Data-Driven Decision Management
The data-driven approach is gaining popularity as the amount of available data increases with market pressures. The success of the data-driven approach relies on the quality of the data, its analysis and interpretation. However; errors can creep into data analytics processes at any stage and serious issues can result when they do. Therefore, it is important to have the right tools and procedures in place to lessen the risk of errors.
Related: How Do CFOs Keep Up With Technology Changes?
How CFOs Value and Use Data
The following points from a recent Adaptive’s Insights research study provide insight into how CFOs value and use data to set strategic direction.
- 84% feel the most important skill they have is to think and act strategically
- 69% want to leverage data to make more insightful analytics-based decisions in 2015
- 40% consider the ability to leverage analytics to make data-driven decisions as one of their most required skills
- 47% want their analysis to be based on predictive data, and 48 percent based on historical data
- 76% are facing an increase in KPI demand from the executive team
- Financial KPIs are the most effective types for management decision making
It wasn’t long ago that only large enterprises had the budget and resources to be able to utilize data-driven tools. However, as companies are leaning more towards the data-driven approaches, companies of all sizes are now using dashboards and other visualization tools to track KPIs, metrics, and other key data points relevant to their business. Data visualizations, most noteworthy, simplify complex data sets to provide users with at a glance awareness of current performance. You can count on a team of skilled outsourced CFO professionals who possess extensive knowledge and industry-specific insights to guide your financial decision-making.