Navigating the Tech CFO's Dilemma: Balancing Core Stability with Agile Innovation

Permira recently gathered our network of North American Tech CFOs to discuss key priorities and challenges shaping their technology investment decisions. Here’s what we learned:

The ERP Balancing Act

ERPs remain mission-critical, consuming roughly 40% of software budgets according to our group of CFOs. While this spend is projected to grow, non-ERP solutions are also gaining traction, reflecting the need for specialized, best-of-breed tools alongside core systems. 

CPM: High Value, High Stakes

In discussions with our network of Tech CFOs, Corporate Performance Management (CPM) solutions were recognized for yielding the highest strategic value to their respective company – and more than half of the CFOs identified CPM vendors as difficult to switch out, attempting to keep it separate from ERP re-bundling even during a cloud ERP migration.

The Rise of the Machines (and AI)

Generative AI is on the radar, with CFOs recognizing its potential to automate tasks and optimize functions like FP&A, AR, and AP. Our  Tech CFOs expect Gen AI to act as an accelerant over the next 5 years – it’s not just hype. Expect to see increased investment in AI-powered solutions that drive efficiency.

The Takeaway for CFOs in Tech

The technology landscape is dynamic and changing quickly, and CFOs must strike a delicate balance between investing in core system stability while embracing best-of-breed, innovative solutions. By focusing on data-driven insights, AI-powered automation, and specialized tools that address the unique challenges of the tech industry, CFOs can position their organizations for sustained growth and success.