In today’s age, data has become a standard industry practice for most organizations and companies to understand their business. In order to achieve better cost savings, improved decision-making, and productivity gains, Micro Strategy reported that 90% of business users said that data analytics are crucial for their organization’s digital transformation initiatives. When it comes to the future of business, data-driven business intelligence holds the key to understand client requirements, identify new business opportunities, improve risk management, and reduce costs.
It is absolutely vital that businesses today learn how to harness and use the power of data analytics, especially since digital skills are among those that have the most considerable growth in demand from companies across industries. To further share the importance of data analytics in the future of businesses, we bright you three key insights from industry leaders and ICAEW Chartered Accountants – Dr. Lim Kim Hwa, founder and CEO of Cammillion, Lim Yin Wen, Senior Audit Manager at KPMG, and Beldon Chia, Corporate Finance Manager at Duopharma Biotech Berhad.
1. Data analytics can project risks and revenues of companies better than using human input
CEO of Cammillion, Dr. Lim Kim-Hwa, believes that data analytics-driven approaches to investment decisions at his company capture 70% of the active returns at a higher consistency and lower costs to having a structured and repeatable investment process. Additionally, Cammillion discovered that data analytics can help to project risks and revenues of companies under their portfolio more effectively than when using human input. This clearly demonstrates the importance of having at least a fundamental understanding of data analytics even as a graduate today, especially if you are looking to join top companies within the industry.
“Investment decisions made without data analysis are typically based on gut feelings and can suffer from psychological biases and human limitations,” says Dr. Lim. Therefore, in order to control potential risks better, the usage of alternative data, big data, and even non-constructed data such as images will help companies select more profitable and lower-risk investment assets. All in all, data analytics are here to help make better predictions by allowing companies to generate instant analytics on a client’s current portfolio performance.
2. The real upside of data analytics in business is how it enable us to better identify irregularities and non-compliances
The process of analysing information before making business decisions is not new. However, the rise of data analytics has enabled businesses to obtain real-time data and make better evidence-based decisions faster, says Lim Yin Wen, Senior Audit Manager at KPMG. Yin Wen also shared that KPMG has a dedicated data analytics team that works with companies translate data insights into actions by making data-driven predictions. This method has helped finance and leadership teams across industries to make well-informed decisions by applying data analysis to management reporting.
In the auditing field, data analytics has also allowed organizations to better identify irregularities and non-compliances by using software that combines industry knowledge and insights. Hence, this has lead to a faster and more data-driven decision in costing, financial reporting, management accounting, risk management, and compliance. The upsides of data analytics in business are definitely through maximizing resources, increasing sales and profits, reducing costs, and improving employee management.
3. Data analytics has accelerate innovation across many industries including the pharmaceutical field
In an increasingly data-rich and technology-driven world, the pharmaceutical industry has also been playing an immense role in big data for clinical trial data, drug distribution, patents, and vaccine supply chain management. According to Beldon Chia, Corporate Finance Manager at Duopharma Biotech Berhad, “Data analytics will assist businesses in anticipating potential shifts in consumer preference and spending behaviour. This allows businesses to review their strategies constantly and act accordingly, helping companies maintain and increase their public appeal.”
The usage of data analytics has helped to accelerate the discovery of new drugs and work processes and aid in forecasting cashflow requirements. By utilizing data, it has ensured corporations with sufficient cash in hand and raw materials to be used in manufacturing, which leads to optimum stock level and minimal stock write-off.
Interested to Learn How You Can Build a Future Ready Career with Data Analytics Skills? Here’s What You Can Do to Get Started…
If you’re looking to build future proof skills like data analytics, you can consider pursuing a professional qualification to kickstart your career the right way. Among the many professional qualifications, the ICAEW ACA is a highly recognised and sought-after qualification. It is also one of the most advanced learning and professional development programmes available.
School leavers or graduates from any background or discipline can pursue the ICAEW ACA at Sunway TES Centre of Accounting Excellence, one of ICAEW’s training providers in Malaysia.
To learn more, you can contact ICAEW via: