CFOs Race to Keep Up With New Technology

Maria Trombly   Today’s Top Stories    or  Other Management Stories  

Enhancing Business Mobility with Convertible PCs Backup and Recovery for Microsoft Exchange Server Not All QSAs Are Created Equal: What You Should Know Before You Buy Reduce Energy Costs and Go Green Case Study: Trinity Health Care Sign up to receive Security Resource Alerts

February 26, 2001 (Computerworld) -- Walter Leen still remembers the days when the IT department was called data processing and it reported to the chief financial officer.

"It was just used as a big, fast calculator and a fast typewriter," Leen said, who recently retired from his job as vice president of internal auditing at Itasca, Ill.-based Enesco Group Inc. "But the CFOs had no idea of its capabilities to provide management information."

Now, CFOs - whose focus is often on the bottom-line results of specific markets but not the technological arcana that affect them - need to understand new tools that can give them a clearer picture of their companies' financial health, according to Ian Rubin, an analyst at IDC in Framingham, Mass.

E-commerce, mergers and acquisitions, and capital-intensive IT investments also require the CFO to stay on top of the latest technology trends.

That doesn't mean they have to know how to program a Web site, Rubin said, but the more they know about new technologies, the better positioned they are to judge the success of any particular project.

Willingness to Adapt

For example, San Rafael, Calif.-based Autodesk Inc., which sells AutoCAD and other design software, gets half of its business through the Web, said CFO Steve Cakebread. In addition, about a third of the company's suppliers take payments in electronic form.

"And we're always talking to our suppliers - 'You need to get more automated; your money is going to get to you faster,' " he said.

Dramatic growth, fueled by the Web, has also forced Lynn Atchison, CFO at business information provider Hoovers Inc. in Austin, Texas, to be more flexible in her job. "How do I, as a CFO, ensure that our site is going to produce revenues?" she asked. "One year, we think subscriptions are the main thing. The next, it's advertising. Now, I think it's gone full circle - back to subscriptions."

At a minimum, she said, today's CFOs need to understand the vocabulary of the Internet and how to use new technologies to launch a marketplace.

To help CFOs meet the increasing challenges of their jobs, IT departments need to take a more active role in educating them, said Anita Tilley, managing director of KPMG Consulting LLC in McLean, Va.

"Most finance departments that I have had the pleasure of working with have done a fairly good job of Finance 101 for their organizations," she said. "On the other hand, IT is dealing with a phenomenally fast-changing environment." However, IT organizations are starting to catch up, she added.

Fostering good communication gives the CIO a champion to help sell strategic initiatives and gives the CFO a background in technology that can change the structure of a company, especially during tough economic times, Tilley said.

The recent economic downturn makes such cooperation even more urgent. "Anytime that there's a perception of an economic downturn, the pressure is heated up for cost justification of various initiatives," Tilley said. "The challenge is making sure that both [IT and finance] are properly supporting each other in terms of making sure that the right business case is there."

"Conventional budgeting and planning happens once a year," said Chandran Sankaran, CEO of Redwood City, Calif.-based Closedloop Solutions Inc., which provides software that CFOs can use for financial planning.

"So now, CFOs are in a really hard place because the speed of business is accelerating," Sankaran explained. "A purchase order, for instance, that used to take three weeks to get authorized and go out the door now takes 30 seconds. As one CFO told me, stupid decisions are being made faster. There is a massive gulf that is growing between the speed at which the business is operating and the speed at which CFOs can realign the financial resources of the company."

Print this Story

Send Us Feedback

E-mail this Story

Digg this Story

Slashdot this Story

"Today's US college business professors, hopefully, aren't all like the one who is teaching a Florida university's business major. Maybe..." Read more... "For the first time in 30 years, there were no public offerings from a venture backed company. Look for more..." Read more... Read more Management posts or See all Blogs

Microsoft promises four patches next week Google gives away home-cooked Web application security scanner Storm botnet stages Fourth of July attacks More top stories...

