Leveraging AI-Based Analytics to Save US$ 242 Billion with FP&A Transformation
Muhammad Zeeshan Taqi
Digital Transformation | FP&A & Business Strategy | Performance Management Consultant | C-Level Executive | Finance Transformation Advisor | AI | RPA | EPM | ERP | Global Speaker | Ex. PWC
"Welcome to?Finance Transformation Times -?One of the emerging newsletter followed by more than 10,000 Finance & Business Professionals globally for latest developments in Next Generation Finance."
Today we are going to touch very important and critical areas in FP&A where huge amount of value leakage happens, that's in forecasting error and it's knock-on effects on other areas of the business.
As it can be seen that despite spending millions of dollars on legacy systems like ERPs, Demand planning etc.. the amount of annual loss due to forecast error is so huge and spread across different areas of business, not just in FP&A.
This shows us the real importance of FP&A in preserving and adding tremendous value to the business by leveraging technologies including AI Based Analytics, Strategic leadership and Business Partnering.
Therefore, leveraging AI Based analytics in FP&A can help identify and uncover hidden insights below the tip of an iceberg, in order to make the overall organization more agile, proactive and predict future with high degree of accuracy.
But there are many failures in analytics transformation project, mainly due to lack of integration & collaboration between finance, IT and business functions.
As we can see above, traditional FP&A is limited to mostly YoY variance analysis with limited insights, whereas AI Based Analytics enables FP&A to improve their forecasting, predictions , trends, planning etc and their financial impact on the business, thus, enabling business partners to take better business decision making.
Scaling analytics is putting easier to use analytics in the hands of business users to solve targeted problems. Shiva Esturi, Vice President Supply Chain, Micron Technology
That's how we can leverage agile analytics driven planning by leveraging AI Based Analytics such as Aurora Lightz to transform FP&A into xP&A by integrating financial planning with operational and strategic plan to get holistic view of the entire business with high degree of visibility across different areas of business.
AI- Based Analytics - Aurora Lightz Use Case (Analytics Scorecard) in FP&A added $121.5 Million To the Business.
It's also worth noting that AI Technology alone cannot add the entire value, it's the business acumen, strategic leadership and business partnering skills of FP&A that can generate such value in combination with these emerging technologies.
If you are aspiring to embark on your FP&A / Finance Transformation Journey in order to generate such value to your business with the new mindset and skillset, then you are highly recommended to join us in our upcoming on-site workshops in Dubai, U.A.E and Riyadh, K.S.A where we are going to share lots of insights, use cases, case studies from our real life experience of Finance (FP&A) transformation projects including Finance Business Partnering and other skills required for the future of finance.
Complete details of these workshops and their registration link can be found in below links.
Feel free to reach out to HOFT team by email or over the whatsapp for further assistance and also to get 15% discount being a member of any professional accountancy body worldwide.
Join us and let's embark on your transformation journey.
Strategic Financial Leader at Lucky Cement | Chartered Accountant, Financial Controlling, Treasury Management
2 年Marvi Shaikh, CFA Arsalan Hanif Yasir Zafar Mateen Sohail-ACMA Mohammad Saad Badla - ACMA Madiha J.
Director of Financial Planning & Analysis (FP&A) for Regulated & Renewable Energy, Proj. Mgmt & Constr., Environ. Health & Safety, Coal Combustion Products, Renewable Generation, IRP & Fuels System Optimization
2 年Imagine what folks in FP&A can do if they gained 50% of that 70% of the time spent on collecting, cleansing the data! That's what sticks with me! Thanks for sharing.
Fractional CFO/Controller | Building Efficient Financial System for Growing Businesses | Training and Developing Future Finance Leaders
2 年Spot on, Muhammad Zeeshan Taqi, when you said 70% of the time is spent on colllecting/cleansing the data. I would even quote a higher percentage. Over the years working with CFOs and CEOs they always had one complaint “the analysis/commentary is not meaningful enough to understand the business performance/issues”. And I know from experience because FP&A teams are not left with enough time for the real analysis because of the time spent on issues you have mentioned. However, on the flip side, there is another underlying issue which is when ERPs and Reporting tools are heavily customized due to request from the top to add this, delete that. The systems then lose their originality and teams end up generating reports with manual intervention which is time consuming and leaves a little or no time for analysis before the deadline. IMHO, even for AI transformation to work as intended, the top management should minimize their wish list and accept vanila systems and depend on automated reports so FP&A teams spend more time on providing meaningful analysis.
Consultant, Advisor, Coach, Mentor, Chief Finance Officer; Strategy, People & Organization Development and Digital Transformation
2 年Thanks for sharing.