Data can seemingly be one of the most insightful and useful tools in your organization. Too much data, however, can overwhelm even the most skilled finance teams and executive management. The explosion of data-driven analytics is more than just adding up the numbers more efficiently. Data-driven finance teams can use this valuable information to improve the flow of operations within the purchasing department and boost business performance as a whole.
Replacing manual processes with more systematic digital solutions that are quick and easy to implement is a solution to look forward to. Read on to learn the who, what, why and how when it comes to finance teams becoming more data-driven in their approach.
Expense data and Big Data analytics
Companies with data-driven finance teams have their work cut out for them. Collecting and measuring purchasing data is much easier now thanks to modern tools.
Most finance teams are facing two major obstacles right now being:
- How to extract all the data and gather insights
- Analyzing the information and leveraging it to influence and improve decision-making within the organization
Based on a Finance Insights Reimagined study conducted by PwC, many organizations are struggling to aggregate, format, and harness the power of their existing data. As a result, this limits their ability to narrow down trends and make informed decisions for the organization.
To better understand the solution, it’s important to clearly define ‘Big Data’ which is a term you might have heard already.
Big Data refers to data that is so large, fast, or complex that it’s difficult to process using traditional methods. Let’s say you have a card program with more than 6,000 cards or several supplier contracts. This could easily fall under the category of Big Data in regards to collecting all that unique information. The aggregation of Big Data is also closely tied to artificial intelligence (AI) as of the past few years, as procurement teams struggle to process this data efficiently.
Gathering and leveraging Big Data insights can drive the decision-making process at your organization. Big data is the key answer for departments focusing on finding efficiencies, maintaining contract compliance, and generating cost savings.
Data-driven finance teams are adopting AI at an accelerated pace
Outdated and traditional expense management reports tend to hold finance teams and compliance departments back. Paper and manual systems may be a comfortable reference point. Yet, it won’t be enough to successfully manage the data overload that a lot of organizations are experiencing.
According to PwC’s 2024 Pulse Survey, CFOs are saying that they are adopting AI at an accelerated pace. Some of the specific metrics are eye-opening:
- 36% say that they are already using AI in Accounts Payable and Receivable, 34% are using it in the next 12 months
- 35% are using it for process automation, 37% in the next 12 months
- 35% are using it for process analysis, 33% in the next 12 months
- 33% are using it for predictive analytics, 30% in the next 12 months
- 31% are using it for contractual compliance, 31% in the next 12 months
- 30% are using it for risk ID and management, 31% in the next 12 months
- 28% are using it for forecasting, 39% in the next 12 months
- 28% are using it for financial and external reporting, 39% in the next 12 months
What we can gather from this is that about a third of surveyed CFOs are already using artificial intelligence, about a third say they will use it in 2025, which leaves another third that say they do not or will not use AI in the next year. This so-called revolution of AI in procurement is an interesting one to ponder. Many solutions tout AI capabilities, and that AI will revolutionize fintech, finances, and procurement. We do see about two thirds of CFOs saying that they are on board with incorporating it into their organizations in some capacity. That leaves a third that feels productive and confident enough in its purely manual processes.
Whether your organization is ready for AI or not, data aggregation should occur in a timely manner. This helps ensure it’s relevant and as helpful as possible to the organization. Even if your team is small, quick and accurate data aggregation is possible. The key is to use high-level digital expense monitoring and reporting systems that are easy to implement.
Clear data insights can positively impact nearly every area of the organization
Today, organizations are placing a greater emphasis on purpose and autonomy. What better way to better reflect the company’s values, goals, and services than to leverage all the expense and compliance data to further growth and development?
Every area of your organization benefits from clear data insights which also boosts overall performance.
For example, expense data can be used to make forecasts on future expenditures. Or, it might even highlight some key areas where cost savings have been generated within the past year.
For large corporations seeking compliance, these insights help ensure the team uses approved suppliers to honor contracts. In procurement departments, it means cardholder expenses are monitored and audited regularly to reduce fraud and peculiar payments.
Most important, organized data insights that are ready to go clear up communications internally across multiple departments. Management can base decisions on real numbers and information instead of assumptions which could be costly in the future.
Put expense monitoring on autopilot and adapt scalable solutions
Now that we know the what, why, and where when it comes to harnessing the power of data, let’s discuss how to actually take action to increase data visibility. The first step to becoming more data-driven as a team involves identifying the policies and structures you’ll need. From there, see if introducing AI into your processes makes sense—every organization is different! Consider setting a clear goal for how you envision Big Data analytics improving performance. This will help you reframe any existing policies and systems while prioritizing which metrics are most important to measure. You can also consider a third-party solution—one with experience handling so-called Big Data for a variety of clients in different industries.
If you have expense data that is spread out across multiple systems and divisions, select an efficient solution to cover all these areas. Card Integrity’s DataWISE expense monitoring service is equipped to meet all your data gathering and insights reporting needs.
DataWISE operates as a software and service that will provide your finance teams and purchasing departments with:
- organized reports
- overall spend trends
- timely alerts to help maintain compliance and regulations within your industry
We operate as an extension of your team seeking to free up your time from gathering and sorting through expense data. That way, you can focus more on utilizing the benefits of data-driven decision-making and scaling up your department’s efforts. While we use artificial intelligence in our internal software tools, we also strongly believe in the human element—every client is assigned a Forensic Principal, a professional with finance, auditing, and procurement experience, to look over, cleanse, and organize the data.
Learn more about DataWISE Expense Monitoring… or see it in action
See what Card Integrity can do for you by scheduling a free demo here. For more insights, you can also find a P-Card Program Best Practices eGuide full of the tips and knowledge you need to keep your program ahead of the curve.
To download the P-Card Program Best Practices eGuide, download this form:
Article originally published in 2021. Updated January 15, 2025 with additional information and statistics.
