Now’s the time for CFOs to seize the data

Introduction

It’s easy for C-suite executives to get enthusiastic about the value of data. Sustaining that fervor, however, can be challenging.

The prospect of investing in cloud solutions and analytics toolsets capable of storing big data and spinning that data into insights—and thus potentially giving a company a leg up on competitors—sounds enticingly leading-edge. But before a business can launch into this new age of digital enlightenment, a CFO may need to ground fellow executives in a solid understanding of what underlies such an effort. Quite simply, you need good data to extract the kinds of insights that can make the difference in executing growth strategies and in fending off disruption—a priority for CFOs, as reflected in this year’s CFO Agenda, which ranks “Data & technology” among its seven drivers.

Indeed, it can be hard to leverage information to support effective, agile decision-making if that information isn’t easily accessible and accurate. And while data management can ultimately transform the finance department—and an entire business—the effort should start with more prosaic aims. Data must be well-defined (with unique identifiers and classifications), well-structured (with a robust hierarchy and well-governed) and with data owners who can drive the drive strategy and maintain the data’s integrity.

Of course, few CFOs would likely dispute that data is vitally important. But in a field packed with priorities, some finance executives may overlook the central role data plays in any number of critical functions and processes. In Deloitte’s North American 4Q 2022 CFO Signals™ survey, only 10% of the 126 respondents ranked analytics, AI, and/or business intelligence among their top three priorities for 2023.¹

Beyond making a serious effort to better manage data—ensuring that it aligns to the company’s vision and strategy and is understood across the organization—CFOs may need to address the basic challenge of acquiring the appropriate technologies to process it. They will also likely need to secure talent with the expertise to run these systems—and analyze the information housed in them. In the 1Q 2023 CFO Signals survey, more than half of surveyed CFOs pointed to inadequate technologies or systems, immature capabilities, and a lack of experienced talent as their greatest obstacles in driving data to insights.²

In this edition of CFO Insights, we’ll explain why it’s now critical for CFOs to take a systematic approach to leveraging data to inform decisions and create value. As is true of any asset, acquiring and managing data carries costs. Getting a return on that investment means taking control of it, from sourcing to cleansing to governance, often across a wide array of legacy systems.

Endnotes

¹ CFO Signals™ 4Q 2022, US CFO Program, Deloitte LLP.

² CFO Signals™ 1Q 2023, US CFO Program, Deloitte LLP.

About Deloitte's CFO Program

The CFO Program brings together a multidisciplinary team of Deloitte leaders and subject-matter specialists to help CFOs stay ahead in the face of growing challenges and demands. The Program harnesses our organization’s broad capabilities to deliver forward-thinking and fresh insights for every stage of a CFO’s career—helping CFOs manage the complexities of their roles, tackle their company’s most compelling challenges, and adapt to strategic shifts in the market.

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