Analytics – The Best Investment a CFO Can Make
Analytics is all about gaining useful insights from your data. To get meaningful analytics which can help your organization to achieve higher profits needs to have a robust Business Intelligence system in place. For a robust Business Intelligence system in place, we need to collect the right data and the right KPI’s to monitor and to track. Once you have all the systems in place, the system will soon generate enough intelligence which will help in improving the business functions.
Many organizations are initially wary about going for the BI systems due to their heavy implementation costs and long implementation of cycle. Internally, too there is a lot of resistance to adapt to the new systems. The CFO holds the key and the entire decision and implementation of the BI and Analytics system has to be driven by the CxO’s initially. For some-time until the system becomes a mainstream practice in the organization, it is the top down approach which should drive the initial implementation and there must be motivation from the top brass to successfully implement the BI as a practice in the organization.
Once the system is in place, with the use of analytics the executives can gain useful insights and can help the organization in a big way. A report from Nucleus Research has shown that the organizations earn approx. 10.66$ for every dollar spent on deployment of analytics. This is a strong indicator that the organizations are surely reaping the rewards from the BI systems.
Also, the recent innovations in Big Data and Hadoop have significantly reduced the costs of storing the Terabytes amounts of data for organizations. The extent of use of Big Data is continuously on the rise and hence Analytics is predicted to be a $51Bn industry by 2016 by IDC.
Sooner or later, every organization will have some kind of Analytics system in place, the only real differentiator being the robustness of the BI system which lies beneath.