Why CFOs Must Prioritize a Data Platform as the Foundation for Data-Driven Business Performance
In this guide you will learn about how modern data platforms drive business performance through seamless integration, advanced analytics, and real-time decision-making.
1. Introduction
The ability to harness, analyze, and act upon information is a prerequisite for any organization to successfully transition to data-driven business performance management.
In growing, mid-market enterprises, functional leaders across finance, sales, marketing, supply chain, operations, risk management, and more all have increasing access to cutting-edge, function-specific solutions that capture data.
This expanding business-wide tech stack creates both challenges and opportunities for the CFO and their finance team. Challenges related to the disparity of data captured across the business in turn present opportunities for the finance function to facilitate the ‘hub’ where the data is brought together, with data visualization and business intelligence being the top tech investment priority for CFOs.
This guide explores the critical role of modern data platforms in business intelligence (BI) and strategic planning, emphasizing their impact on driving business performance. We aim to provide a comprehensive guide for CFOs, CEOs, and other decision-makers, showcasing why a data platform is not just a technical consideration, but is the foundation for achieving a cultural shift towards data literacy across the organization via trust in the information, meaningful context around it, and consistency in reporting and processes.
A note for the C-suite
For CFOs and CEOs, the stakes are particularly high because their decisions shape the trajectory of the organization. We’ll demonstrate that a data platform enables leaders to:
We’ll explore the nuances between BI solutions, data warehouses and data platforms; the signs that an organization would benefit from a data platform; how to prepare; and why building a modern data platform gives leaders the tools they need to make smart, clear decisions to stay ahead.
2. What is a data platform
In an environment where 44% of CFOs are prioritizing data visualization and business intelligence within their technical investment plans, it is important for business leaders to understand the distinctions between stand-alone BI solutions, data warehouses, and data platforms if they want to unlock the full potential of their organizational data.
Tech initiatives planned for 2024
According to 450 finance leaders surveyed from mid-December through mid-January
Data platform terminology
Business intelligence (BI)
The purpose of BI is to provide an interface from which to analyze and visualize data to provide actionable insights. It leverages tools that enable reporting and dashboards to empower decision-makers. BI itself is just a data visualization ‘layer’ - for a BI tool to operate effectively, it requires a well-structured data source, which is where data warehouses and platforms come in.
Data warehouse
A data warehouse is a centralized repository for structured data. It can be optimized for querying and reporting and is typically used to consolidate data from various operational systems. Data warehouses are foundational for meaningful BI operations but can lack the flexibility to handle unstructured data or to support real-time analytics.
Data platform
A data platform is a comprehensive solution that supports a wide range of data types and use cases. It enables seamless data integration, advanced analytics, powerful processing, and scalable data storage. Modern data platforms also incorporate capabilities for machine learning, AI, and real-time decision-making, offering far greater versatility than a traditional data warehouse.
Differentiating data warehouses and data platforms
While both types of system manage and store data, they differ in purpose and functionality:
3. The growing importance of data platforms
As mid-market businesses grow, they inevitably adopt a multitude of business systems to support the needs of various business functions from finance software, sales pipeline management solutions, customer relationship management (CRM) platforms, to supply chain management software, and more, including industry-specific operations management solutions.
While the volume of data produced inevitably increases as a business scales, it is this growth in platforms across the business that underscores the need for effective data integration. Many organizations struggle to extract meaningful insights due to fragmented systems, data silos, and outdated architectures. This is often exacerbated by the inability to incorporate the valuable context that historical data provides into analysis, planning and decision-making.
Data platforms address these challenges by unifying disparate data sources, enabling seamless integration, and providing a scalable foundation for advanced analytics, reporting, and AI-driven initiatives.
The data platform within the tech stack
Enterprise Resource Planning (ERP) systems and BI tools are foundational technologies for managing and analyzing business operations. However, without a modern data platform, these systems often fall short of delivering the full value of their capabilities. Data platforms act as the foundation, bridging the gap between ERP systems, other systems used across the business, and BI solutions, by ensuring consistent, high-quality data flows across the organization. This not only enhances reporting accuracy but also facilitates planning and operational efficiency.
