INDUSTRY OUTLOOK uncertainty , AI and ML are on the side of finance departments , offering the most up-to-date forecasts to make better future financial decisions .
Strategic planning and modelling
Strategic planning and modelling , built on trusted , verified financial data , are the cornerstones of sound financial decisionmaking . They propel long-term strategy , allowing you to analyse multiple potential scenarios at once .
But it doesn ’ t stop there . These models go beyond static plans . They empower finance departments to stress-test assumptions and adjust key drivers , pinpointing how even minor changes can impact your financial outlook . This foresight allows for proactive adjustments , maximising chances of business success .
Furthermore , strategic planning and modelling allow finance departments to delve into ‘ what-ifs ’ scenarios . This is where AI and ML come into play . AI / ML for predictive analytics can create thousands of demand planning forecasts on a daily and weekly basis to better understand key drivers and have more accurate forecasts and plans , leading to better resource allocation , inventory and labour plans . This comprehensive analysis ensures finance teams select the path that best aligns with long-term goals .
The power of foresight
The CFO role is changing . They are being asking to do more , predict more and drive the business towards growth . Strategic planning and modelling equip finance departments and leaders with the power to understand how these external factors can impact your financial health . A crucial advantage in an ever-changing landscape .
Demand-based forecasting models will show how changes in key drivers , such as business initiatives , prices , interest rates , weather , etc ., have on product demand . Having a better understanding and more accurate forecasts of demand means more accurate inventory and labour planning and resource allocation which leads to reduced costs and improved the bottom line .
For instance , consider a company heavily reliant on imported materials . By analysing the model ’ s sensitivity to commodity prices , you can assess how a rise in oil prices might impact demand and , ultimately , profitability .
By understanding and anticipating the impact of external forces , strategic planning and modelling become far more than just financial forecasts . They transform into powerful tools for safeguarding your company ’ s financial health and navigating the ever-changing currents of the market .
Moving beyond the spreadsheet
The incorporation of purpose-built AI and ML enables finance teams to overcome the constraints of manual data entry and analysis inherent in spreadsheets . Repeated processes , such as data entry , invoice processing and reconciliation , can be seamlessly handled by AI algorithms . This not only reduces the risk of human error but also increases overall productivity .
Relying too much on manual intervention leads to a lack of control and repeatability . Too much time is wasted manipulating data while too little time is left to draw the insights needed for strategic decisionmaking . Instead , AI can analyse large sets of data , predict future outcomes and help companies focus on new growth www . intelligentfin . tech
41