Big Data is becoming a problem for finance teams
With the growth of mobile apps, e-commerce, and internet-of-things (IOT) we have experienced exponential growth in the volume of data enterprises are now capturing and analyzing. In the modern era of computing, this is referred to as Big Data. Some companies are literally collecting billions of data points frequently.
The problem of Big Data is now knocking on the door of corporate finance.
Vena, a leading provider of Cloud FP&A Software integrated with Microsoft Office, held its annual user conference in May this year. In a poll taken by attendants at this conference, Vena uncovered that the top pain point experienced with financial models was having too much data.
Paul Barnhurst, well known on social media as the “The FP&A Guy” suggests 5 questions to ask when you experience having too much data.
Here is a summary of the 5 Questions if you’re short on time to read the full article:
- What’s the Main Question I’m Trying To Answer?
- What Are the Key Pieces of Information or Main Drivers I Need To Get That Answer?
- What Are the Main Inputs or Activities That Will Drive the Outcome?
- Will the Increased Complexity of Adding More Drivers Improve the Accuracy of the Model Enough To Justify the Increased Complexity?
- Have I Captured the Material Drivers?
Paul offers great insight on each of these 5 questions if you have time to read the full article.