Optimizing the Income Statement With Integrated Advanced Analytics To Truly Maximize Profit... and More: Reimaging the Enterprise Master Plan

摘要

The author of this article suggests that an optimized income statement (OIS) is the very embodiment of "advanced analytics" and, as such, represents the next generation of financial planning. Further, an OIS assures all the related annual planning application (e.g., Financial Planning and Analysis, Sales and Operations Planning, and Marketing Mix Modeling) are harnessed to the maximally profitable forecast supported by the optimally feasible and sustainable supply chain required for the forecast's fulfillment. Finally, the chief financial officer (CFO) is being increasingly seen as the appropriate person responsible for the employment of advanced analytics. The CFO (1) owns the data, (2) normally uses analytics, and (3) serves as the primary guardian of "representational faithfulness" of reported data.