Financial Analytics
Financial analytics is not just necessary for businesses, it’s empowering. It provides detailed insights into economic data, offering a sense of security and preparedness in uncertain times. It helps improve performance through Pricing, Working Capital reduction and enhanced Cash Flow. The predictive, data-driven insights it offers allow teams to learn from the past, strategize for the future and make confident decisions as technology evolves. Regardless of your company’s size, integrating financial data analytics is challenging but crucial for maintaining competitiveness and accurately forecasting your business’s future. It’s about taking control of your business’s destiny.
Financial analytics is a value driver that ensures your business is on track and focused on meeting short- and long-term goals with precision and confidence.
Robust Forecasting
With the predictive power of analytics, you can unlock robust forecasting, providing a secure foundation for your sales success and future predictions.
Real-time Cash Flow
Cash flow is the lifeblood of business operations, and it’s essential to have real-time indicators to monitor it effectively. Financial analytics drives working capital optimization and provides visibility into real-time cash flow, ensuring your business operations run smoothly.
Customer Profitability
Analytics simplifies achieving customer profitability by thoroughly analyzing customer segments and individual customers, aiming to drive sales that result in profit.
Product Profitability
Allocating costs appropriately is essential to understand product profitability, especially for products that share production processes or cost bases. Analytics helps accurately determine each product’s true profitability.
Cost of Capital
Companies’ cost of capital is increasingly tied to sustainability and social factors, known as “green funding.” Investors are pressuring companies to operate ethically and sustainably, and analytics provide insights into a company’s ESG footprint using freely available market data. Failing to analyze this data adequately could result in a drop in investor interest and a higher cost of capital.
Business and Executive Coaching and Competence Focus
Thoughtful execution and continual improvement are crucial to ensuring sustainable business results. We understand the challenges you face and are here to help. We prioritize our clients by offering complimentary business coaching, tailored competency development, process support, tool support, and mentoring to help them achieve and maintain their desired outcomes. With our support, you can navigate the complexities of financial analytics with confidence.
Objective
The new reality for Finance organizations involves rapidly embracing digital capabilities to leverage external data for forecasting growth and automating the forecasting process, leading to better insights and future agility. Our objective is to make your company one of those successful companies harnessing analytics to achieve double-digit revenue and profitability growth consistently. Analytics has emerged as a new competitive advantage, offering a faster and more substantial return on investment. By adopting financial analytics, you’re not just keeping up, you’re leading the pack.
What Challenge(s) do Our Clients Face?
Opportunities for utilizing advanced analytics within the Finance function to drive strategic decision-making and enhance performance management:
- Forecasting and Scenario Modeling:- Advanced data analysis to generate accurate financial forecasts and model various scenarios for effective planning and decision-making.
- Cost Optimization:- Analytics to scrutinize cost structures, identify efficiencies, and optimize overall expenditures within the organization.
- Cash Flow and Working Capital Optimization:- Data-driven insights to effectively manage working capital and streamline cash flow operations for improved financial performance.
- Internal Control, Risk Management, and Compliance:- Analytics to strengthen controls, manage risks, and ensure compliance with regulations and standards.
- Fraud Detection:- Stay vigilant against fraud with our cutting-edge analytical tools that monitor financial transactions to detect and prevent potential fraudulent activities.
- Profitability Analytics:- For better decision-making, detailed analytics for customer profitability, product performance, and pricing strategies.
- Investment Management:- Advanced analytics to optimize asset allocation and make data-driven investment decisions for maximum returns.
- Vendor Management:- Advanced analytics to streamline procurement and achieve organizational cost efficiencies.
How Do We Help?
Real-time analytics will help drive innovation and create a competitive advantage, ensuring you always stay ahead of the curve.
- Our 'Fintelligence Consultants' are experts in the field of business intelligence. They enable clients to deliver business intelligence solutions that drive revenue and profitability. They provide strategic guidance, technical expertise, and hands-on support to help businesses leverage analytics effectively.
- While the top-line and bottom-line always get attention, we leverage analytics to generate cash flow by reducing working capital.
- We provide expertise in setting up analytics functions and defining functional requirements, including financial modeling, manufacture/buy, and other models as required.
