Finance Digital Day. 20 March Revision. Skat. Rådgivning.

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1 Finance Digital Day 20 March 2018 Revision. Skat. Rådgivning.

2 The change and importance of digitalisation of finance Natasha Lembke Director, Head of PwC s Digital in Finance 2

3 Jobs within business and financial operations which will be disrupted 94 % 94 % Accountants and auditors Budget analysts 43 % Economists 70 % 33 % Financial specialists 23 % Financial analysts Source: Frey & Osborne

4 Status quo Despite massive investment in technology Finance cost as percentage of revenue still remains at past levels 1,02% 0,82% 0,93% 0,93% 0,89% 0,86% Cost of finance, as a percentage of revenue, at typical firms 0.86% 0,54% 0,56% 0,61% 0,56% 0,53% 0,55% Cost of finance at top quartile firms 0.55% PwC Finance benchmark data Top Quartile Median 4

5 Status quo 24% Insight Activities related to guiding the business (business partnering, business analysis, forecasting etc.) Efficiency Finance Effort Activities related to transactional processes (AP/AR, financial reporting etc.) 61% 15% Activities related to compliance and control (internal control, internal audit etc.) Control PwC Finance benchmark data 5

6 Status quo 50% Analysis 60% 50% Data Gathering 40% Median Top Quartile 6

7 Digital is not about the technologies 7

The digital CFO Visualisation Providing a clearer vision of the as-is situation Machine Learning & Artificial Intelligence Unlocking auxiliary cognitive capacities Digital capabilities The heart of

8 The digital CFO Visualisation Providing a clearer vision of the as-is situation Machine Learning & Artificial Intelligence Unlocking auxiliary cognitive capacities Digital capabilities The heart of the finance function Robotic Process Automations Bringing extra hands on deck Cyber security The strongest bone, carrying the weight of the body Dynamic forecasting Replacing gut feeling with data driven forecasts Advanced analytics and data collection The cardinal muscle of the body of finance Cloud/service as a solution (SaaS) Making finance quick on its feet 8

9 Four stories on digital change in the Finance function Business skills Value adding activities Communicator Business partner Reactive Finance in the digital age Proactive Score keeper Diligent caretaker Accounting skills Mandatory activities 9

The Case Drivers of profitability and costs to serve Communicator Business partner Issue Combining data from vehicle telemetry system with contract data Score

10 The Case Drivers of profitability and costs to serve Communicator Business partner Issue Combining data from vehicle telemetry system with contract data Score keeper Diligent caretaker Action Result Regular insight to profitability drivers Identification of bad contracts Change product pricing and contract management 10

The Case Communicator Business partner Issue Provide input for the design of the shared service centre executing accounts payable part of purchasing process Reconstruct

11 The Case Communicator Business partner Issue Provide input for the design of the shared service centre executing accounts payable part of purchasing process Reconstruct the process flows based on historical, actual data Score keeper Diligent caretaker Action Identify process inefficiencies and inefficiencies in controls definition Result 11

12 The Case High number of bad debt Communicator Business partner Issue Collecting and analysing customer payment history Score keeper Diligent caretaker Action Improved working capital and reduced amount of debt collection Result 12

The Case Improve group wide performance Communicator Business partner Issue Deeper understanding of business value drivers Identify relevant data points and source Structure and

13 The Case Improve group wide performance Communicator Business partner Issue Deeper understanding of business value drivers Identify relevant data points and source Structure and enrich data from several systems Action Score keeper Diligent caretaker Clear understanding of profitability of specific products, customers, distribution channels, business units Result 13

14 Prioritize your opportunities Think holistically and keep your focus Understand your business and what drives value Combine several digital tools Create digital ambassadors Start your journey 14

Thank you Visit us on www.pwc.dk/finance or PwC s app Ekstra værdi This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice.

15 Thank you Visit us on or PwC s app Ekstra værdi This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, Together we succeed 15

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