Breakout - Precision View · Finance Analytics has Evolved from Reflective to Predictive Hindsight...

Digital CFO

Digital Financial Controller

Head of Digital Financial Planning

& Analysis

Head of Digital Tax Head of Digital Finance Operations

Scenario Planning and Predictive Analysis using PrecisionView™

2© 2019. For information, contact Deloitte China.

Deloitte survey of 500 senior financial professionals uncovered five areas that challenge effective financial planning; all areas require cultural change to enable success

Marketplace FP&A Challenges

Top 5 Challenges

Integrating planning, budgeting and forecasting

37% of respondents admitted to a failure to align their planning, budgeting and forecasting effectively with corporate strategy

Using properly61% of survey respondents recognized the importance of forecasting as a way of compensating for the static nature of budgeting

Clarifying decision-making responsibilities

A clear decision-making framework, reinforced by culture, helps organizations strike the right balance between executive and manager involvement and quick decision making

Exploiting technologyCollecting, aggregating and analyzing data via spreadsheet constrains most businesses, making the process of dynamic forecasting and planning slow and prone to error

Changing CultureA clear directive from top-level management must exist, backed by the actual ability to manage and support at the level of detail selected; without true management support, operators will default to previous methods

Applying process discipline

~33% of respondents have no formal mechanism for monitoring and managing forecast quality, while less than half of respondents are able to forecast either revenue or costs to within a five per cent variance

Deloitte CFO Signals™


CFO Surveys Indicate a Significant Shift towards Analytics

Cognitive science and artificial intelligence have been implemented by 17% of companies

Cloud platforms have been implemented by 80% of companies

Half of CFOs say they have already made substantial investments in customer analytics

Developing predictive algorithms and models is a top priority for 36% of CFOs

45% say they have already made investments in finance and accounting analytics

55% of CFOs say exploring customer data is a top purpose

52% say they will invest more in the future. (Technology is highest for past investment at 57%)

35% say automating finance processes is a top priority

Use of Digital TechnologiesPurpose and Types of Analytical Investment

Deloitte CFO Signals™


Finance Analytics has Evolved from Reflective to Predictive

Hindsight Insight Foresight

Analytical capability

Historical Focus

Basic Analytics

Advanced Analytics

Integrated Cognitive

Num

ber

of

Pla

n /

Fore

cast

Inputs

Excel based FP&ATraditional budgeting,

forecasting and analysis

Machine LearningAutomate analytical

model building

Cognitive ComputingAutomated insights via

Natural Language Generation

Robotic Process & Cognitive Automation

(RPA/RCA)Faster, cost effective, better

Visualization: Making information real-

time and accessible

Data Storage SolutionsStore Massive amounts of

data

Advanced AnalyticsDeeper insights, better

predictions

Cloud ComputingAgility and efficiency with everything-as-a-

service

In-Memory ComputingManage more information about more transactions


Machine Learning Based Forecasting

Learning from historical structured and unstructured data to improve its self-learning capabilities and make accurate forecasts


PrecisionView™: A Complete Integrated Approach

PrecisionView™ can easily integrate with data aggregation technologies to provide a seamless experience for businesses to generate high impact insights

Consolidate data from markets and regions to build the forecast baseline

Robotic

Automation

Predictive

Analytics

Visualization

DashboardsOpportunity/

Risk SensingAgile Budgets

Statistical models incorporate unforeseen trends with less effort

Plans / budgets are shared via dashboards and collaboration tools

Finance & business collaborate intra-year: mitigate risk, capture opportunity

Central/regional teams track real-time data to gain performance insights


PrecisionView™ Demo


PrecisionView™ 2.0

The latest release of PrecisionView builds on its forecasting capabilities by incorporating Natural Language Generation (NLG) for CFO’s executive Dashboards



The latest release of PrecisionView visualizes the accuracy of different statistical models for predictions across business segments and products



The latest release of PrecisionView can save scenarios and allows CFOs to compare the accuracy and impact of scenarios across statistical models

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Q&A


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Appendix


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Implementation Details – Sample Journey

14

PrecisionView™: 10 Week Roadmap

PrecisionViewTM implementation has an expected duration of 10 weeks, consisting of advising on the process, implementing and then operating the solution

15

PrecisionView™: Sample Team Structure

A typical pilot engagement is expected to last 8-10 weeks with approximately $350K-$600K in total project fees with an offshore component of approximately $20K-$300K, depending on existing account or project team structure

Breakout - Precision View · Finance Analytics has Evolved from Reflective to Predictive Hindsight...

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