Data-quality and system-integration challenges hamper midsize firms

Core Insights - Middle-market companies face significant challenges in modernization due to data quality and system integration issues, which are more pronounced than those experienced by larger enterprises [2][3] - A substantial portion of middle-market companies (nearly 50%) are utilizing AI tools, but their effectiveness is contingent upon redesigning workflows rather than merely adopting new technologies [3] - The primary goal for these companies is to transition from reactive reporting to proactive insight generation, yet budget constraints hinder modernization efforts [4] Data Quality and Integration Challenges - 55% of CFOs surveyed identified data accuracy and consistency as major obstacles, while 48% cited integration complexity as their top challenge [3] - A third of middle-market companies allocate less than 10% of their finance operations budget to modernization initiatives [4] Modernization Strategies - Most CFOs still consider ERP implementation or upgrades as the main strategy for modernization, but faster ROI can be achieved through harmonized data and modular integration [5] - Key business areas impacted by inadequate data for decision-making include financial planning and forecasting, as well as operational performance monitoring [5] Current Tools and Future Plans - 40% of CFOs reported that their current tools are inadequate for reporting and analysis, with only 37% rating their planning and forecasting tools as extremely effective [6] - Almost all survey respondents (99%) plan to modernize their finance operations within the next 12 months, focusing first on improving data quality and integration [7]