Role of CFOs in the Digital Era - IAI Globaliaiglobal.or.id › v03 › files › file_publikasi ›...
Transcript of Role of CFOs in the Digital Era - IAI Globaliaiglobal.or.id › v03 › files › file_publikasi ›...
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Role of CFOsin the Digital Era
15th Dec 2017
Axiata Group CFO (retd) & Board ad Board Audit Committee member Dialog Axiata
Chari TVT
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Evolution of CFO role1
The world is changing2
Are we ready?4
Role of CFO in the Digital era3
Agenda
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Evolution of CFO role
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Continued Evolution of the CFO’s Role
4
Role Focus
2000’s Partnering with the Business“Efficient & Effective Finance”
Business Process ReengineeringLeveraging Technology (e.g. ERP)Management Information / Decision Support
1980’sTransaction ProcessingUtilizing Technology(e.g. Best of Breed)Reducing Cost of Finance
Keeping Score
“Efficient Finance”
2020’s
What Next?
2010’s Realizing Value over the LongTerm
“Value Creation & Value Preservation”
Balancing Performance and RiskIntegrated Finance and Business TransformationHolistic ApproachSustainable Confidence and Value
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Unemotional
Risk Averse
Compliant
Low on Trust
CommunicationChallengedTask Oriented
Detailed & Analytical
Skeptical
Low on Empathy
Perceptionsof Finance
Perceptions of Finance
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Evolution of CFO role1
The world is changing2
Are we ready?4
Role of CFO in the Digital era3
Agenda
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Digital businesses are disrupting industries and professions
are vulnerableto disruption within
three years 72%
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8Electronic money, Micro deposits, Micro Loans, Mpisa like payments,
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Our Businesses are entering the era of Digital & Online EfficiencyPhysical Assets are losing value very fast !!
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Data lead digital disruptions
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Drones , 3D printing, AI, Self Learning Robots??
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Brick and mortar vs Click and mortar – Retail Industry
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The winners in this digital era use data as a
competitive asset
Yet only 15% of organizations have the capability to leverage data and advanced analytics across their
organization.—HBR Insight Economy Study
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Music, newspaper, magazines. advertisement , music industry
Whatapp 3 B subscribers
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??
The world’s largest taxi
company owns no vehicles
The world’s largest engine
manufacturersells performance
The world’s largest lodging provider
owns no real estate
The world’s most valuable retailer has no inventory
WhatNext ??
All organization are being enabled by Big Data & Analytics
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Evolution of CFO role1
The world is changing2
Are we ready?4
Role of CFO in the Digital era3
Agenda
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What will be our role ?
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Enhancing performance through
Analytics
Understanding
Technology
disruptions
Predicting and shaping the future –understanding technology
Radical Simplification
of business
Digitisation
Business Model
Innovations
Value creation through M&A
62
3
4
75
The new “STRATEGIC DIGITAL CFO”
multi dimensional role THINK LIKE A CEO ACT LIKE A CFO
1
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Operational excellence
What is expected of us??
Digitisation
•Sales & Marketing:•Online channels (purchase, reload, registration, e‐care) •Digital marketing (email, social media)•Electronic bills•Online MVNO•Productivity:•Centralised analytics & product development•Backend automation
Analytics
•Sales & Marketing:•Optimise retail outlets location based on profitability density •‘Next Best Action’ in customer lifecycle management•Smart segmentation•Productivity:•Efficiency in decision making and processes
Business Model & Simplification
t•Sales & Marketing:•Optimize customer touch points process flow (call centers & retail outlets)
•Direct sales org.: manage dealers commission•Simplified product plans & bills•Productivity:•Right sizing•Process & org. transformation
Business model transformation & Operational excellence
Disruptive initiatives, innovative solutions, rigorous execution
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Big Data success stories
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Value Drivers for Big Data Use Cases
REVENUE
• 360 customer view• Customer analytics
(attrition and churn)• Clickstream analytics• Advertising
optimization• Recommendation
engine
COST• Data warehouse
offload• Mainframe
optimization• Truster Data Lake• Dynamic Inbox
Routing• ATM Service
Optimization• Intraday Liquidity
Management• Intraday Position
Management
RISK• Fraud detection• Risk analytics• Credit Risk
Assessment• Anti-Money-
Laundering• Fraud Rings• Continuous Stress
Testing• Broker and Market
Surveillance
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Enhancing performanceUsing deep business insight and exceptional analytical skills
How the business manages information and learns from it
Ad hocAd hoc
FoundationalFoundational
CompetitiveCompetitive
DifferentiatingDifferentiating
Break awayBreak away
Bus
ines
s O
ptim
izat
ion
How
the
busi
ness
app
lies
info
rmat
ion
to o
ptim
ize
outc
omes
•Reporting is consistent & trusted•Standard data definitions and governance
•BI used widely for reporting & analysis
• Information supports basic operational needs
•Lots of data, little information
•Lack analytical skill sets•Minimal report standardization•Lots of manual data manipulation
•Actionable insights & predictive analytics•Preemptive & predictive business management• Information deemed strategic asset•Business scenario modeling
•Prescriptive business measures•Deep analytical skill sets• Information is Governed
•Spreadsheets and extracts
•Data warehouses and reporting
•Contextual business rules and pattern recognition
•Content analytics
•Data warehouse appliance•Metrics, dashboards, scorecards•Master data•Managing structured, unstructured data
•Predictive, real time analytics
Leveraging Big Data
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Evolution of CFO role1
The world is changing2
Are we ready?4
Role of CFO in the Digital era3
Agenda
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Top 10 skills needed in 2020