Various research has shown that the confidence of board executives has been marred by scepticism over big data quality, the inability to make quick calls, and a general hazy view of enterprise performance. In this post, we’ll take a closer look at the issues affecting modern boardroom confidence, and how CFOs can work around these.
Poor data governance
A significant lack of data governance seems to be at the heart of this worrying trend. Contemporary reports on the financial sector show a major dependency on outdated excel spreadsheets, propped up by inflexible CPM and ERP models that are hard to change. Go-to IT functions within a company that are incapable of modifying financial reports on decent timescales inadvertently press the introduction of even more spreadsheets to fill in the gaps. Ultimately, this leads to a financial department that’s steeped in spreadsheets in larger and larger proportions.
Are financial departments being left behind?
The task of effectively managing data is only expected to become even more complex in the future. In the past, the most valuable data always came from the company’s general ledger. These days, it’s new sources, such as web statistics, social media analytics, CRM and supply chain stats, that are the secret to a business gaining a competitive advantage. Unfortunately, many CFOs have let their departments stagnate in a position that makes it very hard to get a foothold in the future. Finance departments chained to outdated, inefficient systems usually lack the time and capabilities to exploit these sources.
What can you do?
The best way forward is to transition to a cloud-based unified decision-making and financial analysis platform. Leaders in all industries understand that cloud tech acts as a catalyst, making it easy for financial departments to automate and standardise their essential processes, all the while setting up a more flexible working environment for the future. Try to move your department away from the tendency of tinkering with cloud systems in select areas of your reporting process, and towards a more unified approach, allowing a major, positive change that will set the foundations for the company’s future.
Contact us at CFMS today for more information on transitioning to a cloud-based platform.