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4. Business intelligence without a data platform
Without a modern data platform, organizations face significant challenges when attempting to extract value from their data. These include:
Data silos: Disparate systems lead to fragmented data that is difficult to consolidate and analyze.
Numerous Integrations: Having a complex set-up of integrations between systems creates inconsistencies, increases maintenance costs, and increases the risk of errors or data loss.
Limited Visibility: Traditional BI tools relying on data warehouses may lack the ability to process diverse data types or perform real-time analytics, resulting in restricted oversight and visibility.
Scalability Issues: As businesses grow, traditional systems may struggle to manage increasing data volumes and complexities, leading to inefficiencies and delays.
Missed Opportunities: A lack of advanced analytics capabilities means businesses cannot undertake predictive modelling or integrate AI-driven decision-making, leaving them behind in a competitive landscape.
Inaccurate Reporting: Without centralized data integration, reports may be incomplete or inconsistent, undermining decision-making.
Slow Reactions: Slow data consolidation and processing means organizations can’t respond quickly enough to emerging trends or challenges.
Security and Compliance Challenges: Managing data across disconnected systems increases vulnerabilities and complicates compliance efforts.
Lack of Context / Big Picture: Disjointed data prevents leaders from gaining a holistic view of the business. This limits meaningful planning and hinders the ability to identify trends.
Investing in a data platform enables organizations to overcome these obstacles, ensuring that BI and reporting efforts are supported by a robust, scalable, and future-proof foundation. This not only enhances the value of data but also positions the business for long-term success in an increasingly data-driven world.
5. Identifying the need for a data platform
While every business is different, several flags put a data platform on a leadership team’s agenda.
Size of Company
With growth, data is generated across various functions, geographies, and processes, making it increasingly challenging to consolidate and analyze. A modern data platform provides the scalability and integration needed to manage this complexity, ensuring that leadership has access to timely and accurate insights to drive strategy.
Volume of Data
For organizations producing vast quantities of structured and unstructured data, traditional systems often struggle to capitalize on it. A data platform not only supports scalable data storage but also facilitates rapid processing and analysis.
Number of Business Systems
Modern businesses rely on a diverse array of systems – ERP, CRM, supply chain software, and more. Each of these generates valuable data, but when siloed, their potential is underutilized. A data platform brings disparate systems together into a cohesive framework, enabling unified reporting and cross-functional insights.
Complexity of Data Architecture
As businesses adopt more tools and systems, their data architectures become increasingly complex. This can hinder efficiency and decision-making. A robust data platform simplifies these architectures by centralizing data governance, integration, and analytics capabilities, reducing operational friction and enhancing agility.
Strategic Initiatives
CEOs and their leadership colleagues often spearhead initiatives to expand into new markets, launch products, or optimize operations. These strategies depend on clear, data-driven decision-making. A data platform provides the foundation for the comprehensive and accurate information needed to align execution with organizational goals and measure success effectively.
AI Plans and Initiatives
Artificial intelligence (AI) relies on a high volume of high-quality, diverse data to function effectively. Without a strong data platform, organizations may struggle to prepare and deliver the data AI-driven systems require. A modern data platform ensures that AI initiatives are built on a reliable foundation, accelerating deployment and maximizing return on investment.
Why some organizations decide against a data platform
Despite the many benefits, not all organizations are ready or willing to make the leap. Several factors can contribute to this decision:
Perceived cost and complexity
Organizations may view data platforms as prohibitively expensive, both in terms of initial implementation and ongoing maintenance. Small to mid-sized enterprises, in particular, may feel that the cost outweighs the potential benefits, especially if their current systems are perceived as "good enough."
Limited data maturity
Companies with fragmented or low-quality data, siloed systems, or unclear ownership may find that they are not prepared for the level of organizational and cultural change required to implement a data platform effectively. Without the foundation of data governance and a clear strategy, the benefits of a data platform may seem out of reach.
