Transforming your Digital DNA Timothy Ho, Deloitte Ben Davis, Deloitte Nishith Mohanty, Deloitte

Transcription

1 Transforming your Digital DNA Timothy Ho, Deloitte Ben Davis, Deloitte Nishith Mohanty, Deloitte

2 Ridiculously ambiguous Digital.

3 Agenda 1 Trends 2 CFO DNA 3 How to get started?

4 Poll questions Going Digital Q1: What is your current experience with Robotic Process Automation (RPA)? Have not Started / No idea what it is Tried proof of concept but not implemented Implemented on key processes RPA is yesterday, we have more than that (cognitive, AI ) Q2: How is your finance working on their reporting and analytics? Largely in Excel We have a business warehouse of all data We have business warehouse and dashboards for management We have (2) and (3) and predictive capabilities

5 Our Predictions Finance Factory 2. The Role of Finance 3. Finance Cycles 4. Self-Service 5. Operating Models 6. Enterprise Resource Planning 7. Data 8. Workforce and workplace

6 01 The finance factory 02 Transactions will be touchless as automation and blockchain reach deeper into finance operations There will be a premium on talent that understands technology and business. These professionals are already in short supply

7 01 The role of Finance 02 With operations automated, Finance will double down on business insights and service. Success is not assured Routine forecasts will be handled by algorithms that are constantly evaluated by small resource pools including data scientists, storytellers, and cognitive psychologists

8 01 Finance cycles 02 Finance goes real time. Periodic reporting will no longer drive operations and decisions if it ever did You re not forecasting once a month or quarterly. It s all happening in real time

9 01 Self-service 02 Self-service will become the norm. Finance will be uneasy about this Over time, smart agents will learn what kinds of business information an individual needs, and deliver that information proactively

10 01 Operating model 02 New service-delivery models will emerge as robots and algorithms join a more diverse finance workforce; think about the integration of freelancers, gig workers, and crowds. Finance-as-a-service will gain traction beyond mid-market companies

11 01 Enterprise resource planning 02 Finance applications and microservices will challenge traditional ERP. Big vendors will be prepared Cloud-based ERP will help ensure that you re constantly updated on the latest release

12 01 Data 02 The proliferation of APIs will drive data standardisation, but it won t be enough. Many companies will still struggle to clean up their data messes Automation and cognitive will make it easier to get the work done, but it s still going to be hard and tedious

13 01 Workforce and workplace 02 Employees will be doing new things in new ways, some of which will make CFOs uncomfortable All of your people should be able to contribute to elevating the value of Finance in terms of communication, impact, and influence. Make every new hire count

14 Poll question Which of the following eight predictions do you think will impact your organisation the most (Pick your top 4) 1. The finance factory Transactions will be touchless as automation and blockchain reach deeper into finance operations. 2. The role of Finance With operations largely automated, Finance will double down on business insights and service. Success is not assured. The skills required by finance professionals will change, likely dramatically, as new combinations of technology and human workforces permeate the workplace. 3. Finance cycles Finance goes real time. Periodic reporting will no longer drive operations and decisions if it ever did. 4. Self-service Self-service will become the norm. Finance will be uneasy about this. 5. Operating models New service-delivery models will emerge as robots and algorithms join a more diverse finance workforce think about the integration of freelancers, gig workers, and crowds. Companies will assess the benefits of automation against onshore and offshore operations. 6. Enterprise resource planning Finance applications and microservices challenge traditional ERP. Big vendors will be prepared. 7. Data The proliferation of APIs will drive data standardisation, but it won t be enough. Companies will still be struggling to clean up their data messes. 8. Workforce and workplace Employees will be doing new things in new ways, some of which will make CFOs uncomfortable.

