Instinct vs data in decision making - nswcfo.com.au

© 2015 Epicor Software Corporation

Instinct vs data in decision making: Findings of a global CFO survey

Craig Charlton SVP for Asia Pacific, Epicor Software


Austin, TX

18

11

24

5

Monterrey, MX

Bracknell, UK


20,000 customers

3,900 employees

150 countries

~$0.9 billion revenue


Industry and Vertical Focus Manufacturing

• Aerospace & Defense

• Automotive

• Capital Equipment

• Electronics

• Fabricated Metals

• Food & Beverage

• Industrial Machining

• Instruments & Controls

• Medical Device

• Printing / Packaging

• Pharmaceutical

• Rubber & Plastics

• Mining

Distribution

• 3PL/Logistics Services

• Automotive

• CPG

• Industrial

• Electrical & Plumbing Supply

• Heating & Air Conditioning

• Medical Supply

• Pharmaceutical

• Value-added Distributors

Services

• Aged Care

• Mining Services

• Financial Services

• Hospitality (Food)

• Hospitality (Property)

• Non-Profit

• Professional Services

• Sports & Entertainment

Retail

• Farm Supply

• General Merchandising

• Hardware

• Home Improvement

• Lumber & Building Materials

• Nurseries & Garden Centers

• Pharmacy

• Specialty Retailing


New global survey reveals that 1 in 2 CFOs struggle to access the right data for decision-making


• Because they are bombarded with:

• more data sources

• more channels

• more numerous and complex business models

• increasingly global nature of business

• more reliance on external partners

CFOs struggle to extract meaningful insight


What are the consequences?


CFOs try to combat this by upgrading the systems


● 46% of CFOs rely on gut feel and instinct

● 34% say their IT system struggle to give them the information they need

● 48% say mistakes occur as a result of missing or false information

● 44% say that inaccurate data was the biggest cause of mistakes

● 39% say their finance system needs updating

● 33% say investing in new IT is a top issue over the next 2-3 years

The challenges are the same in APAC


39%

60% 45%

34%

AUS CHINA HKG SIN

CFOs that rely on ‘Gut-Feel’ and Instincts to make business decisions

A view across Asia Pacific


14%

37% 30%

22%

ANZ CHINA HKG SIN

They struggle to extract meaningful insight

One reason why CFOs have to rely on ‘Gut Feel’


● 39% of CFOs rely on gut feel and instinct

● 40% say mistakes occur as a result of missing or false information

● 35% say that inaccurate data was the biggest cause of mistakes

● 34% say their finance system needs updating

● 24% say investing in new IT is a top issue over the next 2-3 years

Challenges and priorities for ANZ


Insights vs Instincts

Less than 30% 32%

30% to 49% 34%

50% to 79% 28%

80% or more 6%

Q: About what percentage of the features of the system does your organisation take advantage of?

Telsyte Australian Enterprise Software Market Study 2015 ; n=263

CIOs estimate their organisation takes advantage

of 42% the ERP system’s features


“In many respects, today’s

ERP systems are exactly

what people don’t want

anymore”

Ventana Research

© 2015 Epicor Software Corporation 15

Value challenge: ERP feature use below 50%

Less than 30% 32%

30% to 49% 34%

50% to 79% 28%

80% or more 6%

Q: About what percentage of the features of the system does your organisation take advantage of?

CIOs estimate their organisation takes

advantage of

42% the ERP system’s features

Factors hampering ERP feature use

1 Inflexible (not easy to modify)

2 High complexity

3 Poor integration with other apps

4 Too difficult to use

5 Poor user interfaces

6 Misalignment with business processes

Telsyte Australian Digital Workplace Study 2015

Ability to Change

Usability & Simplicity


How ERP needs to change

Adapting to change with flexible workflows

Encourage innovation

In-context business intelligence to provide real-time analysis where you need it

Deployed the way you need and consumed the way you want

Leverage crowd wisdom

Driven by end-users

Simplified user experience and ease of adoption


● A next-generation ERP platform which is flexible and easy to use

● Delivers the right data to financial decision-makers, at the right time, to help them make the right decisions

● Simplifies collaboration with customers, suppliers, and partners

● Enabling the CFO to add value to the data by using their experience and instinct to help companies boost profitability and growth – not to plug data gaps

We believe the solution can be found in…


“The system is flexible enough to allow us to capture data in a way that is familiar to our organisation; in a way that makes sense for our day to day business. That means we know accurate, relevant information is available to staff from the shop floor to the back office.”

“We love the new Business Activity Queries in Epicor ERP 10. We can interrogate any part of the system to get the information we need, when we need it.”

“Pulling reports is simple and straight-forward, and we can easily write our own. And these are reports based on information we can trust. Because the data is in one system it means everyone writing reports across the same information source get the same answers.”

Daniel Malherbe, Group CFO Southern Spars


Q&A

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Instinct vs data in decision making - nswcfo.com.au