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6. The better the question. The better the answer.
The better the world works.
Is the future of finance
new technology or
new people?
Preparing for the future finance
function
Presentation of select findings
7. Page 7 Is the future of finance new technology or new
people?
Introduction
8. Page 8 Is the future of finance new technology or new
people?
The DNA of the CFO series
► 55 Part 1: Do you define your CFO role? Or does it define you? The disruption of the CFO's DNA.
CFO role being reshaped by four forces: digital, data, volatile risk, and stakeholder scrutiny and
regulation.
To meet those challenges, CFOs need to re-evaluate their own competencies, and those of their
team …
Released May, 2016
Part 2: Is the future of finance new technology or new people? Preparing for the future finance
function.
Technological innovation is providing an opportunity for CFOs to transform their finance function into
a fact-based decision center for the whole organization. But as many traditional finance tasks are
automated, the profiles and skills of finance people will need to evolve.
Released September, 2016
Part 3 to be released in November 2016 – see EY.com/CFO for more information
9. Page 9 Is the future of finance new technology or new
people?
Study overview
The DNA of the CFO study is based on a survey of 769 finance leaders around the world, conducted from December 2015 to February 2016, and one-on-one
interviews with the following CFOs.
Gerry Bollman
CFO, Fletcher Building
Frank H. Lutz
CFO and Member of the Management Board, Labor
Director, Covestro AG
Robin Stalker
CFO, adidas Group
Claude Changarnier
Vice President of International Finance Microsoft
International
Ryan Mangold
Group Finance Director, Taylor Wimpey
Francesco Tanzi
CFO, Pirelli & C. S.p.A
Chris Chen
COO & CFO, DDB Greater China
Malina Marinova
Senior Finance Manager at Progress; Former CFO of
Telerik
Jacques Tierny
CFO, Gemalto
Miguel Escrig
Head of Finance, Telefónica
Darren Tan Siew Peng
CFO, OCBC Bank
Zlatko Todorcevski
CFO, Brambles
Deborah Gibbins
CFO, Mary Kay
Mavinakere Ranganath
CFO, Infosys
Suketu (Suky) Upadhyay
Executive Vice President and CFO, Endo International plc
Simon Kelly
Former CFO and COO Nine Entertainment Co.
Eriikka Söderström
Former CFO, KONE
Peter Vekslund
Executive Vice President & CFO PANDORA A/S
Dr. Stefan Kirsten
CFO, Vonovia
Anthony Staffieri
CFO, Rogers Communications Inc.
Kelly Wong
CFO, KIDO Group
Dr. Guy Look
CFO and Executive Director, Sa Sa International Holdings
Limited
10. Page 10 Is the future of finance new technology or new
people?
Survey’s demographic summary
Region
21%
28%
51%
Americas
Asia-Pacific
EMEIA
37%
17%
46%
Up to US$500m
Between US$500m and
US$1b
More than US$1b
1. See slides at end for detailed demographic breakdown.
2. “Other” finance role includes: Head of Finance Team, Director of Corporate Controlling, Director Financial Control & Planning.
0.1%
1.7%
2.5%
2.6%
2.7%
3.4%
3.6%
4.7%
5.2%
5.5%
6.6%
7.8%
7.8%
7.9%
8.3%
9.5%
9.6%
10.4%
Other public
Private equity
Mining and metals
Real estate
Asset management
Telecommunications
Oil and gas
Power and utilities
Insurance
Diversified industrial products
(including aerospace and defense and chemicals)
Cleantech
(including energy, water, transportation,…
Other commercial
Banking and capital markets
Life sciences
Media and entertainment
Technology
Automotive and transportation
Consumer products
Size
Sectors
11. Page 11 Is the future of finance new technology or new
people?
CFOs are focused on technological transformation and
new skill development
12. Page 12 Is the future of finance new technology or new
people?
I think the most important thing for a senior executive of this
company – the CEO and myself – is to explore, ‘What is the
future for the business?’ Where do we want the company to
be in five years’ time? … Part of our job as an agency is to
find creative ideas. So we need to know what the future is. I
recently met with two people and we had a discussion about
virtual reality. In another meeting we were talking about
mobility. These are the things a CFO need to look at and
discuss.“
Chris Chen
COO & CFO, DDB Greater China
“
13. Page 13 Is the future of finance new technology or new
people?
