Ask FERF about ... the seventh annual technology issues survey.

• Author: Boltin, Jerry
• Position: Resources - Financial Executives Research Foundation

Continuing a longstanding relationship, Financial Executives Research Foundation (FERF) and Computer Sciences Corp. (CSC) have jointly published the seventh annual "Technology Issues for Financial Executives" report, which explores technology practices, priorities and problems from the senior financial officer's perspective. The survey sets a new record in terms of FEI member participation: 782 completed surveys, a 29 percent increase over the prior report.

The report reaffirms a number of evolving themes and priorities, and highlights some areas of change. In the last survey, occupying the top spot as a concern among financial officers was "prioritizing technology investments" (deciding which technology investments represent the best use of the organization's scarce capital). While this issue still nears the top of the list, at No. 2, it has been displaced as No. 1 by "information security."

This probably shouldn't come as much of a surprise, with the continuing publicity related to the unauthorized access to and/or theft of confidential information in both the public and private sectors, often at organizations perceived as "highly secure." Further, only about 1 in 5 financial officers is "highly satisfied" with his or her organization's security program.

In terms of primary information needs, analytical and decision-support information to improve organizational performance and increase shareholder value again emerge as the most acute priority. Despite ongoing efforts to close the analytical information gap, only about 1 in 12 members reported making substantial progress in the past year. However, 60 percent of respondents plan to invest again in the coming year, with many planning significant expenditures.

Technology spending is again expected to rise somewhat on an overall basis, but financial officers remain concerned about the business benefits they are obtaining. Only about half of the respondents believe they are receiving a high or good return from their investments, and only about 70 percent of all technology projects are deemed successful by management.

Systems integration continues as a significant need for many, and is receiving increased attention due to Section 404 of the Sarbanes-Oxley Act (the Act), particularly among members representing larger organizations. The attention being paid to consolidation and reporting has also risen due to the Act.

The approaches being used to address integration issues are varied. "Adopt...