- We also offer transformation services to support all phases of becoming a data-driven organization, assist in developing analytic talent, analyze large amounts of data efficiently, and improve decision processes.
- Our services include creating ad-hoc and custom reports and visually presenting data and results for easier understanding.
Business Intelligence
Drive Revenue and Profitability
Cash Flow and Working Capital
Leverage Analytics for Working Capital Optimization
Establish Analytics Function
We can assist you in establishing an Analytics Function and work with solution providers to convert functional and technical requirements.
Ad-hoc and Custom Reports
Creating ad hoc and custom reports that provide actionable insights.
Develop Analytics Competency
Training your key people and knowledge transfer
What are the Benefits of Financial Analytics?
The finance function can enhance its involvement using big data and analytics, which can be categorized into two main opportunity areas:
- Decision-making and Performance Management;
- Internal control, risk management, and compliance.
- Forecasting & Scenario Modelling:- Many organizations recognize the importance of scenario-based forecasting but need help to create accurate forecasts. Utilizing Big Data and predictive analytics can help organizations better handle volatility, with finance functions playing a crucial role in achieving accurate forecasts.
- Custom Lifetime Value Analysis:- As one of the organization's critical commercial metrics, customer lifetime value predicts the net profit from a customer's future relationship. Calculating it is simple, but accurately measuring its components is challenging for many business owners. Marketing professionals may not prioritize it due to short-term goals, and it requires many data and skilled analysts for accurate analysis. It is intensely data-driven and needs large volumes of data and analysts with the right competence to translate the data into financial figures.
- Product Pricing:- Due to increasing volatility in raw material prices, input costs, currency fluctuations, and competitive forces, salespeople can no longer rely solely on experience and instinct to set prices. Organizations should aim to find the optimal price customers will pay for each product and consider service costs, using big data and analytics to derive optimized cost levels for each sales opportunity. This approach also focuses on determining the willingness of each customer segment to pay.
- Efficiency Improvement & Cost Optimization:- In addition to enhanced cost measurement and allocation, Big Data and analytics enable organizations to make operations more efficient and lower costs. Large-scale activity measurement through sensors and GPS tracking devices provides organizations with vast datasets for comprehensive cost analysis. Finance teams can ensure proper cost control by providing transparency and insight and delivering actionable insights by analyzing big data and cost-activity combinations.
- Working Capital Management:- With an increasing emphasis on cash flows and optimized working capital levels, using Big Data and analytics can enhance working capital management. Through advanced modeling that integrates factors such as inventory levels, product promotions, weather conditions, and competitor offerings, the finance function can significantly improve its superior cash flow forecasts and optimized working capital levels, especially in (B2C) markets in which customers directly pay sales.
- Internal Control, Risk Management, Data Control:- Central to the idea that Big Data and analytics can benefit organizations is that data possesses the right level of quality/reliability for its use. Finance professionals can help make datasets more reliable by ensuring data compiles with regulations and meet their organizations' quality assurance standards.
- Data Monetization:- Increasing measurement and monitoring of activities provide organizations with large volumes of data. While the critical intention should be that this data supports the core business, the same data may also be valuable for the non-competing activities of other organizations. In addition, organizations may collect data as a kind of by-product that the organization itself does not use. Organizations may leverage their data to sell the raw data or its (easy-to-obtain) insights to other organizations in both situations. Finance can help with data valuations or develop a pricing strategy for data selling.
- Risk Modelling & Analysis:- The worldwide business environment is becoming more complex and volatile, creating uncertainty for organizations. Predictive risk models can help anticipate and mitigate risks, allowing finance professionals to influence strategic decisions. Organizations need a skilled team that understands the impact of risk factors on value, and the finance function is well-positioned to handle these responsibilities.
- Regulatory Compliance and Fraud:- Using Big Data and analytics makes it easier for organizations to detect fraud and other illegal behavior, both within and outside the organization. Negative correlations between different datasets could be warning signs of manipulations. Automating fraud detection allows real-time risk identification and assessment, helping organizations meet regulatory compliance requirements. Full-scale application of Big data systems eliminates the need to work with sample data, ensuring critical observations are noticed.
Why Choose Us?
