To note technology’s role in helping transform the way do almost everything in our professional (and personal) lives is nothing new. Despite this, it is always surprising to see the slow uptake certain industries and departments have with the digital revolution.
A good example of this is the finance function. The challenge stems from the need for:
The solution, however, is all–too-often a reliance on outdated systems that struggle to adequately meet these needs. To combat this, there needs to be a serious evolution of the finance function led by Financial Planning & Analysis (FP&A).
So, in the light of knowing a change is required – and some may argue already underway – what key trends can we expect to see in 2020 that will help reshape the Office of Finance?
Digital innovation and automation often go together. For finance teams there is time saving potential, among other benefits, through introducing automation in areas such as planning and control, financial closing, and consolidation and disclosure.
With savings in time and effort, finance teams can direct their attention to more high-value tasks.
FP&A processes, when taken beyond the remits of finance, can add value to other departments. Supply chain, HR planning, and sales and marketing, for example, can all benefit from an Extended Planning and Analytics (xP&A) approach with Integrated Business Planning (IBP) as the expected outcome.
IBP offers teams across the organization a new level of flexibility and insight, leading to better decisions.
Financial planning, reporting, and analysis has been digitally administered by Excel spreadsheets and Oracle Essbase for a long time. While the two have served their purpose, an enhanced level of ability is here.
Organizations can quickly scale up in terms of capability with next-generation solutions, leaving antiquated systems behind and embracing enhanced insight.
Analysis plays a key role in the success of an organization. We will see more data being analyzed, meaning more potential for forecast and simulation activities. This forward-thinking approach – directly opposed to the static view many businesses have in using historical data to guide future planning – is necessary to properly lead strategic, financial, and operational decision-making.
The right software can augment early warning systems within FP&A. 2020 will introduce more solutions that offer this, providing organizations enough time to correct their execution before issues arise.
The points above will play a pivotal role in reshaping FP&A. The digital revolution has introduced the capability for each trend to be satisfied, enhancing decision-making processes massively. For those organizations ready to invest in the right solutions and take advantage, there will be a huge boost in competitiveness in the market.
To learn more about the trends we firmly believe will make a huge difference in 2020, and see examples from those organizations already taking an advantageous lead, why not download our latest whitepaper?
Learn more about the five key trends in FP&A that will reshape the 2020 Office of Finance, enhancing traditional processes through innovative technology.