools used at the Fort Worth, Texas-based company.
We utilize a comprehensive suite of tools to optimize our operations. Our core accounting system, NetSuite, integrates with UKG, Navan, Avalara, Jellyfish, Versapay and other systems to enhance our financial management capabilities. We rely on Looker to interpret and analyze data from our proprietary demand-side platform, while Salesforce serves as our CRM. We are also in the initial stage of implementing Pigment, a promising tool to bolster our FP&A capabilities.
What's your joy, and what's your headache?
I find great joy in constructing financial systems, developing efficient processes and creating comprehensive reports. Those efforts enhance the company's financial knowledge and empower managers and executives with critical financial insights to drive company growth and deliver superior products.
One of the challenges I've encountered is not receiving the full potential of the tools we've invested in. Whether it's a systems integration issue or a data quality problem, these issues can limit our operations. Having a well-planned infrastructure and top-notch data management is crucial. It ensures that we maximize the tools we have and that everyone operates on a unified version of the truth.
If you could wave a magic wand, what would you make software companies do for you?
We would make software companies take any of our processes or source data systems and translate everything into one common language, free from errors, allowing for seamless interconnectivity and translation from system to system. The ability to effortlessly trade in and out of different toolsets as we grow and our business needs evolve would be a dream for any CFO.
What's your best piece of tech advice for others in your job?
Be thorough when adopting new technology or software and selecting implementation partners. Company resources are valuable and not infinite; any new tech should be expected to serve you for years. Evaluate multiple options, and don't underestimate the value of an internal "roadshow" to build support. Different teams' insights are invaluable; they can offer unique perspectives on features and their practical applications. This collaborative decision-making process ensures everyone's expertise is considered and contributes to the final decision.
|
|
|
|
|
|
|
|
Have news to share? Drop us a line at vince@CFOlc.com — Vince Ryan, editor
KKR & Co.-backed software company OneStream has confidentially filed with the Securities and Exchange Commission for an IPO, according to Bloomberg, and is reportedly seeking a $6 billion valuation.
SugarCRM acquired sales-i, provider of a tool that captures information on customer buying behavior from a company’s ERP system to produce intelligence for sales, marketing, customer support and service.
Hg, a London-based investor in European transatlantic software companies, agreed to acquire AuditBoard, provider of an audit, risk and compliance platform, for more than $3 billion.
GSCF launched a working capital as a service (WCaaS) platform that manages the cash conversion cycle and connects a business to alternative sources of capital.
Zone & Co, provider of a suite of ERP-native software solutions, acquired U.K.-based Solution7, creator of financial reporting software that gives finance teams access to complex, real-time data for planning and analysis.
|
|
|
|
|
|
Have news to share? Drop us a line at vince@CFOlc.com — Vince Ryan, editor
UiPath reappointed co-founder Daniel Dines to the CEO position to replace departing co-founder Rob Enslin, who is also resigning from UiPath’s board. Dines serves as UiPath’s chief innovation officer and executive chair.
Certinia (formerly FinancialForce) named Rob Harrison VP of sales, international. Harrison was formerly a senior VP at SAP and managing director of UK and Ireland at SAP Concur.
Hasso Plattner, co-founder of SAP, stepped down from the chairmanship of SAP’s supervisory board at the German software maker’s mid-May shareholder meeting. He had served the company for more than five decades.
Vasant Prabhu, former CFO and vice chair of Visa, joined the board of directors of Intuit. Prabhu is also the former CFO of NBCUniversal Media and Starwood Hotels and Resorts.
Jitesh Ghai, executive vice president and chief product officer of data integration software provider Informatica, left the company to become president and CEO of content management platform provider Hyland Software.
|
|
|
|
Stock performance is as of the market close on May 28, 2024
|
|
|
|
|
|
|
|
|
|
Plan to join us at the Finance and Accounting Technology Expo, the country’s largest annual trade show for buyers and vendors of corporate finance and accounting software. This year’s event will occur at New York’s Javits Convention Center on October 29-30, 2024. This is an excellent opportunity to network with industry peers, learn from experts and discover new products and services. Register online at StrategicCFO360.com/FATE/register/ and get a limited-time, free registration using the code czh510.
Keynote just announced! Daymond John, founder of FUBU, Shark Tank judge and bestselling author, will bring his unmatched expertise to the stage.
|
|
|
|
|
|
|
|
If you enjoyed this e-newsletter, please subscribe to receive future issues in your inbox. You can also share it with your colleagues and friends who might be interested in finance and accounting software. To subscribe or share, please visit StrategicCFO360.com/FATE/ and fill out the form at the bottom of the page.
Thank you for your support and feedback. Don’t forget to add editor@FinanceAccountingTech.com to your Safe Senders list to make sure it gets delivered.
|
|
|
|
|
|
|
|
|
|
|
