CFOs have long been tasked with overseeing the financial health of an organization, but today’s business climate has triggered a fundamental shift in how they access, analyze and use data to make decisions.
The art of making data-driven decisions lives at the intersection of intuition, hard facts and strategy. The need to analyze business information to drive strategy in finance has never been greater.
The following points from Adaptive’s CFO Indicator and Armanino’s CFO Evolution® research provide insight into how modern CFOs value and use data to drive value and set strategic direction.
- 84 percent feel the most important skill they have is to think and act strategically
- 69 percent are resolved to leverage data to make more insightful analytics-based decisions in 2015
- 40 percent consider the ability to leverage analytics to make data-driven decisions as one of their most required skills
- 47 percent want their analysis to be based on predictive data, and 48 percent based on historical data*
- 76 percent are facing an increase in KPI demand from the executive team*
- Financial KPIs are the most effective types for management decision making*
“We needed a solution that would accelerate how we utilize our data to make decisions in an international, multi-currency environment; a solution we could grow with. With Adaptive we can do in-depth analysis for each territory where we have a presence – looking at the data by revenue, product, or sales channel to better understand costs and margins across different dimensions. The results of the analysis have proven to be invaluable, affording us a greater understanding of the business internationally, including where we could invest or reduce costs for better investment returns.”
– Ash Mehta, Chief Financial Officer of Adlens, an adjustable focus eyewear company.
The Adaptive Insights CFO Indicator Brief data came from a survey of more than 250 chief financial officers online over a period of three weeks ending January 6, 2015. The margin of error is +/- 6.04 percentage points. *Additional data is from Armanino’s 2014 CFO Evolution® Benchmark Report, an annual survey of CFOs about their responsibilities, roles and strategic priorities.