THE FUTURE OF FINANCE: Robotics & Finance Talent Development

Transcription

1 THE FUTURE OF FINANCE: Robotics & Finance Talent Development November

2 Key Themes: Digital disruption To disrupt is to exist 72% of CEOs say that rather than waiting to be disrupted by competitors, their organisation is actively disrupting the sector in which they operate 60% see technology disruption as more of an opportunity than a threat 57% say their organisations do not have the sensory capabilities and innovative processes to respond to rapid disruption Digital concerns 61% 45% are say they concerned about are not leveraging integrating cognitive digital as a means to processes and connect to their artificial intelligence customers effectively Areas of greatest investment in technology expected in three years 61% 58% 55% Top five strategic priorities in next three years 25% Greater speed to market 22% Digitisation of the business 21% Becoming more data-driven 21% Building public trust 20% Implementing disruptive technology 2

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4 Key Themes: The CFO s greatest opportunity is to better support Business Performance Management My CFO has to focus on the numbers but also really understand what s happening in the marketplace and be able to translate that into What s the potential impact on my business? Where should I be making investments? Where should I be backing off? Financial Services CEO Where do you see the CFO s greatest opportunity to contribute to or impact the value of the organisation? Performance Governance Control Efficiency Innovation Source: 2015 KPMG Global CEO Survey 'The view from the top.' 4

5 The impact of technology disruption, today and in the future Disruptive technologies are transforming finance. Organisations need to develop a long-term Intelligent automation strategy that is aligned with the enterprise strategic vision. In response to disruption, leading CFOs are transforming their own operating models by addressing: How will disruptive technology impact our finance operating model in the next year? In the next five years? In the next 10 years? How will our current delivery model and locations be impacted? How can we effectively integrate disruptive technologies? What are the new skill sets required of our workforce and how will we hire and train the finance organization? How do we maintain, or improve, governance of financial processes and controls? Technology disruptors are the largest drivers of change in business today. Finance must embrace the disruptors of today to transform their own operating models and unlock an environment of intelligent automation. 70% A wellarchitected use of disruptors will enable intelligent automation, resulting in an operating model that achieves a ~70% reduction in labor¹ while delivering on business value and global risk management ¹ Estimate from KPMG LLP 5

6 The CFO agenda for disruption Leading finance organizations have developed an agenda to deal with disruption Leading strategy and capital allocation Increasing role in innovation Trends and economics behind disruption Approaching disruption at the organizational level Maintaining an innovation portfolio Disciplined portfolio process and structure Intelligent automation Insights and analysis Organizational simplification Skills and talent Integrating new technologies: Cloud ERPs Robotics Artificial intelligence Blockchain Mobile New insights through: Automated descriptive and diagnostic analytics New predictive and prescriptive analytics Integrated business planning Local decision support Changing work: Fewer people Less hierarchy Fewer offshore locations Changing requirements: Both strategy and finance skills Process and control leaders Relationship and collaboration Risk management: Response to disruption impacts how risks and controls are managed in an organization and the need to continuously evolve. 6

7 Analytics will shift from descriptive to prescriptive Analytics will generate dynamic insights and will be utilized for prescriptive modeling, allowing leaders to influence business outcomes in real time. Dynamic insights Prescriptive Descriptive Diagnostic Predictive Data Integration Analytics Capabilities Culture Change What happened? Why did it happen? What will happen? What should we do about it? Example: Revenue by dimension, geography, product, service, customer Emerging technology: In-memory computing What will change: Speed of transactions Example: Explanations for variances Emerging technology: Selfservice and root cause analysis What will change: Speed of analysis Example: Future estimates of revenue and profitability based on demand drivers Emerging technology: Machine learning, unstructured data processing What will change: Predictive analytics Example: Strategic scenario analysis of revenue and profitability Emerging technology: AI/Cognitive big data analytics What will change: Hypothesis generation; advanced customer and market analysis 7

8 Productivity and cost (using averages) 80% productivity = 32 hours/ week vs RPA 80% productivity = 134 hours/ week Recruitment costs per person = $15-$20K with 3 year average lifespan vs Software license per bot = $15K with unknown lifespan Average staff salary in Australia = $81,947 Vs Average bot salary = $0 8

