By Jim Wong, CPA | April 5, 2016

“Growth is never by mere chance; it is the result of forces working together.” — James Cash Penney

It goes without saying that the corporate world has witnessed a prominent digital transformation in recent history across all industries and sectors—with no signs of slowing down. This has resulted in drastic changes being taken within the infrastructure of many organizations, specifically for the information technology and finance functions.

While products, technologies, software systems and networks, along with federal regulations and operations, continue to change, business strategies continue to be overhauled in order to keep up with the changing times.

Because of this, IT and finance leadership roles including CFOs, CIOs, Directors of Finance, Directors of IT and other leadership/management positions, have been forced to interact more regularly with each other and at much deeper levels than they have in the past.

I recently came across an article on titled The CFO-CIO Relationship: Closer and Ever-More Critical which explains the shifts in business that technology has played a role in, as well as the how the newfound collaboration between the two functions mostly known for not being relatively collaborative—continues to blossom.

So, why the growing camaraderie between these managers and leaders, specifically? Both technology and finance are crucial components when it comes to the financial health of an organization.

That’s why, I thought it would be important to build upon an older blog I wrote on a similar topic and incorporate the article to reiterate how the topic continues to be not only relevant but necessary to address. Below are 3 Reasons the Relationship Between IT & Finance Management Needs to Grow Even Closer.

1. Roles Continue to Expand
Emerging technologies have played a role in expanding the responsibilities of both IT and Finance leadership. Today’s IT and Finance leadership are far more visible and vocal within organizations than they have typically been in the past. For IT managers and leaders, they’ve increased their focus on mobility, analytics and the cloud—all aspects that are becoming more forefront in businesses. Similarly, the finance managers and leaders have had to embrace a broader approach to aspects of their organizations such as strategy, growth initiatives, operations and data security; all because of digital and technological enhancements changing and becoming more robust.

2. Spending Needs to be Unified
Even though IT and Finance leadership have begun to team up more and more, there are still areas this can be improved, specifically in ways that affect the bottom line like technology spending. With the need to replace systems, upgrade resources and scale processes, the finance manager or leader must consult with their IT counterparts in order to fully understand the cost and return on investment. Further, because of the difference in background and qualifications of IT and Finance leadership, one might be able to simplify what the other might seem more challenging, and vice versa—making the collaboration even more vital.

3. Momentum Moves Into the Future
Neither the IT nor Finance function alone will be able to handle the entire digital transformation taking over the corporate world. That’s why, a strong relationship between the two is imperative. The momentum of the technology evolution continues to strengthen, and it’s anticipated to stay strong for many years to come. As IT and Finance leadership continue to engage with each other in the best interest of the company, the bottom line will continue to be impacted for the better as well as the company and its infrastructure improving as a whole.

What are some other reasons IT and Finance leadership should grow even closer? Use the comment section below to let us know your thoughts!

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