One of our strengths in FP&A expertise is our business intelligence. Understanding the data, synthesizing it, and communicating the insights to stakeholders is our unique selling proposition (USP). Our value proposition describes the interconnectedness of strategy and finance, supported by analytics. Analytics is our strength in delivering integrated solutions to empower business decision-making.
- Functional Expertise
- Business Intelligence
- Insights
- Communication Skill
Coaching and Competence Focus
Our unwavering focus on coaching and developing competence underscores our commitment to helping our clients achieve sustainable business results. Meticulous execution and an unyielding dedication to improvement are paramount. We offer comprehensive supportive services to ensure our clients thrive, including personalized business coaching, tailored competency development, hands-on process support, adequate tool support, and customized mentoring. We aim to empower our clients to attain and maintain their desired outcomes, ensuring their long-term success and prosperity.
We have developed a module that considers business needs and executive working styles.
- We help you establish the Analytics function in your organization. We have developed a plan to ensure knowledge building about analytics. Your sales register in ERP can reveal many things about your sales and customers. You may be surprised by this hidden information. The beginning needs to be small and straightforward. That helps develop your people's competency faster. We begin in Microsoft Excel.
- Pricing Analysis and Installed base analysis will reveal your most revealing opportunities. Our analytics service helps you leverage those.
- We added the necessary competency-building workshop, which included collecting, analyzing, and synthesizing the data. The insights genuinely help you understand more about your business and customers, internal strengths and external challenges.
- We offer tools to use, improve, and use for regular analysis and insights. Many times, different companies have specific requirements. We can guide your team in developing those tools. Tools built in Excel are an excellent beginning. Once the understanding and processes reach proficiency levels, automation, and software systems can enhance their value.
- During the assignment, we encourage your team to take some initiatives and projects under our supervision. That will be an excellent chance to showcase and apply their recently enhanced competence to the company's requirements. We review their performance and guide them toward continuous improvement.
- We wish to take key personnel mentoring. We hope what we deliver to clients will be sustainable in the medium to long term. Many times, mentoring key personnel helps keep that momentum. We identify them as super users. Super users are responsible for mastering specific skill sets and internally training others. This is the benchmark method where the company can internalize the competence building without frequently hiring an external advisor.
How Do We Serve Our Clients?
Frequently Asked Questions
- Financial analytics is a value driver that ensures your business is on track and focused on meeting short- and long-term goals with precision and confidence.
- Robust Forecasting: Unlock the power of predictive sales analytics to forecast your sales success and future predictions.
- Cash flow: Real-time indicators of cash flow, essential for ensuring smooth business operations.
- Customer profitability: Ensure profitable sales by analyzing customer segments and customers.
- Product profitability: Appropriate cost allocation for products sharing production processes or cost bases is necessary to determine true product profitability.
In his memoir of the 2008 financial crisis, former U.S. Secretary of the Treasury Timothy Geithner wrote that such crises are like “earthquakes”—they “cannot be reliably predicted, so they cannot be reliably prevented.” It is close to impossible to determine this accurately and determine the timing of when a potential financial crisis will occur. Therefore, it is impossible to predict sharp economic turns with certainty. However, if the indicators show an increased risk of a financial crisis, they can be used as an incentive for further analysis. Integrating AI into financial forecasting and crisis management holds immense potential to transform how we approach economic stability and resilience. By harnessing the power of advanced analytics and machine learning, stakeholders can enhance their ability to identify early warning signs, implement timely interventions, and safeguard the broader financial system.
As analytical capabilities evolve, organizations must optimize their operating model to capitalize on the new analytics and data-focused service catalog to provide appropriate data management governance. Optimize organization structure:
- Finance business partners—Act as a strategic advisor to business and function leaders, providing data-driven insights to help drive decision-making, prioritize initiatives, and establish partnerships across business units to support growth initiatives.
- Corporate planning – Establish and promote the enterprise planning strategy while proactively identifying business/economic trends during disruption and ambiguity. Integrate multi-source data to support advanced analytics and insights.
- Finance solutions – Build and maintain customer-centric solutions (non-financial outputs such as vendor, pricing, customer) while serving as technologists and solution architects. Identify emerging technologies to drive innovation.
- Centralized services—Provide enterprise-wide analytics, KPIs, operational policies, and requirements while leveraging technologies to enable the accuracy of financial data and reporting through data visualization and modeling.
