2017 CFO Summer Seminar CFOs and the Digital Challenge · 2017 CFO Summer Seminar CFOs and the Digital Challenge 31 August 2017 ... New vs current business • New: France, Germany,

2017 CFO Summer SeminarCFOs and the Digital Challenge31 August 2017

© 2017. For information, contact Deloitte Touche Tohmatsu Limited. 2

Agenda

18:30 Opening

18:30-18:40 1. CFO as a Strategist Sandy Cockrell

18:40-19:00 2. Perspective: Consumers and the Digital Revolution Kenichi Yuzawa

3. CFOs and the Digital Challenge

19:00-19:20 Overview Tom Hewitt

19:20-19:40 Breakout Discussions All

19:40-20:00 Breakout Feedback All

20:00 Close

CFO as a strategistSandy Cockrell, Global CFO Program Leader

4© 2017. For information, contact Deloitte Touche Tohmatsu Limited.

CFO Program Offerings span across the CFO Career Arc

The CFO Program views the career journey of the CFO in five phases and delivers customized offerings to cater to CFOs at all points in their careers

Investor Relations Capabilities

CFO Journal (Wall Street

Journal)

CFO Lens

CFO Insights

CFO Signals™ Survey

CFO Vision™

CFO Forums

CFO Transition Lab™

Finance Leadership Program™

Next Generation CFO Academy

CFO

Pro

gra

m O

fferi

ngs

CFO Career Arc

CFO Career Journey

Start ahead Plan ahead Stay ahead Look aheadOpportunities

ahead

Aspiring

CFONew CFO

Experienced

CFOSenior CFO

Board Member,

CEO…

© 2017. For information, contact Deloitte Touche Tohmatsu Limited. 5© 2017. For information, contact Deloitte Touche Tohmatsu Limited.

Business focus for the next yearCFOs’ challenges and top strategies

Source: Deloitte LLP ‘s CFO Program, Q2 2017 North American CFO Signals survey and European CFO Survey Q1 2017

CFO’s top strategiesInternal and external

business risks

Internal• Securing and retaining talent• Execution risk• Labor shortages and labor costs

Offensive and defensive• Offensive: North America

• Defensive: France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Turkey, UK

New vs current business• New: France, Germany, Italy, Spain, Netherlands,

Sweden, Switzerland, Turkey, UK

• Current: North America

Inorganic or organic growth• Inorganic: Germany, Italy, Sweden, UK

• Organic: France, North America, Netherlands, Spain, Switzerland, Turkey

Political• Domestic policy• Regulatory risks• International relations

Economic environment• Global economic growth• Consumer demand• Equity markets

What external and internal risk worries you the most? What is your company’s business focus for the next 12 months?

Perspective: Consumers and the Digital RevolutionKenichi Yuzawa, Senior Manager, Deloitte Digital


Deloitte Digital Global Presence


Digital Customer Experience Trends

出所：弊社知見／プロジェクト実績、各社資料

Automotive

• Future of Mobility

− Analytics Driven

− Value Chain Integration (Sales &

After Sales)

• Global Customer Experience

• DMP and Customer Data

• ROI Sensitive

− Weekly Process

• Web Integration

− Top companies integrated web

globally

• DMP and Customer Data

− Electronics players are slow in

Data Management Platform (DMP)

− Telecom players started Customer

Experience organisation and

implementing DMP

• Product and Service Innovation

− IoT Products

High Tech / Electronics

• Retail & EC Major Players

− Strong Market Penetration

− Vertical Integration (SPA)

− Customer engagement models

eg. Online to Offline (O2O)

• Manufacturers

− Optimizing Marketing Spend

− Brand Engagement

− Operation Outsourcing is relatively

slow compared to US market

CPG / Consumer Business / Retail

Life Sciences & Health Care

• Multi-Channel Doctor Engagement

− Physical supplemented by digital

− E-events

• Digital Tools for MRs

• Website Integration and Optimization

− Integrated, highly functional website for direct

marketing activities

Financial Services

• Distributed Ledger Technology (Blockchain)

• Mobile banking

• Cyber-security

• Biometric & Identify management


Urbanization and IoT is driving the Data Economy

Emergence of consumer driven economy without industrial borders

• 60% of the population would move to cities by 2030 and accelerate the seamless data integration between industry and public

• In 2030, 3% of the autonomous car will occupy the 30% of human transportation

• Customer needs will change from “Own” to “Share” by the development of autonomous drive

• Consumption trend would focus on the “lifestyle in cities”

• Participation of platform players such Google, Apple.


Customer Touch Points are Digitalized Example - Auto Industry

Digital becomes more important customer touchpoint than physical (dealers)

Pre Sales Sales After Sales

of customers check the website in consideration of car purchase

87%

=Average # of Dealer Visit(Lowered from 7 at the last survey in 2000)

1.5times

Answers they would be influenced by the websites when making a decision

78%

checks the price, the options, and the design of cars through website, not through stores or dealers

57%

Would maintain the product by their own, or get help from their friends or relatives.

