Why real-time data is the key to better performance management
Long budgeting cycles, errors, and delays in accessing accurate data—with traditional forecasting and planning methods, many Finance professionals are unable to keep up with modern demands. Real-time data is your key to turning the tide and unlocking better performance management. This article explores how real-time data enables CFOs and CEOs to lead with agility, precision, and confidence.
The importance of real-time data
Research reveals that 80% of companies surveyed experienced revenue growth as a direct result of real-time analytics.
Real-time data is essential for businesses to remain responsive and competitive as industries continue to transform quickly.
Static financial reporting presents historical data in a fixed format. Income statements, balance sheets, or cash flow reports remain unchanged once generated.
Typically produced at regular intervals—monthly, quarterly, or annually—reports provide a snapshot of the organization’s performance over a specific period. Their fixed nature limits their utility in addressing immediate challenges or emergent opportunities.
The following section highlights how real-time data strengthens decision-making and enables businesses to act ahead of the curve.
Four key benefits of real-time data
Traditional methods, which often rely on outdated numbers, are leaving organizations vulnerable to market shifts and inefficiencies. Real-time data allows for the agility and precision needed to optimize cash flow and allocate resources effectively. Here are four key benefits of real-time data:
1. Informed decision-making
Real-time data enhances decision-making by equipping businesses with immediate access to the most current and relevant insights. This enables organizations to shift from reactive to proactive strategies—meaning every decision is grounded in accurate and up-to-date information.
With real-time dashboards, you can closely monitor budget performance, assess sales trends in detail, and immediately identify opportunities for cost optimization.
This continuous visibility provides a clear financial and organizational snapshot, allowing decision-makers to quickly and confidently adapt to new opportunities or unexpected challenges.
2. Greater confidence in your numbers
According to this survey, nearly 40% of CFOs admit they don’t fully trust their organization’s financial data. Confidence in cash flow visibility remains critically low, as reported by many respondents.
When asked about their lack of trust in their organization’s data, 31% of global respondents blamed difficulties in managing information from too many sources, increasing the risk of oversight. Furthermore, 27% pointed to cumbersome spreadsheets that delay access to critical data until month-end and 25% highlighted outdated manual processes prone to human error.
Real-time data provides instant updates, eliminating discrepancies caused by time lags in traditional methods and allowing for real-time budget tracking. This ensures your financial standing is always consistent and accurate.
Modern enterprise performance management (EPM) software places this real-time data directly at your fingertips—giving you greater control over your financial and operational areas and fostering greater confidence in your numbers.
Real-time reporting enables seamless sharing of key metrics with stakeholders, such as investors and partners. This not only builds trust but also showcases strong financial discipline.
3. Identify errors and trends
Advanced software automates data collection, significantly reducing the risk of human errors. This ensures insights are accurate, timely, and dependable. With this level of precision, outdated information is far less likely to disrupt critical decision-making.
For example, if sales suddenly surge, you can promptly adjust the budget to capitalize on the opportunity. Similarly, unexpected expenses can be addressed immediately, helping to maintain financial stability.
Centralized real-time systems offer a significant advantage over traditional, siloed financial methods by consolidating all transactions into a single platform. This streamlined approach improves efficiency by quickly identifying bottlenecks and underperforming areas. It also strengthens oversight, enabling businesses to detect errors and fraudulent activity swiftly.
4. Improved planning and forecasting
The push for greater flexibility and precision is transforming planning and forecasting, making real-time capabilities an indispensable part of effective performance management.
Advanced financial planning and analysis (FP&A) approaches, such as scenario planning, rely on quick evaluation of potential outcomes. They also require seamless collaboration with key stakeholders to make informed and strategic decisions.
Traditional tools, such as Excel, often cannot meet these demands. They lack the agility and collaboration features necessary for complex planning.
Automated systems offer a better solution. By using real-time data, they integrate inputs from business intelligence tools and enable teams to synchronize immediately. By fostering immediate communication and alignment among decision-makers, real-time collaboration strengthens confidence in forecasting and resource allocation.
