Report: CFOs Retooling American Businesses to Focus on Services
(Thomson Reuters ONE) -
71% of U.S. CFOs Say More Than Half of Revenue Now Comes from Services
SAN FRANCISCO, Feb. 15, 2017 (GLOBE NEWSWIRE) -- FinancialForce, the
leading Cloud ERP vendor on the Salesforce Platform, today announced the results
of a new study conducted in collaboration with CFO Research, which found that
CFOs are retooling their businesses to drive more revenue from services, which
includes professional services, subscription-based services, software/apps
delivered as a service, managed services and usage-based contracts.
More than a third of the 163 CFO respondents said that subscription-based
services have become significantly more important for their companies over the
past five years. Roughly the same number (26.9%) see those types of services as
an important part of the company's growth plan over the next two years.
Currently, 71% of CFOs report that more than half of their revenue comes from
services, and almost a third report that all their companies' revenues are
service-related. More than half (55%) say that services generate a higher
percentage of revenues today than they did five years ago.
"Cloud computing and the prevalence of mobile and connected devices have
accelerated the shift towards the services economy, effectively giving every
company the opportunity to sell/upsell its customers on subscription-based
offerings - creating valuable recurring revenue streams," says FinancialForce
CFO, John Bonney.
"This transition is changing the underlying architecture of business, as well as
changing the role of the CFO, bringing the office of finance into conversations
on customer experience and satisfaction as contract and subscription renewals
become more important to overall business performance.
Despite the shifting business model, only 17% of or respondents were confident
that their operational and technological infrastructure was suitable to handle
the increase in service-related revenues.
According to the report, CFOs in the United States believe:
CFOs see services as the future of business growth in the United States
* One third of respondents say that subscription-based services have become
significantly more important for their companies over the past five years.
* 71% of respondents report that their companies derive half or more of their
revenues from services, either directly or linked to product sales.
* Just under one third (28%) report that all their companies' revenues are
service-related.
* More than half (55%) say that services generate a higher percentage of
revenues today than they did five years ago.
A more customer-centric finance function is emerging
* Two-thirds agree that they feel "substantial pressure" to change their
finance team's mindset to be more customer-centric and focused on renewal
revenue streams.
* 44% of financial executives chose "more involved in product/service pricing
decisions"-suggesting that they are aware of the central role that the
customer plays in the evolving business model.
CFOs must reach beyond their core capabilities
* Among survey respondents, a plurality (45.5%) say they believe that
generating more revenue from services will require their company to make
substantial changes in strategic planning. More than 40% of survey-takers
chose staffing (42.9%) and operations (41.7%) as requiring substantial
changes.
* 50% of respondents chose "more likely to use new metrics to measure business
success" when asked how the role of the CFO or finance leader should change
to support the "new services" business model.
For many CFOs, the shift to services changes everything
* In the survey, finance executives were asked about the location of the
largest "pain points" they would expect to experience because of the
adoption of a services business model. The answer: almost everywhere.
* Nearly 40% of respondents (39.8%) chose "staffing and skill sets" as the
locus for such pain points, but two other options garnered more than 35% of
respondents, including: Billing, Invoicing and Accounts Receivable (37.9%);
and Planning, Budgeting and Forecasting (36%). Renewals and revenue
forecasting, at 33.5%, wasn't far behind.
Investing in the right tools to access and aggregate data will be essential
* 56.5% say they "somewhat agree" that their company currently has the
operational and technological infrastructure that can seamlessly handle any
increase in service-related revenues. Just 17.4% "strongly agree" with that
statement-suggesting that finance leaders need to direct additional
investment toward revamping the company's technology platform, integrating
data analytics into data-processing
To request a full copy of the FinancialForce 2017 CFO survey, go
to: http://www.financialforce.com/2017-CFO-Research
Methodology:
Findings are based on a recent online survey of 163 U.S. and U.K. senior finance
executives, conducted by CFO Research in collaboration with FinancialForce.
Nearly two-thirds (65%) of survey respondents have titles of director of finance
and above, with a plurality of all respondents serving as CFOs. Nearly three-
quarters of respondents (72%) are employed at companies with annual revenues
above $10 million, and more than one-third (37%) are employed at companies with
annual revenues above $1 billion. Respondents represent a broad range of
industries, with the highest proportions originating from
Manufacturing/Industrial/Automotive and Financial Services/Real
Estate/Insurance.
About FinancialForce
Founded in 2009, FinancialForce is the leading Cloud ERP vendor with apps built
entirely on the Salesforce Platform. The company's Financial
Management, Professional Services Automation (PSA), and Human Capital
Management (HCM) offerings provide services-centric businesses with a platform
that organizes sales, services, finance and HR entirely around their customers.
Headquartered in San Francisco, FinancialForce is backed by Salesforce Ventures,
Technology Crossover Ventures, Advent International and UNIT4. For more
information, visit www.financialforce.com.
Media Contact:
Sandra Lo
FinancialForce
415.796.8414
slo(at)financialforce.com
Bill Rundle
Highwire PR for FinancialForce
415.990.3348
billr(at)highwirepr.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FinancialForce.com, Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 15.02.2017 - 14:00 Uhr
Sprache: Deutsch
News-ID 524380
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contact information:
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Kategorie:
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