Professional Documents
Culture Documents
Financial Forecasting
A financial forecast identifies trends in external and internal historical data, and projects those trends in order to provide decision-makers with information about what the financial status of the company is likely to be at some point in the future.
what if analysis of a rebate program to bolster revenue in Q2. a 10% rebate projects a 25% uplift in stage four of companys sales cycle
CRITTALL 2nd largest supplier of steel windows in the US Adaptive Insights Difficult to map labour to product Manual effort to update spreadsheets & Assumptions/allocations
Parsons Electric Established leader in electrical services industry Host Analytics Annual budgeting in Excel took nearly half the year Inflexible tools
Malt-O-Meal 4th largest cereal company in North America IBM Cognos TM1 Manual consolidation Shortening forecasting cycles Cost reductions
Strategy/Approach
Automates allocations and updates budget based on assumptions One unified platform Improved accuracy of budget Reduced time
Separate direct costs from overhead Increase visibility to drill down to transaction level No more routine requests for information Rolling forecasts enable fact-based decision-making
Matrix to determine stacking transportation cost New capital plan model Gives more time to analyse Rolling forecast Transition from reactive to proactive process
Result
Bank Loan
Potential Investors
Flexibility
Challenges
Inadequacy of Data
Recommendations
Tools not user friendly Most companies prefer excel based modeling and planning But the future lies in the optimized usage of these tools High performance risk frameworks should be used to analyze and handle market shocks and take advantage at the same time Eg: Arbitrage opportunities in different markets
References
http://businessfinancemag.com/ http://www.smallbusiness.wa.gov.au/ http://www.accenture.com/SiteCollectionDocuments/PDF/112192Tactical V7.pdf Host Analytics Customer Case Study Parsons Electric: http://cdn.hostanalytics.com/sites/default/files/casestudies/Host%20Analytics%20Case%20Study%20Parsons%20Electric.pdf Adaptive Insights Customer Success Story Crittall: http://www.adaptiveinsights.com/uploads/docs/AI_Casestudy_Crittall_Wi ndows.pdf MaltOMeal Case Study: http://ecapitaladvisors.com/customers/malt-o-meal-case-study IBM Case Study: http://www.ibm.com/analytics/in/en/case-studies/index.html