by Terence Leung
We discussed the first hurdle, data acquisition, out of several, in applying advanced and predictive analytics by organizations in a previous blog. The second hurdle involves applying advanced analytic models to make sense of the data and look for often times much larger improvement opportunities than possible before. The process starts with constructing an understanding of what’s going on in the business with big data; measuring the true gaps to fill; identifying opportunities, levers to pull and associated risks; and enabling executives to carry out improvement actions.
Analytical power has improved so much and the data-set has grown so much that the models are capable of solving strategic and finance problems for management now. That’s the foundation of our Balance Sheet of the Future™ solution for Finance executives and the business.
It is a Financial Performance and Risk Analytics solution that enables decision-making on improving free cash flow, profitability and other financial performance while balancing risks for the office of the CFO. Finance executives can review performance and risk metrics through the balance sheet as a starting point, set goals and then drill down to analytics, scenarios and recommended actions at any business, geography, product, and process granularity.
Improvements will come from identifying the root causes, which can be financial, operational and external to the companies. So the solution is designed to be flexible in acquiring the data from relevant systems and correlating the transactions and performance metrics; and the predictive analytics and machine learning are versatile to generate results that are quantified in monetary and risk terms.
To further discuss and exchange these ideas with Finance and Risk executives, SAP and Greenlight Technologies are jointly organizing a half-day event, called Technology for Finance Transformation, on July 27th at the SAP office in NYC. The event agenda will include thought-leadership sessions and round-table discussions to highlight how companies are achieving the next mile of finance performance and risk balancing and leveraging advanced technologies to overcoming hurdles in transformation. Speakers will include the CEO of Financial Executive International (FEI), CFO of Volvo Auto India, Director T&O Compliance of Santander Bank, and Finance and Risk executives from NBC, Credit Suisse, Verizon and many others. Learn more at the event page.