Importance of Analytics in

Finance, Marketing& HRM

 What is Financial Analytics
• Financial analytics is a field that gives different views of a
company’s financial data.
• It helps to gain in depth knowledge and take action against
it to improve the performance of your business.
• Financial analytics has its effect on all parts of your business.
• Financial analytics plays a very important role in calculating
the profit of a business.
• Financial analytics helps you to answer all your business
questions related to your business and also lets you to
forecast the future of your business.
 Why Financial Analytics is important
• Today’s businesses needs timely information that helps the
business people to take important decisions in business.
• Every business should have a sound financial planning and
forecasting to leverage the business.
• The emergence of new business model, the changing needs
of the traditional financial department and the advancement
in technology have all led to the need for financial analytics.
• Financial analytics helps in shaping up tomorrow’s business
goals. You can also improve the decision making strategies of
your business.
 Why Financial Analytics is important
• Financial analytics focuses on measuring and managing the
tangible assets of an organization such as cash, machinery and
others
• It gives a deeper insight about the financial status of your
business and improve the profitability, cash flow and value of
your business.
• Financial analytics will help in making smart decisions to increase
the business revenue and minimize the waste of the business
• Accounting, tax and other areas of finance are having data
warehouse which is combined with analytics to effectively run
the business and achieve the goals faster.
 Changing role of the financial department

• Most of the finance functions are automatic

and requires only fewer resources to manage
them. This enables the finance executives to
concentrate more on the business goals rather
than just focusing on processing and
reconciling transactions
 Business Processes
• Businesses are becoming more complex these days
due to the advancement of technologies.
• Lot of questions arise in the mind of the business
people. Analytics provide the answers to all these
questions.
• Financial analytics lets the managers and executives
in an organization to have access to more accurate
and detailed financial information of the
organization. This strengthens the relationship of the
employee inside the organization.
 Few questions for which financial analytics
can give you an answer
• What are the risks to which the business is exposed ?
• How to enhance and extend the business processes to
make them work more effectively ?
• Are the investments made in the right path ?
• How is the profit of the product across different sales
channels and customers ?
• Which segment of the market is expected to bring more
profit to the business in the future ?
• What are the factors that could affect the business in the
future ?
 Integrated Analytics
• These days companies use integrated financial
analytics to face the competition in the financial
analytics market place.
• Because of using such integrated financial
analytics companies will be able to analyze and
share the information to the sources inside and
outside the organization.
• Organizations should use integrated financial
analytics to survive in the new economy.
 Role of the Data Warehouse
• Data warehousing in the future will require
rich analytical capabilities.
• Smart decisions are easily made when the
data and business processes are integrated
across all business functions in an
organization.
 What is Marketing Analytics?
• Marketing analytics is simply the measuring,
managing and analyzing the marketing
performance.
• The concept of marketing analytics facilitates
not only to improve the effectiveness but also
allows the marketers to take a successful shot
at optimizing the return on investment.
• Marketing analytics portrays the customer
insights and trends.
• The importance of marketing analytics is not
only depicted from the fact that it provides a
clear picture about the marketing efforts, but
also from the fact that it also allows you to
monitor campaigns that can easily facilitate
the saving of resources.
Why Marketing Analytics is Important?
• Understanding the customer and market trends is
really important in today’s time. Marketing
analytics easily allows understanding of big picture
trends that too by focusing on every single detail.
• With the aid of providing you with a clear picture
of the efforts and the returns, it allows you to
easily depict that which programs worked and also
depicts the reasons why it failed or even
succeeded.
• The market study is also an important part of the
business. Marketing analytics allow monitoring of
trends over time.
• Marketing analytics allows understanding the return
on investment by providing a clear picture of the
working and the reports of each programme.
• By easily helping to study the market trends,
marketing analytics facilitates to proficiently
forecast future results.
 What is HR Analytics?
• HR analytics is the science of gathering, organizing and
analyzing the data related to HR functions like
recruitment, talent management, employee engagement,
performance and retention to ensure better decision
making in all these areas.
• By using various types of HR software and technology, HR
departments are creating a large amount of data every
day.  
• However, the objective of HR analytics is to actually make
sense of this data and turn it into a valuable insight.
 Increased need for data and analytics tool in HR to make better HR
decisions

• An important role of HR analytics is to provide

access to critical data and insights about the
workforce which can be then analysed for
making better decisions.
• Not only does it improve the HR performance
but also provides a better understanding of
what motivates employees to work
productively, and how do the organizational
culture affects employee performance.
 Better Quality of Hire is one of the HR data
analytics benefits
• Running machine learning algorithms on
jobseeker’s data allows companies to identify
the best matching talent for a vacant position,
thus improving the quality of hire.
A vital benefit of HR metrics and analytics is Employee Retention

• Similarly, using employee data, recruiters can

recognize a pattern of high performing employees
and accordingly modify their employee hiring and
retention strategy. 
• HR analytics helps identify the departments
suffering from the maximum attrition and the
reasons causing it. It can also help HR in identifying
the activities which have the maximum impact on
employee engagement and thus allow organizations
to invest in such activities
 Transformation of HR as a strategic partner is
one of the benefits of Workforce analytics

• The application of HR analytics can provide a

unique vantage point to HR department to
validate its importance and its role as a
strategic partner in a business’ performance.
• HR professionals can provide business leaders
with verifiable data to back their talent hiring,
retention and engagement policies.
 Business analytics in HR can help predict
the hiring needs of an organization
• HR analytics can help predict the changes that
may be in the organization’s future.
• Using HR analytics, one can predict the skills
and positions which are needed to improve
business performance