The DoD's Application of Data Analytics in Financial Management: How to Achieve Competitive Advantage Through Data Integration

Abstract

For the DoD, facing complex security challenges, data analytics is crucial for informed decision-making, resource optimization, and staying ahead of emerging threats. The purpose of this study is to examine the current use of data analytics within the DoD financial management and identify opportunities for enhancement. This research analyzes the policies and strategic documents implemented by the DoD to govern the application of data analytics in financial management. Additionally, it analyzes Advana, the principal platform for advanced analytics, to ascertain how its capabilities can enhance financial management practices within the DoD. The research reveals that the DoD has made significant strides in leveraging data analytics for financial management. However, there is ample room for improvement to enhance the effectiveness of data analytics for DoD's objectives. While strategic documents outline objectives, they lack clear guidance on implementation mechanisms and oversight frameworks. The enhancement of financial reporting compilation stands as a notable opportunity through Advana; however, the pace of integrating authoritative data systems into the platform remains slow. Moreover, there is a notable need for additional highly skilled employees proficient in using Advana for financial management purposes. Based on these findings, I provide recommendations for optimizing Advana implementation and utilization, enhancing data integrity and monitoring, and improving workforce development and talent management.