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?

The Coca-Cola Company’s recent global digital transformation initiative within their McDonald’s Division (TMD) has increased the company’s confidence in their data and enabled them to make better decisions faster.

FP&A helps create sources of future value whilst being on top of how much value is being created at present. Neither of these two things is as easy to measure at any one point in time. So, how can we answer the question “is FP&A delivering what is expected of it”?

The way a company FP&A suite is organised (i.e. its setup) covers the way data are organised and analysed, the way the reporting and the forecasting are produced and performances are measured. What will qualify as the best FP&A set up? How will it be accepted by the company?

The role of FP&A is becoming more important than ever. FP&A is seen as instrumental in helping organisation formulate strategy and drive performance. However, how does FP&A function go about building its brand?

Without a doubt, the effects of AI on the global economy are jaw-dropping. But how does that affect the FP&A sector? Do we need to worry about the rise of artificial intelligence?  

The explosion in computing and data processing power has led to an exponential increase in data available to the business. Paradoxically, this has led to business leaders becoming more uncertain about what to do with this data. Hence, business is scrambling to put the appropriate “analytics” capability in place. This generates a lot of friction and tension because business leaders and managers, who have been brought up in a very different world, have to scramble to learn new languages and redress their relationship with data.

Integrated business planning (IBP) is not a new concept. Yet it’s still hard to find organisations that have fully embraced it, because their efforts have been hampered by the proliferation of legacy systems and data silos. IBP is characterised by aligned planning processes and calendars, full integration of cross-functional data, and cross-functional and business collaboration.

This blog discusses the importance of improving your digital IQ, a term used by PWC for corporates but something that I believe should also be applied to individuals. Your digital IQ (your knowledge of technology and its impacts) is in effect a ‘gateway’ or an ‘enabler’ to the future role of any commercial finance/ FP&A individual.

In this Digest issue, we will explore the illusions of control in modern business and the possible benefits of data science. We will look at how you can ensure successful FP&A collaboration with all departments and we will explain the different planning methods available and their differences.