benefits of business intelligence for CFOs – 7 advantages

This article is about benefits of business intelligence for CFOs. As the chief financial officer (CFO), you are always concerned about the financial well-being of your business. But you may have noticed changes in today’s CFO role.

As a result, data silos are fragmented and inconsistent.

Our global economy is becoming more competitive by the minute. Therefore, it is becoming more and more important for every employee of the company to deliver direct benefits.

This means that being a financial leader is no longer enough; you need to be a suitable partner for other business leaders.

As a CFO, you can accomplish many things. This is where BI tools, systems and dashboards come into play.

Financial managers should use BI technology to collect data from external sources, create analytics, and establish key performance indicators (KPIs).

What is economic intelligence?

Regardless of the product or service you offer, every business generates data. Business intelligence (BI) provides a comprehensive view of the organization’s data, which can be used to make changes, make changes in the market, eliminate inefficiencies, and more.

BI is a technology-based process that allows companies to organize, analyze, and interpret data from around the company.

A BI system would not be complete without high-quality data input that would help make better decisions.

Your financial accounting software is a shared and accessible data source that can be supplemented with BI-based reporting, predictive analytics, data mining, and more.

Businesses can use BI to gain business insights from current, historical, and even future data by combining financial and operational data.

This information can be used to improve performance indicators, including financial, sales, marketing and operational KPIs.

Businesses can use BI to better analyze their finances, manage their supply chains, and make better decisions on everything from sales to mergers and acquisitions.

Why do CFOs need BI?

As a CFO, you know that accurate and up-to-date data is critical to the financial health of your business.

BI practices can help your business remain competitive and financially stable by providing quick access to detailed financial information, opportunities to improve expense management, and the ability to make informed business decisions.

Cost and benefits, all can be related to business performance. .

Plus, your finance team will thank you for making a BI system part of your business mix.

Financial professionals are more efficient in their work and can identify growth-promoting practices as they become more familiar with consuming BI-based knowledge.

They become data-driven culture advocates and trusted partners in the rest of your business.

benefits of business intelligence for CFOs BI

By combining operational data management with process automation and business analytics, BI provides the foundation for many important improvements in any business, including:

1. Optimizing your company’s supply chain

With BI, your business can quickly and easily analyze every aspect of the supply chain.

You can optimize inventory, distribution efforts, transportation routes, etc., by reporting trends.

As a result, you save money for the business and improve customer satisfaction.

2. Anticipate and react to situations in your company

Don’t underestimate the value of seeing something that helps! These well-organized boards will help you see what is happening quickly and easily. Once you identify these trends, your team can decide how to react to them.

With this better insight into processes and faster response times, you can gain a competitive advantage over your business competitors.

3. Consider the value of marketing

All customer relationship management (CRM) tools that your business has acquired will provide insight into the return on investment (ROI) or value of marketing efforts.

Using business intelligence to track ad spend, email marketing effectiveness, and campaign success will show where your business email is connecting and where it isn’t.

4. Make better business decisions

Improving decision making is one of the primary goals of BI. Financial professionals can get an overview of everything from sales success to revenue projections or pay to supply chain performance using the built-in dashboard.

this knowledge in hand, your finance team has the best foundation for future planning.

5. Reduce risk

Your business can reduce risk by adopting BI technology to monitor financial activity and detect fraudulent behavior in real-time. BI systems can also monitor user behavior to ensure compliance with company policies.

BI also helps improve your compliance efforts. The compliance landscape can be complex, including everything from data privacy issues (HIPAA, GDPR) to export laws, anti-corruption measures and tax challenges.

6. Benefit from better communication

With convenient access to services, BI tools ensure that everyone has access to the same data at the same time. Ask to double-check the Excel spreadsheet or wait for a different data source analysis.

With BI, organizations can report better and richer data from a central data warehouse with access to activity-based, KPI-based data and insights.

7. Better business results and better systems

The role of the CFO is evolving to expand more than it appeared in previous years. It makes for a fun time to be in this situation.

By leveraging the power of BI tools, you can improve the CFO’s role and provide your business with more valuable, data-driven insights.

Not only will BI help you create greater value in your role as a CFO, but it will also benefit the entire business.