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 AI, Robotics, Big data. And logically then the discussion quite often rolls into how our life will change due to availability of data, how each of our actions is turning into data, how the future consumer behavior 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' behavior, customer behavior, 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.
Artificial intelligence is currently disrupting your job – whether you know it or not. For financial planning and analysis professionals, artificial intelligence is an opportunity to improve business models and offer better strategic insights.
Digital transformation has created new opportunities. It's possible to generate insight from more sources of data, faster than ever before. But technological advances have also increased competitive pressure. How can FP&A teams adapt to these challenges and redefine their role in modern business? How can FP&A remain relevant in an organisation where everyone is an analyst?