9 Intelligent automation delivers benefits beyond cost savings CFOs are embracing technology disruption to achieve innovation-fueled growth and accelerate short- and long-term value creation. Reduced labour, more Insights Better use of capital Accelerated growth Risk reduction Enhanced speed-to-value Up to 70 percent reduction in human labour driven by Intelligent automation Reduce governance costs with built-in controls 50 percent reduction in manual reconciliations Reduced time for audit, resulting in lower audit costs Decoupled correlation between labor and revenue growth 35 percent improvement in capital efficiency from shortened dispute resolution and process cycle times Improved business insights and dynamic reporting and analysis Redeploy resources to focus on higher value-added activities Harness the 80 percent of untapped data with enhanced cognitive processing capabilities of unstructured data Dynamic, real-time data for elevated decision-making capabilities Unconstrained agility and scalability in response to changing business requirements Automation enabled 100 percent transactional accuracy, eliminating the need for manual controls Increased security and governance without adding new human labor No-labour data integrity routines Real-time, secure data exchange supported by 100 percent verifiable and auditable transactions Up to 40 percent increase in labour productivity, enabling higher focus on value-add, business partnering activities Reduction of close to consolidation cycle time by 25 percent Improved visibility of business trends will enable better decision making and forecasting through driver based predictive analysis Enhanced digital delivery and visualization will augment insight generation 9

10 What will finance look like in the future? 10

11 What will finance look like in the future? 11

12 What will finance look like in the future? 12

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14 What will finance look like in the future? This is changing the demands of finance, and finance as we know it will be radically different in the future Finance will Increase support of innovation Proactively lead enterprise performance Employ 70% less labor Enable business agility Increase speed of insight Act as role model of collaboration Improve forecasting accuracy Develop new skills and talent The art of possible New capital allocation approaches Cornerstone of strategy, finance, and analytics Emerging technologies will change the nature of shared services Cloud everywhere and dominant platform Amazon s Alexa provides instant information Process leadership is a profession Artificial intelligence (AI) processes big data Finance professional as a strategist 14

15 New capabilities, new roles Has high RQ, experience managing digital workforce, and overall knowledge of the systems landscape; able to identify required F&A process changes and implement new business solutions incorporating relevant technologies. Different finance processes will be automated, leveraging various levels of smart automation. Intelligent Automation Executes complex financial models and advises the business on the financial and business impacts of different scenarios (STEM/D&A background necessary). R Business Solutions Architect Financial Data Modeler/ Scientist Critical role for driving value and overall business performance Financial and Regulatory Accountant CFO Business Partner Focused on delivering core reporting and analytics to the business (Deep Finance and Accounting background (e.g., CPA, CFA)). Innovation and Investment Strategist Business Planning Analyst Takes an outside-in approach to develop insights from trend signals and identifies changes in customer and competitor behavior and possible business implications. Handles interactions between different business groups and communicates information effectively (has extensive business knowledge and deep technical F&A expertise). Has strong understanding of external markets to examine and leverage threats and opportunities into strategic direction for the business; has the ability to navigate ambiguity and influence a potential shift in the business model. 15

16 Insights and Analysis What does this mean for Business Partnering? In the face of rapid business disruption and change, Finance must equip itself with the right tools, skills and capabilities in order to provide leading insights and analytics, and answers to critical questions Master the right capabilities Advanced Analytics and Scenario Modeling KPIs, Metrics, and Dashboards Integrated Business Planning Be the Enterprise Data Steward Master Data Management and Governance Enterprise Data Strategy Financial / Operational Data Develop Business Partnership approach and acumen Partnership and cross-functional collaboration Organisation and Service Delivery Model Talent and Skills Employ Intelligent Automation and enabling technologies Cloud and Mobile Robotics and Digital Labor A.I. and Cognitive Capabilities 16

17 Intelligent process automation Intelligent process automation Intelligent process automation will allow finance to transcend its transactional role, resulting in enhanced business partnering and value delivery through insight generation. Traditional organization Future organization Additional value-add activities High Low Cost Business Partnering High Low High Low Value + Increased business partnering - Transactional activities (automation) Greater value, fewer people, lower cost High Low Cost Automation Business Partnering High Low High Low Value 17

