Insights

How Unified Data & Analytics Keep CFO Ahead in Digital Business Transformation

January 31, 2023

The role of the CFO has been enhanced and expanded in recent years. The core function involves managing the cash flows and certifying the accuracy of financial reports. In recent years, they are playing the role of strategic catalysts of business growth. Additionally, they also deal with investors, auditors, and tax authorities, According to a study by the Institute of Management Accountants, 72% of respondents believe that the role of the CFO will increase significantly by 2025.

What are the key challenges?

To meet these expectations, CFOs must meet the challenge of data overload to produce meaningful reports. The ability to be fast and accurate when it comes to business information needed to support decision-making is amplified. Information spread across multiple databases and spreadsheets makes it even more difficult and error-prone to derive actionable insights. The disparate data sources pose a challenge for CFOs to ensure accurate and auditable financial statements.

CFOs are likely to be up late at night thinking through the following issues: 

1. Talent acquisition and training
2. Managing and mining disparate and big data
3. Expanding technology
4. Preventing fraud and expanding cybersecurity
5. Empowering their remote workforce
6. Compliance
7. Innovation and accelerating growth 
8. Managing tax and regulatory changes

Unified data and analytics can help a CFO stay ahead in digital business transformation in several ways. A single source of data speeds reporting and reduces inefficiencies and errors that occur with manual processes. Another benefit is the smoother execution of audits and the reduction of professional services and finance department costs over time.

How does it help?

1. Providing a single source of truth for data: Consolidate data from multiple sources into a single platform to ensure the CFO has access to accurate, consistent, and up-to-date data
2. Enabling real-time analytics: CFOs can analyze data in real-time to make timely, informed decisions that can have a significant impact on the business.
3. Enable better decision-making: Give CFOs the insights they need to make informed, data-driven decisions. This can help them identify new opportunities, optimize business processes, and make better predictions for the future.
4. Improve collaboration and communication: Multiple stakeholders within an organization can access this system, enabling better collaboration and communication between departments

What are the next steps?

There are several steps CFOs can take to stay ahead in digital transformation with unified data and analytics systems:

1. Understand the business needs: It is important for CFOs to understand the specific business needs and objectives of their organization, as this will help them determine the most appropriate unified data and analytics system.
2. Evaluate different options: CFOs should take the time to evaluate different unified data and analytics systems to determine which one is the best fit for their organization.
3. Implement the chosen system: Once a unified data and analytics system has been chosen, CFOs should work with their teams to implement it effectively. This may involve training staff, integrating the system with existing systems, and establishing processes for using the system.
4. Monitor and optimize the system: It is important for CFOs to regularly monitor and optimize their unified data and analytics system to ensure that it is meeting the needs of the business. This may involve making updates or changes to the system, as well as analyzing data to identify areas for improvement.

In recent years, data has become a new goldmine. It has the potential to uncover trends and insights that can help build a forward-looking strategy for the business. The CFO is able to make more accurate forecasts and drive business agility supported by Big Data analytics. CFO and staff face blockers in going beyond the financial data to include operations, markets, social media, and marketing channels to turn information into actionable insights.

Conclusion

CFOs are looking to optimize financial processes and operations in line with improved customer experience as part of digital transformation. Merging data from different departments requires cleansing and transformation to enable Big Data analytics. The goal of analytics is to provide financial managers with the right information before they express the need. Automation, integration, and business intelligence are combined in a user-friendly dashboard to deliver the right information to the right stakeholders at the right time.

Grep Digital has worked with several CFOs in the BFSI space to understand their unique challenges and suggests different ways to implement digital transformation that resulted in cost savings and improved operational velocity. Contact us to help you adopt digital transformation and develop seamless solutions.