How Accounting is Adapting to Adoption updatedicanig.org/new/ican-accountek/How-Accounting... ·...
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How Accounting Practice is Adapting to Adoption of Disruptive Technologies ICAN maiden Accounting Technology Summit Uyi Akpata Country Senior Partner Adopting to change
Transcript of How Accounting is Adapting to Adoption updatedicanig.org/new/ican-accountek/How-Accounting... ·...
PwC
How AccountingPractice is Adaptingto Adoptionof DisruptiveTechnologies
ICAN maiden AccountingTechnology Summit
Uyi AkpataCountry Senior Partner
Adopting to change
PwCPwC
Contents
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The world is changing
Key emerging technology trends
How the profession is adapting
What we are doing at PwC
Nigeria.
April 2019Adopting to change
The world ischanging
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We are in a technology arms and business model change race
“Machine learning is
the big one.”Deloitte on CNBC 2018
• Changing regulations such as thenew world of competitive pitchingand Mandatory Firm Rotation(MFR) has seen Accounting firmspress the accelerator oninnovation and increase theirinvestment in technology
• New rules are also beingintroduced designed to improveaudit quality and innovation in aprofession where aspects of thework is vulnerable to beingreplaced by machines.
Technologicalbreakthroughs –
The impact of digital disruption are nowso pervasive that no business in anysector is immune from them - PwC
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The expectations of our clients is also changing
EfficientEffectiveInsightfulOn demand
Businesses today want more from their accountants.Business strategy, growth planning and futurevertical industry trends are all areas thataccountants are being expected to input on withknowledge and confidence.
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The world we live in today has been changed radically bytechnology…
Source: Washington Post - US household data
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1990 Turn of the century Now
96% had no cell phone 64% had a dumb cell phone(in 2003)
75% have a smartphone
100% had no Internet 50% had dial-up (in 2000) 70% have fast homebroadband
65% of music sales were oncassette
97% of music sales on CD (in2003)
88% of music sales aredigital downloads
100% watched videos onvideotape
66% watched videos on DVD(in 2003)
56% watch videos bydigital streaming
…The accounting profession is at a tipping point. We need to innovate
and remain relevant.
EmergingTechnologyTrends
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Essential eight emerging technologies (that are having the biggestcross-industry impact)
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of global CEOs worryabout cyber threats
40%
of global CEOs worryabout the speed oftechnological change
38%
of CEOs thinktechnology will disrupttheir business in next 5years
64%
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Rise of the robots
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These emerging technologies are also redefining the job landscape
According to the WorldEconomic Forum(WEF) Future of JobsReport 2018, the jobslandscape by 2022 willlook like this.
The bulk of the topemerging skillsimportant for the futureare linked to emergingtechnologies
How is theProfessionAdapting
PwC
The Accounting profession is adapting to the disruption brought by emergingtechnologies by doing the following...
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Massively investing in emerging technologies
Deploying New Solutions in the Audit
Leveraging Data for Business Intelligence
Adoption of Cloud Computing Services
Evolving new Business Models
Upskilling their people through trainings
Reviewing their People strategy
Acquisition of niche players
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This response can be external or internal…
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External - covering solutions that impact clients and service offeringsInternal - includes efforts to change internal systems and processes. Evolving a new way of working.
PwC’s Aura& HaloAuditingSystems
BDOAdvantage
Audit tool
PwC andH2O.ai –GL.aiproject
Use of dronesin inventorycount
EYBlockchainAnalyser
AI assistantsin Taxanalytics
KPMG/IBMWatsoncognitivecomputingtechnology
Deloitte &MclarenData techsolutions
I will share some examples of what we’ve done in the following slides
PwC
PwC is at the forefront of the profession inthe way we are re-engineering and bringinginnovation to the audit with uniquetechnologies — Aura, Halo, Connect andGL.ai.
Aura Halo Connect GL.ai
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Our globalERP system
driving globalquality andconsistency
Market-leadingtechnology
revolutionizingour audits by
harnessing thepower of data
Collaborativeworkflow toolallowing fast,
secureinformation
sharing
GL.ai usesadvanced
AI algorithmsto detect
anomalies in acompany’s
general ledger.
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External
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Aura. Our global ERP system driving global quality and consistency
• Single instance globalsoftware with embeddedindustry IP enabling consistency,synergy and scale.
• A systematic risk-basedapproach, meaning we focus onthe things that matter.
• Workflow technology thatallocates audit procedures andindividual tasks on personaliseddashboards, enabling the timelyexecution and review of work.
• A workshare feature designedfor shared service centres andmultilocation audits, allowing usto work collaboratively,eliminating duplication.
• Real time monitoring ofengagement quality and progress— available on mobile devices, anytime, anywhere.
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Halo scans and visualizes information and helps identify high risktransactions and process inefficiencies
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Connect is our collaborative workflow tool, providing fast, efficient andsecure information sharing at every stage of the audit.
