The Benefits of Adding Data Analytics as a Service (DAaaS) to the CFO Tech Stack
CxO Analytics Leadership | 6.5.2023
Introduction
In today’s business landscape, data has become crucial for organizations, and CFOs are realizing that relying solely on internal data and backward-facing descriptive analytics is no longer sufficient. Data Analytics as a Service (DAaaS) has emerged as a game-changing solution, enabling businesses to harness the power of their data, both internal and external, in a cost-effective and efficient manner. By incorporating DAaaS into their technology stack, CFOs can leverage advanced analytics capabilities, streamline decision-making processes, and gain a competitive edge. This article explores the pivotal role that data and analytics can play in the CFO’s technology stack.
Challenges Facing CFOs
CFOs encounter three significant challenges in driving growth and performance:
Data Challenges
CFOs face various data-related challenges, such as data silos, poor data quality, inconsistency, and accuracy issues. They must tackle data integration and consolidation from multiple sources, ensure data security and privacy, comply with data governance and regulations, and address data analysis, reporting, visualization, and communication. Additionally, CFOs recognize the need for a data-driven decision-making culture, as relying on instinct-driven decisions is no longer sufficient. Furthermore, accessing reliable external data poses similar challenges to internal data.
Infrastructure Challenges
CFOs grapple with complexities in their technology stack, including integration, scalability, and flexibility. Replacing legacy systems introduces a new set of challenges, such as vendor selection, cost and budget considerations, operational disruptions, data migration, and integration.
Talent Management
Building and retaining a skilled finance team is crucial for CFOs. They face difficulties in recruiting and retaining top financial talent, fostering professional development, and ensuring effective succession planning. CFOs must cultivate a collaborative and inclusive work environment to attract and retain high-performing professionals. The demand for analytical talent adds further challenges, impacting internal projects and the availability of needed analytics expertise.
Benefits of DAaaS
Similar to how a car’s GPS provides guidance and direction for a journey, the DAaaS Financial GPS™ platform serves as a valuable tool, offering companies guidance to improve financial performance and drive growth. It provides insights, analytics, and data-driven recommendations that help navigate the complexities of financial decision-making. By incorporating DAaaS into the CFO’s tech stack, businesses can achieve the following benefits:
Data
DAaaS addresses the data challenges faced by CFOs by providing a comprehensive Cloud platform that combines data security, privacy, governance, and compliance. The Financial GPS platform brings together both internal and external data, ensuring integration, consistency, accuracy, and quality.
Cost-Effective Infrastructure:
One of the primary advantages of DAaaS is its cost-effectiveness. By leveraging cloud-based services, businesses can avoid the expenses associated with building and maintaining their data analytics infrastructure and hiring dedicated staff. DAaaS allows companies to pay for the services they need, scaling up or down as requirements change, leading to more efficient resource allocation.
Talent Management
The Financial GPS platform, equipped with built-in analytics and dashboards, becomes an analyst in the Cloud, providing CFOs with valuable insights to chart a clear path toward their financial goals, identify potential obstacles, and make informed decisions.
Access to Advanced Analytics Capabilities and Expertise
DAaaS offers CFOs the benefit of continuously receiving cutting-edge technologies like machine learning, artificial intelligence, and big data processing tools as part of the solution. With the Financial GPS, CFOs can leverage these advanced capabilities and expertise without the need for in-house development, enabling them to stay competitive and make more informed decisions.
Scalability and Flexibility
DAaaS solutions are designed to be scalable and flexible, allowing businesses to adjust the level of service based on their needs and budget constraints. As data volumes and analytics requirements grow, DAaaS providers can expand their services, accordingly, ensuring businesses can derive valuable insights without limitations imposed by their infrastructure or resources.
Deeper Insights for Better Decision-Making
DAaaS accelerates decision-making with powerful data-driven analytics, providing deeper insights into a company’s financial health, performance, growth opportunities, and driving innovation. The Financial GPS positions CFOs strategically to stay ahead of the competition, navigating the business landscape with clarity and purpose. Since analytics tasks are performed in the cloud, insights can be accessed from anywhere and at any time, promoting better collaboration and informed decision-making across the organization. This agility and speed provide businesses with a competitive edge in rapidly evolving markets.
Summary
To thrive in the new digital landscape, CFOs face challenges related to data, tech infrastructure, and talent management. Incorporating DAaaS into the tech stack allows CFOs to address these challenges head-on with a financial tool that offers strategic and tactical insights supported by the latest analytical technology, combining both internal and external data. This integration empowers CFOs to focus on driving growth and performance rather than being burdened by data and an ever-changing technology landscape.
