The data-driven CFO is the future
Finance professionals 'get' numbers. They know how to understand and validate data, control it and report on it. So it should come as no surprise that data and finance teams are connecting more than ever, given data is the basis of business growth. Understanding trends, opportunities and risks all comes with the territory and it all key to understanding and growing a business.
As business environments change and converge, the acceleration can seem overwhelming. But organisations must evolve alongside this change in order to embrace it, and finance professionals are well and truly centre to this.
The advent of the chief financial data controller role is reflective of this evolution. And given the data flowing from almost every area of a business - not just sales and marketing anymore - the analysis of this data can give a more holistic view and a better understanding of the financial health of the business.
This will mean a steep learning curve, but it will also mean a more systematic, and structured approach to data. It will mean getting to grips with analytics, data warehousing and data mining technologies. And all of this plays to the strengths of any successful CFO.
"If you’re going to be strategic, I think that starts with understanding exactly where you are and what the hurdles are and then beginning to make the rest of the organisation aware and guide people through that," John Stokdyk, Global Editor, accountingWEB
Data means competitive advantage
So why is this happening now? In the information economy, the companies that are going to prosper are the ones who are best at capturing, managing and interpreting their data. Data scientists will complement the internal strategic team and will provide a platform to understand the data both within the business and the wider marketplace. And a better understanding of the business and the environment in which it operates, provides the basis for a more profitable business.
Data provides the opportunity to keep ahead of the competition through finding new avenues for growth that competitors may not have yet identified. Offering a new product just because the competition is doing it may not be a commercially sensible choice. You need to ask questions - and look to the data - to answer them. Why will it work for your audience? What are customers asking for? What are their pain points? The data stops you from chasing every new and shiny thing and instead keeps you on course for growth.
Data underpins business decisions
It should be said however that it's not about collating every piece of data – it’s about collating the right data that is useful to the business. This takes time to address and make intelligent decisions on, and requires leaders who have a deep understanding of data and its applications.
A data-drive CFO needs to ask questions of themselves and the wider business. How will data quality and security be assured? What systems need to be in place? What new skill sets need to be employed in the business? Will there be internal training for existing staff? How will finance and data management feed into each other?
So bringing the right people on board is critical, alongside training for those people, means you can be best placed to make those smart business decisions.
Data gives you a path to growth
By taking this on board now, finance professionals can ensure their business is ahead of the curve. A systematic approach, rather than ‘jumping on the bandwagon’ later, can mean incremental improvements for your business from today.
The bottom line is that data experts can help you grow your business faster and smarter. They can help analyse trends, improve decision making, stop the business wasting money and reduce human error and mistakes. They can also support the wider business - such as marketing and sales - to test ideas and better understand the customer base. Most of all, a data-driven CFO and their team can also help make sense of the growing volume of data, organise it a way that makes sense, and use this data to enable smart business decisions.
Data means decisions aren’t down to gut feel and instinct – something that could open a business up to risk or to even miss possible opportunities. Data provides a solid foundation upon which to make better choices that could ultimately result in more profit. And that’s good news for everyone.
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