Our research identifies some finance teams whose use of data and analytics is significantly more mature than that of their peers. This elite group – the “trendsetters” – accounts for just 6% of the organizations we surveyed.

These trendsetters are providing their organizations with more accurate and insightful forecasting and analysis, which typically translates into improved business performance and better growth prospects.

How we identified the trendsetters

We asked the senior finance leaders in our research to rate on a five-point scale their data capabilities in five key areas: cash/liquidity, revenues, operating costs, discretionary spend and risk.

A rating of 5 equals “widespread automation and advanced analytics” (for example, using AI, machine learning and predictive modeling), while a rating of 1 equals “early-stage automation of core and transactional tasks (using robotic process automation (RPA)).”

The trendsetters are the ones that rate their data capabilities as a 4 or a 5 across all five areas. We consider this a high level of FP&A maturity.

How are the trendsetters different?

Accelerated

They have higher FP&A maturity levels and rely more on data and analytics, and less on intuition, when planning and forecasting.

Agile

They can more easily adjust to swiftly changing circumstances and execute FP&A functions at speed. For example, 65% of our trendsetters say they include rolling, ROI-based decisions in addition to the annual budget for investment planning, compared with just 51% of the followers.

Aspirational

They have moved beyond existing processes and are investing more in transformational FP&A capabilities to bolster next-generation finance functions.

How did they become trendsetters?

1. They are investing in skills

This research shows that trendsetters are more likely than their peers to possess a broad range of skills. This is how they are able to move beyond intuition-led decisions: they ensure that they have the skills they need to use their data and analytics capabilities to drive fact-based decision-making.

Michael Kreeft, CFO of BMW Japan, explains that organizations lacking these skills will find themselves outpaced.

“We are in a world that is going through massive, accelerated digital change. If you want to stay competitive, you need to move quickly. You cannot stay with old processes or with arguments of, ‘That is how we always did it, and it worked, so why should we change?’ Only the ones that move fast will survive.”

MICHAEL KREEFT BMW Japan

Our research identifies some finance teams whose use of data and analytics is significantly more mature than that of their peers. This elite group – the “trendsetters” – accounts for just 6% of the organizations we surveyed.

These trendsetters are providing their organizations with more accurate and insightful forecasting and analysis, which typically translates into improved business performance and better growth prospects.

How we identified the trendsetters

We asked the senior finance leaders in our research to rate on a five-point scale their data capabilities in five key areas: cash/liquidity, revenues, operating costs, discretionary spend and risk.

A rating of 5 equals “widespread automation and advanced analytics” (for example, using AI, machine learning and predictive modeling), while a rating of 1 equals “early-stage automation of core and transactional tasks (using robotic process automation (RPA)).”

The trendsetters are the ones that rate their data capabilities as a 4 or a 5 across all five areas. We consider this a high level of FP&A maturity.

How are the trendsetters different?

Accelerated

They have higher FP&A maturity levels and rely more on data and analytics, and less on intuition, when planning and forecasting.

Agile

They can more easily adjust to swiftly changing circumstances and execute FP&A functions at speed. For example, 65% of our trendsetters say they include rolling, ROI-based decisions in addition to the annual budget for investment planning, compared with just 51% of the followers.

Aspirational

They have moved beyond existing processes and are investing more in transformational FP&A capabilities to bolster next-generation finance functions.

How did they become trendsetters?

1. They are investing in skills

This research shows that trendsetters are more likely than their peers to possess a broad range of skills. This is how they are able to move beyond intuition-led decisions: they ensure that they have the skills they need to use their data and analytics capabilities to drive fact-based decision-making.

Michael Kreeft, CFO of BMW Japan, explains that organizations lacking these skills will find themselves outpaced.

“We are in a world that is going through massive, accelerated digital change. If you want to stay competitive, you need to move quickly. You cannot stay with old processes or with arguments of, ‘That is how we always did it, and it worked, so why should we change?’ Only the ones that move fast will survive.”

MICHAEL KREEFT BMW Japan

Trendsetters vs followers: Skills

2. They prioritize technology and innovation

The trendsetters are more likely to be investing in acquiring transformational capabilities than their peers, which tend to focus on making existing processes faster and more efficient. And now, having acquired comprehensive data and analytics skills, the trendsetters are pursuing advanced technologies more aggressively.

Trendsetters vs followers: Investment in FP&A capabilities (past 12 months)

Trendsetters vs followers: Investment in FP&A capabilities (planned in next 12 months)

3. They are committed to speed

The trendsetters are committed to responding swiftly to changing circumstances. This ability has been especially valuable in the extreme turbulence of the past 18 months, but it will continue to be a key driver of FP&A success.

“The entire paradigm shifted with Covid. Things we were doing every quarter, we started doing almost every week. Things we were doing every month, we started doing daily. Things we were doing daily, we were looking at hourly. Finance was no longer responsible for reporting what happened, because whatever happened yesterday was old news. What is going to happen today is now relevant – and, more importantly, we provide the insight the organization needs.”

GAURAV MALIK Regional CFO, Quest Diagnostics

Trendsetters vs followers: Response

Trendsetters vs followers: Skills

2. They prioritize technology and innovation

The trendsetters are more likely to be investing in acquiring transformational capabilities than their peers, which tend to focus on making existing processes faster and more efficient. And now, having acquired comprehensive data and analytics skills, the trendsetters are pursuing advanced technologies more aggressively.

Trendsetters vs followers: Investment in FP&A capabilities (past 12 months)

Trendsetters vs followers: Investment in FP&A capabilities (planned in next 12 months)

3. They are committed to speed

The trendsetters are committed to responding swiftly to changing circumstances. This ability has been especially valuable in the extreme turbulence of the past 18 months, but it will continue to be a key driver of FP&A success.

“The entire paradigm shifted with Covid. Things we were doing every quarter, we started doing almost every week. Things we were doing every month, we started doing daily. Things we were doing daily, we were looking at hourly. Finance was no longer responsible for reporting what happened, because whatever happened yesterday was old news. What is going to happen today is now relevant – and, more importantly, we provide the insight the organization needs.”

GAURAV MALIK Regional CFO, Quest Diagnostics

Trendsetters vs followers: Response