Making efficient and strategic decisions has become more important than ever for finance leaders in a world where organisations are in the middle of their finance transformation and are pivoting themselves for growth.
As such, the role of predictive analytics has become a vital tool in their toolkit to help navigate the current uncertain waters and provide a competitive edge.
A combination of predictive models and simulations will help create scenarios. It’s becoming more and more necessary as unpredictable events – from geopolitical to health to climate change to disruption in supply chain – all need to be accounted for.
Predictive analytics is playing a greater role in strategic and operational decision making. A decision without data is pretty much of no value.
In fact, 49 percent of senior executives assert that the greatest benefit of using analytics is that it is a key factor in better decision-making capabilities, according to a report by Deloitte. While 16 percent believe that its greatest benefit is enabling key strategic initiatives.
The role of a CFO, more recently, is to “balance the fine line” between managing resources and the ability to not hamper the growth of initiatives that are outside the realm of regular operations.
If you have data, you always want to have insights on what happened and to display the reasons why. You want to utilise the data to have insights into the future as much as possible. The predictive models will help you to get there.
From the Shadow Emerges Knowledge