Unlocking the power of AI and Analytics in mid-sized companies

This article is sponsored by SAP . If you would like to learn more about the benefits of Generative AI, I invite you to join an upcoming webinar, titled " AI and Intelligence for Mid-size ERP solution," scheduled for Wednesday, February 21st at 5-6 PM CET.

I'll be participating in SAP Data Unleashed 2024 where I'll be answering questions from the audience while SAP experts Julia White and Juergen Mueller share the latest news in data and generative AI capabilities that are revolutionizing planning and analysis. You can register here.

Mid-sized companies are the backbone of most developed economies. Most are organized in traditional ways, and many have plans to digitally transform the way they operate. This has arisen from business leaders’ need for insights into how the company is performing and recommendations for how to improve.?

Finance and IT teams are often tasked with getting data organized, analyzed, and presented in an actionable format. However, when you think of finance and IT functions in mid-sized companies, you’ll probably struggle to find many showcases for modern finance and IT operations.?

That’s not to say they do poor work or are not critical to the success of the company. It’s to say that their focus is on compliance and control and keeping the company safe from e.g., cyber threats, etc. This will help ensure that the company fulfills its duty of care towards customers, vendors, authorities, etc.?

In this process, a lot of data is created. However, neither the finance nor IT teams find the time and resources to organize and analyze this data beyond the standard variance analysis needed for management reporting. This represents a huge opportunity for mid-sized companies and one that up until recently was almost impossible to tap into. With Generative AI this is all changing!?

Technology puts insights at your fingertips

It should be said that finance and IT teams in mid-sized companies have already automated a lot. One mid-sized company we worked with recently for instance had used a bot to automate its tax filing processes saving countless of person hours from doing it manually.?

Using Robotic Process Automation (RPA) tools, a lot of the data capture is now automated. However, as stated, the data hasn’t been used for much up until now. With Generative AI it’ll be much easier and faster to analyze the data.?

Upload the data into the tool -> ask it to organize it -> run calculations -> uncover trends.?

CFOs are rightly concerned about using Generative AI tools to analyze proprietary data. However, as Generative AI becomes household in most companies, they start to build their in-house solutions eliminating these concerns. Even better Generative AI tools are being built into modern ERP systems providing these features at your fingertips.?

Not long ago I spoke to the CFO of a mid-sized consumer goods company. Certainly, not one you would think had an innovative finance function. However, he mentioned that they were already building their own Generative AI solution. That was just the beginning, he said, as once they had proven their value many more would follow. This also extends way beyond simple variance analysis and management reporting and into more advanced analytics.?

Next stop: Predictive and prescriptive analytics

Using Generative AI tools mid-sized companies will gain a much better understanding of their data and business. This should lay the foundation for more advanced data models being built. Ideally, these are housed within or easily built on top of the ERP system. There must be a seamless integration of data sources. Mid-sized companies won’t be able to afford an army of analysts to analyze and integrate the data into the models.?

Essentially this approach makes all the data generated available for larger data models. This will enable the finance team to predict future performance and give executives exactly what they need to make competitive decisions. It will also help companies leapfrog their current antiquated budget process into a much more dynamic driver-based rolling forecast approach more accurately.?

That’s just one benefit. Like in all other businesses, mid-sized companies encounter a lot of business challenges. Now they’ll be able to take a much more data-driven approach to solving them as well as act much faster knowing they’re making the best possible decision.?

It’s important though to think about how to visualize and communicate the insights though. The ERP system occasionally encounters challenges, and the data models could benefit from improvement. However, since all the data is in one place and analyzed by in-house data models it should be easy to build dashboards on top. This will enable for easy update of the numbers whenever another business cycle is run. It will also enable the finance team to communicate their insights more clearly, helping business leaders to take appropriate action.?

It's time to assess the tech stack

All this likely sounds good, however, your tech stack may not be able to do it yet. I’m telling you it’s possible though so it’s about time you assess the tech stack to see how far it will take you. Don’t let yourself be limited by what you’re currently working on. Don’t let yourself be limited at all. In the age of Generative AI and an accelerating technology landscape.?

Finance and IT teams should get together and plan how to bridge the gap from where you are today to the capabilities you want in the future. It will require some investments, of course, however, the alternative is worse. Great finance and IT teams provide a competitive advantage to a company and poor ones the opposite. Make sure yours will be a great one by leveraging Generative AI and Advanced Analytics. What’s the current state of your tech stack and do you have plans to start reaping the benefits of Generative AI?

On 21 February we’re hosting a webcast about Generative AI in mid-sized companies. In this insightful webcast, discover the transformative power of AI and Generative AI within your SAP S/4HANA Cloud Public Edition. In the past year, these technologies have become widespread, with your SAP Cloud ERP system leading the intelligence revolution. Join us as we explore the broader technology trend and its implications for your business. Discover how AI and Generative AI can enhance productivity and decision-making. Tune in for insights from AI experts in a session designed for practical impact. Don't miss the chance to unlock the potential of these cutting-edge technologies for your business success.

Don't miss out—register today!