How Finance Organizations Can Use Embedded Analytics to Improve and Inform Decision-Making
Embedded analytics is an important innovation within modern financial management systems that is proving to be extremely valuable in allowing business decision-makers to gain deeper insights to improve and inform decision-making for day-to-day business events.
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The use of embedded analytics is helping organizations use these deeper insights to drive sales, improve customer satisfaction, speed up routine approvals, better inform compensation changes, and improve decisions in the context of many other financial and operational business processes.
With embedded analytics, the gathering of business intelligence data is automated and embedded directly within business processes, giving business leaders real-time access to data they can use to inform decisions and monitor business activities.
Since this BI data is embedded in the context of an approval or workflow task, it delivers real-time insight at the point of decision. With the right solution for embedded analytics, the organization can configure and customize these analytics to suit their own specific needs.
For example, an embedded analytic report for out-of-policy expenses can be shown to a manager approving expenses to ensure compliance with company policies. Or the analytics on average compensation for a specific job can be shown to a manager before approving a compensation change to ensure that an employee is not underpaid or overpaid in comparison to peers.
Most financial management and ERP systems don’t have the proper infrastructure in place to take advantage of embedded analytics. Legacy systems structured around the GL code block are particularly lacking, not just in these capabilities but in many others as well.
Workday is a company that has taken a unique approach to embedded analytics in its cloud-based financial management application using a consumer-driven innovation called Worktags. Worktags serve as the model for capturing business data that powers embedded analytics. Each financial transaction entered into the system becomes a business event with Worktags, or attributes such as an employee’s name, business unit, customer or product, tagged to that event based on what information the business would like to track. Businesses can then aggregate, report, and analyze business information using these different dimensions all within Workday. These insights can help an organization better understand its business from a top-level view to very specific details, such as sales item by line of business or expense-report totals by customer or region.
Businesses of all sizes these days are constantly looking for ways to harness information that will give them competitive advantage. With a financial management system that has embedded analytics, both finance and business users throughout the organization will be empowered with valuable insights when making business decisions.
Learn more about how embedded analytics can help your organization: