How Global Trade Benefits from Data Visualization & Analytics
We are living in a connected world today, and international import-export constitutes a considerable percentage of the overall global trade. In this fast-paced global economy, organisations find themselves dealing with wide fluctuations in market demand and currency values. For companies whose businesses involve international trade, these dynamics have often outpaced their ability to properly understand the impact of raw material cost changes or how currency fluctuations can affect their margins and profitability.
Data Visualization & Analytics is enabling more and more companies to keep pace with and manage the volatility of costs and currency fluctuations, by providing a wealth of business information and insights to them.
While used in a wide variety of contexts today, the term Data Visualization & Analytics refers to the potential for unlocking insights into how businesses can improve performance at a very granular level. These insights can then be applied in taking action to address specific challenges such as maintaining profitability in an often unpredictable world.
In fact, a recent study report states that companies who invest more fully in Data Visualization technologies than their competitors have the potential to outperform their competition by 20 per cent in every available financial metric. This sentiment is echoed in a recent article in Harvard Business Review that says companies in the top third of their industry for global trade, are in the use of data-driven decision-making were on average 5% more productive and 6 per cent more profitable than their competitors.
As one of the critical players in managing international businesses, the finance director has a key role to play in helping to harness the power of Data Visualization & Analytics. By exploiting its potential, the finance team can track and manage costs dynamically in near real time. This allows companies to manage the cost variations of raw materials across geographic regions, and adjust prices with greater frequency and in smaller increments to reflect local or regional market conditions. The same applies to currency fluctuations across global markets.
Along with responsibility for reporting results to executive management, the finance group is likely to be the only team with clear visibility into how international performance is being affected by changes in the economic situation. By mining insights into collected data, and working more closely with the chief sales officer, the finance director can help assure that the company is managing its sales most effectively across global markets.
Recent developments in information technology for manipulating Data Visualization techniques provide finance directors of global trade organizations, with powerful new tools to understand and mold pricing strategy that were unheard of until recently. These advances give finance directors the ability to help their companies exploit the profit enhancement potential of pricing strategies across the spectrum of international trade – and literally put the power to optimize prices and better support their sales forces, thanks to innovations in pricing technology.
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