Today organisations are challenged with increasing demands for more strategic insights, more integrated financial and operational data, more process automation, enabled by leveraging from new technologies such as artificial intelligence or machine learning. CCH Tagetik puts forward the finance transformation platform as the solution to respond towards these numerous challenges and demands.
The finance transformation platform is a principally finance owned platform that goes beyond the boundaries of traditional CPM solutions, enabling not only processes such as financial or managerial consolidation or budgeting and forecasting but also detailed profitability and advanced analytics on top of granular both financial and operational data. Powered by the Analytic Information Hub, CCH Tagetik allows to bring together diverse, granular data and gives you visibility of the impacts of operational change on the financial performance.
For sure, Finance is one area that can likely benefit from AI in the form of machine learning. Automated forecasting and facilitated budgeting or computerized analysis reporting are areas that one should think of when envisioning AI-driven impacts within Finance.
- Predictive Analytics can help to generate future insights
Machine Learning techniques are used to generate concrete predictions. In response to different business situations, a wide range of predictive models, such as Regression, Classification, Clustering, Anomalies detection,… can be exploited. Each of these types of predictive models is typically used in a specific context. Machine Learning algorithms can thus be applied to help us solve different business problems.
- Automated Analytics can help to detect outliers or deviations
With outlier detection, statistical methods are used to find anomalies in the data. A practical use case in forecasting can be to proactively notify business users of deviations within a certain type of cost, price or volume information.
With the CCH Tagetik Analytical Information Hub being designed to exploit large amounts of granular financial and operational data it is very well suited to be used within the context of Advanced and Predictive analytics. The Analytical Information Hub is an extension of the CCH Tagetik Financial Workspace, which holds the core of the traditional CPM data model, together they are positioned as the CCH Tagetik Finance Transformation Platform.
The Analytical Information Hub houses its own supplementary set of dimensionality to accommodate broader and more granular volumes of data, for example, detailed Supply Chain and S&OP Data, as such affording a greater degree of analysis. Moreover, the Analytical Information Hub integrates with advance analytical engines such as a Python or R server,…which can be used to trigger recalculations of predictive models.
As such Machine Learning can help reduce the manual workload, increase forecast accuracy and enhance financial modelling and analysis.
In a holistic approach, combining the experience and expertise of our Corporate Performance Management and Data Science competence centres, element61 is helping organisations to navigate into the future by embedding agile automation within their forecasting and planning processes.
If you have any questions regarding Predictive Analytics, AI, integration of this in Planning & Budgeting processes or CCH Tagetik in your organisation, please feel free to contact us for more information.
Link to insight “Predictive Analytics in CCH Tagetik - Breakthrough for forecasting in Finance"