The Ledger
Curated content foranalytical business leaders
Analytics are More Important Than EVER
January 8, 2018
The core purpose of analytics has always been to support executive decision-making. Machine learning and artificial intelligence are set to redesign society and redefine every business process in every organization. But decisions are more important than ever. In today’s fast-changing markets, the future belongs to agile companies that can adapt quickly. Having the right insights at the right moment, and being able to act on them – in other words, having effective analytics – is increasingly the difference between survival and extinction. Along with these rapid innovation cycles, there are other trends that make analytics invaluable in today’s business climate.
Read More at The Digitalist by SAP >
Growth vs. Optimization: A Balancing Act for CFOs
January 4, 2018
Growth is often in direct competition with optimization and digital transformation is an accelerant. The need for balance is becoming increasingly amplified as organizations grow and move to digitize. Thanks largely to Big Data, CFO priorities have shifted to a strategic, more value-based, future focus. While both growth and optimization are good for business, managing the balance of when to say yes and when to block change isn’t always a popular role. And sometimes rationalizing the change is exactly the right thing to do. There are huge benefits to having the CFO role become more rounded. Focusing more on bigger picture business growth is great, but only if it doesn’t sacrifice optimization.
Read More at The Digitalist by SAP >
Creating Value with Nonfinancials
January 3, 2018
It is so important in any organization that management accountants understand their intangibles and their relationship to value creation. In today’s business climate, it is also imperative that management accountants understand the supposed dichotomy between non-financial metrics and financial value. The adoption of integrated reporting and sustainability metrics has generally lagged in the United States, and it can be difficult to see beyond financial accounting to the real value being created in organizations. A Japanese pharmaceuticals company, Eisai Co., Ltd., has been successful in showing a clear link between intangibles and value, leading them to long-term value creation.
Read More at Strategic Finance Magazine >
Applying Zero-Based Budgeting To Your Supply Chain
January 2, 2018
Companies across industries are stuck in a downward spiral with their supply chain cost reduction initiatives. Even with all of their efforts, they see minimal or no changes in their COGS-to-revenue ratios over time. At least half of many companies’ costs typically reside in the cost of goods sold (COGS), yet most are seeing little sustainable impact on their bottom lines. Companies can find a way to break this costly cycle by applying zero-based principles across their supply chain (“zero-based supply chain” or ZBSC) and integrating this approach with their continuous improvement programs. ZBSC approaches can trigger COGS savings of up to 10% and a COGS-to-revenue ratio of up to 800 basis points, Accenture says.
