How CFOs can own analytics
Leading analytics to support operational decision-making demands a high-level commitment to shift the organization from a historical perspective to a forward-looking perspective. It also requires a willingness to invest in a small group of talented people who can help you determine and implement the analytic capabilities you’re going to need. And importantly, it needs a CFO who can drive analytics for both strategic and operational decision-making.
Much has been made about the unprecedented quantities of data companies collect these days, from their own operations, supply chains, production processes, and customer interactions. And even more has been made of the promise of business analytics to analyze data for competitive advantage in new ways, providing real-time insights across the value chain, from inventory management to pricing.
Given that many CFOs and their finance teams traditionally have led and used data-driven analytics for strategic aspects of managing the business, a case can be made for ceding ownership of analytics to the finance chief. Moreover, it only makes sense that by taking the lead to apply analytics to operational decisions as well, CFOs can strengthen ties throughout the business and expand influence outside core finance functions.
In this issue of CFO Insights, we examine where the ownership of analytics currently lies, and offer steps to driving analytics throughout the business.