Where's my new IT system? - The Antenna - Brief Article

Electronic News, August 19, 2002

CFOS THROUGHOUT CORPORATE AMERICA HAVE WATCHED IN horror as their finance departments have been pummeled by the triple pressures of recession, industry accounting scandals and the resulting finance reforms. Adding to their problems is an aging IT infrastructure that's just not up to the challenge of revamping the finance department.

Maybe it's time to buy new computing equipment and other IT necessities. The electronics industry sure has plenty to offer.

The need is there. Cap Gemini Ernst & Young of New York just released an in-depth survey of CFOs at large U.S.-based corporations and found finance departments lack adequate processes, sufficient skills and the IT infrastructure to cope with the new demands of the job. Eighty-one percent of GFOs agreed that accurate revenue and earnings forecasting is either a "high" or the "highest" priority, while 63 percent said they are saddled with inadequate budgeting, forecasting and support IT systems. More than half said they need to acquire new technology, especially IT systems.

Meanwhile, many companies in the electronics industry are hurting and holding their collective breath until corporate CEOs finally let loose IT purse strings. Maybe declining confidence in corporate accounting will finally spark corporations' long-dormant IT expenditures.