How Business Intelligence Can Help Companies Make Better Decisions
Business intelligence tools can provide companies with invaluable insights into their operations. By analyzing crucial data, businesses can identify trends and make more informed decisions about their products, services, and strategies. Business intelligence can help companies save money, improve their products and services, and make better decisions about their future.
Better data collection and analysis
With business intelligence tools, CFOs can gather and organize internal and external data in one place. Collecting and centralizing data can take a tremendous amount of time — often days or weeks if done manually. With business intelligence tools, CFOs can accomplish this daunting task in just a few clicks.
Business intelligence tools allow users to gather and view all data types, including historical and current performance trends. Accessing this information is vital for financial leaders because it helps them optimize existing operations and create more innovative plans for the future.
That’s why many C-level executives are taking a closer look at business intelligence tools and strategies. According to Venture Center, a third-party intelligence firm, many C-level executives plan to increase their business intelligence spending in 2022. They are spending more on business intelligence than cybersecurity solutions and mobile apps.
The future looks even brighter for business intelligence. Business Intelligence and Analytics Technologies (BI&A) is expected to grow to a $135.9 billion market by 2026, growing at a rate of 8.7%, data from MarketsandMarkets reveals.
The CFOs role is Business Intelligence
With the help of business intelligence, the CFO can gather and analyze a wealth of data, quickly uncovering answers and trends. The CFO will often analyze metrics such as return on investment, cost of capital, and break-even analysis to help the company answer critical financial questions. Additionally, these tools can help the CFO present their findings in a format that’s easy to understand and persuasive for other employees and executives.
The benefits of business intelligence for CFOs are clear – but how do companies begin to gather and leverage these tools? Here are two key places CFOs should start.
- Build a strategy to take advantage of your company's data
Collect data by interviewing employees from crucial departments. Ask them which business intelligence tools they use, if any, and which challenges they think the CFO would run into. Finally, schedule meetings with various business intelligence software vendors to find the best fit. Together, these steps will help gather information from multiple perspectives, which can help them create a strategy that benefits the whole company.
- Take small, efficient steps with a pilot project
First, the CFO should gather information about current and future business intelligence needs. The CFO should work with colleagues from different departments to hammer out a strategy that can leverage the most data with a minor investment.
Collect data by interviewing employees from crucial departments. Ask them which business intelligence tools they use, if any, and which challenges they think the CFO would run into. Finally, schedule meetings with various business intelligence software vendors to find the best fit. Together, these steps will help gather information from multiple perspectives, which can help them create a strategy that benefits the whole company.
Maximising efficiency with business intelligence tools
Rather than spending hours sifting through reports or poring over spreadsheets, the CFO can have these tasks automated so they can focus on high-level strategy and overseeing personnel and departments. When the CFO has a better understanding of what’s happening within the company, they can provide better advice to the CEO and board and make informed decisions on significant projects.
The two starting points mentioned above are examples of ways CFOs can learn more about their companies and increase efficiency. Extrapolating data to reach new conclusions, for example, the possibility of developing several new product lines, can teach today’s CFOs how industry dynamics have changed. These can be powerful lessons and fuel dynamic business decisions.
The value of these insights will only grow as technology advances, and forward-looking CFOs will realize that they need the power of machine learning and automation to mine their valuable data.
The bottom line
Business intelligence is a must-have for today’s CFOs. With the right tools, CFOs can make informed decisions that will improve business performance. Business intelligence provides the insights needed to identify opportunities and optimize resources. With the ever-changing business landscape, CFOs need to be able to adapt quickly to new challenges. Business intelligence provides the agility necessary to make quick decisions and stay ahead of the competition.
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