The fourth FP&A Board Connect was dedicated to the subject "How to Use Predictive Analytics and Machine Learning for Better Quality Forecast (Janssen Case Study)".

In the first FP&A Board Connect, Takeshi Murakami, Business Manager to CEO/President at Microsoft Japan, a speaker of the second Tokyo FP&A Board, explains how Microsoft achieved remarkable results by using predictive analytics and machine learning in FP&A.

Many of us have heard about promise of predictive analytics (PA) in machine learning (ML). Over 50% of organisations think that data science and ML are critical for success. At the same time, less than 20% of finance teams are deploying data science today. Why did this happen?

As I walk around various offices or even in social gatherings, I find many conversations about artificial intelligence (AI), robotic process automation (RPA), and big data. And logically, then, the discussion quite often rolls into how our life will change due to the availability of data, how each of our actions is turning into data, how future consumer behaviour thus can be predicted etc. Thus people quite often discuss predictive analysis (PA), and we hear stories about its use in elections to predict voters' behaviour, customer behaviour, payment risks, etc.

We are entering the era of digital FP&A where human and artificial intelligence work hand in hand in order to achieve better analytical results. The new world of FP&A requires on-demand continuous planning process where various business scenarios can be played almost in real-time. Both driver-based planning and FP&A predictive analytics are essential tools for implementing flexible dynamic planning and forecasting process.

We live in a Digital World today, with nearly everything interconnected with each other. Yet many individuals, companies and organisations seek their own ways and explore how to leverage data in the area of Financial Planning and Analysis.