In response to uncertainty in 2023, here are five ways UAE organizations can improve FP&A

Written by the team members of Jedox – an enterprise performance management software

As companies in the UAE grapple with current geopolitical instability, global inflation and supply chain difficulties, the need for careful, regular and synchronized financial planning and analysis (FP&A) has never been greater. The role of FP&A is expanding to encompass a cross-functional, integrated view of the business, and it is now a key driver in addressing today’s business challenges and helping organizations keep up with the pace of change.

Let’s take a look at five trends that can help companies in the UAE and around the world maximize the value of their FP&A activities and keep their business running in the coming year.

1. Improve adaptability

In today’s rapidly changing economic environment, FP&A professionals should aim to improve their ability to adapt quickly and smoothly, thereby increasing business stability and resiliency. This goal must be supported by technology, and companies that invest in digital transformation and embrace upskilling now find it easier to be flexible and adapt to changing environments. Businesses can increase agility by running more regular financial forecasts, leveraging external data, Model many different scenarios And, crucially, ensure that FP&A teams work more closely with other business stakeholders.

2. Incorporate into comprehensive business planning

Robust planning is the foundation of business success, and the most successful companies are now embracing Comprehensive Business Planning (IBP). This replaces multiple siled systems and manual data extracted from various areas of the business with a cross-functional planning solution that enables informed, intelligent and fast decisions.

Today, FP&A is no longer just about finance; it integrates real-time data from across the enterprise, increasing collaboration between teams. When geopolitical forces drive companies to quickly adjust strategy, update forecasts and run multiple scenarios, IBP enables better collaboration and more realistic outcomes that companies can rely on. This in turn reduces the risk of costly and challenging surprises, providing clarity for more informed decision-making.

3. turn to artificial intelligence

artificial intelligence (AI) It may sound futuristic, but it’s already a part of most of us’ daily lives, playing an important role in everything from personalizing our online shopping and social media to removing spam from our inboxes. Business Applied Research Center (BARC) recently reported From 2020 to 2022, the effective use of predictive planning and forecasting technologies in enterprise planning will grow exponentially—from 4 percent to 27 percent in just two years.

The technology behind AI has matured into a powerful and stable platform, so now is an ideal time to integrate it into your business (if you haven’t already). Today’s business leaders and investors demand real-time, complex data and insights—and AI can support CFOs in meeting that demand. In times of uncertainty like these, decisions are more data-driven than ever – and AI can support the accuracy of forecasts, leading to greater investment confidence and better business decisions.

4. Attract and retain talent through technology

Like many companies globally, attracting and retaining talent is a major challenge for UAE companies in the current environment.As a result, a recent EY CFO Roundtable found that as many as one in five CFOs focus on Workforce and Talent Retention. In today’s hyper-competitive marketplace, technology can be a way to stand out.

Companies that invest in the latest technology will find it easier to attract great new talent while retaining great talent.According to LinkedIn, employees place a high value on learning new skills poll, so savvy companies may find that taking advantage of the latest technology makes employees happy because it helps them develop professionally while also making their jobs better and easier. Many finance professionals aspire to develop and become future leaders, and to do so they need to use advanced technology, such as advanced FP&A solutions.

5. Improve collaboration between FP&A teams and the business

For businesses, leveraging strategic value Planning and Analysis Professionals can add that FP&A must be integrated throughout the enterprise, not as a siled function. Especially now, as businesses across the UAE face market uncertainty, there is an urgent need for closer collaboration between FP&A teams and the wider business community. Importantly, FP&A teams act as strategic advisors to business leaders, enabling flexible, frequent and accurate forecasting and planning in today’s challenging environment. Evolving from a disjointed, discrete function to an integrated, significant part of the business is not only strategically of high value, but also provides the team with a satisfying and fulfilling work environment.

FP&A’s influence grows

Integrate your Financial Planning and Analysis Extending its reach across the enterprise will improve business planning and forecasting and help your business thrive.Considering the above five aspects will help businesses across the UAE to streamline planning process And quickly adapt to changing environments.