2. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2010 Gartner, Inc. and/or its affiliates. All rights reserved. John Van Decker Research VP, Gartner Bill Overell President, Overell Solutions The CFO’s Impact on Technology Investment Decisions 2011 Gartner FEI Technology Study ®

3. Gartner delivers the technology-related insight necessary for our clients to make the right decisions, every day. 1

4. Purpose of the Study Gain the CFOs perspective on information technology within the enterprise. It includes the following topics: -Economic Environment -CFO Technology -ERP /Business Applications -Business Intelligence Applications -Shared Services/Outsourcing -Regulatory -Role of IT CFO 13 th year of study – 3 rd with Gartner as partne r 2 ®

5. Interaction Providing local and international forums for connecting you with your peers; Information Providing you with insight to assist in informed business decisions; Influence Providing authoritative representation for your interests; Integrity Providing the tools to advance the profession through ethical leadership. OUR MISSION FEI’s mission is to advance the success of senior-level financial executives, their organizations and the profession. Since 1931, FEI has been connecting members through: Titles/Job Functions CFO, Executive VP, Senior VP, VP-Finance60% Controller14% Treasurer7% Other Titles19% Company Size: Annual Gross Sales Under $50 million21% $51 to $499 million38% $500 to $999 million10% $1 billion to $9.9 billion24% $10 billion or more7% Financial Executives International

6. 344 Highly Qualified Responses in 2011 4 Incomplete and responses not meeting threshold were excluded.

7. Their Role 5 75% of respondents were CFOs.

8. Their Industries 6 Source: 2011 Gartner FEI Technology Study, N=334 This study covers a broad spectrum of CFO opinion across industries.

9. Primarily North America, Global Reach 7 47% of respondents in the study have global operations.

10. What are today’s technology constraints? 8 Source: 2011 Gartner FEI Technology Study, N=334 Business Insight and Business Efficiency will drive IT spending.

11. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 9

12. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What is the direction on shared services/outsourcing? What are the regulatory priorities? How does the CFO view IT? 10

13. Who authorizes IT investment? 11 The CFO has a more major role (51%+) then in 2010.

14. Where does IT report? 12 Consistent with 2010 study, 42% of ITOs report to CFOs – it will increase

15. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 13

16. 2011 Investment Expectations 14 View of economic opportunity is conservative; 38% see growth in

17. IT Operational Spend Forecast 15 2011 vs. 2009 2012 vs. 2011 Source: 2011 Gartner FEI Technology Study, N=334 IT operational spending expected to neutralize more in 2012

18. IT Capital Forecast 16 2011 vs. 2009 2012 vs. 2011 48% see an increase in capital spending in 2012

19. IT Investment Perspective 17 Consistent with 2010 study, investment will continue where there is competitive differentiation and efficiency.

20. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 18

21. 2011 Top Technology Initiatives 19 Business intelligence/analytics and business applications re-emerge in 2011 as top technology initiatives

22. 2012 Top Technology Initiatives 20 Business intelligence/analytics will continue to be a priority in 2012.

23. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 21

24. Business application strategy 22 Systems consolidation remains a focus (34%) but many still pursue best of breed applications first (42%)

25. Release strategy 23 Source: 2011 Gartner FEI Technology Study, N=334 Many organizations remain close to new releases while many seek a business benefit before upgrade

26. Configuration not Customization 24 Source: 2011 Gartner FEI Technology Study, N=334 89% of organizations seek to take advantage of application best practices, while many also implement vanilla.

27. Implementation Model – SaaS Gaining 25 Licenced software will continue to be primary delivery platform

28. Business Applications Expectations 26 Firms are focusing primarily on improving business value

29. ERP Instance Preferences 27 ERP consolidation is a preference, with 64% of organizations looking for a single instance ERP.

30. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 28

31. BI Investment in 2011 29 Source: 2011 Gartner FEI Technology Study, N=334 54% of companies are making improvements in BI now or are targeting BI investments over the next year.

32. BI/PM Investment Focus - 2011 30 CPM applications lead the areas of BI investment from the CFO’s perspective.

33. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 31

34. XBRL Plans 32 Source: 2011 Gartner FEI Technology Study, N=334 XBRL planning lags most North American organizations.

35. XBRL Strategy 33 Source: 2011 Gartner FEI Technology Study, N=74 The market for financial statement generation/collaboration products Is growing with 30% looking for solutions.

36. IFRS Plans 34 27% are still delaying work on IFRS, but major ERP changes require long lead times.

37. Role of IT in IFRS 35 40% of IFRS impacted organizations have not yet involved IT.

38. IFRS Strategy 36 Source: 2011 Gartner FEI Technology Study, N=334 43% of organizations may be surprised and may not be able to react to US IFRS requirements.

39. Agenda What is the role of the CFO in IT? What is the IT investment climate in 2011? What are the priorities? How are ERP /business applications viewed? How are business intelligence/analytics prioritized? What are the regulatory priorities? How does the CFO view IT? 37

40. What are the expectations of IT 38 Source: 2011 Gartner FEI Technology Study, N=334 Only 35% of organizations see IT as being a strategic driver of business performance.

41. Room for improvement 39 Only 32% see the CIO as being a key partner in strategy

42. Key to IT investment success 40 Source: 2011 Gartner FEI Technology Study, N=334 While technology may be a given, business partnership may be more critical to a successful IT relationship

43. Top 10 Key Observations (not prioritized) Gaining business insight and improving business efficiency are the top technology opportunities – top constraints are around BI BI/PM top IT investment plans – CPM leads 35% view IT as being strategic to business performance CFOs influence in IT is growing – 42% of IT reports to CFO Organizations willing to spend where competitive differentiation and efficiency can me achieved IT spending to recover in 2011, more capital investment as economy improves Achieving business benefit from IT still a concern/opportunity, though 68% see benefits being realized Reducing ERP instances with more vanilla implementation desired XBRL and IFRS projects lag Understanding and working with the business is key to IT success over technological excellence 41

44. Recommendations Understand your CFO’s perspective on technology If you have not already, seek to improve the IT- CFO partnership opportunity Benchmark your organization to your peer group in the study to understand where you may need to target improvement IT must focus on getting closer to the business in order to be viewed strategically 42

45. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2010 Gartner, Inc. and/or its affiliates. All rights reserved. John Van Decker Research VP, Gartner Bill Overell CEO, Overell Solutions 2011 Gartner FEI Technology Study