The Importance of Advanced Data Analytics for the CFO

Data is Everywhere

We are awash with data from every possible area imaginable. And, data analytics tools abound everywhere.

Stop and think about this: Data that can directly or indirectly impact the business financially is now spread across the organization’s ecosystem. On-premise systems, multi-cloud systems, business applications, low-code/no-code applications, or legacy applications are just a few locations data resides.

For the CFO, however, knowing what data is important and what’s not, is a challenge.

• How can the CFO manage the data to really gain actionable insights?
• How can the CFO keep an eye on historical data, and strategically “tell the story” with future-looking perspectives?

Data Analytics to the Rescue?

Of course, the immediate response is “Data Analytics!” But, should there be such a knee-jerk reaction?

Yes, it’s important to utilize analysis over the data to make sense of it. However, the crux here is that the CFO needs to be skilled to do the data analytics (among other things) for themselves.

The ever-changing nature of business could impact a company in a split second. And, the CFO has to be prepared to stabilize and future-proof the business.

So, technical upskilling may be needed for the CFO to truly analyze the data. Otherwise, the data is not a true asset.

Closing Thoughts

It’s imperative that CFOs be equipped to set the tone of strategy through the financial lens. If not, collaboration across finance, technology, operations, and lines of business will collapse.

Data can be your advantage if used wisely, or your downfall if left dormant.