Technological advances in analytics and data management have enabled the incorporation of detailed operational and financial driver data into complex models that were not always feasible in the not-to-distant past. The modern finance organization can leverage these advances to identify the KPIs specific operational drivers that are statistically significant when it comes to influencing financial results.
By looking to incorporate KPIs and underlying details such as customer demographics, customer behavior, customer preferences, product characteristics/performance as well as other operational processes, a modern finance organization has the capability to analyze vast quantities of data in order to find the significant levers that impact profitability. These Big Data and Advanced Analytics tools not only improve planning and forecasting accuracy, they also provide business leaders with the insight to model, predict, and manage how key events can influence financial results.
Peloton has developed a framework to work collaboratively with Finance and IT to identify key KPIs, provide a platform for uncovering the drivers of those KPIs and the financial impact, and then broaden this capability with a suite of EPM technologies.