If you want to transform IT, start with finance

Re:If you want to transform IT, start with finance by nanis on Tuesday July 13, 2021 @07:50PM (#27827633)

> i presented a detailed financial projection (using monte carlo on the assumptions/inputs) .. went over the head of the controller (and acting cfo at the time). boy was i disillusioned after that.

In my experience, it is hard to find people in the finance department who understand there are other distributions than Normal. E.g., the time I had to spend trying to convince finance people that the product of two Normals is not necessarily Normal. Or, percentiles of the sum of two Normals do not correspond to the sum of the percentiles etc.

Yet, they do end up guiding the company because money drives everything.

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Re:If you want to transform IT, start with finance by webmaven on Wednesday July 14, 2021 @05:07PM (#27838457)

> Or, percentiles of the sum of two Normals do not correspond to the sum of the percentiles etc.

I once had to spend a day convincing a CFO that consecutive months of ~X% increases of MRR wasn't the same as

((($MONTHS * X) +1) * MRR)

eg. two months of 10% = +20% increase, 5 months = +50%, etc.

... which is how his spreadsheet was calculating revenue projections.

How does a CFO not understand compound interest?

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