Investor @The Center Group

DISCOVER THE DIFFERENT ENTITIES OF THE INVESTOR @THE CENTER GROUP

Logo Atena senza PayOff

Software Company since 1986, Assintel founding partner, holds a portfolio of leading
innovative solutions such as: Finance Atena®,
ERP and Software for Financial Investigations, for the Registry of Reports (Agenzia delle Entrate) and for Anti-Money Laundering (Bankltalia).

Logo_FinanceAtena Bianco senza PayOff

The first FinTech platform in Europe, based on
Al, for Predictive, Economic-Financial
Consulting for any type of Investment and
Business Model, to ensure maximum
Reliability, Opportunity and Profitability for
the Public and Private sector.

Logo Emotions for Business

Company that has defined a new way of
Business Communication based on:
Marketing, for defining Strategy, Neuro
Linguistic Programming, for effective content
structuring, and the Art of Cinema to convey
the emotional power that only cinema is
capable of.

en
en

FINANCE ATENA INSIGHTS

Predictive Analytics: a comparison of methodologies

What value is placed today on a company’s true sustainability?
PLATFORM
Predictive Analytics

During the live event on“Warehouse Sustainability”held on Wednesday, September 14, 2022, Paolo Zammitti, Head of Finance Atena, addressed the topic of sustainable warehouse management, beginning with a question: What value is placed today on a company’s true sustainability?

In fact, the failure of corporate finance in Italy and Europe now seems clear - a trend that, according to experts, is set to intensify in the near future, with the number of companies at risk of default in Italy expected to approach over 100,000 in the coming years. The tendency is to attribute this collapse first to COVID-19, then to the energy crisis, and finally to digital transformation. However, a well-known analysis conducted by Cerved regarding bankruptcy law - which examined the years 2017–2018 - indicated that over 50% of Italian companies had at least a 70% probability of bankruptcy. This is an alarming figure, especially considering it predates the COVID-19 pandemic. All of this can be attributed to the substantial lack of genuine strategic planning and timely forecasting by companies: this implies that every change requires continuous updating, consisting of constant planning and forecasting.

Today, business forecasting cannot truly be called such because it runs up against three key obstacles that render it ineffective: simplification, post-facto analysis, and formalism. Simplification serves to make the business assessment clear to everyone, but if it is applied to actual results, it yields an accurate figure; if, however, it is applied to assumptions, it generates an incorrect figure that can have a margin of error as high as 80%. Therefore, simplification turns into generalization, which, by definition, is incorrect; and if the forecast is incorrect, it does not provide a forecast.
 
Furthermore, forecasting today is based on past financial statements, and is therefore evaluated using the same methodology and formulas as post-facto analysis. In a constantly changing environment, is this methodology still appropriate? The answer is certainly no, since post-facto analysis relies on historical data—which is the only data that will inevitably be incorrect because it will never repeat itself exactly twice. Consequently, this forecasting model—which generates so many errors—has led to the belief that forecasting exists only on paper, specifically in Excel, and consists of business plans that are no longer useful to either the company or its stakeholders.
 

One has to wonder, then, whether it is still possible today to rely on history to assess the future of the company?

At Finance Atena, we believe this is not the case, and therefore we have developed a new concept of methodology and future analysis that replaces generalization with a true systemic analysis of the data - which means maximum detail and precision. Above all, it means replacing retrospective analysis with true predictive analysis, which leads to a concept of substance rather than the mere formality to which it had been relegated.

To implement this innovative methodology, we need new technology that goes beyond traditional Excel. And that’s where Finance Atena comes in - the FinTech company that, through its more than 1 million interactive calculations and the thousands of opportunities it offers, promotes maximum predictability in terms of Reliability, Profitability, and Opportunity.
Contacts

Find out which predictive methodology can turn your data into more effective decisions. Talk to a Finance Atena consultant today!

Contact Us
Finance Atena is, therefore, first and foremost an innovative methodology that translates into innovative technology: one needs the other to materialize as opportunities. It is only through a model of this kind that a company can obtain an accurate representation of reality - a concept that every company, especially today, desperately needs.
Read all the news