SAN FRANCISCO, February 15, 2017:
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
A more customer-centric finance function is emerging
CFOs must reach beyond their core capabilities
For many CFOs, the shift to services changes everything
Investing in the right tools to access and aggregate data will be essential
To request a full copy of the FinancialForce 2017 CFO survey, go to: http://www.financialforce.com/2017-CFO-Research
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.
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.
Posted on 15 February 2017 at 1:00 pm UTC