Microsoft trumpets security additions in upcoming IE8 Apple cuts price of high-end SSD MacBook Air by $500 Ultrathin showdown: Apple MacBook Air vs. Lenovo ThinkPad X300 vs. Toshiba Portege R500

This old laptop: Revitalizing an aging notebook on the cheap All it takes is a couple hours and about $125 to breathe new life into an old laptop. Here's how. Bill Gates moves on Is Microsoft's Golden Age over? What are Gates' most memorable quotes? Find out in Computerworld's complete coverage of the end of the Bill Gates era at Microsoft. Five things you should never tell your boss There are some things your CIO definitely doesn't want to hear. Also don't miss the flipside, Five things you should always tell your boss. Hands-On: Firefox 3 fixes what's broke and keeps what's right With its latest version, Mozilla's browser continues to raise the bar for what Web browsers should be. Windows Vista A to Z Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS. More Continuing Coverage After 9/11: Homeland SecurityAsk a Premier 100 IT LeaderBlackBerry Legal BattleData Security BreachesElectronic VotingFirefoxH-1B VisasHP's Boardroom ScandalHandheld DevicesHurricane Katrina AftermathMicrosoft Legal IssuesMicrosoft's VistaOpen SourceRFID TechnologySCO's Linux FightSarbanes-Oxley ActSpamVoice Over IPWi-FiWindows Meta File VulnerabilityWindows XP Service Pack 3 IT Careers 2010 Four years from now, the IT field will be a vastly different place. Will you be ready? More Special Reports Premier 100 IT Leaders 2007 Best in Class2006 Computerworld Horizon Awards2006 Premier 100 IT Leaders2006 Salary Survey2007 Best Places to Work in IT2007 IT Forecast2007 Premier 100 IT Leaders40 Years of ComputerworldASPs, Take TwoBest Places to Work in IT 2003Best Places to Work in IT 2004Best Places to Work in IT 2005Best Places to Work in IT 2006Business Intelligence Home RunsBusiness Intelligence: Smarter BIBusiness Intelligence: The Future of BICRM Goes VerticalCRM: Sober CRMCareer Planning Guide 2005Careers: IT Profession 2010Computerworld Horizon Awards 2005Data Management: Mining for GemsData Management: Taming Data ChaosDevelopment: Hard-Workin' Web SitesDevelopment: New Tools New ChoicesDevelopment: The New World of Application DevelopmentDevelopment: The Web Services TsunamiDevelopment: Web Services HurdlesDisaster Recovery: Preparing for the WorstE-commerce Grows UpE-mail/Groupware: Big DecisionsFaces of Mobile ITForecast 2006Global MobileHardware: Multiple Cores, Multiple ChallengesHardware: On-Demand Un-HypedHardware: The Shape of Things to ComeHorizon Awards: 10 Cool Cutting Edge TechnologiesIT Management: Guide to Managing VendorsIT Management: Navigating Global ITIT Management: Recovery AheadIT Management: The Future of ITIT Management: The Resourceful Project ManagerInnovative Technology Awards 2004Management: Reinventing ITMicrosoft in TransitionMobile/Wireless Leaders and LaggardsMobile/Wireless: The Untethered WorkerMobile/Wireless: Tiny Gadgets, Huge CostsNetwork Management: Taking ControlNetworking: Turbulence Ahead!Networking: VoIP Goes MainstreamOperating Systems: In the Slow LaneOperating Systems: Linux Goes GlobalOperating Systems: Should You Nix Unix?Outsourcing: Offshore Buyer's GuideOutsourcing: Outsourcing DangersPremier 100 IT Leaders 2004 Best in ClassPremier 100 IT Leaders 2005 Best in ClassROI: Do the Math!Salary Survey 2003Salary Survey 2004Salary Survey 2005Security Action PlanSecurity: Compliance HeadachesSecurity: Proactive SecuritySecurity: Risk and RewardSecurity: Tips From Security ProsSouped-up SecurityStorage: Battling ComplexityStorage: Cheap & Secure Data StoresStorage: Stretching Your Storage DollarsStorage: The Lean Storage MachineStorage: The New Rules of StorageStorage: The Ultimate Backup GuideSupply Chain: Missing LinksSupply Chain: RFID Reality CheckThe Business of SecurityWeb 2.0 SecurityWireless: Wireless At Work All Zones Application Performance Zone Business Continuity Zone Data Center Management Zone Enterprise-Class Security Zone The File Data Management Zone Grid Computing on Windows Zone Security Management Zone ITIL Best Practices Zone The SAS Zone Storage Virtualization Zone Business Intelligence and Analytics Zone See your link here

