View
2
Download
0
Category
Preview:
Citation preview
WelcomeFuture of FinanceThursday 31 January 2019
Reinventing Finance in a Digital Age Noel Tagoe, PhD, FCMA, CGMAExecutive Vice PresidentManagement Accounting Research and Curricula
Based on rigorous and robust research
3
Read about it in …
4
And in …
5
Agenda
6
Changes in the business world
Challenges and response of the finance function
Skills and competencies
CIMA Professional Qualification
Changes in the business world
8
Fast paced and
unpredictable
9
Disruption
10
Managing on the edge
of chaos
Driven by …
11
GlobalisationGeopolitics
Demographic changes
Customer empowerment
TechnologyAutomation
Organisations are expected to be …
12
innovator
agile
resilient • Rapid• Dynamic• Proactive• Reactive
Who understand the ecosystems in which the inhabit and operate
13
And the place of their business models in the ecosystems
14
Challenges and response of the finance function
Various stakeholders expect the finance function to …
16
Board Customers & Vendors
Business Leaders
Investors & Analysts
Maximise shareholder value with minimal risk
Ensure ease of doing business at lower transaction cost
Ensure predictable and sustainable profitable growth
Influence strategy and business decisions with real time insights
The finance function also faces the …
17
challenges & opportunities of automation
Where finance professionals might be replaced by machines …
18
4 work days
16,000 work daysOLD HUMAN SYSTEM
NEW MACHINE LEARNING (AI) SYSTEM
And the shape of the finance function keeps evolving …
19
Hierarchical Segregated Diamond Some other shape
?
And finance people do …
20
Lead the finance team
Partner for value to influence and shape how the organisation creates
and preserves value
Assemble and extract data and provide limited insight
Specialists generate further insights in their
areas of specialism
21
How should the finance profession respond to these changes?
Role of finance function …
22
• Enable• Shape• Narrate
creation and preservation
of value
This requires transformation …
23
Optimise
Diversify
Transform
Time/Difficulty
Value
Transformation involves …
24
Transforming Finance
Cost centre to Value centre
Author and narrator of the
value story
Strategic value partner
Enable through control
From cost centre to value centre …
25
Superior Value
FINANCE AS VALUE CENTRE
Insight, Influence & Impact
Superior Delivery
FINANCE AS COST CENTRE
Economy & Efficiency
Architect of Future Value
Performance Insight
Cost Excellence
Operational Excellence
Author and narrator of value story …
26
In a world deluged by irrelevant
information clarity is power
“
”Yuval Noah Harari
27
Value
Difficulty
HINDSIGHT
INSIGHT
FORESIGHT
DESCRIPTIVE (Discover and Report)
DIAGNOSTIC (Analyse)
PREDICTIVE (Predict)
PRESCRIPTIVE (Decide and act)
What happened?
Why did it happen?
What will happen?
How can we make it happen?
Author and narrator of value story …
28
Finance and the
value story
Society
Investors
Employees
Regulators Customers
Suppliers and
partners
Author and narrator of value story …
29
Narrative Visuals
Data
Engage
CHANGE
Enable through control
30
Enable through control
31
Which car would you drive fast?
A car with excellent brakes or a car with faulty brakes?
Enable through control
32
Use your controls to enable action
not to stop action!
Strategic Partner for Value
33
Navigator … to … Co-pilot
Strategic Partner for Value
34
Information Insight Influence Impact
Collate
Analyse
Communicate
Enable through control
Finance works in isolationFinance works with others
Competencies and Skills
People or machine?
Machine Advantage Human Advantage Human-Machine Collaboration
In a digital world
37
Technology is important …
… but people are even more important
38
The hardest part of digitally transforming a company is not the technology - it’s the
sociology
“
” Safra CatzCEO, Oracle
39
The future is people collaborating intelligently
with machines
CGMA Competency Framework
40
41
42
CIMA Professional Qualification
C
44
45
Some new areas in the qualification
46
• Data Strategy
• Data Analytics
• Data Visualisation
• Cyber Security
• Ecosystem analyses
• Digital technologies
• Digital costing
• Digital literacy
• Business models
• Integrated reporting
47
• Exam blueprints are a powerful tool to demonstrate employability …
• First in industry outside of US
Exam Blueprints
48
Exam Blueprints
• Develop business strategy• Evaluate business ecosystems and business environment• Recommend financing strategies• Evaluate and mitigate risk• Recommend and maintain a sound control environment
• The Strategy Process
• The Organisational Ecosystem
• Strategic Options
• Strategic Choices
• Strategic Implementation and Control
• Digital Strategy
• Financing Policy Decisions
• Sources of Long-Term Funds
• Financial Risks
• Business Valuation
• Enterprise Risk
• Strategic Risk
• Internal Controls
• Cybersecurity Risks
• A
Senior Finance Manager
CASE STUDY CORE TASKS (BUSINESS SIMULATION / CAPSTONE / SYNOPTIC)
SYLLABUS SUBJECT AREAS(OBJECTIVE TESTS)
I can
I want
49
What happens to our members who have already completed the professional qualification?
50
Our members will reap the benefits of over 6 hours of free, digital future-focused CPD …
51
CGMA Digital Mindset pack What?
6+ hours of curated CPD content for CIMA members in one place.Key topics:
• Updated CGMA Competency Framework and thought leadership
• Data analytics
• Robotic process automation
• Blockchain
• Human intelligence
Free to CIMA members as part of 2019 member benefits (£225 value)
Available through the CGMA Store with MINDSET19 discount code.
4 Things to remember
C
The future of finance research is rigorous and robust …
The CIMA Professional Qualification is reinventing finance in the digital age …
Our exam blueprints are a powerful tool to demonstrate employability …
Our members will reap the benefits of over 6 hours of free, digital future-focused CPD …
Someone once said …
57
Some people make things happen.Some people watch things happen.And then there are those who wonder: ‘What the hell just happened’?
“
”Carroll Bryant
Thank you
Recommended