The Role of Technology in Supporting Finance
Operations and the CFO function
Presentation for CFO Strategy Conference
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Agenda
• Introduction
• Key enabling technology trends affecting the finance function
– In-Memory Computing
– Data Visualization
– Mobile Technology
– Cloud (including SaaS)
• Key disruptive technology trends affecting the finance function
– Big Data
– Predictive and Cognitive Analytics
– Global Transparency
– Social Media
• Technology - How does it support the finance function?
• Structure and Best Practices in Technology Deployments
• Q&A
3
Key enabling technology trends affecting
the finance function
4
In-Memory Computing
 The storage of information in the main random access memory (RAM) of dedicated servers
rather than in complicated relational databases operating on comparatively slow disk drives
 In-memory computing helps business customers to quickly detect patterns, analyze massive
data volumes on the fly, and perform their operations quickly
 Examples of use in finance:
 Risk analysis automation can be made possible thanks to greater computing power given
the complexity and multitude of parameters needed to perform such tasks
 Real-time trading demands huge computing power to perform a vast number of
transaction in milliseconds, where any delay can cause huge financial losses
 Hyperscale post-trading processing : closing books at the end of a day’s trade should be
performed very quickly due to the global nature of financial markets
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Data Visualization
 Data visualization main tools are business intelligence (BI) and Corporate Performance
Management (CPM). Main innovations:
• Reports are generated automatically and data is updated in real time
• Reports are now interactive so drill-downs and manipulation are possible
 Helps create more correlation between data points as it shifts analysis from rows and
columns in a spreadsheet to data represented graphically
 Examples of use in finance:
 All financial information into interactive dashboards rather than in multiple excel files
 Monitor KPIs on a daily and real-time basis
 Greater and faster insights helps makes better informed and smarter decisions
 Share information with the board and/or investors in more meaningful and powerful way
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Mobile Technology
 More and more employees, up to C-level, use smartphones, tablets and technology gadgets
in their daily work
 Mobile technology is revolutionizing internal collaboration within businesses and how
businesses communicate their proposition to their customers
 Bring Your Own Device (BYOD), whilst reducing costs for companies, creates security
concerns for financial data being used on employee personal devices
 Benefits for the Finance function:
 Increased productivity thanks to continuous accessibility
 Reduced costs in terms of infrastructure and hardware
 Increased revenue through new marketing channels
 Easier reporting and visibility with new mobile tools such as online dashboard reporting,
where business KPIs are accessible from your phone
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Cloud (including SaaS)
 Cloud technology for corporate finance department, especially the SaaS model has been
gaining more and more traction over the past few years
 SAS impact for finance:
 Reduced costs thanks to more flexible pricing models
 Rapid deployment thanks solutions ready “out-of-the-box”
 Reduced reliance on IT department and hardware infrastructure
 Cloud also usually comes with on-line community to can help share experience and best
practices with peers in the finance community
 Increased analytical power thanks to hardware costs supported by vendors and not by
yourselves
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Key disruptive technology trends affecting
the finance function
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Big Data
 Extremely large data sets can increasingly be analyzed computationally to reveal patterns,
trends, and associations, especially relating to human behavior and interactions.
 Today’s challenge is how to leverage all this information in a meaningful way
 Finance departments have moved from having too little data to do proper analysis to a
situation where they have too much data and do not know how to process it effectively
 Benefits for the Finance function
 Monitor customer journey on a bank website such as transaction records, website clicks,
banker’s note, voice recordings, make pre-emptive credit offers
 Fraud detection and analysis
 Customer sentiment analysis leading to investment decisions according to trends in social media
 Average cash receipt timeline for customers vs. wider market to work on improvement
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Predictive and Cognitive Analysis
 Predictive and Cognitive analytics is all about the integration and modeling of structured and
unstructured data to explain, describe and predict behavior
 Examples of use in finance:
 Customer data on probability for them to churn, then segments those customers by
profitability, volume and length of engagement. Finally working with sales/marketing to
target these segments and retain them
 Internal data for risk management purposes like analyzing emails to specific language clue
on planning rogue actions or non-compliance
 Market data can be used to forecast properties values for instance as investments and
those held as collaterals
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Global Transparency
 Growing pressure both internally and externally for companies to be more transparent and
share information with the world
 Examples of use in finance:
 BEPS in the tax space is a perfect example of the type of regulation companies can expect
to come in the next coming years both on the principle and the wide coverage
 For finance, FATCA, Dodd-Frank Act are also example of such regulations that force
companies to be more transparent and increase their external reporting
 Industry related regulations such as KYC/KYS also enforce the pressure
 All the above drive the need for automation and technology deployment as compliance
with continuous regulations and exponential reporting make it nearly possible for a
company to keep up without some kind of technology investment
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Social Media
 Social media and crowd sourcing technology can bring internal and external perspectives
from the “wisdom of crowds” to traditional finance processes and capabilities
 Examples of use in finance:
 Expedite business thanks to new tools available
 Support IR function leveraging on social media to communicate financial results
 Capture explanatory content on challenging issue during monthly close
 Enhanced innovation and cross-function communication as well if well managed
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Key Facts
 93% of CFO survey respondents admit they spend less than 50% of their time analysing data
 90% of survey respondents rely on shared drives and email as the primary documentation
management approach
 62% Of CFO surveys respondents continue to use spreadsheets as dominant compliance tools
PwC Survey 2014
CFO Research/Vertex
15
How Technology can Help and What to Expect
Core areas and typical setup
Common
Platform
Accounts
Production
Tax Audits
Tax
Determination
Knowledge
Document
Management
Document
Management
Workpaper
Management
Common
Platform
Ad hoc/Custom
Reporting
Process
Management
Tax Audits
Tax Returns
Workpaper
Management
Tax Returns
Process
Management
Tax
Determination
Accounts
Production
Ad hoc/Custom
Reporting
Knowledge
Technology Adoption vs. Status Quo
Taking a step back
Labor
Technology
 OPEX
 CAPEX
 Increased admin needed
 Maintenance challenge
 High expertise needed in some cases
 Reduce expertise needed
 Hard to scale up
 Easy to scale up
 Low initial investment
 High initial investment
 Key man (woman) dependency
 Hard to manage without a strategy
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Technology and finance: what support structure?
 Increasing financial control over technology. 45% of IT departments report to CFOs
 Can you respond to data requests in less than one day? Only 12% of CFO agree
 Wal-Mart uploads 20 million point-of-sale transactions to 500 parallel processing storage
devices each day
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Q&A
Thank you!