Resistance to change
Building a modern data platform often requires shifting organizational mindsets and workflows. This can meet resistance, especially in organizations with deeply ingrained processes or where leadership is not fully aligned on the value of becoming data-driven.
Short-term priorities
For organizations facing immediate challenges, long-term investments like a data platform may never be top of the list. The focus on solving short-term operational issues can push initiatives requiring significant lead time and planning, such as data platforms, down the agenda.
Key indicators checklist
6. Key factors to consider when implementing a data platform
For senior leaders, implementing a data platform is not merely a tech upgrade - it’s a strategic initiative that demands careful planning, cross-functional alignment, and a clear vision.
Below, we outline the key factors to consider when embarking on this journey.
Leadership Mindset
A successful data platform initiative starts with leadership. A data-led organizational culture should be driven from the top down. Senior leaders championing the project, communicating its importance and ensuring alignment with broader business goals will lead to success. Given the substantial upfront investment and the long-term nature of the project, leaders need to adopt a visionary approach, maintaining commitment throughout the implementation journey.
Key Questions to Consider:
Are executives fully bought into the value of becoming a data-driven organization?
Is there a clear understanding of the long-term ROI and strategic benefits?
Can the leadership sustain enthusiasm and support through the initiative’s various phases?
Team Structure and Readiness
While it is a ‘tech’ initiative, the human factor is critical. Implementing a data platform requires skilled professionals who can manage not only the technical aspects of the design and implementation, but also its ongoing adoption and development. Training may be necessary to upskill existing employees, and engaging specialists for needs alignment, implementation and ongoing support is recommended.
Key Questions to Consider:
Do you have a team with expertise in data engineering, architecture and analytics, or will you engage external expertise?
Is your IT team equipped to manage both the initial implementation and ongoing platform maintenance?
Are there resources allocated for continuous learning and adaptation?
Data Architecture and Systems Readiness
The effectiveness of a data platform hinges on the quality and readiness of your existing systems and data architecture. Integration challenges, data silos, and outdated infrastructure can delay or derail implementation. Conducting a thorough assessment of current systems is essential to ensure the platform will deliver the desired outputs.
Key Questions to Consider:
Are your current systems capable of producing data to the structure and scale required?
Are there existing data silos that need to be addressed?
Is the data of sufficient quality to support accurate insights and analytics?
Budget and Financial Planning
Data platforms require a significant financial commitment, both for initial implementation and ongoing operation. Leaders must plan for capital expenditures for setup and infrastructure, as well as operational expenditures for maintenance, support, and future developments.
Key Questions to Consider:
What is the total cost of ownership, including hidden costs such as integrations and training?
Is there a budget allocated for ongoing support, enhancements, and scalability?
Can financial outlay be balanced with other priority initiatives?
7. Final thoughts
For today’s business leaders, adopting a modern data platform should be a high priority on their strategic agenda. This whitepaper has outlined the immense value a robust data platform brings to ambitious organizations, enabling seamless integration, advanced analytics, and real-time decision-making.
Staria BI and Planning Solutions specializes in helping organizations undertake these transformative projects, combining technical expertise with a deep understanding of business challenges. Our proven methodology ensures a seamless implementation journey, empowering organizations to unlock the full potential of their data.
At the core of our offering is Naviloq, an advanced data platform and BI solution designed for scalability, flexibility, and performance. Naviloq integrates seamlessly with your existing systems, breaking down data silos, consolidating disparate data sources, and delivering actionable insights. Its powerful analytics capabilities enable predictive modelling and real-time reporting, ensuring your organization remains competitive in a dynamic market.
Partnering with Staria means gaining a trusted advisor who not only delivers best-in-class technology but also ensures alignment with your overarching goals. With this partnership, and Naviloq, as your foundation, you can confidently drive innovation, improve operational efficiency, and make data-led decisions that propel your business forward.
Achieve data-driven excellence
Strategic CFOs are tasked with leading the whole business towards data-driven performance management. When you’re in need of the optimal combination of team and technology, Staria’s business intelligence services empower you to surpass your goals without the high cost and complexity of building an in-house BI and planning function from scratch.
