THE 4TH INDUSTRIAL REVOLUTION
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- Joel Hutchinson
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1
2
3 WHY?
4 THE 4TH INDUSTRIAL REVOLUTION 4
5 Photographer: Simon Dawson/Bloomberg We stand on the brink of a technological revolution that will fundamentally alter the way we live, work and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before. - Klaus Schwab WEF
6 In the next five years, we are going to transform not change, but transform how we sell, how we market, how we communicate, collaborate, innovate, train and educate. - Daniel Burrus
7 CEOS: NEXT 3 YEARS MORE IMPORTANT THAN THE PAST 50 YEARS
8
9 ROBOTICS is predicted to automate or eliminate up to... Artificial intelligence Blockchain of basic accounting work by Data analytics Cybersecurity Source: Deloitte Accenture
10 Change can be gradual UNTIL IT ISN T. Malcolm Gladwell, The Tipping Point
11
12 FUTURE READY aware predictive adaptive 92% OF CPAs ARE NOT FUTURE READY CPA.com Insight into the CPA of the Future Study 2014
13 88% of companies believe they need to redesign their organization to succeed in the digital age Only 9% truly understand how their internal organization s network works and 11% feel fully capable of redesigning their organization for the future
14 HOW DO WE GET FUTURE READY?
15 Mindset SHI FT
16 FUTURE VIEW
17 Picture of a Penny, or a penny next to two pennies next to four pennies next to 8 pennies Illustrating a story about the power of exponential
18 The greatest shortcoming of the human race is our inability to understand the exponential function. Albert A. Bartlett BDO Alliance Tom Hood, CPA, CITP, CGMA
19 Anticipate: Hard Trends / Future Facts 1. Government Regulations and Standards 2. Demographics 3. Technology These trends have direction and speed, they are moving forward with or without us. In the case of technology, it is exponential.
20 MACHINE READABLE CAFRs
21 SUCCESSION Estimated 10,000 baby boomer retirements daily Gen Y 50% plus of workforce and growing Vested state employees retiring early
22 Top 10 Technology Hard Trends Shaping the Profession in Artificial intelligence, machine learning, and cognitive computing in audit and tax 2. Big Data and high-speed data analytics 3. Adaptive and predictive cybersecurity 4. Virtualization and automation of processes and services 5. Mobile apps for business process innovation Source: 2018 Top technology Trends Burrus Research BLI-MACPA Research with over one thousand finance and accounting professionals
23 Top 10 Technology Hard Trends Shaping the Profession in Blockchains and cryptocurrency 7. Advanced cloud computing 8. Smarter smartphones and tablets drive mobile process automation 9. Virtualization of desktops, storage, applications, and networking 10. Social business applications + 1 RPA Robotic Process Automation Source: 2018 Top technology Trends Burrus Research BLI-MACPA Research with over one thousand finance and accounting professionals
