Financial Planning and Control in the era of Advanced Analytics
Improving the accuracy of Financial Planning and Control in the company is the main goal of the Financial Director. The best solution for undertaking and improving this task is with analytics and advanced analytical tools. Let’s look at the details.
Advanced Analytics: What is it and why do we need it?
Unlike traditional analysis, Advanced Analytics focuses on historical data and collects and uses this data in real time in order to predict future behavior and scenarios. In addition to the Predictive Analytics, there are other important aspects:
- Data/text Mining
- Machine Learning
- Sentiment Analysis
- Neural Networks.
Data analysis and the wide availability of technologies today, help companies stay more competitive in the market. With the integration of Advanced Analytics, management can easily plan business strategies and future opportunities for the benefit of the company. For example:
- Optimization of business planning and control
- Identification of new trends
- Decision making improvement.
Thanks to these sophisticated technologies, it is easier and faster to evaluate budgets and forecasts and to act promptly if there are any bottlenecks, thus helping to reduce costs. Also, the sophistication of predicting trends, helps to improve strategic decisions. Closing out the financial books is also made easier because payment schedules are defined through advanced analytics.
Adopting advanced analytics into a company, helps redefine and balance roles. When the Financial Director embraces these changes and acquires these skills, he/she becomes the most influential resource for business planning and control.
New analytic skills for the Financial Director
The CFO becomes the protagonist of digital transformation within a company and benefits greatly from new analytics technology.
The use of Advanced Analytics for planning and control helps to improve decision-making and provides the CFO with new opportunities. Not long ago, the financial manager was called “the man of financial statements”, today he holds the title of strategic business leader. This metamorphosis puts the CFO next to the CEO for making investments and business choices for a company. Additionally, organizations are relying on the CFO to help make choices for the right analytic solutions and adopt these so others can develop their skill set internally.
Analytics are indispensable in Business Management
Companies that are ready to start the innovation process in the field of Analytics, need to consider these 2 phases:
- Search for the most suitable analytics solution that meets your industry criteria
- Choose a technological partner that has expertise and the right skills.
The following aspects need to be taken into account based on your company ecosystem:
- Level of knowledge and skills sets in analytics
- Business needs
- IT solutions already implemented
- Data integration
- Adoption of technology.
Superficial analysis often drags companies into making poor choices. Often, a lot of attention is put on the software selection, but the expense of developing skills and adopting the solution is neglected. This is where Change Management is important.
Atlantic Technologies offers best business practices and takes into account all the relevant aspects listed above. Our Analytic Clouds are pre configured models based on the specific industry you’re in. They are designed on the Tableau Software platform (BI world leader solution for the Gartner Quadrant) for specific company areas:
- Sales Analytics
- Cash Flow
- Credit Analysis
- Financial Analysis.
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