Bharat Agrawal, Director Finance, Diversey, Discusses Empowering Decision Making Through Advanced Financial Analytics

In your experience, how can advanced financial analytics be most effectively leveraged to empower strategic decision-making within an organisation?

Advanced financial analytics is certainly a powerful tool for empowering strategic decision-making within an organisation in several ways starting from Data-Driven Insights based on historical financial data, current market trends and future projections. One can make use of techniques such as predictive modelling, machine learning, and data visualisation to get the best out of it.

Similarly in the current BANI world, we need to reassess our assumptions and do Scenario Analysis of different situations. We need to optimise our resources backed by the relevant insights. In the fragile global context where we are operating today, facilitating risk management is very critical too. At the same time our stakeholders want an ecosystem where we can effectively communicate complex financial information, fostering trust, transparency, and collaboration. By harnessing the power of financial analytics, organisations can gain a competitive edge, drive innovation and achieve sustainable growth in today’s dynamic business environment.

How would you approach fostering a data-driven culture within the finance team and how would you encourage collaboration with other departments to utilise financial analytics for better decision-making across the company?

This requires a strategic approach. It’s a mid to long term process where we change the fabric of the organisation by focusing on several key areas.

Start with the Leadership Support and Vision where the senior leadership fully supports and champions the adoption of a data-driven culture across the organisation. Training and Skill Development is an important element here. Define clear objectives and key performance indicators (KPIs) for fostering a data-driven culture. Foster a culture of collaboration and knowledge sharing within the finance team and with other departments across the organisation. Encourage cross-functional teams to work together on projects and initiatives that leverage financial analytics to solve business challenges and drive performance improvement. Invest in modern analytics platforms and software solutions that enable self-service analytics and empower users to explore data independently.

Promote Success Stories and best practices to inspire and motivate teams to embrace data-driven approaches. And foster a culture of continuous improvement by soliciting feedback on the effectiveness of data-driven initiatives and processes. Encourage open dialogue and collaboration to identify opportunities for optimization and refinement and iterate on strategies to drive continuous improvement over time.

What are your views on the role of technology and financial analytics tools in optimising financial processes and generating valuable insights?

The role of technology and financial analytics tools in optimising financial processes and generating valuable insights cannot be overstated. Here are some key views on their significance:

Technology, including artificial intelligence (AI), machine learning (ML) and robotic process automation (RPA), can automate repetitive tasks. Technology plays a crucial role in enhancing risk management processes. By implementing risk analytics tools, organisations can identify, assess and mitigate organisation wide risks more effectively. These tools enable real-time monitoring of key risk indicators, scenario analysis and stress testing, helping organisations to proactively manage risks and safeguard their overall health. With the increasing complexity of financial regulations and reporting requirements, technology can help organisations ensure compliance and regulatory adherence. Financial analytics tools can automate regulatory reporting, monitor compliance with accounting standards and provide audit trails, reducing the risk of non-compliance and associated penalties.

Financial analytics tools enable organisations to develop more accurate financial forecasts and scenario plans. Technology can help organisations identify cost-saving opportunities and optimise resource allocation. By analysing financial data and performance metrics, finance teams can identify inefficiencies, streamline processes, and make informed decisions to reduce costs and improve profitability.

How would you integrate advanced financial analytics with existing financial processes and reporting structures to ensure seamless information flow and efficient decision-making?

Integrating advanced financial analytics with existing financial processes and reporting structures requires careful planning, collaboration and alignment with organisational goals. 

Here are steps to ensure seamless information flow and efficient decision-making:

Start with assessing your current processes and systems, with this we will Identify our current standing, pain points and areas for improvement where advanced financial analytics can add value. With these now clearly defined objectives and requirements, there are many tools available in the market, evaluating and selecting tools that align with needs and requirements. Data Integration and Cleansing is a very important task after this, as data operated in silos can create inefficiencies. Finally, Put emphasis on collaboration to ensure a comprehensive outcome.

In your opinion, what are the emerging trends in financial analytics and how can companies leverage these trends to gain a competitive advantage?

Several emerging trends are shaping the way companies manage their operations and gain a competitive advantage. Here are some of the key trends and how companies can leverage them:

Big Data and Predictive Analytics: With the increasing volume, velocity, and variety of financial data, companies are leveraging big data and predictive analytics to gain deeper insights into financial performance, trends, and future outcomes. Similarly Artificial intelligence (AI) and machine learning (ML) are revolutionising financial analytics by automating tasks, uncovering insights and improving decision-making processes. Data visualisation and interactive dashboards are transforming the way companies consume and interact with financial data. By presenting complex financial information in visual and intuitive formats, companies can enhance understanding, facilitate communication, and drive actionable insights. Cloud-based analytics solutions offer scalability, flexibility, and accessibility, allowing companies to analyse financial data and generate insights from anywhere, anytime. By leveraging cloud-based analytics platforms, companies can reduce infrastructure costs, accelerate deployment, and access advanced analytics capabilities without the need for significant upfront investments in hardware or software.

Blockchain and distributed ledger technology (DLT) are transforming financial analytics by providing transparent, secure, and immutable records of financial transactions. And finally, Integrated financial planning and analysis (FP&A) solutions are enabling companies to unify financial planning, budgeting, forecasting, and reporting processes into a single platform. 

By staying ahead of the curve and embracing technological advancements, companies can unlock new opportunities, optimise financial performance, and drive sustainable growth in an increasingly competitive marketplace.