Using analytics to drive growth
Putting intelligent insights to work
This article discusses the changing role of the CFO and how CFOs can use analytics to drive growth. CFO's should note their own organisation's readiness and ability to use analytics to drive bottom-line growth.
CFO’s can use analytics to drive bottom-line growth
Most of the leading consumer product (CP) companies are using analytics about customers and pricing to help gain a competitive advantage in the marketplace. When armed with the capabilities and technologies to transform huge amounts of transactional data into actionable insights, a company’s leadership can be confident in decision making to help improve not just the efficiency of day-to-day operations but also the effectiveness of strategic planning.
Among CP executives, no one is better positioned than the CFO1 to answer these questions. First, the CFO can be an agent for change, the catalyst that typically brings together business unit leaders, the chief information officer and the Information Technology (IT) organization, and the functional executives accountable for performance in sales, marketing, and operations. Second, as a strategist, the CFO focuses on enhancing shareholder value. The use of innovative analytics is fast becoming one of the critical tools to help achieve this result.
For these reasons, it’s the CFO who can implement and lead an integrated, profitability program: no one else has the access, reach, and influence to provide the enterprise-wide business intelligence needed to support and accelerate the decision making that can drive profitable revenue growth.
But as an initial step, the CFO should know:
- Do we have the capabilities to deliver analysis-driven improvements?
- What data should be captured?
- Which analytical tools make sense for our business?
- Do we have the required people and organization in place?
- How big is the gap between what we need and what we have?
In this point of view, we address these questions generally. For specifics, each CFO should examine his or her own organization’s readiness for using analytics to help drive bottom-line growth.