15 Voice of our stakeholder 20 Hacks

16 Cost Optimisation vs. Growth initiatives Financial / operational vs. People skills Regulatory challenges turned into opportunities Technology is the make-or-break test

17 23 TRAITS Agile Data Customers Learning Fluid Business models

18 DIGITAL THINK. DNA ACT. REACT. differently

19 PERSONAS ACTIVATOR CONNECTOR ENTREPRENEUR NAVIGATOR Get things done through rallying, inspiring, commanding and controlling Bringing people together through influence & collaboration Spotting opportunities to create the new & different Seeing ahead and steering the ship followership adversity politics diplomacy exponential future choices clear direction belief inspiring people winning motivation military action drive get the job done together inclusion people emotional transformation change empathy relationships reconciliation ideas bright disrupt breakthrough talent start-up edge innovation results goals strategy value excellence measure decisions performance accountability

20 Poll Questions? Q1: What do typical finance leaders look MOST like today? Activators Connectors Entrepreneurs Navigators Q2: What do typical finance leaders look LEAST like today? Activators Connectors Entrepreneurs Navigators

21 Research ACTIVATOR winning military drive belief people followership motivation adversity action inspiring get the job done 50% CONNECTOR transformation politics empathy emotional people relationships change together inclusion diplomacy reconciliation 30% ENTREPRENEUR disrupt innovation bright start-up talent breakthrough ideas future edge exponential 10% NAVIGATOR accountability performance value measure decisions clear direction strategy goals results excellence choices 10%

22 Research 50% 30% 10% 10% ACTIVATOR CONNECTOR ENTREPRENEUR NAVIGATOR Risk-taking Experimenting Conceptual Thinking (Connecting the dots)

23 ENTREPRENEUR HACKS: 1. Re-start and re-invent the initiative which didn t work last time 6. Celebrate failure of your team member and help him/her to succeed exponential ideas bright future talent start-up 2. Work on a project which is not within your domain knowledge 7. Build and propagate a new value proposition for your team to attract the brightest talent disrupt breakthrough edge innovation 3. Invite a group of young entrepreneurs to spend a day with you and your team 8. Speak at an Innovation / Entrepreneurship forum 4. Write an article on a new field for a business magazine 9. Provide mentoring to an entrepreneurship project outside your company 5. Challenge and re-calibrate the ways of working in your team 10. Spend a day in the start-up office with the founder and his/her team

24 NAVIGATOR HACKS: 1. Write a LinkedIn post with 5 predictions about Find an article on your industry and publish a counterpoint choices results goals clear direction excellence measure 2. Use a non-finance approach to solve an finance problem 7. Contribute to a strategy development initiative that is two levels higher than you strategy value decisions performance accountability 3. Host a dinner with people from 5 different professions other than finance 8. Make a personal financial bet against the market 4. Encourage a family member to learn a non-traditional skill 9. Publish your predictions about your company in Complete an online course on AI / machine learning / big data 10. Partner with/acquire to build a new capability for your org

25 ENTREPRENEUR Idriss: Create a platform for entrepreneurs to work with you exponential ideas bright disrupt breakthrough future talent start-up edge innovation NAVIGATOR Lisa: Build a new capability for your org choices results goals strategy value clear direction excellence measure decisions performance accountability

26 Entrepreneur: Idriss How can a finance leader drive innovation into our culture?

27 Navigator: Lisa How can finance leaders build new organisational capabilities?

28 What is your next big thing?

29 Getting Started ESTABLISH A DIGITAL LEADERSHIP TEAM Identify a visionary program leader and assemble a team to accelerate your digital goals. Determine a governance model and policies that might need to be adapted to execute successful change management and ensure the solution is absorbed into the business. THINK BIG START SMALL ACT FAST Immerse Yourself in Innovation Join an immersive experience (e.g., Digital Finance Lab) to explore the art of the possible and determine a future state vision, goals, and benefits Scaling the Edges Disconnect from the core business and set up a digital leadership team to assess disruptive opportunities within the organisation Prove it Works (Quickly) Use an agile, iterative piloting approach to move from strategy to prototyping as quickly as possible fail fast and achieve rapid results Build Your Ecosystem Evolve your Finance organisation by collaborating with other business functions, BPO providers, and vendors Pick One or Two Plays Prioritise your desired tactics and pick just one or two to get started in order to establish proof of concept Market Your Own Success Seek opportunities to share digital experiences with other functions knowledge share

