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How data-driven finance drives fiscal responsibility

Photographic portrait of Deirdre Ryan
Deirdre Ryan

EY Global Finance Transformation Leader

6 minute read 22 Aug 2025
Related topics
Consulting
AI
Finance

As the CFO role evolves, data management will vault business outcomes from good to great.

Three questions to ask:

    • How do you establish a single source of data truth? 
    • How do you harness data to drive decisions?
    • How do you safeguard the value of your data?

    In the era of automation, where financial data is essential, the ability to manage and govern this invaluable resource has become a cornerstone of successful business operations. However, establishing a unified data governance framework is no small feat. It requires a concerted effort to identify consistent data definitions, implement centralized data repositories for analysis and foster a culture of continuous data practice improvements. Positioned at the intersection of fiscal responsibility and strategic vision, chief financial officers (CFOs) are in a prime position to lead this charge — encouraging collaboration across all departments and promoting a shared understanding of data as a collective resource.

    The EY DNA of the CFO report, drawing on insights from 1,000 finance leaders, underscores the importance of data-driven insights in strategic decision-making. Yet, it revealed that 44% of CFOs struggle with data visibility.

    As the role of the CFO levels up from balancing the books to helping organizations shape bold strategies for the future, these finance leaders must be ready to steer leading practices in data management — harmonizing data strategies with business objectives and serving as pivotal contributors and value generators within their organizations. 

    Speak a common language

    For multinational corporations, data terminology and definitions can go rogue when no one is watching. In the US, you’re selling cookies; in the UK, you’re selling biscuits. They are the same product, but when the profit reports are pulled, discrepancies in branding and nomenclature can become a recipe for errors and ineffective planning.

    “Varied data terminology and business unit data autonomy is a common issue that can lead to significant inconsistencies,” says Jim Deutsch, EY Americas Finance Data Transformation Leader. “Our goal is to guide clients toward standardization and away from terminology that’s open to interpretation, effectively avoiding situations where the same data leads to different business conclusions. And CFOs are well-positioned to lead this effort, as financial data is the foundation of enterprise data.”

    Establishing standards for data literacy is a collective endeavor that extends beyond the CFO’s role, necessitating active participation from the entire executive suite. When all divisions are involved in the collective agreement around data terms and their impact on the operational needs of the organization, a more cohesive and efficient business environment is established.

    Our goal is to guide clients toward standardization and away from terminology that’s open to interpretation, effectively avoiding situations where the same data leads to different business conclusions.

    Jim Deutsch

    EY Americas Finance Data Transformation Leader

    Integrate and automate

    Shared definitions of data terms are a critical step, but they won’t go far without centralization and automation. A consolidated data source improves the accuracy and reliability of the information that guides decisions.

    Multiple sources of truth
    of data that finance departments depend on is sourced from different business segments.

    The DNA of the CFO survey revealed that a substantial 80% of the data finance departments depend on is sourced from different business segments. Utilizing a collective, credible source of information allows finance leaders to move beyond their conventional role as financial gatekeepers and transform into strategic consultants, providing valuable insights that can propel businesses forward.

    A centralized approach to data management can also lead to more efficient processing and analysis, resulting in quicker insights. In the CFO survey, finance leaders prioritized advanced data analytics as the second key area for financial transformation in the coming three years.

    The adoption of transformative technologies, such as artificial intelligence (AI) and machine learning, can enhance these advantages by automating the analysis to reveal hidden patterns and opportunities, helping companies anticipate market shifts and prepare for what lies ahead.

    Champion stewardship

    Robust data management is a critical component for organizations aiming to navigate the complexities of today’s business environment. As stewards of financial integrity and strategic foresight, CFOs are well-positioned to spearhead the development of these comprehensive frameworks, helping organizations optimize data functions and benefits.

    Data governance confirms clarity and consistency in data usage across various departments, which is essential for clear communication and error reduction. Additionally, as organizations expand, a strong, shared governance model safeguards against security risks and provides a seamless data flow by setting clear rules for data access and storage.

    “As data dictates direction, a robust data framework becomes the compass for corporate navigation,” says Deutsch. “The process of creating and standardizing this data ecosystem may be gradual, but its role in the continuous improvement of business decisions is clear.”

    How EY can help

    Data management is not a quick fix

    For CFOs, data management is an ongoing demand. There is no one fix-all approach that will last two years, much less five. Flexible thinking, continually updated automation and vigilant oversight are all part of the strategic mindset for finance leaders of the future.

     

    By building a core foundation of collective data literacy, centralized sourcing and analysis, and established governance, CFOs can help create the most advantageous launchpad for an effective data ecosystem. The relationship between business leadership and finance is at the heart of this financial transformation, elevating organizational performance.

     

    “Data has always been a valuable asset to business, but it’s now essential to growth and success,” says Deirdre Ryan, EY Global Finance Transformation Leader. “Getting data management right is crucial. CFOs are well-positioned to lead the charge by advocating for standardization and prioritizing the data and analysis required to gain or retain a competitive advantage. Forward-thinking CFOs are reshaping the way data influences strategic decisions.”

     

    Seven ways to get the most value from your data

    1. Adopt advanced analytics

     

    Widespread adoption of insight-driven advanced analytics has necessitated efficient data storage, processing and analysis capabilities.

     

    2. Combine data from around the organization

     

    Functions across the enterprise produce 80% of the data that finance consumes, and that external data provides context and rich analytics opportunities.

     

    3. Develop data privacy and security measures

     

    Heightened concerns and new regulations around data privacy and security have led to increased investment in cybersecurity measures to protect sensitive financial data.

     

    4. Be transparent about financial data

     

    Increased transparency and integration of all financial data in one open, secure location is requiring new advanced data management techniques.

     

    5. Integrate data ethics and responsible AI

     

    A focus on ethical data management practices and responsible AI usage in finance is building fairness and transparency in algorithms and models.

     

    6. Embrace generative AI (GenAI)-enabled data transformation

     

    GenAI-enabled automating and optimizing data processes allow businesses to extract more value from their data assets.

     

    7. Enhance data quality and governance

     

    Regulatory requirements are increasing the emphasis on data quality and governance for accuracy, consistency and compliance.

     

    Note: This is the second in a series of articles about the future of finance, based on EY research and insights working with CFOs.

    Summary

    CFOs are increasingly responsible for data-driven strategies aimed at boosting business performance. They face challenges in data visibility and standardization. Centralized data management and advanced analytics are essential for effective decision-making. CFOs must lead in establishing strong data governance to provide accuracy and security. Continuous innovation in data management is crucial for maintaining a competitive advantage. This is part of a series on the evolving role of CFOs in finance and data management.

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      About this article

      Photographic portrait of Deirdre Ryan
      Deirdre Ryan
      EY Global Finance Transformation Leader
      Driving finance innovation. Seasoned advisor to finance executives. Passionate mentor. Former ice hockey player, avid sailor, active supporter of her children’s pursuits.
      Related topics
      Consulting
      AI
      Finance

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