Computerworld invites all storage industry leaders to join us at an exclusive virtual event! Computerworld invites all storage industry leaders to join us at an exclusive virtual event! Register now and we'll see you LIVE on June 24th at 11am! Go to the webcast  Computerworld Technology Briefing: Meetings @ the Speed of Business Download this Technology Briefing now, compliments of Microsoft! (Source: Microsoft) For large organizations, Web conferencing gives a major boost to collaboration among far-flung offices. For smaller companies, experts say Web conferencing is no longer a luxury but a necessity for everything from webinars to customer presentations. But the real value lies in saving soft costs and in increases in productivity. Download this executive briefing  Taking Control of Software Licensing Get this white paper now! (Source: BDNA) Pricing model changes, virtualization, and vendor audits are just a few of the reasons why software licensing is full of factors outside your control. Accurate information is the best weapon for managing vendors. This white paper discusses new technologies to enter conversations with vendors on your toes, not your heels. Download this white paper  White Papers Read up on the latest ideas and technologies from companies that sell hardware, software and services. Deploying Virtualized NetWare on Linux Whitepaper Toward More Flexible, Next-Generation Collaboration Solutions Driving Business Success Through Workgroup Choice and Flexibility View more whitepapers

• Microsoft promises four patches next week
• Google gives away home-cooked Web application security scanner
• Storm botnet stages Fourth of July attacks
• More top stories 

• Ultrathin showdown: Apple MacBook Air vs. Lenovo ThinkPad X300 vs. Toshiba Portege R500

• Best Places to Work 2008

• Mac OS X market share surges 32% in one year

Read more news 

• Scrolling Email

• Vindication, at last!

Read more Shark Bait 

Intercept Spam & Viruses With MessageLabs MessageLabs is offering a complimentary 30 day trial of its managed Anti-virus and Anti-spam security solutions. MessageLabs guarantees complete protection against all know and unknown email threats. By providing 24 hour support, your business can increase productivity and decrease risk. Register for a complimentary trial and receive a free datasheet. Download this white paper now!

Is Your Company a Great Place to Work? Our annual survey recognizes top employers that offer satisfying and challenging work environments for their IT staffs. Nominate a company here. See the 2007 Best Places to Work in IT report

Enhancing Business Mobility with Convertible PCs For years Pen enabled computing devices have enjoyed great success and acceptance in highly vertical industries like delivery services, auditing and POS. The primary limitations of early pen computing devices, which were the hurdles to early mainstream adoption, were the power limitations of the devices, no stable OS environment for application development, and the lack of a keyboard for traditional input. Now, with the availability of Windows XP Tablet PC edition and Vista, which are both Pen Enabled operating systems, the flexibility afforded by dual function convertible notebooks and a host of 3rd party applications, Pen Computing has expanded into areas like healthcare, insurance, education, retail, and sales force automation. What used to be strictly vertical has now caught on as a preferred alternative to standard notebooks. Is now the right time for you to consider pen computing? Tune in to find out what these amazing mobile devices can do to simplify tasks, expand the utility of a traditional notebook, and increase the ROI of traditional notebook computing. Listen to this podcast now