# Setting the pace – Cognitive financial planning and analysis for business agility Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-24 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Unlocking Financial Success: The Impact of Cognitive Meta Description: Unlock the potential of advanced data analytics and cognitive computing to drive growth and profitability in your finance department. Discover how IBM research URL: https://financedigest.com/setting-the-pace-cognitive-financial-planning-and-analysis-for-business-agilityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/paulibm400plus-1736844494590-compressed.jpg) _By **Paul Campion**, Director,_ [_IBM Global Financing_](https://www.ibm.com/web/portal/financing/!ut/p/z0/04_Sj9CPykssy0xPLMnMz0vMAfIjo8zivTw9DDyMnQ28_F0NDA0cPcyCfS1CfPxdQkz1C7IdFQEJ_0To/) _, UK&I_ Paul Campion The pace of change within, and without, a business is ever increasing as global competitors race to streamline processes, uncover ways of saving costs and innovate their product portfolio. No function is immune from this upheaval, and as the hub of it all, the finance team feels the impact more than most. Finance departments are being asked for more and more analysis and modelling within a tight deadline to support growth of change ambitions of other business units, putting pressure on staff time, budget and process. Through intelligent management of data, [automating manual tasks where possible and realising the benefits of cognitive](https://www.financedigest.com/cognitive-automation-ca-to-drive-the-surgical-gowns-market.html "Cognitive automation (CA) to drive the Surgical Gowns Market") computing, the quick and detailed answers finance teams are asked for as part of an agile financial planning and analysis (FP&A) process now can be delivered to match the pace demanded by modern business. [IBM research](http://www-935.ibm.com/services/c-suite/study/studies/cfo-study/) has found that just four percent of CFOs are leading teams where proper advantage is being taken of the capabilities advanced data analytics has to offer. These teams all have a robust infrastructure with common standards, data definitions, [finance processes](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model") and planning platforms combined with superior analytical powers. They are ones to watch in the financial department peer group, being 55 percent more likely than other finance teams to enjoy outstanding [revenue growth](https://www.financedigest.com/microbial-rennet-market-overview-2022-2029-top-manufacturers-cagr-value-future-scope-revenue-growth-rate-and-forecast.html "Microbial Rennet Market Overview 2022-2029 (Top Manufacturers, CAGR Value, Future Scope, Revenue, Growth Rate and Forecast)") and 57 percent more likely to be highly profitable. Those in leadership positions here are generally required to keep their fingers on the pulse of not just their own company, but their competitive sector. The latter is also expanding, as start-ups and other businesses previously outside that competitive sphere come crashing in as [technology and funding](https://www.financedigest.com/uk-launches-270-million-pound-fund-to-support-green-heating-technology.html "UK launches 270 million pound fund to support green heating technology") for “disruptors” becomes more available. As CEOs increasingly look to CFOs to play key [strategic roles](https://www.financedigest.com/now-is-the-time-for-finance-leaders-to-take-on-a-more-strategic-and-valuable-role.html "Now is the time for finance leaders to take on a more strategic and valuable role") in company direction, this is a matter of no small importance. **Why isn’t everyone doing this?** Paul Campion Where once the information was either not available (siloed or unstructured and so not usable in traditional datasheet analyses) or the [analysis was so complex it could only be completed at highlight points](https://www.financedigest.com/snowboard-equipment-market-pin-point-analysis-for-changing-competitive-dynamics.html "Snowboard Equipment Market: Pin-Point Analysis For Changing Competitive Dynamics") of time (quarterly results), we’re now looking at a new world for the CFO. Finance directors recognise the importance of breaking down those [data walls](https://www.financedigest.com/wall-st-ends-lower-treasury-yields-slide-as-data-fuels-recession-jitters.html "Wall St ends lower, Treasury yields slide as data fuels recession jitters"), but to do it manually is expensive and tricky, and it’s been difficult for most to commence these programmes. Using unstructured [data and analytical programmes looking through separate data buckets in the form of media notes, analyst reports, presentations, emails, customer service interactions and a host of other items, as well as the regular structured data flows from supply chains](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform"), financial accounts and market prices, today’s company leaders can use analysis not just as a way of checking how the business is performing, but also quickly see how