The Ledger

Mastering Predictive Analytics: Analyze, Predict, Act

In order to have strong predictive analytics, finance teams need to start by shifting their data conversations from data quantity to data quality. The focus on data-driven decision making leads these teams to gather all the data they possibly can without determining if it fits into their strategy.

“We must follow the mantra: analyze, predict, and act. Be careful in your analysis, ensuring that only quality data that matches your purpose is used. Use decision-driven collection, then integrate that data with information from a variety of sources. Look for easy solutions here- openness, flexibility, and an intrinsic ability to work in your systems.”

Read More at CIO Applications >

Skeptics vs. Enthusiasts of Big Data Analytics

There are a few telltale signs of skeptics and enthusiasts of analytics. Skeptics tend to be over the age of 50 and have never needed predicative analytics in their business finance processes. Today, skeptics recognize that the world has changed. It is much more volatile. But they still challenge the need to embrace deep or advanced analytics. Enthusiasts, however, are far more imaginative than that and have the analytics and computing power to be creative. Enthusiasts think forwardly with probabilistic what-if scenario analysis. Although there are differing views when it comes to analytics, there is still a need for creating a culture around it.

Read More at The International Institute for Analytics >

Key Elements for a Functional Finance Strategy

The finance strategy creates the foundation and framework for transformation of the finance function. Functional finance strategies deal with external and internal requirements for the finance team. They consider external megatrends and innovation and make specific what the vision and mission should be, and make what areas will create value for the business clear the decision makers. The finance strategy should include actionable initiatives and tasks, showing what is needed to master the transformation and how the change will be implemented. There are seven finance strategy elements that make up a functional finance strategy.

Read More at The Digitalist by SAP >

Harnessing Data for Real-Time Operational Reporting

CFOs are increasingly shifting to business partnering and strategy. Getting a clear perspective of the key drivers for the business as they happen is increasingly important, from classical finance measures around income, expenses, days sales outstanding, and profitability to operational measures like customer satisfaction or sales pipeline health. Providing real-time access for operational departments, rather than expecting them to wait for period-end, can be extremely useful.

Read More at The Digitalist by SAP >