How Decision Intelligence (DI) is addressing key concerns for CFO’s

As a strategic partner across the organization, CFO’s play a crucial role in driving profitable growth forward through strategic decision making. Being more involved with all the corners of the organization,their key challenges are to find the right talent and drive financial performance and growth, in times of increasing costs.

AI-based Decision Intelligence (DI) is providing business leaders with the key to address these challenges driving profitable growth, leveraging AI and human expertise, boosting companies operating profit. 

The Struggle For Talented People And For Optimizing Resources

As 3 out of 4 CFO’s are finding it difficult to fill in open positions**, labor quality and availability are key concerns.

To fuel the growth in the organization, business strategy must be aligned with all the distinct functions in the organization. As finance is establishing itself as a business partner across the enterprise, there will be new skills and insights required. 

Cross-business expertise, insights in ever increasing amount of data, etc., which is calling optimal use of AI-based technologies to support the business.

Decision Intelligence provides businesses with a better understanding of how decisions are made and how they lead to outcomes. Some of those decisions can be automated, others are supporting or augmenting more complex business decisions and empowering users.

This way DI is providing a perfect balance between human expertise and AI, making maximum use of available resources.

** Acc. Duke university CFO Survey

The Challenge Of Achieving Profitable Growth Amid Spiralling Costs

To improve financial performance and boost the company’s bottom line, different levers can be used, from which price is the most powerful value-creation lever, with the lowest risk. According to McKinsey, an 1% increase in price leads to an 8.7% profit gain.

However, any general approach on pricing, without considering customer sensitivity, will only provide a suboptimal outcome, as customers value products differently and have a different willingness to pay. General price approaches do not respond to maximizing profitability.

Therefore, a good understanding of all your customers, through AI-driven segmentation, is a prerequisite in any price optimization effort.

Any existing price inconsistency is providing leadership with new growth opportunities, without having customers leaving (churn prediction) or drop their volume significantly.

Variations in item price within peers, give a good illustration on where profit is leaking and where sales teams can act, taking into account ‘local’ considerations (competitive intensity, etc.) and market conditions.

It allows sales reps to revisit the value proposition offered to those customers, specifically to determine whether the true, unique value of the product is being communicated.

Through leverage of human expertise and AI, Decision Intelligence is

providing sales with negotiating power, such as the ability to recover ‘revenue leakage’.

By recommending sales the most profitable solutions to make rapid, precise decisions, immediate business value can be created.

Decision Intelligence

Cnext unique DI technology provides insights into the decision process, points out where you can make improvements, and improves decision-making resulting in better outcomes.

Be agile and quickly adapt your decision process and algorithms to market conditions and, as new sources of data get available (CRM, firmographics,..), extend and improve the decision support.

Decision Intelligence has been identified by Gartner as one of the top strategic technology trend. It addresses the key concerns of today’s business leaders and is translating pricing strategy into operational decisions driving near-term operating efficiencies and long-term top-line growth.

At Cnext, we help you guide the commercial and operational front lines to optimize for total price and margin realization:

  • Join one of our workshops to assess and map your business decision process.
  • Look on our website for references of Decision Intelligence in different fields.
  • Workshop to map the maturity on decision making within your organization.