CFOs and Treasurers Embrace Leading Role in Organizational Data Monetization

Today’s businesses are drowning in opportunity. More than 2.5 quintillion bytes of data are produced each day, and in the 21st century digital economy, this data has evolved from a byproduct of business operations to one of the most valuable assets for organizations.

As companies grapple with fierce competition and changing market dynamics, the ability to effectively monetize data can be a game-changer. Yet, achieving financial impact from data monetization frequently requires more than just collecting and analyzing data — it can demand robust data value management and comprehensive data life-cycle measurement.

At its core, successful data monetization revolves around three key pillars: Executive-level data leadership, data value realization and data resource life-cycle measurement. Together, these elements create a culture that prioritizes data as a strategic asset and ensures its financial impact resonates across the organization.

While data scientists and IT teams can often take the spotlight in data initiatives, finance teams and treasurers are increasingly playing an equally pivotal role in realizing data’s financial potential, and the role of C-suite finance leaders in unlocking the monetary value of operational data has never been more critical. While enterprises have for years been generating nonfinancial benefits such as better processes and happier customers from data, converting those benefits into a tangible bottom-line impact is where back-office leadership can shine.

The challenge for finance functions lies in aggregating and analyzing the growing glut of business data in a manner that supports the generation of actionable insights. Rich payments data, after all, shouldn’t just show a business how much money is coming into the coffers — it should help CFOs and treasury teams understand what can be done next with it, as well as how to generate more.

Read more: 4 Ways CFOs and Treasurers Can Monetize Payments Beyond Cost

Data monetization — the process of converting data assets into revenue streams or cost-saving opportunities — is becoming a priority for organizations aiming to gain a strategic edge.

But as data continues to grow in volume and complexity, the need for structured approaches to strategically achieving monetization may only intensify. Organizations that are able to prioritize innovation while maintaining rigorous measurement frameworks could find themselves best positioned to succeed, particularly as the ongoing migration to the cloud continues and concurrent innovations like artificial intelligence (AI) increase the digital transformation of traditional processes.

One of the key pillars of data monetization, data value management, involves optimizing the financial outcomes derived from data products and resources. It’s about translating raw data into actionable insights that drive revenue, reduce costs or enhance customer experiences.

Data initiatives must be directly tied to measurable financial outcomes. Finance teams play a crucial role in ensuring data investments deliver returns by aligning these initiatives with broader business strategies.

PYMNTS has written previously about how the maximum efficiencies of data and messaging standardization can only be realized when everyone’s on board. Finance, IT and operational teams can work together to better identify opportunities for data-driven growth and efficiency than each function could individually.

Treasurers, in particular, can help to bridge the gap between financial priorities and technological possibilities. According to PYMNTS Intelligence, a full 77% of treasurers believe that at least one department in their organization would benefit from closer collaboration with them. Within the CPG industry specifically, that number jumps up to 88%.

Read more: Real-Time Data, Real-Time Decisions: The CFO’s New Reality

To unlock sustainable value from data, organizations must track its journey from creation to monetization. Data life-cycle measurement involves assessing the quality, use and financial impact of data assets throughout their existence. By tracking how data assets contribute to revenue and cost savings, companies can better understand whether their investments are paying off, while encouraging the reuse of high-value data assets across departments can amplify their impact without incurring additional costs.

“[AI] helps us consolidate and aggregate the massive amounts of data that we have to manage. … We sit on countless pages of policy information, procedures and ways to operate. Being able to use tools like internal chat and internal knowledge bases help us sort through that information more efficiently,” Cory Mann, vice president of product at FNBO, told PYMNTS.

Finance teams bring analytical rigor to data monetization efforts, measuring the tangible and intangible benefits of data initiatives and linking them to bottom-line results. Functional leaders can help to ensure that data initiatives receive adequate funding while maintaining alignment with the company’s financial health. CFOs, for example, can evaluate the potential ROI of data projects and prioritize those with the highest impact.

“We’re super-focused on automating all the financial flows within the finance function,” Chris Taylor, newly appointed CFO at Flashfood, told PYMNTS during a discussion for the PYMNTS series “A Day in the Life of a CFO.”

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