30 Digital finance journey for a leading multinational Oil and Gas major BPC Consolidation Central finance platform SAP S/4 HANA Central Finance Improving data quality, financial visibility and managerial reporting flexibility by transforming RTR process Enterprise data hub Master data governance Visualisation and Analytics Automation of routine analytics/ performance tracking Collaborative/ interactive data sharing, inclusion of broader data set Robotics Process Automation Application of robotics to transactions processing including indirect tax processes Evolving Finance An integrated information model will provide a scalable and robust solution Close and Reporting Continuous close, exception based monitoring, touchless processing. Real time insights/actions Finance Talent Focus on future work, worker and workplace Finance Vision Future of finance Vision Pillars Business Reporting of the Future Predictive analytics Central integrated business planning Soft close Data transparency and design flexibility Robotics/ enhanced automation

31 Digital transformation journey for global Pharmaceutical leader Global COE consolidation Enterprise System Investments On demand analytics and visualisation Digital Visioning Labs Assessed impact of 7 digital technologies on Finance processes (RPA, Visualisation, Predictive Analytics, Natural Language Generation, Cognitive Computing, Cloud, Blockchain) across multiple digital labs. Identified 200+ digital opportunities and prioritised 88 initiatives. Robotics Process Automation Three areas (inter-company, chargeback, management reporting) with 9 processes selected for phase I automation with 12 bots developed. Predictive analytics PoC for planning and budgeting utilisation of large volumes of data to generate better insights to drive better decisions Partnering with Deloitte in their digital transformation journey Robotics, predictive analytics are driving ~70% of the priority opportunities Prioritisation Talent Record-to-Report, Planning, Budgeting and Forecasting, and Management Reporting were viewed as having the highest benefit potential for digital-related solutions Plan for digital COE and evaluate future sourcing constructs with a focus on effectively scaling skillsets, sourcing, training, capacity building Analytics RPA Expansion Commercial, procurement and R&D Ongoing journey towards digital Tax, FRC and PTP Blockchain Intercompany & chargeback Cognitive NLG for management reporting

32 Example: Agile development creates an opportunity to manage programs real-time Stakeholder Engagement Portfolio Functions MVP / Epic Definition Strategic Direction & Vision Customer Strategy & UX MVP/ Epic Prioritisation Operationalisation & Commercialisation Manage Finance Programme & Financial Management Manage Risk Technology & Infrastructure Architecture Change Management Regulatory & Legal More project data, delivered more frequently = better decision making Real-time delivery management tools = better program cost management Pre Sprint Release Objectives Features Definition User Story Definition Backlog grooming Updated Release Plan Scrum of scrums MVP / Epic Development Teams 1 MVP / Epic Development Team 2 MVP / Epic Development Team n DEPLOY TEST Sprint 2 week cycle CODE PLAN TASKS DESIGN Daily stand-ups Ongoing operations Continuous Integration Management Test Management Release Management Operational Monitoring B2B Customer Support More insight into new functionality delivered = more accurate RoI Sprint planning Sprint review Retrospective

33 Steps to consider when getting started As you look to continue with your finance journey in the digital world, here are some steps to consider. Learn more Build a list Identify possibilities Pilot a project Scale what works If you haven t done so already, create a small cross-functional team to help your organisation understand what s possible. Use weekly meetings to share cognitive stories with leadership. Don t limit the exploration to Finance. Create a list of opportunities within Finance for cognitive enhancements. The list will grow over time as new opportunities emerge. Don t forget to look at consumer applications for ideas. Narrow the list and identify candidates for adoption. Keep the scope narrow, the team small, and the risk low. Focus on opportunities where time-to-value is short. Choose a specific use case that can be tackled without distracting the whole organisation. Govern and track the impact of each pilot. Replicate what delivers results, and apply lessons learned to successive efforts.

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