Ten years ago, the finance department’s quest to identify solutions that could automate and streamline operations and maximize cash flow was an expensive and arduous one. Not only did finance managers need to navigate the overwhelming array of then-unproven solution options, they also needed to overcome growing resistance from internal IT departments that were intent on standardizing on a single Enterprise Resource Planning (ERP) vendor.

On the one hand, who could blame IT for being reluctant to adopt best-of-breed software? The typical enterprise software installation involved lengthy rollouts of 18-to-24-months, cost millions of dollars in hardware and required countless hours of IT resources to deploy and maintain on-site. So, limiting deployment of non-ERP systems seems a logical way to standardize and limit burdens on already scarce IT resources.

Unfortunately, as increasingly frustrated finance directors learned first-hand, IT’s unwavering stance on system consolidation often failed to support the needs and business objectives of finance or any other functional department. As a result, finance’s productivity and performance was often hindered – not helped – by the company’s overarching IT strategy.

Software-as-a-Service (SaaS) has changed all this. By delivering application functionality as a globally accessible, Web-based service, SaaS – or On Demand – has bridged the gap between business and IT – enabling finance directors and other business line executives to access the functionality required to meet and exceed their goals while still toeing the line on corporate IT strategy.

Read the rest at the IT-Finance Connection.