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Why Are Data Analysis Skills and Thinking so Important to Spend Analysis? Can’t Software Applications Be Used to Generate the Information Needed Automatically?

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Why are data analysis skills and thinking so important to spend analysis? Can’t software applications be used to generate the information needed automatically?

Not all data presented to you may be important to make strategic decisions. One can make sense out of a large data when data analysis skills and thinking are employed. These skills help one identify the more meaningful information and understand patterns, consistencies or irregularities, to make sound decisions.

Flanagan of Pepco Holdings, in the article provided, shared that one will be better able to assist internal clients in planning spend strategies and also better understand supplier’s cost proposals.

Analysis is important because most automatically generated results do not provide the information needed. It is important to know what data is meaningful and understand what the output of the data means and how to employ it in a real world application

How might structured process such as Six Sigma methodology be useful here?

Data analysis is important for a company’s continuous improvement efforts. Six Sigma is a business process improvement tool to significantly minimize mistakes at a stringently high level. The methodology of Six Sigma itself, when followed correctly (i.e. DMAIC), will allow a person to identify process inefficiencies and address them to generate cost savings, deliver quality of service and achieve more consistent good results.

Why is it important to get other functional areas, notably finance, involved in spend analysis efforts? Can you think of some other functional areas that should be involved?
Being able to involve other disciplines in the corporate system allows for systems thinking which means careful consideration of several factors is made before arriving at the most favorable solution.

According to the article, financial information such as accounts...

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