THE JOURNEY TOWARDS WORLD CLASS
This article was written by our partners, Finance Analytics Institute. To learn more about them, visit their website here: Finance Analytics Institute
This is our fourth and last article of the four-part series. So far, we have discussed the birth of Next Generation Finance, the Roadmap to implement an analytics culture, and the Mindset aspirations to decision making. In this article, we conclude by taking the temperature on where Finance is on its journey towards becoming world class.
Next Generation Finance should act as a predictive analytics powerhouse that influence and impact business decisions. But, too often, Finance hasn’t updated its skillset and systems toolbox with the most emerging technologies. As such, Finance still operates largely as a spreadsheet-driven rear-facing accounting and reporting center.
Our research, shown on the chart below, indicates that Finance organizations surveyed, spends some two thirds of its time in data collection (29%) and gathering data and compiling reports on historical performance (38%). This leaves precious little time to provide high-value add analytical insight and foresight.
The chart further illustrates how the Finance function, on average, is 20-30 years behind the evolution of analytics, as only 1% have aligned their capabilities to emergent technologies like Big Data Analytics using artificial intelligence and Monte Carlo to simulation.
Continue reading more on this topic on our partners website: Finance Analytics Institute – FROM AVERAGE TO WORLD CLASS – ASSESSING FINANCE