The starting point of an era is never precise and rarely conforms to neat calendar delineations. For example, the start of the 20th century is associated with the outbreak of war in 1914. So I expect that decades from now, the consensus will hold that what became known as the 21st century began in the year 2020, with the pandemic serving as a catalyst that accelerated already existing trends and forced changes to prevailing norms and practices. This and other disruptive events that have followed are reverberating through economic and social networks and will ultimately result in some new equilibrium, but the ructions on the way there will be sharp and ever-present. Large-scale disruptions in most aspects of doing business have forced change on organizations. In this climate, the financial planning and analysis group can play a far more important role by using technology to enhance organizational agility and improve performance.
IBM Planning Analytics with Watson is a comprehensive, cloud-based business planning application that supports what Ventana Research calls integrated business planning. We coined this term in 2007 to describe a high-participation approach to business planning that integrates strategy, operations and finance. Our Next Generation Business Planning Benchmark Research demonstrated the value of IBP: Organizations that link planning processes get better results. Sixty-six percent of organizations that have an integrated method say it works well or very well, compared to only 25% that have little or no connection between plans.
Topics: Predictive Analytics, Office of Finance, embedded analytics, Business Intelligence, Business Planning, Financial Performance Management, Watson, Digital transformation, AI and Machine Learning, digital finance, profitability management
The door opened to a new world in 2020, one that renders old assumptions suspect and future outcomes more varied and uncertain. It’s likely that the transition to what’s next will be bumpy, which makes planning more effectively that much more strategic.
Prophix offers cloud financial software for planning, budgeting, reporting and statutory financial consolidation designed to meet the requirements of midsize organizations and divisions of larger corporations. The company was one of the first to offer a planning platform capable of bringing together a company’s diverse planning processes and financial planning and budgeting. Its consolidation and close automation enable a shorter close and improved accounting staff productivity for midsize corporations that have even moderately complex legal entity structures that operate in multiple currencies. Increasingly, organizations are finding that having the right finance and accounting department software tools helps attract and retain the best talent.
It’s likely that finance analytics trace back to when people first began to record transactions on clay tablets. Financial analytics were given a boost with the codification of double-entry bookkeeping, an elegant system for recording transactions that facilitate the assessment of the performance and health of an organization. Further advances were achieved with the first mechanical – and then digital system – for automating computations, while personal computing devices made the numbers accessible to all.