Skip to main content
Home
The Online Resource for Modern FP&A Professionals
Please register to receive the latest FP&A news, updates and tips Login

Main menu

  • Home
  • FP&A Insights
    • FP&A Trends Digest
    • FP&A Trends Research
    • FP&A Trends Insight Paper
    • FP&A Trends Survey
    • Short Videos
    • Our Contributors
  • FP&A Events
    • International FP&A Board
    • FP&A Trends Webinars
    • Digital FP&A Circles
  • AI/ML Committee
    • Introduction
    • Members
    • Resources
    • Meetings
  • FP&A Tools
    • FP&A Trends Maturity Model
  • About Us
    • Company Policy
    • Privacy Policy
    • Editorial Guidelines
    • Our Ambassadors
    • Our Sponsors & Partners
    • Contact Us
image
Understanding “Intelligent FP&A”: A Dynamic New Approach For Finance
August 31, 2021

By Michael Coveney, Head of Research at FP&A Trends Group

FP&A Tags
Financial Planning and Analysis
FP&A Analytics

fp&aThis series of eight blogs is intended for those considering a transition to “intelligent financial planning and analysis” – essentially, modernising solutions and systems to support a dynamic approach to analytics. The overall aim is to enable the fast reaction to constantly changing market conditions via a single integrated process, informed by intelligent insights into large volumes of data. The first blog defines the terminology.

The trouble with most taglines and labels in business is that the words are often open to interpretation, leading to misunderstanding. In the case of potential solution providers, this can have advantages, as their offerings will be included in any search.

But for those trying to educate themselves or their company in techniques that could bring real business benefits, then simple labels, no matter how smart, just confuse them and waste time. Worse, the solutions behind the terms may then be overlooked, as potential users can’t see any real differences between them.

With that in mind, this blog seeks to define the fundamental, unambiguous qualities of “intelligent financial planning & analysis” or iFP&A.

Deconstructing the term

The best place to start is with the dictionary definitions of the words used. Most online sources describe intelligence as:

  • The ability to acquire and apply knowledge and skills
  • The collection of information of military or political value

For our purposes, we can replace “military or political” with “business.”

FP&A is a little harder to define. But the consensus in finance circles is that FP&A describes creating plans (mainly financial), analysing data, and interpreting its meaning with the aim of providing senior management with information to support strategic leadership and operational decision-making.

What’s different about iFP&A?

The terms “FP&A” and “business intelligence” have been around for many years, along with systems that support organisational decision-making. One could argue, then, that iFP&A is nothing new. But that would be missing the point. You can have the world’s best technology system and still use it in a “dumb” way. Similarly, you could develop the best plan with the latest information and still fail in its implementation.

Today, the volume of data is so large and complex that forecasts are often unpredictable: the world is changing faster than managers can anticipate. Managers can no longer rely on traditional monthly reporting of internally generated data to navigate the future.

This is where iFP&A comes in, which I like to summarise as:

A dynamic, continuous approach to analytics that greatly increases the “intelligence” of an organisation and its ability to change fast.

IFP&A replaces the old, time-bound management processes of annual planning, monthly reporting, and quarterly forecasting with a single integrated process triggered by events and exceptions.

Rather than separating financial results from operational activities, iFP&A treats them as a related “cause and effect” model. This approach seeks to make the most of limited resources while linking them to the achievement of long-term goals.

But it’s not only the approach that has changed. To support this wider, connected business world, the newer FP&A solutions have greatly increased capabilities. They can cope with different types of data from a wide variety of sources and yet combine them in innovative ways. This is key to focusing management attention on what is really important, both now and in the future.

Leading the charge is the FP&A team, who must now acquire new skills and tools to support the organisation – understanding that the organisation’s needs will continually change as the business world continually changes.

To make the vision a reality requires detail, which we will cover in subsequent blogs that delve deeper into the elements that enable iFP&A to transform business performance.

The article was first published in the D!gitalist Magazine

The full text is available for registered users. Please register to view the rest of the article.
  • Log In
  • or
  • Register

Related articles

Business Intelligence
Making Business Intelligence a Reality in FP&A
August 17, 2021

Business Intelligence (BI) is finally starting to get the love it deserves. It is a transformational...

fp&a
How to Leverage FP&A into the Business?
August 6, 2021

If there is no financial planning, there is no financial control. Since financial planning and analysis...

