How to Make the Most of Your Data as the Head of Finance
Raw data can appear overwhelming, so it is important to understand what you can expect from your data and how data analysts help to organise this data into informative results. In this article we will break down what you need to focus on in order to extract the richest information from your data as the leader of an organisation.
Identify Areas to Reduce or Manage Costs
Analysing collected data helps show you the real costs of serving your customers, and these figures will indicate where you can afford to cut costs. Having the insights from data helps you make informed decisions within your organisation.
Data-driven decisions and strategies gain insights faster, helping to increase revenue and reduce operational costs. Actively using your data will result in a better understanding of consumer behaviour, more strategic decision-making, cost reductions and increased revenue.
Augmented Data
This sounds more complicated than it is; essentially, augmented data is the result of converting a huge amount of data into a structured format. Augmented data is hailed as the next big thing in the field of Business Intelligence.
Augmented data helps to manage the complexity and scale of data that enters storage on a daily basis. It helps to prepare, analyse and manage these data sets to aid business report making and, ultimately, inform vital business decisions.
Automatic Financial Models
Spreadsheets showing a summary of your company’s earnings and expenses can be automated. With the help of analysis programmes or data analysts, an algorithm can be set up to automatically download and sort your data into a more recognisable form of financial data analysis.
This is particularly important to automate if you have a large company or collect a large amount of data, as it will help to make sense of the data while not losing that valuable information to a lack of understanding. Ultimately, by harnessing the power of automated financial data analysis, there is evidence that three weeks of work can be condensed into one; and ten employees working on traditional financial models can also be cut down to just one.
Increase the Use of IoT Technology
The Internet of Things (IoT) refers to any physical object equipped with sensors, software and processing abilities, which connect to other systems and devices through the internet or similar communication networks. In its simplest form, this could be a camera; it captures data, stores it, and processes it in the form of an image we understand. Cameras can be connected to other devices, or deliver their data through WiFi or Bluetooth connections. Another example would be EPOS machines, which feed the data directly into the database source; the finance team extracts this data from the system to assemble their reports.
The IoT helps in connecting with customers; for instance, if a detail such as their location is known, you can tailor promotions, offers and advertisements to be more relevant to them. At the same time, it also assists in creating custom experiences, messages and suggestions for your online customer base when they reach out to you.
The IoT is expanding all the time; in the case of many devices from laptops to thermostats, remote repairs can now be performed where reprogramming, adjustments or software fixes are required. Having this kind of technology at your fingertips will undoubtedly boost your level of customer service.
Build Business Intelligence Reports
Business Intelligence (BI) reports are assembled by preparing and analysing your data, to discern and deliver actionable insights in a way that you can understand. Having BI reports, particularly in combination with data automation, can help your organisation understand its past, present and future. When this is understood, the company’s journey becomes clear and future decisions can be made with far greater clarity.
In Conclusion
Financial data analysis can easily be automated to require less man-power, while producing more informed reports. These financial reports can further be enhanced through assembling Business Intelligence reports, leading to better and more informed decision making within your business.
Data analysis, when done correctly, can help you identify where to scale back on costs, discover what is most valuable to your business, and provide opportunities for you to improve your customer service.
You only need a basic understanding of the points above to realise how vital data information has become to businesses worldwide, but that is why data analysts are in such high demand. These experts can swifty accomplish your data analysis goals, delivering data-led reports and information in a way that you, as the Head of Finance, Manager or Director, can understand.
To find the right data expert for your organization, Pangaea X connects you to the best talent in data analysis. For more information, visit www.pangaeax.com.
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