Deriving Analytical Value from Real-Time Data
“The amount of data generated by devices and machines continues to rise. Exponential data growth places an enormous amount of pressure on systems that must keep that information moving at high speeds from machines to data lakes or warehouses and into analytics platforms. Data storage and management are only a subset of today’s data-driven requirements — deriving analytical value is also extremely important. That value is difficult to show without systems that can analyze streams of information in real time. In particular, organizations are trying to enable non-technical users to elicit value from their data using off-the-shelf visualization tools.”
The Supply Chain Has Moved to the C-Suite Agenda
Most companies do not have a role for supply chain expertise in the C-suite, and often do not see the need for one. By default, the CFO often takes on that responsibility. The CFO understands dollars, and a lot of those dollars are tied to the supply chain. The supply chain has an important influence on revenue. Essentially, supply chain management relates to almost any business activity and has, in effect, been a key element in overall business strategy. It entails the management and optimization of resources and business processes to meet specific business objectives. Without someone providing the correct overall guidance, companies often make efforts to improve operating efficiency and reduce costs, which takes time away from value-adding activities.
How To Adopt Continuous Planning For Better Agility
“If you’re in financial planning and analysis (FP&A), then you’ve likely been on the continuous finance and accounting journey for a while—by moving to rolling forecasts. Rolling forecasts and continuous planning vary in the level of maturity at many organizations, from focusing mainly on the revenue side of the equation to forecasting expenses. More broadly, it can extend to full-fledged integrated continuous planning, which incorporates both financial and operational facets of the business.”
Best Practices to Drive Cash Flow Back Into Your Business
One struggle that organizations continually face as they strive to remain competitive is reducing direct and indirect costs. While many are successful in driving down direct costs, long-held beliefs relating to the interactions between buyers and suppliers often make reductions in indirect costs a greater challenge. These supply chain misconceptions become obstacles to achieving indirect cost reduction and improved profitability. In order to achieve best practices, organizations must understand the misconceptions inherent in their procurement processes and combine that with an understanding of the supplier’s industry.
An Alternative Approach to Costing
Many companies do not know where they are making or losing money. They know their overall costs and profits made, but can’t see their costs at a more granular and actionable level, or their profitability by product. In today’s complex businesses, massive cross-subsidizations mask the true cost and profit of products, customers, market segments, and activities. As a result, business leaders don’t truly believe the standard cost and profit figures that their accounting or finance departments provide. Square root costing is being embraced by CFOs because it is a practical methodology for correcting the cross-subsidizations that have plagued standard costing.