Highlights of research, The Future of Planning, Budgeting and Forecasting Survey 2016 released today by the FSN Modern Finance Forum suggests that non-financial data is a forecasting game-changer. Organizations that make better use of non-financial data are more than 1.7 times more likely to forecast earnings within plus or minus 5%; two times more likely to be able to forecast beyond a 12-month time horizon and two and a half times more likely to be able to respond rapidly to market change.
The research was conducted amongst the 48,000 members of the FSN Modern Finance Forum on Linkedin and represents one of the largest and most authoritative global surveys of its kind.
“The survey shows the latent potential of non-financial data to transform the accuracy of business forecasts. It’s no exaggeration to say that it is a game-changer, yet CFOs rank it a lowly fifth in their priorities for the forecasting process,” says Gary Simon, FSN’s chief executive officer and the leader of the Modern Finance Forum.
“The current business climate (Brexit, elections in the USA and Europe) is characterised by huge business uncertainty yet the effective use of non-financial data allows businesses to extend their planning horizon, improve forecasting accuracy and improve decision-making.”
An infographic released today depicts some of the highlights of the research and will form the foundation of discussion in the FSN Modern Finance Forum in Linkedin during the next few months. The full research entitled will be launched at a reception and dinner to be held at the Shangri-La Hotel, at the Shard in London on 16th November.
955 senior finance professionals responded to the survey covering 23 countries and 13 industry sectors. Approximately half of the respondents were from organisations with more than 1,000 employees.