Data – Deluge and Decisions | Episode 2 | Making Big Decisions – The News report

The quality and quantity of data that is now readily available is unprecedented Information on everything from sales to supply chain Can be tracked in real time and that is having an impact not only on the role of accountants but also on business expectations of the finance function Overloaded with data Regulation and market complexity charting the most effective future course for a business and seizing the right Opportunities can be enough to make any executives head spin Conditions in which businesses are operating have never been more volatile or fast-moving 72% of companies admit at least one strategic initiative has failed in the last three years because of delays in decision making While 42% say they’ve lost competitive advantage being slower to make decisions than more agile competitors And the cause of these delays Information overload and difficulties working with big data mean that an overwhelming 80% of companies have used flawed information to make a strategic decision in the last three years You need people who can not only understand it But can sift it and focus it on the right things for you to do it or you’re just going to be drowning in data The finance function itself is obviously a very limiting term in the sense that it evokes finance And it is a lot broader than finance it includes non-financial information Lots of data these days even of an unstructured nature All information however qualitative it might seem is Effectively financial information that it will all have a bearing at some point or another on A company’s share price and the value it can create for its shareholders So making strategic decisions is all about knowing where to look within the data for what’s important It needs someone who can analyze all aspects of the business and the market environment in an integrated way And then communicate that insight effectively In the past, we as accountants were in the backroom And we did all the calculations and things like that We’ve come to the front room now, and we expected to be able to communicate to people In a manner that would persuade them and influence them in the way they take decisions and To act in the way, in which they behave Management accountants are vital because they provide the very basis by which you make the decisions right you need global management accounting principles To ensure that you’re Looking at the right information What’s how businesses create value in essence? It’s about how you make good decisions to create value for every part of the supply chain every part of the value set so Consumers and customers, investors, employees etc So who are these people able to cut through the confusion and help businesses make better decisions? And more importantly, where can you find one? First and foremost obviously need to be reasonably numeron to be financially literate That’s pretty much a given. We also need to be keen if not unafraid of making judgments Good decision making Is going to be valued at high high levels more so than ever. Because of the speed of change in the world and the Complexity of the world It’s actually I believe the decision making, the judgment, the independence The validation, the understanding of all these data and analyses in light of a business model that is Probably the most important role It’s not you have to be a clairvoyant? It’s not, but you have to see every eventuality But you have to be able to make the judgments about one of the drivers of change We’re in a much more volatile world and so Those who have the most information, it’s a huge source of competitive advantage

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