Acta Universitatis Danubius. Œconomica, Vol 10, No 5 (2014)

Abstract

Objectives: This study seeks to investigate the impact of analytics in financial decision making in organizations. Prior work: Analytics has emerged as a critical business enabler in today’s competitive market place. Its application has provided businesses with the opportunity to gain a competitive advantage by leveraging the vast amount of data they have available. Analytics is not limited to a particular tool or method however; it encompasses a range of combinations and it is this element that has made analytics such a success factor. Approach: This study uses a case study approach to identify critical areas of business where analytics have played a vital role in financial decision making. Results: Application of analytics in financial decision making is shown to streamline information resulting in making decisions more efficiently and effectively. Implications: This study provides insights in financial decision making using statistical backing which has a vast number of applications in finance functions. As such, areas such as such detecting fraud, budgeting and forecasting, risk management and customer insights need to actively apply analytical tools to better manage and enhance the information gained from these areas. Value: This study integrates the use of information technology tools and packages with financial management with the view of enhancing financial decision flow in organizations.