Gartner for Finance recently released a report on Top Priorities for Finance Leaders in 2022. The report provides a path to autonomous finance and is focused on the concerns of CFOs. It also includes data on the role FP&A plays in digital financial transformation.
First, let’s set the stage: according to Alexander Bant, Chief of Research for CFOs at Gartner, “2022 will be a make-or-break year for CFOs when it comes to unlocking the value of AI, hyperautomation, digital skills, continuous processes and data management. CFOs who continue to drive toward the future of autonomous finance will unlock immense value for their organization in the years to come.”
One of the key initiatives for CFOs for 2022 is to improve the flexibility of budgeting and forecasting. “Success demands flexibility, agility and strategic thinking in planning and budgeting. Technology will also be key as the finance function evolves through increased hyperautomation to fully autonomous finance, where data and technology are integral to predictive insights,” states Gartner. Organizations can improve their flexibility in budgeting and forecasting by:
- Building scenarios into planning through FP&A systems
- Updating financial models to reflect business realities
- Making use of planning systems capabilities
- Redefining budgeting and forecasting in the context of artificial intelligence (AI) and machine learning (ML)
- Using predictive analytics in forecasting
Digital financial transformation often sounds like the latest buzzword floating through the halls of the finance department. It’s a nice idea, but can it really impact the business and the bottom line? Gartner explains how digitalization does drive business and financial incomes. The firm’s advice helps finance organizations to prioritize funding of projects that will move the dial. Here’s a quick look:
These are great, tangible ways FP&A can help the larger Office of Finance to embrace digitization.
Gartner for Finance is a unit within the respected analyst firm that provides finance leaders with “actionable, objective insight … [that] helps deliver on critical finance priorities and lead finance through digital transformation.” The survey respondents included 114 CFOs, 100 heads of FP&A and 80 controllers.