In an in-depth survey of over 300 CFOs and senior finance executives, released by CFO Research Services and Cap Gemini Ernst & Young, three-quarters of respondents cite better decision support as the basis for their business case for improving Finance, and only about half cite a need for better regulatory compliance.

"While this statistic may be somewhat surprising at first glance, the logic behind it is sound," said Ian Downes, vice president and Americas' Finance and Employee Transformation Practice Leader at Cap Gemini Ernst & Young. "Focusing only on Sarbanes-Oxley compliance is for short-term, quick-fix focused executives. In contrast, focusing on world-class decision support capabilities yields the changes required to comply with Sarbanes-Oxley and much more effectively positions companies for long-term profit improvement."

The survey also indicated that companies who have already invested in strong decision-support capabilities are more likely to be able to meet real-time disclosure requirements mandated under Sarbanes-Oxley than other companies. For example, of those who can report material changes to their financial status within 24 hours, 71 percent have already improved their management reporting processes or systems and 52 percent have improved their forecasting processes or systems.

"Sarbanes-Oxley is separating weak finance departments from the strong," continued Downes. "Those finance groups who are starved for development resources are feeling the most heat from new regulations. By contrast, finance groups that have been steadily improving management's insight by building strong decision-support capabilities, and becoming value-added business partners are meeting the new requirements without having to endure a major upheaval."

In pursuing meaningful management insight for operational and strategic decision making, companies are leveraging four areas: shared services and outsourcing; deployment of technology (specifically focused on ERP systems like SAP, Oracle and PeopleSoft, analysis tools such as Hyperion and Cognos and finance web-enablement); moving transaction processing (to more appropriate lower cost centers and outsourcing); and development of human resources.