Published on April 4, 2024, 7:19 am

CIOs are increasingly recognizing the critical importance of tax functions within businesses, often underserved by traditional ERP systems. According to David Nickson from EY, tax is a significant expense for most companies and is among the top five expenses collectively. However, legacy ERP systems tend to fall short in adequately addressing the tax agenda.

Modernizing ERP systems can be a daunting task for many companies but incorporating tax into digital transformation efforts can yield substantial benefits. By gaining buy-in from tax leaders, CIOs can uncover overlooked value from system upgrades, potentially leading to multimillion-dollar returns on investment for multinational enterprises.

One key aspect lies in data management as modernized ERPs are designed to unlock valuable insights that can drive tax decisions efficiently. With cloud-based solutions becoming industry norms and major players like SAP pushing for cloud adoption, the ERP software market is poised for significant growth in the coming years.

As CIOs face pressure to demonstrate value from cloud investments, vendors are increasingly recognizing the advantages of integrating tax considerations into modernization strategies. Companies are also realizing the strategic importance of involving tax stakeholders early in decision-making processes.

Acquisitions by tech giants like IBM, Cisco, and SAP indicate a trend where IT spend is being centralized around key vendors. This trend offers IT executives opportunities to streamline operations and optimize costs effectively.

In conclusion, aligning tax functions with digital transformation initiatives presents a strategic advantage for businesses looking to maximize their ROI on ERP modernization efforts while staying ahead in an evolving tech landscape dominated by cloud-based solutions.

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