1. Finance of the Future
Digital finance and leading practices
Webcast: How to Bring About Finance Transformation on Your Own Terms
June 2021

2. PwC 2
With you today
Brett is a Principal with PwC’s Financial
Services Advisory group with more than 28
years of consulting and industry experience.
He leads the Financial Services practice for
Finance Transformation in the US and
focuses on leading finance transformation,
operating model design, and cost reduction.
Within the finance transformation area, he
has advised top-tier global institutions on
finance systems architecture and
implementation, organization design, process
standardization and digital automation.
Principal, Advisory
PwC US
(773) 960 1840
brett.r.maher@pwc.com
Brett Maher
John joined Workday, Inc. as VP, Financials
Products and Go To Market in 2015. Prior to
Workday, John was Senior VP & Corporate
Controller, and Principal Accounting Officer,
at Life Time Fitness, Inc., a Minneapolis,
Minnesota based Healthy Way of Life
company. Previously, John held accounting
and financial leadership roles with CompleTel
Europe, N.V., Jones Intercable, Inc, and
started his career at Arthur Andersen LLP.
John has a B.B.A. in Accountancy from Iowa
State University, and is a Certified Public
Accountant (inactive) in the state of Colorado.
VP, Financials Products &
GTM
Workday
(952) 454 8740
john.hugo@workday.com
John Hugo
Shivani is an Associate at Financial
Executives International.
Associate
FEI
(937) 765 1027
ssomaiya@financialexecutives.org
Shivani Somaiya

3. PwC
Topic Objectives Pages
Today’s CFO
• CFO as the driver of change
• Top performer metrics
• Finance function characteristics
5-7
Digital Enabled Finance
Operating Model
• The changing operating model
• Digital finance implementation approaches
• Citizen-led approach
8-12
Digital Enabled Finance
Operating Model
• Enterprise-led approach 14-16
The Finance Journey • The journey 18-19
Workforce of the Future • The post pandemic workforce 20-22
Q&A Session / Next Steps
Agenda
3

4. PwC 4
Finance Journey
Today’s CFO

5. PwC 5
By the numbers, what sets Top Performers Apart?
Sourced from PwC's Global Finance Effectiveness Benchmarking Database
Leading Finance teams have
more people in business
partnering roles
45%
Leading Finance functions are spending
more time on data analysis,
rather than data gathering
19%
25%
Leading Finance functions run at
lower cost than average
35%
Reduce waste:
Management Reporting
General Accounting
Tax Accounting
40%
23%
27%

6. PwC
e
CFOs as drivers of change
CFOs’ top priority for the finance function is to:
• Establish finance as the business partner across the enterprise.
• Other priorities include automating processes and reducing cost as a percentage
of total revenue. Doing more with less – and the challenges of the pandemic
magnified that concern.
As CFOs lead the charge toward growth, they have the opportunity to:
• Play a more active role around strategy, beyond the tactical applications of the
finance function. Agile decision-making, collaboration and better partnering
across functions, and focusing on the company’s broader strategic
objectives.
• Driving transformation and the enterprise agenda puts CFOs in a position to
help drive change across the organization and shape the post-pandemic
business model.
But one risk related to people looms large:
• A lack of talent and skills shortage. Like most executives surveyed, 93% of
CFOs believe the availability of talent with technical skills is critical In order to
drive growth
• CFOs need the right people with the right talent and skills – and upskilling,
hiring and onboarding people is important across the enterprise.
• As CFOs focus on talent, they need to make sure to align with the company’s
diversity and inclusion (D&I) efforts and goals. Over the next year, 62% of
CFOs say their company plans to increase D&I training, and 51% expect an
increase in D&I reporting to
internal stakeholders.
Finance function: moving from tactical to strategic
Establishing finance as the business partner to the business
Automating processes using intelligent automation
Reducing cost as a percentage of total revenue
Advancing goals for diversity and inclusion (D&I)
Increasing investment in compliance functions
Revising enterprise risk management (ERM) practices
Enhancing ESG reporting and disclosures
Using artificial intelligence to build predictive models for financial planning and forecasting
Establishing governance and reporting controls for non-financial metrics
Moving finance to the cloud
More transparent disclosure
47%
41%
39%
24%
23%
21%
21%
19%
18%
14%
5%
Q: What are your top priorities for your finance function in 2021? (Select up to three)
Totals may not add up to 100% due to rounding.
Source: PwC US Pulse Survey, March 12, 2021: CFO base of 182
6
Strategic Priorities and Risks Tactical Priorities