34%

uses non-official dealer’s factories for inspection and maintenance

35%

• Source：Deloitte Digital Democracy Survey 2014


Young Consumers Want Personalization and have Low Brand Loyalty

Generation Y Consumer Needs

Cannot accept inconvenient

services

Want personalized services and

products

Dislike the brand if it cannot meet

expectations

Provide personal info

only to trusted companies

Decision making by right brain and word of

mouth

Need entertainment in communication

© 2017. For information, contact Deloitte Touche Tohmatsu Limited.


From Traditional Sales Funnel to Integrated Customer Journey Example - Auto Industry

Traditional Sales Funnel Integrated Customer Journey

AWARENESS

FAMILIARITY

OPINION

CONSIDE-RATION

INTENTION

Point of Purchase


Mobile Drives “Connected Consumer” Anywhere

All companies, in no matter what industry, will be data-driven


Connected Anywhere

• The smartphone prevalence is now 96% in China and 56% in Japan, with this number expected to continue to increase.

• We stand in the era that customers are able to get any information anywhere and at anytime.

• The communication method is segmentalized, such as smartphone during working hours, and phone/PC after working.

• Company is required to be digitalized for the customers satisfaction.


Digitalization without understanding the customer behavior is meaningless…

Most messages are either ignored or deleted – targeted content is key


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Singapore Indonesia cf: USA

Q: What is your reaction to digital marketing contact?


Samsung Has Global Level Clear Brand Structure to “Young Minded Consumer”

Company’sVision

EssenceFunctional Value

Innovative technology, Product and Design

Inspire the World, Create the Future

Emotional ValueMake people’s lives and

the world better

Pursuit of ExcellenceContinue to pursue quality,

creativity and innovation

Contribute toBetter World

Make People’s lives betterthrough innovation

Digital Innovator

Source：Samsung Website© 2017. For information, contact Deloitte Touche Tohmatsu Limited.


Global Digital Transformation- Brand building and Web global integration -

The strengthening of brand power from the “Nissan Power 88” midterm business plan was touted for the first time since the appointment of CEO Carlos Ghosn. Due to the digital approach, the influence of the digital touch point has grown larger than the influence of automobile sales dealers. Taken from this perspective, there was an extremely high degree of difficulty in promoting the global digital reform from strategy to execution with an understanding of Nissan’s situation and culture. The account relationship spans more than 20 years with Deloitte. And by combining the expertise of Adobe Marketing Cloud, etc. with the leading-edge work of Deloitte Digital, Deloitte is supporting and boosting implementation of reform for highly effective global transformation that includes Japan, China, Hong Kong, Europe, and the Americas. Deloitte is also supporting globally the plan for implementation of One on One communication in order to further enhance customer support. 16


Digital marketing strategy to achieve

2 trillion yen global sales in consumer electronics

- Focusing on the prospects of E-commerce -

“Three months were spent to discuss current situation and challenges extracted from real users surveys from each country with Deloitte. Despite of the short period of time, directions of our activity/actions were brought to light through market survey and many discussion. We proactively participated in the final report process and felt that we were able to create a precise/decent report for the project. I was extremely impressed with the professionalism of the consultants at work, leading interactively to our needs. I will continue to create and design our new business model based on the report derived from this project.”

Panasonic CorporationDigital marketing innovation G / Group ManagerMasamichi Yamamoto

17


Development of the global E-commerce strategy in the Kao Group

- Digitalization and beyond as the No.1 manufacturer -

E-commerce, has provided Kao, with a new sales channel and anopportunity to understand our consumers in the current market. In order to succeed in this new business platform, re-defining the business strategy and convergence of our marketing and sales function were one of the key challenges. Deloitte Digital’s support was absolutely beneficial to us – they have always provided us with objective advices, E-commerce survey was conducted leveraging their global network and organized meetings to convey logical discussions in a short period. Deloitte Digital’s unique quality and its strength have brought this project to a great success, opening new doors to advancement to the future.

Kao CorporationDigital Marketing Center / Digital Trade OfficeMitsuru Honma

18

CFOs and the Digital ChallengesTom Hewitt, CFO Program Leader Deloitte Consulting Japan


Here is a summary of key tools

Advanced AnalyticsAnalytics has long been part of the finance arsenal, but new techniques are helping business people tackle the crunchy questions with insightful answers.

In-memory computingIn-memory computing refers to storing data in main memory to get faster response times. And because the data is compressed, storage requirements are reduced.

Cognitive computing / AICognitive computing and artificial intelligence (AI) simulate human thinking. This technology includes machine learning, natural language processing, speech recognition, and computer vision.