24 Picture for 4G to 5G 20 Times Faster (Exponential Concept) vs.
25
26 Audit of the Future
27 Emerging Technologies CHANGES AUDITOR S ROLE Automation Data analytics enables more effective, more complete, more meaningful audit results leveraging both structured and unstructured data sources IoT allows access to more timely, relevant data (example sensors/rfid for inventory & asset tracking Blockchain provides visibility to transactions & ensures authorization control Cybersecurity becomes key with data expansion and IoT Focus on WHY and WHAT S possible
28 Process Automation
29 IT and Cyber Risks
30 ENTERPRISE RESOURCE PLANNING ERP means COMPLEXITY - Everyone
31 YESTERDAY S SKILLS WILL NOT BE SUFFICIENT FOR TOMORROW
32 TO MEET THE DEMANDS OF THE FUTURE, AUDITORS MUST: Stay ahead of the curve (anticipate) on evolving technology and the changing regulatory environment. #hardtrends Sharpen technology, critical thinking and communication skills. Look ahead and provide insights on future challenges and opportunities. Source: Forbes / KPMG Audit The Future is Now
33 #FutureReady Competencies in the Age of the Machines Anticipatory Skills Strategic Thinking Collaboration Data Analytics and Insights Tech Savvy Communications Leadership Future Ready Competency Matrix Copyright Business Learning Institute 2017
34 The # 1 Competency for CPAs = Anticipation To succeed in business these days, simply being lean, agile, and executing well is no longer enough. To thrive in this new age of hyper-change and growing uncertainty, it is now an imperative to learn a new competency how to accurately anticipate the future. - Daniel Burrus, one of the World s Leading Futurists on Global Trends and Innovation. 34
35 ANTICIPATOR Y SKILLS
36 STRATEGIC THINKING Critical Thinking Problem Solving Insights Vision
37 Collaboration
38 DATA ANALYTICS Data Analytics can be broken down into four progressive levels:
39 MOST CYBER RISKS ARE NOW HIDDEN Today s cyber risks threaten more than financial data. Similar to an iceberg, most vulnerabilities are hidden from automated and compliance-driven cybersecurity procedures. In a technology driven world, cybersecurity must be deliberate, offense-oriented and data driven.
40 DATA ANALYTICS EDUCATION Villanova University Masters of Accounting and Data Analytics University of MS Masters of Accounting and Data Analytics; Masters of Taxation and Data Analytics Philippines Under graduate in Accounting Technology Many Curriculums Under Development
41 COMMUNICATIONS Presentation Skills Writing Skills Listening Skills Effective communications
42 LEADERSHIP Emotional EQ Self Awareness Self Regulation Empathy
43 SKILLS FOR RELEVANCE Anticipatory Skills Strategic Thinking Collaboration Data Analytics and Insights Tech Savvy Communications Leadership
44 STATE & LOCAL GOVERNMENT WORKFORCE TRENDS Recruiting & Retaining talent top priority 91% Staff Development 77% Leadership Development 76% Succession Planning 74%
45 MANPOWER GROUP 2018 SURVEY 46% of US Employers are having difficulty in filling jobs.
46 LEADERSHIP DEVELOPMENT TIDBITS Prioritize Internal Development Assess current staff on ability to learn and apply versus present skill set Better off with non learners off the bus!
47 LEADERSHIP DEVELOPMENT TIDBITS Learn Fast Learn Forward Daily Exposure to Experiences Access to Highest Levels of Management
48 LEARNING & DEVELOPMENT TIDBITS Challenging As Needed On Demand Nano Small Doses Focus on 7 critical skills Tied to Career Tracks
49 COMPELLING VISION
50
51 THOUGHTS ON CULTURE/RECRUITMENT Stress Meaningful Work and Mission Impact on Transparency Evolving outdated reporting to digital world Building better accountability in government Developing best practices Flexibility Growth with learning and development
52 BENEFITS OF AN INNOVATIVE CULTURE Attracts and Retains Talent Develops Leaders Faster Increases Team Engagement Spotlights Poorly Performing Programs/Processes Builds Stronger Collaboration Across State Agencies Improves Effectiveness in Agencies with Audit Insights
53 Primary Challenges to Innovation 1. Legacy thinking 2. Fear 3. Lack of compelling vision and why 4. Lack of alignment in partner group 5. Past success
54 FUTURE READY MINDSET Innovation in auditing and reporting Collaborate on Insights Analytical Cyber Security Risks Strategic First
55 LION Walk Picture
56 TONE AT THE TOP Passion IS CRITICAL Mental Toughness Visible Role Model of Change Communicates Openly Identifies Changes and Individuals Affected Expects and Listens to Strong Reactions Sense of Urgency
57 CHANGE IS HARD Overvalue what we have Underestimate risk of status quo Underestimate the opportunity Don t understand the WHY
58 FEAR CHANGE LEAVE IT HERE
59
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