To unlock the real value of a company’s data, Chief Financial Officers must develop an enterprise-wide strategy, and set clear priorities that map to business and financial outcomes.
“In the last few years many organisations have started to develop enterprise wide big data strategies but businesses are still far from discovering how data can deliver real insight from a financial point of view,” says Matt Goss, managing director - Australia & New Zealand, Concur.
“Financial controllers are now able to have complete visibility and control over money coming in and out of the business through the use of technology.”
Concur believes there are three things CFOs need to know when tackling big data:
1 - The types of data being collected
According to Goss, every action taken online can be collected, stored and analysed but that doesn’t mean that every organisation must collect every type of data.
Decisions regarding what gets stored and how vary across organisations.
As a result Goss believes it’s important to know exactly what types of data the organisation is collecting, and why, to make sure executives get the most appropriate information.
“Incomplete or missing information could lead to the wrong conclusions,” he adds. “Having context for how, when, and why you have a particular data set will help you interpret it more accurately, and make better business decisions that deliver success.”
2 - The different ways to analyse that data
The amount of information generated by users, employees and supply chains is massive: hence the term ‘big data’. Without the right tools to manage and analyse the data, it can be overwhelming.
There are a number of options available for sifting and sorting through raw data. No matter what you’re using the information for, ensuring that the data is accurately interpreted is imperative to the success of the data analysis project.
“It is vital that CFOs sit down with data analysts so that both parties can understand what the analysis project entails,” Goss adds.
“The CFO should share their goals with the analyst, while the analyst should explain the different processes available to extract the insights required. Frequent collaboration can yield exciting and unexpected results.
“For instance, when it comes to travel expenses, CFOs and data analysts can work together to look at what types of travel and expense arrangements yield the best results for everyone involved.”
3 - How to care for the data you have
Transparency laws and security breaches have made it more important than ever to treat data with extreme care. For organisations that want to win public trust, keeping data safe should be a high priority.
“Make sure that the tools you are using to store data are secure and up-to-date,” Goss adds. “Check controls often to ensure that unauthorised people don’t have access to sensitive information.
“Finally, make sure that you show your work. Give clients and customers a reason to trust you with their information, by explaining exactly how you keep private data secure.”
For Goss, big data is an “exciting resource” for many organisations.
“Patterns found in data can help mitigate risk, open the door to better customer service, and widen profit margins,” he adds.
“Big data isn’t limitless or perfect, but it offers CFOs the ability to refine the way they do business, letting them make smarter decisions based on facts."