PLEASANTON, Calif.- Aug. 30, 2010 - The scope of both the data and the technology that finance departments have to work with has expanded considerably, and new benchmark research released today by Ventana Research indicates that organizations are aware of the potential for providing leadership to the organization through the application of analytics, but have a ways to go in developing relevant metrics and KPIs and providing them when decision-makers need them.
This major research on Finance Analytics, the latest from the leading business technology research firm, analyzed input from hundreds of organizations around the world to assess the maturity and direction of their efforts. Ventana Research undertook this benchmark research to acquire real-world information about maturity, trends and best practices in how finance organizations use analytics. It explores how they do this now, how their people feel about the current processes and tools, plans they have to change or improve them, and benefits they hope to gain by doing so.
This research examined organizations' people, process, information and technology competencies and maturity, trends and best practices in the development and use of financial metrics. It found most organizations are immature in the Process category, one of the four categories in which we assess maturity, and most mature in the Technology category. Yet in each category most organizations are not realizing the fullest benefit from finance analytics; in none of them do as many as one in five reach the top Innovative maturity level.
The findings offer significant new insights into attitudes toward finance analytics. Organizations are maturing slowly, the research found, with finance organizations relying on traditional finance-related metrics and paying little attention to new, more advanced metrics such as predictive analytics and leading indicators (35%), for example, as well as customer profitability (33%) and market data and trends (28%). The research also found that those in the finance organization have mixed feelings about the adequacy of the processes used to create analytics, yet almost nine out of 10 said they can improve their use of analytics significantly or somewhat.
"Organizations are advancing in their ability to apply analytics to finance, but there is substantial room for improvement," said Robert Kugel, SVP Research of Ventana Research and head of its Business Research practice. "However, this benchmark research makes clear that too many metrics are based on stale data and are unavailable when executives and managers need them. The research makes clear that for analytics to deliver full value, companies must find ways to provide timely, relevant and actionable analytics and metrics and address the root causes of the shortcomings they find."
Ventana Research will detail the findings of this benchmark research in a live interactive webinar on September 9th, at 10:00 am Pacific time that will discuss the research findings and offer recommendations for improvement. Key research findings to be discussed will include:
• the current state of organizations' thinking on how to apply analytics across finance.
• patterns in the adoption of new methods of analytics in response to the latest thinking on best practices.
• what types of measures, metrics and indicators are most important.
• the current state, future direction of and potential investments in analytics.
• existing levels of competency in using analytics.
• attitudes toward analytics software.
Register for the Webinar
The research was sponsored by Host Analytics and media sponsors Business Finance and The Association for Accountants and Financial Professionals in Business (IMA). Those interested in learning more about the benchmark research can find additional information at http://www.ventanaresearch.com/fam. As a part of your registration you will receive insights and education from Ventana Research on using technology effectively in business.
About Ventana Research
Ventana Research is the leading benchmark research and business technology advisory services firm. We provide insight and expert guidance on trends and mainstream and disruptive technologies. Our unparalleled insights and best practices guidance are based on our rigorous research-based benchmarking of people, processes, information and technology across business and IT functions worldwide. The combination we offer of benchmark research, market coverage and in-depth knowledge of hundreds of technology providers means we can deliver business and technology education and expertise to our clients where and when needed to reduce the time requirements, cost and risk of technology investments. Ventana Research provides the most comprehensive analyst and research coverage in the industry; the many business and IT professionals worldwide who are members of our community benefit from Ventana Research's insights, as do highly regarded media and association partners around the globe. Our views and analyses are distributed daily through blogs and social media channels including Twitter, Facebook, LinkedIn, and Business Week's Business Exchange. Ventana Research was ranked the #1 analyst firm you can trust in enterprise software for 2009 for its relevance to the industry. To learn how Ventana Research advances the maturity of organizations use of information and technology through benchmark research, education and advisory services, visit www.ventanaresearch.com.
Media: Copies of benchmark research report and interviews are available upon request.
Media Contact: Marisela Reynoso
(925) 242-2579 marketing@ventanaresearch.com