7. PwC 7
Digital-Enabled
Operating Model

8. PwC 8
The changing finance function
Radical automation
and exploding data
volumes
Industry
convergence and
changing business
models
Changing
regulations
Accelerated
M&A
Process
Digital
Core
CONTROL EFFICIENCY
INSIGHT
…requiring Finance organizations to increase agility, incorporate
new skills & technology, and adopt new ways of working while
continuing to balance efficiency, control and insight.
Digitization and macro-economic trends are profoundly
impacting the Office of the CFO…
When to consider a transformation journey
• Lagging performance
• Disconnect between Finance
& the business
• Divestiture, merger and acquisition
• Evolving workforce & skills gap
• Leadership changes
• Outdated systems & manually
intensive processes
• GAAP and regulatory change
• Control deficiencies or fraud
Leading Finance organizations are meeting these challenges
head on and with an emphasis on…
Becoming digitally enabled and focused on speed
Integrating and analyzing information on a real time basis,
enabling on-demand insights
Upskilling Finance and transforming the service delivery
model to remain competitive
Dramatically reducing cycle times, cost & size of Finance
Transacting events as they occur
...while maintaining control and managing changing regulatory
environments

9. PwC
Citizen-Led innovation
Digital transformation approach requires dual-effort:
Both top-down and bottom-up
Micro solutions developed by
end users
• “Innovation” and collaborative
mindset
• Upskilled and comfortable with
digital toolkit
• Incentivized and rewarded by
leaders
• Target the countless opportunities
that fell through the cracks
High-value programs developed
by the enterprise
• Create and encourage a culture
of innovation
• Target the big
definable opportunities
• Provide the learning, data,
technology and infrastructure
capabilities for citizens
• Review and ensure quality across
citizen-led solutions
Receive
Grassroots innovation feeds back to the overall
digital transformation efforts
Industrialize
Provides capabilities and support to
execute programs
Create
Enterprise-Led
innovation
9
Review
Distribute
Innovation
Cycle
PwC

10. PwC
What is “digital”? Applying relevant tools, skills and mindset to transform the way we work, resulting in:
Leveraging a wide array of tools (e.g.,
automation, visualization, analytics,
machine learning, etc.) to enhance
controls, deliver high quality and
timely information, and allow for
better insights/decision making
Digital technology can
reduce/eliminate non-value add,
manual, and repetitive processes
resulting in significant cost reduction;
the digital business case and return
on investment is fairly straightforward
Harnessing the optimism and
excitement around digital innovation,
coupled with a robust digital training
curriculum, a “workforce of the future”
can evolve organically, while also
attracting and retaining talent
By encouraging (and rewarding)
adoption of digital tools, a grassroots
effort can lead to quick results; in
parallel, the business-led focus can
be on foundational elements (e.g.,
governance, data, toolset, etc.)
Digital tools and citizen-led innovation are transforming how
Finance functions work
10
Improved processes Cost savings Citizen-led Execution
Upskilled workforce
Robotic process automation
Automation of repetitive, manual tasks on the desktop
Chatbot
A computer program that attempts to simulate the conversation of a human
via text or voice interactions
Data transformation
Transform data based on a series of functions for further use
Natural language processing
Review/Validate text that is not in compliance within a set of rules
Document collaboration
Streamlines reporting through collaborative work spaces and data automation
Visualization
Visualization of complex data sets; includes ability to “slice and dice”
Machine learning and anomaly detection
Using algorithms to improve rule sets that an activity is actioned on and ability
to isolate data points
Natural language generation
Generate text in human language using a set of pre-configured data
points
Types of digital tools used to deliver solutions to address business pain points:
PwC

11. PwC
The problem
Burdened by highly manual and repetitive processes, a large global retail and investment bank’s
Finance function recognized the availability of new technologies that could quickly provide both
quantitative and qualitative benefits to the organization.
What we did
Demonstrated the benefits of a citizen-led model through rapid digital use case development, beyond
RPA into analytics/AI, while creating the governance, operating model, controls, and training
curriculums.
The results
$15+ million
Annualized FTE benefits
200+
Digital use cases identified
300+
Citizen developers identified
80+
Participants in in-depth trainings
Citizen-Led innovation
Case study: Digital innovation
Digital tools and citizen-led innovation transforming how Finance functions work.
11
PwC