Technology
14. Page 14 Is the future of finance new technology or new
people?
Five technology innovations set to transform the
finance function
1 Advanced data analytics and forecasting
2 Robotic process automation
3 Cloud and SaaS
4 Artificial intelligence
5 Blockchain
15. Page 15 Is the future of finance new technology or new
people?
People
16. Page 16 Is the future of finance new technology or new
people?
From a skill-set perspective, we are constantly
looking to slowly shift the organization to
automate manual processes. Analytics are key,
so we are growing our base of skills and
positions that do more analytics for our business
partners than we are spending time processing
invoices or expense reports.”
Deborah Gibbins
CFO, Mary Kay
“
17. Page 17 Is the future of finance new technology or new
people?
Two people priorities for CFOs
Building a new finance function operating model
Design a future operating model that focuses their best people on key priorities and
delivers a smarter, more forward-looking and resilient finance function
1Challenging the assumptions about what constitutes finance talent
Challenge their own and others’ assumptions about what constitutes finance talent, how to
find the right profiles, form strategic alliances and develop the skills needed to thrive in an
increasingly connected, data-rich future
2
18. Page 18 Is the future of finance new technology or new
people?
Priority one
Building a new finance function operating model
Looking ahead five years from now, what are the top finance capabilities that will be critical to meeting the
demands of your organization?
Smarter
Better aligned to the business
More forward-looking
More resilient
Future
operating model
33%
40%
46%
53%
56%
57%
Investor relations
Management of regulations to meet increasing and changing
requirements
Corporate reporting, including meeting increase demands of
stakeholders, from boards to investors
Big data and advanced analytics to provide business intelligence and
management information
Sophisticated planning and forecasting
Strategic risk management, including reputational, regulatory and
cyber risk
19. Page 19 Is the future of finance new technology or new
people?
Priority two
Challenging the assumptions about what constitutes finance talent
Rethinking what
constitutes
finance talent
Look beyond
traditional
financial
analysis skills
Develop better
finance business
partners
Find digital
finance talent
Use alliances to
go beyond what
your organization
can deliver
alone
20. Page 20 Is the future of finance new technology or new
people?
Tomorrow’s finance talent – key findings
Looking ahead five years from now, how important will the following people and skills initiatives be for
your finance function? (percentage that have indicated initiative as ‘critical’ or ‘very important’)
57% 57% 55%
47%
Building skill in predictive and
prescriptive analytics
Improving regulatory knowledge
to keep abreast of an uncertain
changing environment
Improving digital technology
skills in areas such as mobility,
cloud, SaaS
Developing deep technical skills
in key areas of risk such as cyber
21. Page 21 Is the future of finance new technology or new
people?
The vision that we’ve created is called ‘SMART Finance.’
This means the need to think Strategically, and Mine data
for insights. With an understanding beyond numbers, we
are then in a better position to Analyze and Advise our
business partners in terms of their performance and their
utilization of Resources. This way, we can help to facilitate
the formulation and refinement of the business strategies of
the bank, and optimize the allocation of resources to these
strategies. Most importantly, we need to groom Talent to
make all these SMART things – strategy, mining data,
analysis and resource allocation – happen.”
Darren Tan Siew Peng
CFO, OCBC Bank
“
22. Page 22 Is the future of finance new technology or new
people?
Some final thoughts from the front lines…
► Some common mistakes as people pursue EPM initiatives:
► Trying to leverage new technology around the current process and organization
► Short term, “quick-win” focus at the expense of a longer term vision and strategy
► Tools are important, but process and organization is what pays the bills
► …And some “leading practices”:
► The business i.e., CFO needs to own the initiative
► The team needs to understand the big picture while still being able to focus on the
details
► An iterative phased approach is almost always better than a big bang
► Understand the vision and roadmap of your technology provider is just as important as
understanding your own vision and roadmap
23. Visit ey.com/dnaofthecfo or connect with our people
for more perspectives:
Global
Tony Klimas
EY Global Finance Performance
Improvement Advisory Leader
Tel: +1 212 773 5949
Email: tony.klimas@ey.com
EY.com/CFO
24. Page 24 Is the future of finance new technology or new
people?
Q&A