By Mark McDonald.
There’s been a significant shift in today’s digital landscape. While companies used to opt for point solutions to address specific needs, many are now looking to broader systems to help foster collaboration, enhance data visibility, and ultimately drive stronger decision-making.
Ignoring this shift can be a costly mistake in more ways than one. Research shows data silos cause knowledge workers to waste 12 hours per week looking for lost data, while poor-quality data costs organizations $12.9 million each year.
By unifying disparate data sets, leaders can gain a holistic, real-time view of financial and operational performance while unlocking more agile and efficient decision-making. For example, when businesses analyze the data within their lease portfolio, they gain the ability to better space plan and negotiate new leases or exercise beneficial terms within their existing agreements. It’s vital to explore how to create a truly connected enterprise through cross-departmental collaboration and strategic data management.
The Hidden Costs of Disconnected Systems
Creating a connected enterprise – where all parts of an organization, including processes, people, and technology systems, are digitally interconnected – requires moving away from disjointed systems and toward integrated platforms.
In the past, companies adopted point solutions to address specific business needs or manage particular tasks, often leading to a patchwork of disconnected technologies. However, this is changing as companies recognize the clear disadvantages of this method.
Accumulating point solutions not only poses a heightened cybersecurity risk but also can create inefficient data silos, poor user experiences, and blocked data integration efforts. For example, managing lease data separately from broader financial and facilities systems can lead to discrepancies in lease terms, payment schedules, or budget forecasting – which then require additional manual labor to reconcile. As a result, the cost of maintaining these siloed technologies and the integration layers they require often far outweighs the cost of investing in a single, interconnected platform.
With 90% of IT decision-makers moving from point solutions to converged platforms, the consensus is clear: disconnected systems no longer meet the needs of today’s organizations or their customers. As such, unifying operations through platform-based solutions is no longer optional – it’s a necessity.
Powering the Connected Enterprise with Finance and IT
Achieving this level of connectivity takes more than abandoning point solutions, however. It requires collaboration across departments, especially IT and the Office of Finance.
Traditionally, these two teams have operated in silos, with interactions rarely moving beyond budgeting for technology investments. This worked sufficiently well when organizations had less sophisticated technology needs and more manageable data volumes.
To create a truly interconnected data ecosystem, the relationship between finance and IT must evolve. This is especially true for businesses that want to prioritize cutting-edge technologies.
For example, according to a 2024 report by the Visual Lease Data Institute, 100% of finance executives believe AI will benefit their department over the next five years. However, companies looking to adopt AI or any other new technology must make sure IT is actively involved. Their expertise is vital to ensure that finance systems integrate seamlessly with broader enterprise technology stacks, enabling faster decision-making, enhanced forecasting, and compliance.
Finance and IT teams will also interact more as the Office of Finance becomes more involved in tech-related decisions. For example, according to a recent Gartner study, 76% of CFOs said they are actively driving their organization’s data and analytics (D&A) strategy to increase profitability. Meanwhile, a significant percentage are also leading IT-related initiatives (41%) and Enterprise AI (43%).
Data Management: The Fuel for Integration and Innovation
In addition to cross-departmental collaboration, successful data integration relies on another crucial factor: high-quality, well-managed data.
Without proper data governance, even the most robust integration strategies can fail, leading to inefficiencies and flawed insights – a more common occurrence than one might think. According to the same VLDI report, 48% of finance executives still rely on manual tracking methods, which take up valuable employee time and hold a higher risk of costly data errors.
In the world of AI adoption, it’s often said “whoever wins data, wins AI,” and we fully believe that. When organizations invest in a centralized data management platform, it’s easier to ensure all data is accurate, organized, and reliable. This allows their various departments and systems to continuously exchange information for improved decision-making and operations.
For instance, over seven years ago, Indeed consolidated its lease information by using Visual Lease’s platform as a single source of truth. Since then, they have saved time and resources by streamlining operations, achieving consistent and accurate accounting practices, and reducing their lease management personnel from five to three team members.
Indeed’s success highlights the tangible benefits of a connected enterprise – and how companies can position themselves to thrive both now and in the decades ahead.
Preparing for a Fully Tech-Driven Future
Businesses must invest in a connected enterprise to fully unlock the agility, scalability, and efficiency required not just to survive, but to lead. The time is now for organizations to shift away from fragmented point solutions and embrace integrated ecosystems by fostering strong collaboration between finance and IT teams and prioritizing high-quality data management.
In taking action today, organizations can better adapt to future technological advancements, make faster and more informed decisions, and maintain a competitive edge.
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Mark McDonald is president of CoStar Real Estate Manager and Visual Lease.
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