According to an academic principle known as “Moore’s Law,” the rate of computing power in our world doubles roughly every 18 to 24 months. This means that the global technological power available to human beings around the world today is roughly only half as powerful as it will be two years from now. This is changing somewhat now as technology has advanced to such a level that it is difficult for the principles of Moore’s Law to keep up. Despite this change, data and technology are still critically important aspects of how business is done.
The CFO’s Outlook
How do CFOs best use the data that the company generates on a day-to-day basis? First, it should be part of the CFO’s job to review data and analytics in their decision-making process. Futurecfo.net has a helpful description of what should be the mindset of every CFO in the world:
At the helm of this change is the chief finance officer. Calling CFOs as digital guardians who can use data to drive value, improve efficiency and enable strategy, Accenture says the CFO can serve as both innovator and disruptor in their business.
These individuals are entrusted to make the right calls regarding the direction of the business. That can only happen when they have accurate and reliable data at their fingertips.
Traditional Data Collection Vs. Data Service Provider
Most companies already attempt to collect at least some of their data internally. They understand that it should serve some purpose even if they are not quite clear what that purpose is. Record and data-keeping should always be applauded, but these efforts are likely missing some key upsides that an outside data services provider offers.
Accurate Data – Garbage in, garbage out as they say. If the data you’re relying on is not accurate to begin with then there is little point in analyzing it. Why bother to spend time examining data if it’s inaccurate and providing a skewed picture? Data service providers always ensure that the data they collect is accurate and will even audit that data to double-check it.
Real-Time Information – Imagine trying to watch a game or match of your favorite sport and only receiving the updated score on a fifteen-minute delay. That information would not prove useful to you at all. There are certain pieces of data that are only of value when provided in real-time. Data service providers know this and can provide said information at lightning speed.
Time-Saving – Crunching data takes time, and that time can often be better used on other pursuits within the company. Those who rely on traditional data gathering are potentially squandering labor hours and talent on something that they could simply pay to outsource to a data expert. This can cut down on labor costs both on a real dollar basis and in terms of lost potential.
Data To Power Decisions
Data cuts through all the noise and nonsense that can rise up in any company. It is easy to overlook the implications of a particular action. The Chief Financial Officer sees past those distractions and moves the company towards a more profitable future.
It is fair to say that the data doesn’t always tell the story we wish to be true. Instead, it does a great job of moving the narrative of the story in a more accurate and useful direction. Companies that strongly lean into their data and not into their emotions are typically the ones that fare the best through thick and thin. That alone may make it worthwhile to hire a data services company to assist with data analysis.