Now that we’ve identified the challenges at hand, let’s shift our focus to the innovative solution. We view the transformation of the financial forecasting process through the lens of two distinct roles: the Traditional Controller and the Analytics Controller. The Traditional Controller is the backbone of today’s financial planning, burdened with manual tasks and limited by the tools at hand. The Analytics Controller embodies the future of financial planning – an agile, AI-augmented role which focuses on strategic analysis and data-driven decision support.
What does a day of a Controller within the forecasting period look like? An Illustrative example.
1st Day of the forecasting process
Trained to understand the necessary inputs and outputs of AI-supported forecasting, the Analytics Controller reviews the latest forecast and evaluates whether any adjustments to the input data are necessary. The remaining time is used to analyze relevant business developments, define focus areas for the upcoming forecasting process and generate first insights. The Traditional Controller is collecting data.
2nd Day of the forecasting process
The AI-supported financial forecast is readily accessible by the second day of the forecasting process, after being generated by the Analytics Controller through the simple click of a button. Forecasts are evaluated right away, stakeholders are informed, and reviews are conducted. Unexpected developments are discussed, additional insights are generated on demand. By leveraging simulation capabilities, different market developments are outlined to provide scenario analyses for causal explanations and strategic considerations. The Traditional Controller is still collecting data.
5th Day of the forecasting process
The evaluated, reviewed, and enhanced forecasts are presented to the management by the Analytics Controller. Following the recommendations forhandling of unexpected changes, measures can be decided, and further analyses are conducted to provide deeper insights into key positions. Management and controlling proactively prepare for upcoming market developments by discussing the simulated scenarios and their expected impact on the organization. The Traditional Controller is still collecting data.
10th Day of the forecasting process
The forecast as well as the proposed measures are already communicated to the affected areas and teams. A comprehensive report is available which provides the foundation for all stakeholder communication. The Analytics Controller is monitoring the adoption of the proposed measures and as well as the real-time development of the company’s KPIs. The Traditional Controller is starting the forecasting process.