Read more
webinar 27 April
The FP&A Trends Webinar: The Combined Power of Human and Artificial Intelligence in FP&A - Roche Case Study
August 4, 2021

Some people believe that Artificial Intelligence (AI) will eventually replace humans within FP&A. Thought leaders and...

Read more
Financial Modelling: What is Common Between Football and Finance?
March 27, 2020

This article will focus on is the modeling of a company as a whole, its consolidated...

Read more
Artificial Intelligence
Making Artificial Intelligence Real for FP&A Professionals
May 5, 2021

In today’s world, companies need more than ever fast insights to make the appropriate critical moves...

Read more
AI and ML
AI and ML in FP&A – Two Case Studies
November 24, 2020

This article summarises the presentations and discussions during the recent Digital FP&A Circle on how Artificial...

Read more
+

Subscribe to
FP&A Trends Digest

We will regularly update you on the latest trends and developments in FP&A. Take the opportunity to have articles written by finance thought leaders delivered directly to your inbox; watch compelling webinars; connect with like-minded professionals; and become a part of our global community.

Create new account

image

Event Calendar

Pagination

  • Previous
  • May 2025
  • Next
Su Mo Tu We Th Fr Sa
27
28
29
30
1
2
3
 
 
 
 
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Transforming FP&A Together: Human & AI Synergy
 
18
19
20
21
22
23
24
Moving from FP&A to Extended Planning and Analysis (xP&A)
 
Five Critical Roles for Building a World-Class FP&A Team
 
25
26
27
28
29
30
31
FP&A Business Partnering and AI: A New Era
 
All events for the year

Future Meetings

The Face-to-Face Amsterdam FP&A Board
The Face-to-Face Amsterdam FP&A Board Transforming FP&A Together: Human & AI Synergy

May 15, 2025

The Face-to-Face Milan FP&A Board
The Face-to-Face Milan FP&A Board Moving from FP&A to Extended Planning and Analysis (xP&A)

May 20, 2025

The Face-to-Face Frankfurt FP&A Board
The Face-to-Face Frankfurt FP&A Board Five Critical Roles for Building a World-Class FP&A Team

May 22, 2025

BPAI
The FP&A Trends Webinar FP&A Business Partnering and AI: A New Era

May 28, 2025

The Face-to-Face London FP&A Board: Data Management & Analytics: Unlocking FP&A Value
The Face-to-Face London FP&A Board Mastering Data in FP&A: Smarter Analytics, Better Decisions

June 5, 2025

FP&A Trends Webinar The Evolving Role of FP&A: From Number Cruncher to Strategic Advisor
The FP&A Trends Webinar Making FP&A Teams Fit for the Future

June 11, 2025

The Face-to-Face New York FP&A Board
The Face-to-Face New York FP&A Board From Insight to Impact: FP&A Business Partnering in Action

June 17, 2025

The Face-to-Face Sydney FP&A Board
The Face-to-Face Sydney FP&A Board Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments

June 26, 2025

The Face-to-Face Singapore FP&A Board: Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments
The Face-to-Face Singapore FP&A Board Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments

July 8, 2025

AI/ML FP&A
AI/ML FP&A
Data and Analytics
Data & Analytics
FP&A Case Studies
FP&A Case Studies
FP&A Research
FP&A Research
General
General
Integrated FP&A
Integrated FP&A
People and Culture
People and Culture
Process
Process
Technology
Technology

Please register to receive the latest FP&A news, updates and tips.

info@fpa-trends.com​

              

Foot menu

  • FP&A Insights
  • FP&A Board
  • FP&A Videos

Footer countries

  • Amsterdam
  • Austin
  • Boston
  • Brisbane
  • Brussels
  • Chicago
  • Copenhagen
  • Dubai
  • Frankfurt
  • Geneva
  • Helsinki
  • Hong Kong
  • Houston
  • Kuala Lumpur
  • London Board
  • London (Circle)
  • Melbourne
  • Miami
  • Milan
  • Munich
  • New York
  • Paris
  • Perth
  • Riyadh
  • San Francisco
  • Seattle
  • Shanghai
  • Singapore
  • Stockholm
  • Sydney
  • Tokyo
  • Toronto
  • Washington D.C.
  • Zurich

Copyright © 2025 fpa-trends.com. All rights reserved.

0