The move from traditional to algorithmic forecasting will be a game-changer for businesses that want to navigate risk, says Deloitte in its latest report ‘Forecasting in a digital world’.
Organisations are moving away from traditional forecasting, which relies on historical data, to forecasting processes involving people working symbiotically with data-fuelled, predictive algorithms. CFOs are in a strong position to champion this innovative approach, which relies on advanced analytics platforms, in-memory computing and AI tools like machine learning. Algorithmic forecasting is expected to take off because traditional approach can take far too long and cost too much, while generating little insight about potential future outcomes.
Deloitte calls algorithmic forecasting “a well-oiled machine”, with more than 80% of the work done automatically. Finance is therefore freed up to develop insights instead of grinding through spreadsheets.
Click here to read Deloitte’s report.
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