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37% of businesses have moved their HR and Finance systems to the cloud to improve the way data is shared between departments.
There’s no longer any ambiguity about the future of cloud in business. Companies of all sizes and across every industry are shifting their systems to the cloud to keep up with the demands of a faster and more unpredictable market. A recent McAfee report has predicted that 80% of all IT budgets will be committed to the cloud within 15 months.
Many businesses have kicked off this transformation in their back office, and with good reason. HR and Finance leaders are both being asked to play a more prominent role in business strategy – the former by taking ownership of talent management and resourcing, the latter by finding new insights in company data to inform boardroom decisions – and given their joint stakes in these processes it’s only natural that they work in a more collaborative way.
Finance and HR: The Cloud’s New Power Partnership
A unified cloud platform allows for greater visibility across the company’s data and better alignment between HR and Finance, as well as between back office functions and IT. Indeed, new research from Oracle and MIT Technology Review reveals that 37% of businesses have moved their HR and Finance systems to the cloud to improve the way data is shared between departments, and 71% have seen positive results.
This is not the only benefit businesses are gaining from their cloud transition. 46% of companies are seeing better collaboration between HR and Finance teams, and 52% of C-level employees say the relationship between HR, Finance and IT has improved even beyond their expectations as a result of their cloud implementation.
“The term “digital disruption” may suggest a technological revolution, but this is only half the story.”
This last point is crucial. The term “digital disruption” may suggest a technological revolution, but this is only half the story. While cloud platforms and advanced analytics are indeed being used to shape new business approaches and customer services, it is the people who work with these technologies who are driving this change.
With so many cloud transformation projects starting in the back office, it has fallen to HR and Finance teams to develop the skills they need to work with the cloud. In the words of Rupert Haines, VP Global Business Finance Operations at Oracle, “ROI is not just about cost savings and faster go-to-markets. People lie at the heart of any company’s success with technology, and this is why we are seeing finance and HR executives lead their organisation’s cloud transformation and set the blueprint for the business’ wider cloud transition”.
“With so many cloud transformation projects starting in the back office, it has fallen to HR and Finance teams to develop the skills they need to work with the cloud.”
Whether they bring IT people into the back office to train HR and Finance teams, source outside help, or automate administrative tasks so HR and Finance leaders can focus on developing new skills, companies need to support their people if they are to adapt to new ways of working. Transformation projects require a golden ratio of people, skills, and technology, and those businesses that achieve the right balance in their back office will be one step closer to a successful cloud transformation across the organisation.