In today’s data-driven business environment, we have increasingly seen a convergence of data, business intelligence, and finance functions and teams to enable more efficient organizational decision-making. This integration not only enhances collaboration but gives  a more comprehensive view of operational and financial KPIs and their impact across the business. As a result, the Finance function has begun to integrate data and FP&A teams into shared services that partner with business groups.

Enabling end-to-end understanding of critical KPIs

In traditional organizational setups, operational, sales, and financial data might sit with the specific functional team which limits interconnection between all three.  Operational and data teams might have produced leading indicators that reflect the day-to-day performance of the business, such as sales forecasts, customer engagement metrics, and production rates. Conversely, finance teams often focus on lagging indicators such as revenue and profit margins.

For example, data teams might provide analytics on a marketing campaign, but the finance team will only review the spend on marketing relative to a budget.  The data team would not see how the increased expense impacts overall company cashflow and the finance team might not realize that an effective marketing campaign, while over budget, may actually increase profitability.

By integrating teams, organizations can provide a throughput across these metrics, facilitating a two-way flow and understanding of information. Finance professionals gain insights into operational metrics, while operating and data teams understand the financial implications of their analyses, cultivating a holistic view of performance, enhancing the strategic decision-making process.

Real-time insights and predictive forecasting

The merger of data and finance enables real-time analysis, allowing finance teams to access critical operational metrics swiftly. Data teams are adept at utilizing advanced analytics and machine learning, which can help finance professionals identify trends and generate predictive insights before the traditional month end. This enables a proactive approach to management rather than reacting based on past performance.

Fostering a culture of data-driven decision-making

Finally, bringing data and finance teams together promotes a culture of data literacy throughout the organization. As finance professionals become more versed in operational data, and operational teams learn to appreciate financial metrics, the organization collectively grows more data-savvy. This emphasis on data-driven decision-making equips teams at all levels in their day-to-day activities, improving overall business agility.

Impact on organizational design and recruiting

The Avenir team has seen this trend grow for some time. The advent of business intelligence tools and functions is becoming a requirement for finance professionals. The availability of vast amounts of data and adoption of AI has only accelerated this dynamic. Finance professionals who have a strong understanding of data infrastructure, analytics, and processes (and vice versa) have been in strong demand with a growing number of organizations looking at an integrated function to work with both executive leadership and business functions.