Strategic organizational collaboration is required in order to enhance financial information from a strategic standpoint. Financial indicators provide invaluable insight of the operations from a financial prospective. As well focusing on operational indicators only does not provide all the information in order to undertake strategic decision making. Organizations that undertake a collaborative approach are able to be proactive with decisions in a competitive environment. In fostering such collaboration concerns, risks, and opportunities maybe realised while focusing on the organizational strategy.

Finance Professionals have used forecasts and budgets in order to compare what is expected to occur vs what has actually occurred. The undertaking requires the application of good judgment from information provided by business units within the organization. Although traditional financial reporting is based on what has occurred, the importance cannot be underestimated. Understanding why an event has occurred can be as important as predicting what is expected to occur. Traditional budget and forecasting methods used may not have taken into account patterns based on internal and external factors. The use of information technology has allowed information to be collected, cross-referenced, and categorized based on specific data-points. As a result, such information can be obtained through the use of databases, statistical formulas, as well as Client Resource Management (CRM) in addition to traditional enterprise resource systems (ERP).

The Finance Department is well positioned to use data analytics strategically. Consider the amount of information that is collected regarding customers, vendors, supply chain to name a few within ERP systems that is not fully utilized. With increased information comes the need to capitalize on a well-positioned analytics capability. With the use of technological tools, organizations can gain a better insight into customer insight thus allowing for strategic planning..

Organizations use strategies as part of their business operations. Strategy should lead the direction an organization wishes to achieve. Before beginning strategic planning an organization needs to define the strategic statement, that is the direction it wishes to take. As part of basics an organization will need to define its mission statement, values, vision, strategic statement, and establish a balanced scorecard. It should be based on what makes the organization from others. The strategic objective set should be timely, measurable, and specific.