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

Abstract

This study examines the current use of data analytics within the Department of Defense (DOD) financial management by identifying enhancement opportunities through analyzing the DOD policies and strategic documents that govern data analytics and evaluating Advana, the principal platform for advanced analytics. The research reveals that the DOD has made significant strides in leveraging data analytics for financial management, resulting in optimized resource allocation and prevention of wastage through expiration or cancellation. However, there is still ample room for improvement to enhance the effectiveness of data analytics to meet the DOD’s objectives. While strategic documents outline objectives, they lack clear guidance on implementation mechanisms and oversight frameworks. The enhancement of financial reporting compilation through Advana stands as a notable opportunity; however, the pace of integrating authoritative data systems into the platform remains slow. Moreover, there is a need for additional highly skilled employees proficient in using Advana for financial management purposes. Based on these findings, the thesis provides recommendations for optimizing Advana implementation and utilization, enhancing data integrity and monitoring, and improving workforce development and talent management.