it might perform in any number of scenarios in the future. **The day to day benefits** Automated reporting, advanced [analysis and forecasting](https://www.financedigest.com/immunology-drug-market-growth-by-top-companies-trends-by-types-and-application-forecast-analysis-to-2030.html "Immunology Drug Market Growth by Top Companies, Trends by Types and Application, Forecast Analysis to 2030"), and support for daily strategic decision making all come to the fore with a cognitive financial department. [Leaving analysts and managers](https://www.financedigest.com/finding-it-hard-to-recruit-good-it-security-managers-dont-leave-yourself-vulnerable-to-attack.html "Finding it hard to recruit good IT security managers? Don’t leave yourself vulnerable to attack") to analyse and manage, rather than calculate and complete manual and time-consuming data tasks. This [leads to that aforementioned strategic input into the company](https://www.financedigest.com/title-medical-imaging-equipment-services-market-to-witness-huge-growth-by-2031-with-profiling-leading-companies-agfa-gevaert-group-althea-group.html "Medical Imaging Equipment Services Market to Witness Huge Growth by 2031 with Profiling Leading Companies – Agfa-Gevaert Group, Althea Group"), with the leading CFO departments looking at customer relationships, product decisions, internal technology decisions, as well as business models and new partnership opportunities. Even regular management issues can be addressed. One UK-based manufacturer has been using this technology for years to ensure that across multiple offices and global regions, managers all have access to centralised information on company sales and accounting information, while [giving local users individual control of their local reporting](https://www.financedigest.com/auto-parts-cleaning-machine-market-the-report-gives-immense-knowledge-on-the-competitive-nature-of-key-players.html "Auto Parts Cleaning Machine Market: The Report Gives Immense Knowledge On The Competitive Nature Of Key Players") requirements. This re-invented the company’s monthly close, reporting and re-forecasting capability, and when [needed the information can support daily financial and business](https://www.financedigest.com/setting-up-a-business-in-the-uk-heres-what-you-need-to-know.html "Setting up a business in the UK? Here’s what you need to know.") planning decisions in near real-time. Another example is the [London Stock Exchange](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments") Group (LSEG). As a diversified international market infrastructure and capital markets [business that sits at the heart of the world’s financial](https://www.financedigest.com/financial-advice-for-starting-your-own-business.html "Financial advice for starting your own business") community, the Group’s annual and interim reports incorporate data from multiple sources, which is used to file company accounts for many different entities, incorporating multiple currencies and reporting to a number of local financial services regulators. After using automated reporting technology to successfully manage financial reporting for a number of years, LSEG recently decided to go a step further by using a powerful reporting and [process automation solution that supports the last mile of financial report production](https://www.financedigest.com/how-process-automation-increases-productivity-in-the-insurance-sector-while-giving-employees-room-for-more-high-value-activity.html "How Process Automation increases productivity in the insurance sector while giving employees room for more high value activity"). With automated, standardised reporting processes and a single, consistent version of financial [data](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation"), teams at LSGE can work more efficiently than ever before. The result is that the Group can easily meet increasingly [demanding reporting](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026") requirements as the business grows. **The AI CFO?** While algorithms and code can be used to great [effect in analysing data](https://www.financedigest.com/can-banks-compete-in-the-digitisation-race-without-effective-data-integrity.html "Can banks compete in the digitisation race without effective data integrity?") and providing recommendations, there will always have to be a finance director’s department there to, well, direct. As [finance departments](https://www.financedigest.com/ai-in-the-finance-department-augmenting-not-replacing.html "AI in the finance department: augmenting, not replacing") evolve and become that strategic powerhouse of their organisations, it opens up new areas for the skilled members of the department to provide more analysis and thought than ever before. As we’ll be discussing in more detail at this year’s [Business Connect](http://ibm.biz/BdrwEA), the technology opens up the path for teams to provide even more value to the company than they already do, surely something a CFO can get behind. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---