FP&A Trends Digest: Issue #77
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Issue #77 - 03 December 2022
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Dear colleagues,
Amazingly, FP&A teams still spend almost half their time on non-value-adding activities, according to FP&A Trends Surveys 2019-2022. 4 years in a row!
These low-value activities include data validation and working with an endless number of Excel spreadsheets. Our latest survey shows that Excel still dominates with 58% of users as a cross-wide tool for planning and forecasting.
Despite this high level of Excel use, there are modern analytical tools and technologies which impact how the FP&A department spends their time. For instance, organisations with Artificial Intelligence / Machine Learning (AI/ML) in place spend 16% more time on high-value activities like driving action and insight generation than the average company.
This digest provides a wide view of how flexible systems, AI/ML and Robotic Process Automation (RPA) will help you win valuable time and create a more mature organisation.
As usual, you will find invitations to our upcoming digital events at the bottom of this issue.
Winston Churchill, a British statesman, is quoted as saying: "There is nothing wrong with change...if it is in the right direction."
We hope this issue will help you find a direction for your transformation journey.
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Have you ever considered how to reach the leading stage of FP&A maturity? This easy-to-read infographic explores the most valuable findings from the FP&A Board Maturity Model research paper. Learn more insights on achieving Intelligent Transformation by following the link above.
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There is no doubt that Artificial Intelligence (AI) is going to be a game-changer in the value that can be offered by FP&A. However, to fully embrace AI, it requires a range of human skills that may not exist within FP&A today. Find out more about how artificial and human intelligence can complement each other and transform the role of FP&A. FP&A Trends Group recently conducted research examining how AI is being used within the profession.
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By Douglas Yeung
Depending on the maturity of the FP&A function, we can roughly divide companies into three levels in terms of their use of specialised FP&A solutions: Early stage, Mid-stage and Advanced stage. What does each of these stages entail, and what are the success factors? Find out more in this article.
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By Michael Coveney
Our Head of Research speculates on the right approach for implementing Intelligent FP&A. While traditional FP&A systems are focused on a single aspect of management processes, IFP&A benefits from dynamic and continuous analytics. Nevertheless, intelligent systems are more complex than analogues in traditional FP&A, consisting of nine essential components. I welcome you to learn more about what they are.
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By Partha Basu
Why do most organisations still use traditional budgeting/forecasting processes? Are they missing a big opportunity to use predictive analytics? In his article, the Global Head of Finance Operations at AkzoNobel NV asks these questions. Still, predictive analytics can help you become more adaptable and agile. Partha Basu explains distinct reasons behind moving beyond "the proof of concept".
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By Flavio Caruso
While automation has eliminated many repetitive tasks and unnecessary human intervention, the next step for FP&A is to develop advanced analytics. It will help deliver business value through actionable recommendations. "Digital applications were a game-changer for the FP&A function that improved the way we are working", says Flavio Caruso, Cluster CFO (Europe) at Sandoz. Everything started with paperless document processing. Then they developed chatbots, shifted towards blockchain solutions and predictive analytics, and improved forecast accuracy using AI/ML and RPA. Learn more from this video.
For more Insights from FP&A Trends, please click here.
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FP&A Trends Digital Events
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FP&A Trends digital events are vendor-agnostic and complimentary. If you are not able to join the live session, you can register to receive the recording later.
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During my trip to the USA in October, I got acquainted with Natalie Harden, VP of Finance and Investor Relations at Chuy's Restaurants. Her case study of undergoing an analytical transformation impressed me, so I organised a webinar dedicated to their company's experience. I cordially invite you to join us on December 7th to learn about their winning formula of analytical transformation from A to Z.
Driver-based modelling is an essential component for achieving agility and adaptability. It helps us to bring key business drivers that impact business evolution the most and allows on-demand planning and forecasting. With this in mind, our next digital circle will focus on the Power of Driver-Based Planning and Forecasting. Join the Digital FP&A Circle on December 13 to hear answers to the above questions from senior finance practitioners and thought leaders from Storck Deutschland KG, Deutsche Bahn Regio AG, Versace and Board International.
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