Finance leaders are ready for modern data strategies - RTInsights

Finance leaders are ready for modern data strategies – RTInsights

Data gives finance leaders a clear vision and focused strategy to improve operational efficiency in our increasingly challenging world.

In the not too distant past, the primary role of the CFO was to create financial plans at the start of the year and report on the progress of those plans in order to understand cash flow and liquidity. This would slow down or give the green light to key strategic spending. This careful tracking of metrics was, in many ways, how business intelligence was born. It was the dawn of balanced scorecards, financial metrics, and careful tracking of plan versus actual results.

Faced with a world where the speed of business is accelerating, increasing market risk and accelerating digital transformation, forward-thinking companies are now asking more of CFOs. Today’s CFOs are moving from guardians of the balance sheet to strategic partners on the company’s path to growth. Increasingly, this partnership revolves around analytics. CFOs are encouraged to forecast market conditions and currency risks, improve real-time credit modeling, and provide much more real-time insight into the effectiveness of corporate strategies. A lot has been put on their plate, necessitating a transition from the batch-oriented data warehouse world to something much more modern and agile.

If CFOs are to meet the challenges of today’s climate, they need modern strategies and solutions that harness real-time data and analytics to power faster, more accurate decision-making.

Find out what behavioral data can do for you. [Watch demo now]

See also: What will Finance 2.0 look like? A few surprises

Real-time data and analytics – an integral part of any financial strategy

The first job of every finance manager is to make smart decisions based on numbers. What has changed are the expectations for the timeliness of these decisions. Whereas only a few years ago monthly and quarterly reviews were the norm, decisions now need to be made in hours or even seconds.

According to a Gartner report, nearly three-quarters of CFOs (72%) are focused on improving flexibility in budgeting and forecasting this year. More than half also pledged to reallocate capital based on fluctuating demands (60%). Almost as many (58%) are working to redefine the employee value proposition in these new hybrid work environments that have been introduced. Another Gartner report found that the number one task for CFOs over the next 12 months is to fund new or existing growth.

If finance leaders expect to perform well, they will need a modern data strategy that enables agile decision-making and more accurate forecasting and scenario planning. The centerpiece is the real-time stream of high-quality data.

See also: Financial Services 2022: Customer Experience Matters

Agility – essential to business success, essential to data modernization

Agility has quickly become an essential facet of any organization. According to a report from Accenture, a large number of bank CEOs believe that had they adopted cloud technology earlier, they would have been more agile in responding to the many disruptions of the pandemic. This is going to be an important driver of review, strategy and investment in the years to come, as business leaders reflect on what they could and should have done to adapt to the onslaught of challenges. unforeseen.

And if they want to become more agile, they will first need to modernize their data strategy. With speed of the utmost importance – both in introducing new products and services, as well as in responding to market needs and global events – companies are eager to catch up. If they don’t act now, they are already light years ahead of their competitors.

Speed ​​has therefore become an organization-wide imperative, impacting how businesses operate and how finance leaders support – and enable – everyone to run faster. By becoming more agile, companies can more easily evolve their strategies and solutions. More importantly, they can better prepare to scale agilely and respond to ever-changing market forces.

Insights – invaluable for finance executives and decision-making

Data gives finance leaders a clear vision and focused strategy to improve operational efficiency in our increasingly challenging world.

In addition to embracing an environment of continuous change, leaders must support more effective decision-making that aligns growth goals and cost control. The ability to make faster predictions by leveraging data accessible through modern platforms – and embracing technologies such as cloud, AI and automation – will enable the innovation and speed needed to stay ahead of the game. ahead and deliver differentiated customer experiences in a rapidly changing marketplace.

Find out what behavioral data can do for you. [Watch demo now]

Limitations – it’s time to eliminate data limits while protecting data

There is a dizzying array of analytics tools available, but the tools often suffer from a lack of access to the high-quality data they need. Modern self-service analytics relies on integration and a careful catalog of data to make the best use of analytics tools. These modern catalogs help to understand, list and protect data. This ensures that the right types of data are put to good use while sensitive and private data is labeled and controlled.

Since data sources are growing at a very rapid rate, today’s modern data analytics solutions must be able to access information from multiple data sources. From modern cloud data centers and on-premises storage to data lakes and enterprise resource planning (ERP) solutions, data silos and more, CFOs need flexibility unlimited to collect and use their data.

Data and analytics are the critical differentiators businesses need today

These are exciting but uncertain times, and it’s imperative that CFOs stay at the top of their game. They may be tougher than ever, but data and analytics can help them persevere. It’s an uphill battle, but actionable insights make all the difference, enabling businesses to lead with data. And when they do, CFOs will be able to guide their respective companies through difficult situations and better manage black swan events.

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