Dynacom on IT as the Profit Center - Creating Efficiencies Through ERP Systems

Alain Nadeau from Dynacom, a solution provider at the marcus evans CFO Summit XXI Fall 2010, discusses the best ERP system implementation strategies.

LAS VEGAS, Nev.--(BUSINESS WIRE)--

“CFOs are seeing IT as a cost center, whereas they should be looking at it as a profit center”

CFO Summit XXI Fall 2010
Red Rock Casino Resort & Spa, Las Vegas, Nevada, November 4-6, 2010

Interview with: Alain Nadeau, President & Chief Executive Officer, Dynacom

Chief Financial Officers may be cutting costs across the organization, but according to Alain Nadeau, President and Chief Executive Officer at Dynacom, they do not necessary realize that they may be spending more by not upgrading their current Enterprise Resource Planning (ERP) systems. “CFOs are seeing IT as a cost center, whereas they should be looking at it as a profit center,” he adds. From a solution provider company attending the marcus evans CFO Summit XXI Fall 2010 taking place in Las Vegas, Nevada, November 4-6, Nadeau discusses how ERP systems can increase organizational efficiency and the optimum way of upgrading current systems.

How can CFOs utilize ERP systems to increase efficiency and productivity, and ensure the investment pays off?

Alain Nadeau: "CFOs might be concerned with the overall cost of upgrading their ERP systems, but what they do not realize is that they are spending a lot more money on pumping their data into their larger system and on retyping the data before closing each quarter to make sure all data entries are up-to-date in all international divisions.

CFOs can reach the cost difference without losing market share, by implementing a new upgraded ERP system. They should consider implementing a one or two tier system, to be able to pump all their data into the larger system using the same information.

Many companies have several ERP systems in place, and one of the main challenges for CFOs right now is cutting IT staffing costs. Depending on the number of worldwide locations, this could have been avoided if the organization had fewer systems in place."

What is the best way of making this technological modification?

Alain Nadeau: "CFOs should try to implement system changes first on a test site under a lower plan, rather than an organization-wide system change from the start. Once they make sure the system is running as they want, they can evaluate the right formula to implement at a larger site, at the lowest cost possible."

What are some of the upcoming developments that CFOs should get prepared for?

Alain Nadeau: "Outsourcing is the newest development. Before, companies were trying to do everything by themselves; however, they are now making use of clouds and spending less on their computer systems. Security is still a concern when it comes to cloud computing, but it is just a matter of how it is implemented and controlled. Even the security inside their own organization is a threat; the only solution is to keep the financial data in the organization and outsource all of the other data."

What long term strategies would you recommend to CFOs?

Alain Nadeau: "Right now, CFOs are seeing IT as a cost center, whereas they should be looking at it as a profit center. They need to think of every dollar put into IT as something which will generate returns. CFOs need to regard their Intellectual Property as a way to increase productivity, by putting a small ERP system in their divisions. They can cut costs by separating everything into smaller sections."

Summit Website: http://www.cfosummits.com/ANBW