How to overcome challenges in implementing real-time financial systems
Adopting real-time financial systems is no small task, as numerous barriers complicate the process. Organizations face technical issues like data integration challenges, cost concerns, and cultural resistance to change at different levels. Here’s how to ease the adoption process:
Enhance digital skills
Real-time data unlocks powerful insights, but many Finance teams lack the necessary expertise to fully capitalize on it. Gartner, Inc. predicts that by 2026, a lack of digital skills among senior finance leaders will cause half of the unwanted staff turnover. CFOs need to enhance their digital skills and engage more effectively with tech-savvy employees.
Close the gap by prioritizing focused training programs that upskill employees and build their confidence. These efforts will strengthen their ability to use advanced tools effectively. Foster a culture of continuous learning by encouraging teams to stay updated on industry trends and participate in relevant technology events.
By equipping employees with these skills, organizations empower them to leverage real-time data, enabling agile decision-making and driving sustained growth.
Streamline financial data with a centralized source
According to the EY survey, 23% of CFOs identified data security and privacy concerns as significant barriers to adopting real-time analytics. A single source of truth (SSOT) for financial data is crucial for addressing those challenges, as it ensures the inclusion of all relevant data—from employee sick days to sales to the latest forecasts.
This approach allows for better data accuracy and security, minimizes errors, and fosters trust across departments. By consolidating data into one reliable system, businesses can reduce reconciliation efforts, boost accuracy, and accelerate their financial processes.
Start by evaluating business needs
To effectively use real-time data, start by identifying the specific business needs it can address. For FP&A professionals, these might include improving forecasting accuracy, enhancing budget tracking, or streamlining financial reporting processes.
Identifying your requirements early helps you choose solutions that fit your goals and unlock the advantages of centralized, real-time data. Opting for a scalable platform ensures it evolves with your business, driving long-term efficiency, accuracy, and success.
How to leverage Jedox for real-time data
As a highly adaptable planning and performance management platform, Jedox centralizes your data, creating an SSOT. This approach streamlines planning, reporting, and decision-making, enabling your organization to adapt swiftly to changing market conditions. Benefit from:
- Real-time forecasting
Track budgets and run forecasts in real time to respond quickly to market changes. Analyze performance, identify trends, and share insights through intuitive dashboards and customizable reports. - Enhanced collaboration
Jedox supports seamless teamwork by allowing multiple users to access and update data simultaneously. Additionally, user-specific rights ensure that individuals only edit assigned areas, reducing the risk of errors. - Excel integration
With Jedox’s Excel Add-in, your teams can work in a familiar environment while leveraging real-time data. This ensures a smoother transition for those already accustomed to Excel’s interface. - AI-powered insights
JedoxAI enhances decision-making with AI-generated performance summaries, interactive charts, and DynaTables—which are pivot-like tools that make it easier to explore and communicate insights. These features help uncover opportunities, mitigate risks, and ensure decisions are always based on accurate, up-to-date information.
Jedox’s adaptability makes it an invaluable partner for real-time data management. Designed to improve efficiency, collaboration, and insight generation, Jedox empowers your entire organization to make smarter decisions and stay ahead of the curve.
Innovation at the core of financial decision-making
CFOs play a pivotal role in steering the shift toward advanced analytics, a change that’s transforming financial management. Real-time data is at the heart of this evolution—delivering unmatched accuracy, agility, and actionable insights.
With these tools, Finance professionals can make smarter decisions, trust their numbers, and refine planning processes—all key competencies in today’s FP&A landscape.
The future of financial management lies in harnessing innovations like AI, machine learning, and hyperautomation. These technologies enhance forecasting precision, minimize manual workloads, and uncover deeper insights from massive datasets, all in real time.
Platforms like Jedox empower organizations to stay ahead by seamlessly integrating these advancements into their workflows for smarter and highly strategic financial management.