• It monitors the status ofinformation flows on a realtime basis.
• It is available onsmartphones, tablets andPCs, allowing both theclient and us to checkprogress on the go — anytime, anywhere.
• Ensures Fast, efficient andsecure information sharingat every stage.
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GL.ai
GL.ai uses advancedAI algorithms to detectanomalies in a company’sgeneral ledger.
It can replicate the decision-making processesof experienced auditors at a frequencyand speed that humans cannot match.
It analyses billions of data points inmilliseconds and applies judgment to detectpotential indicators of error or fraud.
At a glance, the home screen summarisesdata output, identifying unusual journalsby score, allowing quick navigationto areas of greatest risk.
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At PwC we have made significant investments in technology both in our internalBusiness Operations and in solutions for client engagements
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In the last 2 years, we’ve made investments in new solutions suchas Gsuite, Workday, SalesForce, Vantage, Snapshots, ServiceNow,Oracle etc for our internal operations.
These investments, collectively called the Business OperationsSolutions will enable us to change:• how we engage in the market• how we support our people• how we collaborate and work together• how we manage our profitability• how we simplify• how we improve decision making
A key feature of all of these solutions is that they are cloud based.
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Internal
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G-Suite Collaboration, sharing, storage, and communication apps
❖ No more back-up and storage
nightmares - all in the Cloud!
❖ Power of the Search Engine
❖ Collaboration
❖ Syncs to all your business devices
❖ Minimal learning curve
❖ Saves us time!
❖ More efficient way of working
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HangoutsCalendar
Drive SheetsDocs Slides Forms Drawings
Contacts SearchGroups Vault Google +
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Sales force: expanding visibility to pipeline, develop stronger, more valuableand trusted relationships, and save our people time.
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• Higher Performance
• Greater efficiency, effectiveness, and collaboration
• Better decisions based on consistent andtransparent data around market success
• Enables one central, cloud based location to storeand manage all client information,
• Captures the right data to determine the best wayto address client needs
• Stronger and More Valuable Relationships
• Strengthens client relationships and acceleratesgrowth through gaining a deeper understanding ofclient needs over time
• Improved Client Experience
• Allows faster and more informed responses toclient inquiries
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Workday: A different people experience
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Oracle A cloud-based financial and engagement management solution that willhelp manage our finances, procurement and engagements
One source of real-time accurate data
Reduced manual processes
Standardised Business Processes
Real-time reporting and Insights on-the-go
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Challenges andOpportunities
PwC
These changes presents some obvious challenges to incumbentfirms and the profession in general…
AI-assisted audit will bring about changes to the structure of the audit firm. One example ismanpower. The job scope and skill sets required from your employees will be different. How willfirms source for these skills?
Transiting from traditional audit to AI-assisted audit requires technological evolution and is dependenton the clients’ level of technological adoption as well as approval from regulators. How prepared arewe?
Cost. Deploying technology is a capital intensive undertaking. Do we have the war chest?
Technology is leading to changes in the competition landscape. There will be increased competitionfrom niche players for clients, resources, etc. Can we respond?
The adoption of digitisation comes with a number of risks—cybersecurity, data loss, threats of datatheft. All of these risks can cause damage to a company’s reputation or loss of trust. Are weprotected?
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The future Accounting firms will be big tech companies specializedin offering audit & accounting services
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Tech-savvy thinkers
Hands-on tech geeks
Strong communicators
Flexible thinkers
Strategic thinkers
Good networkers
Global mindset
The skillsets required byemployees in the firms ofthe future…
The future firm will be technology driven
Firms no longer need armies of junior level staff but instead need thebest algorithm design geeks
Must have a more flexible work culture to attract and keep youngtech-savvy employees
The firm of the future will be structured more like a diamond withsome administrators, trainers, error checkers, specialists (tax, wealthmanagement, finance, audit) and general business advisers.
We speak of the Big4 today, in the future there will be other biggerfirms following mergers and acquisitions to close the gap between thelarger and smaller firms.
Future firms may either offer a wide variety of services or may becomemore specialised.
The future firms will be structured and operatedifferently…
PwC’s Digital ServicesPwC
PwC Nigeria’s Innovation & Experience Center
Why
What
How
• Technological breakthroughs aredisrupting business models and the waybusiness is done.
• To remain relevant and to succeed,emerging technology strategy needs tobe a part of every company’s corporatestrategy and short – medium term plan.
Fast track the delivery of innovative digitalsolutions which clearly solve clientproblems within the Nigerian Market.
PwC would achieve this by:• Attracting and retaining best talent• Sustaining efficient operations• Creating environments which spark
creativity and innovation
When: May 2019
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April 2019
PwC New Services and Emerging Tech
Confidential information for the sole benefit and use of PwC’s client.
The Centerwill be the home of experience
center and emerging technologies
PwC Innovationcenter Offerings
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Thank you