12. PwC
A service-based
architecture that
utilizes a common
data backbone to
curate, store data and
cohesively integrate
application and
data structures
that empowers the
Finance function and
brings insights on a
real-time basis
Cloud Financials, Planning and
Budgeting and HCM
Process Excellence Tool
(e.g. RPA)
Information
Anytime, Anywhere
Machine Learning
& AI
Advanced Analytics
& Visualisation
Real-time Self serve Computing
Data
Internal, External,
Structured,
Unstructured
Cloud based
Platforms
What is the Enabling Technology……..
12
Enterprise-Led innovation

13. PwC
Workday financials and HCM provides a single cloud platform
13
Enterprise-Led innovation
ONE TECHNOLOGY
PLATFORM
PROJECT
BILLING
INSIGHT
APPS
PROCUREMENT
INVENTORY
REVENUE
FINANCIALS
PROJECTS
EXPENSES
STUDENT
TIME
TRACKING
RECRUITING
HUMAN
RESOURCES
TALENT
PAYROLL
BUSINESS
PROCESS
FRAMEWORK
REPORTING
& ANALYTICS
ORGANIZATIONAL
FOUNDATION
PLANNING

14. PwC 14
The Finance
Journey

15. PwC
There are common themes in the journey CFOs are taking
towards a more modern Finance function
15
The journey to modern Finance is rooted in a few core concepts:
• Modern cloud ERP supported by an accounting rules engine / subledger
• Flexible organization that efficiently use SSCs and CoEs
• Clear data strategy and governance to standardize and automate data
• Robust performance management across the organization
• Deployment of digital tools and empowerment of
employees to deploy
ERP Deployment
• ERP Cloud Solutions –
single or multiple global
instances
• Process execution tools
bought or built around the
‘edge’ (e.g. Invoice,
Expense initiation)
Shared Services
• Global process standards and
owners for Record, P2P, Payroll &
T&E, Stat Compliance & Fixed
Assets
• Offshoring and captive onshore
model for transaction processes
• Ongoing improvement model to
drive efficiency and onboard new
processes
Data & BI Standards
• Standard data model to
support external reporting and
internal insight / analysis
• Accessible and automated
data storage for Finance
• Common, central definition of
Tier 1 KPIs, reports, and data
• Performance management
set at enterprise level with KPI
cascade, templates & cadence
Performance Management
• Shift focus from revenue
to P&L and customer
insight including margin,
profitability and capital
planning
• Flexibility to integrate deal
and business initiatives
integrating new business
models into portfolio to
address customer & product
gaps
• Reporting, forecasting and
planning tools to support
decisions across the
business value chain
(financial reporting, sales,
marketing, operations)
Modern Finance
• Cloud-based ERP and EPM
journey initiated and in
planning
• Desktop analytics and
productivity adoption
across Finance processes,
in particular EPM execution
• Desktop robotics and
process automation
primarily in accounting and
finance shared services
• Digital transformation
office to coordinate finance
innovation investments
• Machine learning-based
innovation in forecasting,
reconciliation, and
compliance & risk monitoring
functions
• Cognitive analytics
introduced as digital
workforce enabler to
Finance employees

16. PwC 16
Workforce of the
Future

17. PwC
The case for upskilling
17
Digital upskilling priorities
● 50% of workers will need upskilling in the next 5 years
● Only 18% of companies have made ‘significant progress’ in
establishing an upskilling program
Job disruption
● 85 million jobs will be disrupted by technology
● 133 million new jobs will emerge
● 79% of business leaders concerned about key skills
Financial demands
● 79% of CFOs plan to implement cost containment
● 66% of companies believe profitability will suffer if they don’t
transform quick enough
● COVID-19 shutdowns, regulations could impact revenue
PwC CEO SURVEY & WORLD ECONOMIC FORUM FINDINGS
Top Line growth
with headcount essentially flat
8.6 million hours automated
● 6,000+ automations built and scaled across our practices
● 11 million executions of those automations
50K+ people upskilled
3% reduction of costs
to run the business in two years
PwC AS A CASE STUDY
PwC

18. PwC
Digital technologies require changing the skills & capabilities in the
organization, ultimately redefining existing roles…
18
Analytics and
Value Manager
Digital
Accountant
Global Process
Owner
Data Scientist
Responsible for
leveraging
cross-functional
and business
data to inform
strategic,
operational and
domain specific
decisions.
Expert at
leveraging
systems, tools,
functionalities
for efficiency
and expertise
End to end
ownership of the
process with
emphasis on
process design,
standardization,
and technology
implementation
Responsible for
developing and
implementing
decision models
based on
collating
multiple sources
of data
Transformation
Lead
Leads the
organization’s
transformation
journey.

19. PwC
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