Robotic Process Automation (RPA)Process robotics automates transaction processing and communication across multiple technology systems.

CloudCloud is a kind of computing that uses scalable, elastic technology to deliver services over the Internet.

VisualizationVisualization refers to the innovative use of images and interactive technology to explore large, high density data sets. Blockchain

Blockchain is a digital distributed ledger, where transactions are verified and securely stored on a network of distributed and connected nodes, without a governing central authority.

Digital Tools for a CFO - DefinitionsWell established

Rapidly emerging


Digital Tools and Big Data – Opportunities for you as a CFO

21


Technology and data radically transform how finance delivers value

AUTOMATION AND QUALITY• RPA, AI, and machine learning

to reduce manual intervention, increase quality, and influence outsourcing options

• Procure to Pay and Order to Cash platforms and Blockchain to reduce manual intervention (right first time)

Finance

Strategy

Process and Policy

Information and Systems

Organization and People

Specialized Finance

Business Finance

Operational Finance

FORECASTING AND HIGHER VALUE-ADDED TASKS• In-memory and data analytics enable driver-based

and predictive insights• RPAs conducts non-added-value tasks

KNOWLEDGE WORK SUPPORTED• Expert systems, predictive

analytics and AI will support knowledge work

FINANCE CUSTOMERS AND COLLABORATION• Cloud and SaaS solutions drive

adoption of new solutions• Cyber and fraud detection

improves data quality• Digital collaboration tools

available in the cloud enable and support dialogue teams

IT, FINANCE AND BUSINESS, TOGETHER• Flat organization model and empowerment

• Data analysts to complement/replace finance specialists• Finance, IT, and business become more integrated

HIGH MONITORING AND STANDARDIZATION• Data & process analytics

improve quality• Continuous monitoring solutions

will enhance control and replace audits


Demo: Robotics – Procure to Pay

23


A Pilot: Amelia

Cognitive computing & AI

Meet Amelia. She was recently created through a pilot project between Deloitte and a specialist Cognitive vendor.

She is a virtual agent who can take on a wide variety of service deck roles and transform customer experience. She can increase the effectiveness of operations by getting work completed more efficiently than ever before. Just like a human, she communicates with customers using natural language.

Amelia is a advanced cognitive solution to optimize client operations and enable business growth at scale


Demo: Cognitive computing – Amelia and accounting

25


Finance in a digital world is not just about toolsThe new finance function will require bold leaders with diverse skills.

Technical skills Business skills

Reporting software

Data analysis skills

Testing

Structured query reporter

Data modeling

Macro-perspective

Business knowledge

Business commentary

Soft skills

Negotiation


Recent studies predict the need for mobility….

Will your job still exist in 2023?

27


What CFOs say about digital

Anything I could say

about adopting

blockchain would be

idle speculation at

this stage.

Finance teams need to understand that the world will continue to move even faster. We need to prepare ourselves to meet the demands of a business we haven’t even seen yet.

Digital transformation is fundamentally human-centric because it’s about imagining new ways of value creation.

I always laugh when people complain about data.

Finance organizations are

becoming transformation agents and data scientists, quite

frankly.

We have to be ever more efficient. That means driving costs down for

transactional services using automation, robotics, and maybe even outsourcing to new providers in this

space.

Not having a roadmap would be really dangerous these days because the pace of transformation is speeding up in every industry.

Digital is moving finance to be a strategic partner in all senses of the word.

We have to be able to expand the information we provide and have it easily accessible. At the end of the day, that’s the strategic part. The fun

part.

Given the power of analytics, machine learning, and greater sources of data, our role of business partner may

evolve to where we’re constantly considering different ways to adapt our business model.


Participant activity

Where and how is Digital being utilized in your organization?

What will be the stand-out technology for you in say 5 years’ time?


Participant activity – Document and feedback

For your groups, identify the technologies and tools you are currently using; also identify the one(s) which you think in 3 years will be one which is truly innovative and business-transforming.

Visualization and

Advanced analytics

Robotic process

automation

Cognitive

computing / AI

In-memory

computing

Blockchain

Cloud

Other

Currently using Level of maturity Examples In 3 years


To successfully prepare for finance in a digital world:

Key takeaways

1 Prepare for the reality of finance’s role in a digital world and stay relevant and competitive.

2 Be a better business partner and respond to the organization’s needs in a more strategic way.

3 Explore new technologies that are available to help drive down costs and free up time for strategic activities.

4 Identify opportunities to automate finance ecosystems and make processes more efficient.

5 Manage, analyze, and forecast data and implement tools for greater accuracy today and in the future.

6 Reimagine finance to think big and start matching disruptive technology against your biggest problems and challenges.

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Documents

2017 CFO Summer Seminar CFOs and the Digital Challenge · 2017 CFO Summer Seminar CFOs and the Digital Challenge 31 August 2017 ... New vs current business • New: France, Germany,