How CFOs Can Advocate for Technology Investments That Drive ROI

By Eric Russell, CFO – Studio Enterprise

In an era where technology defines competitive advantage, businesses that embrace innovation outpace those that cling to outdated methods. For CFOs, advocating for technology investments may seem like venturing into unfamiliar territory. Traditionally, financial leaders have focused on cost-cutting and safeguarding budgets. Now, however, the role demands a proactive approach: evaluating, championing, and ensuring that investments in technology deliver measurable ROI.

To thrive in this new environment, CFOs must align technology decisions with organizational goals, articulate their financial impact, and ensure straightforward and achievable returns. Here’s how financial leaders can successfully advocate for technology investments that drive ROI.

1. Connect Technology to Business Objectives

Before considering any technology investment, CFOs must bridge the gap between innovation and business strategy. Technology investments only make sense if they solve real problems or enable tangible opportunities.

• Start with Organizational Goals: Whether increasing revenue, reducing costs, or improving customer retention, CFOs should map proposed technologies to strategic outcomes. For instance, implementing AI-driven analytics could streamline decision-making, improving operational efficiency and profitability.
• Quantify the Value: Effective CFOs link technology investments directly to financial performance metrics such as EBITDA, cash flow, and margin growth. Use models to project these impacts clearly, demonstrating alignment with organizational goals. For example, showing how an AI-driven analytics tool can improve forecasting accuracy by 15% strengthens the case for adoption and earns stakeholder confidence.

2. Evaluate the True Cost and ROI

Investing in technology requires more than a one-time expense. CFOs must analyze the full lifecycle cost of implementation, including licensing fees, training, integration, and ongoing maintenance.

• Break Down the Costs: Divide the investment into clear categories: upfront, recurring, and opportunity costs. This granular breakdown prevents unforeseen budget overruns and builds credibility with stakeholders.
• Focus on Measurable Returns: Every investment should have a clear, measurable ROI. For instance, transitioning to a cloud-based ERP system could eliminate on-premise infrastructure costs while enhancing operational agility. Quantify expected returns over the short, medium, and long term.
• Leverage Pilot Programs: Advocate for small-scale pilot projects to test technologies before full implementation. Pilots provide tangible proof of concept and allow for outcome measurement with minimal risk.

3. Collaborate Across Departments

While CFOs bring financial expertise, successful technology investments require input from multiple stakeholders. Collaboration ensures that investments meet the needs of the entire organization.

• Partner with CIOs and CTOs: Technology leaders provide insight into emerging tools’ technical capabilities. Aligning financial and IT leadership strengthens the business case with both economic and operational insights.
• Engage End-Users: Speak with department heads and frontline employees to understand their challenges. For instance, if the sales team struggles with outdated CRM software, investing in a modern solution could enhance productivity and revenue.
• Prioritize Scalability: Assess whether the technology is future-proof. Solutions that scale with growth provide long-term value, reducing the need for frequent replacements.

4. Make a Data-Driven Case

CFOs excel at numbers, and technology decisions should be no exception. Data-driven advocacy ensures that the investment case is built on evidence rather than intuition.

• Highlight Key Metrics: Use KPIs to demonstrate potential ROI. Examples include:
  • Productivity Gains: Reduction in manual tasks through automation.
  • Revenue Impact: Increased conversions from improved customer-facing tools.
  • Cost Reductions: Lower IT maintenance expenses through cloud solutions.
• Show Comparative Analysis: Benchmark proposed technology against alternatives or legacy systems. This comparison highlights potential improvements and helps validate the investment decision.
• Forecast Scenarios: Present multiple ROI scenarios—best-case, likely, and worst-case—to give stakeholders a realistic view of outcomes. Addressing risk builds confidence in recommendations.
• Define and Characterize Outcomes: First impressions matter, and a poorly defined project can set unrealistic expectations. Clearly articulate what is well-defined and what is not. Outline the range of potential outcomes and emphasize flexibility in evolving expectations as new data emerges. This ensures the project is evaluated fairly and avoids misunderstandings or misjudgments along the way.

5. Demonstrate Quick Wins and Long-Term Impact

Investments that yield visible benefits quickly are more likely to gain support. However, CFOs must also emphasize long-term value creation.

• Identify Early Wins: Highlight aspects of the investment that will show quick ROI. For example, automating accounts payable processes may result in immediate cost savings and efficiency gains.
• Paint the Big Picture: Position technology as a long-term growth enabler. For example, data-driven insights from business intelligence tools could transform decision-making and drive sustainable competitive advantages over time.
• Track and Report Results: Once implemented, regularly track ROI metrics and share progress with leadership. Demonstrating success builds trust and increases support for future initiatives.

6. Overcome Common Objections

Even the most compelling case for technology investments may be met with resistance. CFOs must be prepared to address concerns head-on.

• Address Budget Constraints: Frame the investment as a means to save money or drive revenue growth. Show how the technology will pay for itself over time.
• Minimize Risk Perception: Focus on risk mitigation strategies such as pilot programs, vendor guarantees, or phased rollouts.
• Align with Priorities: If stakeholders question timing, connect the investment to pressing business challenges or opportunities. For instance, a customer service chatbot could alleviate resource strain during peak periods.

7. Advocate for a Culture of Innovation

Finally, CFOs must encourage a mindset that embraces technology as a catalyst for growth. Shifting organizational culture toward innovation positions companies to adapt to change more effectively.

• Support Continuous Learning: Advocate for ongoing training to help teams maximize new technologies. Education ensures that investments deliver their full potential.
• Lead by Example: As a CFO, embrace data-driven tools within your department. For example, adopting advanced financial reporting software can streamline budgeting and forecasting, demonstrating its benefits firsthand.
• Foster Strategic Discussions: Incorporate technology investment into regular executive conversations. By making technology a core part of business strategy, innovation becomes the norm rather than the exception.

Final Thoughts

For modern CFOs, advocating for technology investments is about more than balancing budgets. It’s about driving measurable ROI and positioning organizations for long-term success. By connecting technology to business goals, collaborating with stakeholders, and presenting a clear, data-driven case, CFOs can confidently champion investments that transform operations and fuel growth.

As the pace of innovation accelerates, financial leaders must step up as advocates for progress. Technology isn’t just a cost—it’s an investment in the future. The CFOs who embrace this role will lead their organizations to a stronger, more resilient tomorrow.

About Eric Russell

Eric Russell is the accomplished Chief Financial Officer (CFO) of Studio Enterprise, where he has played a pivotal role since joining the company in 2019. With over three decades of financial management experience across various industries, Eric has consistently demonstrated his expertise in driving strategic financial planning, optimizing capital structures, and enhancing profitability. His leadership has been instrumental in ensuring the economic sustainability and growth of both Studio Enterprise and its partner institutions.