The report titled Data Analytics: How Companies Analyze Data (https://www.financialexecutives.org/Research/Publications/2020/Data-Analytics-How-Companies-Analyze-Data.aspx) includes results from a survey of 340 FEI members and interviews with financial leaders who are pioneering their organizations' continued adoption and development of data analytics.
“Data analytics may help revolutionize organizations by providing finance functions with the tools needed to generate deeper, more holistic insights to drive organizational strategy and growth. Yet, the findings indicate that, for many, this evolving role of finance is a long-distant reality,” said
Data Analytics: How Companies Analyze Data (https://www.financialexecutives.org/Research/Publications/2020/Data-Analytics-How-Companies-Analyze-Data.aspx) identified three distinct categorizations for finance functions based on the degree to which a given function has defined plans and projects in place for data analytics. Each of the three categorizations yielded meaningful insights into perceptions and actions surrounding data analytics; namely, levels of investment (past and future) in data analytics, perceived talent sufficiency and the degree of sophistication of their data infrastructure. Discussions with finance leaders uncovered a framework for finance teams to utilize as they progress and introduce analytics that can inform current and future business decisions.
Those three stages of the data analytics journey are:
1. Vanguard — 27.5 percent of respondents have defined plans and projects.
2. Novice — 60.5 percent of respondents have data analytics projects, but only as needed.
3. Laggard–12 percent of respondents do not report having anything currently planned.
Key findings include:
* A majority of finance teams are still at the onset of their data finance journey.
* Eighty-eight percent of respondents indicated that their finance function has initiated ad hoc or defined data analytics plans and projects. Notably, within the Vanguard category, nearly half of the respondents also indicated installing dedicated data analytics leaders at the departmental level.
* Journey status is no indication of investment levels.
* Overall, investment in data analytics resources over the last 24 months has been relatively conservative with 42 percent of survey respondents investing minimal amounts, 46 percent investing moderate amounts and only 12 percent investing significant amounts.
* CFOs rule data analytics.
* Sixty-six percent of survey respondents indicated that the CFO is responsible for the governance and delivery of their organization's data analytics programs/projects.
FERF's Data: Data Analytics: How Companies Analyze Data report is available online at www.financialexecutives.org/Research.