18 From scorekeeper to strategist Strategist skill set Intelligent automation will invert the knowledge-work value distribution and challenge existing delivery models. Finance capabilities Insight delivery Current knowledge-work Value distribution Future knowledge-work value distribution 70% reduction in human labor driven by Intelligent automation Cognitive and analytics Intelligent automation will empower the finance workforce to add more value at rapid speeds. Data normalization and governance Foundational and transactional Finance must reimagine its operating model to position itself to meet constantly evolving requirements. 18

19 Lifting performance of the business partner role Most finance business partners are operating as administrators or cost managers. Lifting the performance of finance business partners can help drive value and overall business performance. High How are you preparing your organization to make the leap? Strategist Performance Driver Value Typical Finance Business Partnering Organizations Administrator Month end coordinator Transactional processing and accounting Standard and ad-hoc reporting Cost Manager Budget vs. actual variance Cost/project accounting Short-term planning Partner Reviews and writes commentary Shareholder value analysis Root-cause analysis Budgeting and forecasting Enterprise portfolio perspective Involved in major business transactions P&L accountability Driving decisions Statistical decision modeling tools Strategic planning Capital management Value-based management Multi dimensional profitability analysis Operational and financial perspective Low Low Time and Cost High 19

20 New skills Finance organisations must assess how new work impacts the skill sets of their workforce Data utilisation and technology Data modeling, analytics, and visualisation Robotic share (RQ) 1 Strategic trend analysis Research capabilities Design thinking background Programming expertise Behavioral Strategic thinking Service management Relationship management Impactful storytelling Feedback, communication, negotiation Program management Navigation skills Ambiguity and white space Finance technical Business modeling Core financial driver analysis Process design and navigation 1Source: Man and Machine: The Future of Jobs, Forrester Podcast 20

21 Talent management Having a holistic approach for addressing talent, tailored to your organisation s specific needs, will be essential BUY BORROW Foster relationships with key universities Source nontraditional backgrounds (e.g., STEM) Redesign talent acquisition strategy for digital natives Redefine employee value proposition to retain millennial generation BUILD Invest in career path design, learning, and development Reskill workforce to deliver more business-centric services Redefine role definitions and core competencies Develop succession plan to address the retiring and incoming workforce Incorporate a flexible workforce into the organisational structure Develop a multifaceted workplace ecosystem (e.g., onshore, nearshore) Partner to build capabilities that feed into an environment of highperforming talent SAVE Develop rotational programs to retain and develop high performers and future leaders Understand critical roles and single source dependency of institutional knowledge Sources: Forrester, Business Agility: The Contingent Workforce Paradox Forrester, The Future Of White Collar Work KPMG International, "The view from the top," (November 2015) 21

22 Building Capability An integrated capability framework includes four key components to align development to strategy 1 Knowledge & Tools Capability Frameworks Proficiency levels Technology & Platforms Learning & Development Learning Solutions Career Stories KPMG training 2 Learning Enablers 3 Culture & Behaviours Behavioural Capabilities Change Management Sustainability Collaboration and Communication Iterative development approach Communication plans & interventions 4 Organisations without integrated capability frameworks typically create misaligned learning and development programmes that provide few tangible benefits, lack alignment to business strategy and are designed to meet learner preferences. 22

23 Example Finance Capability Framework LEAD PARTNER EXECUTE Growth & Innovation Leading Sustainable Change Planning, Budgeting & Forecasting Financial & Performance Management Accounting & Control Finance Operations Analytics & Insight Negotiation Sourcing & Category Management Relationship Management Governance, Compliance & Risk Finance Systems, Data and Processes FINANCE TECHNICAL CAPABILITIES Continuous Improvement Investment Appraisal Revenue Management Capital Management Cost Management Business Reporting Insight Leadership Achievement Strength LEADERSHIP CAPABILITIES Commercial Break Through Break Through Thinking Thinking Engage and Inspire Coach Leadership and Develop Deliver Results Collaborate Optimism Confidence Curiosity Empower with Accountability Influence Discipline 23

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25 Dawn Edwards-Jones 25

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