Technology and social media in a CFO's world
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W16 Technology and social media in a CFOs world Brian Armstrong Finance Director Microsoft Australia
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The 21st century CFO is no longer involved in pure financial strategy and, in many companies, they can be found contributing heavily towards strategic leadership. How important is technology and social media within the CFO role? Can social media applications add value to a CFO’s direction? Brian Armstrong will share, from experience, how these two areas can add or detract from a CFO’s everyday routine. http://www.charteredaccountants.com.au
Transcript of Technology and social media in a CFO's world
W16 Technology and social media in a CFOs world
Brian ArmstrongFinance DirectorMicrosoft Australia
Agenda
> Technology– What we hear from Customers– Technology Trends
> Social Media: Are you social media savvy?> Online Industry Dynamics> Social Media from a CFO Perspective> Social Media from a CFO Perspective
– The good– The bad– And the ugly
> What does it all mean to the bottom line?> Wrap / Q&A.
What We Hear from Our Customers
Technology Trends
> Virtualisation
> Unified communications and virtual collaboration
> Optimised, standardised infrastructure
> Energy efficiency
> The Cloud: Software + Services.
Do you (or does your organization):
– E-mail newsletter broadcasts?
– Post or blog?
– Solicit customer review or feedback?
– Have a Facebook or Linked In page?
Are you Social Media Savvy?
– Have a Facebook or Linked In page?
– Produce podcasts, videos or webinars?
– Tweet or re-tweet?
> Do I Blog?
> Do I Tweet?
> As a MSFTee?
> As a CFO?
So, why am I here?
WHY INVEST?The online services industry offers a combination of financial
benefits and strategic value to other Microsoft businesses
Online Service Division (OSD)Investment Thesis
OSD INVESTMENT THESIS
FINANCIAL
STRATEGIC
TIME SPENT ONLINE IS SHIFTING
2
4
6
8
1Q01
1Q02
1Q03
1Q04
1Q05
1Q06
1Q07
1Q08
1Q09
$ i
n B
illi
on
s
ONLINE AD SPEND: LONG TERM TREND
‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08$7.1 $6.0 $7.3 $9.6 $12.5 $16.9 $21.2 $23.4SHARE OF MINUTES
Apr07 Apr09
SNS 2% 9%
Search 2% 2%
Portals 33% 26%
Comms 23% 21%
Source: Internal estimates
Online Industry Dynamics
1Q01
1Q02
1Q03
1Q04
1Q05
1Q06
1Q07
1Q08
1Q09
Source: IAB, PriceWaterhouseCoopersSource: ComScore
Comms 23% 21%
ONLINE PROFIT IS IN SEARCH
Ad Platform
Comms
NEW WAYS TO USE THE WEBARE CONSTANTLY EMERGING
Revenue Profitability
FY12 Online Services: $70B+ Total Rev.
Info Content
Search
> Marketing is going digital, but it takes people, technology & time
> It will result in cost savings, business intelligence and market research
> It will generate more revenue.
Social Media – the good: new growth, lower costs
> It will generate more revenue.
The bottom line: Social Media drives growth with effectiveness and efficiency.
Return on…
> Engagement?
> Participation?
> Attention?
> Trust?
Social Media – the bad: what return?
> Trust?
> Competitive Intel?
The bottom line: we need to see measurable results from social media.
The dark side of social mediaThe dark side of social mediaThe dark side of social mediaThe dark side of social media
> Employee productivity?
> Negative ROI?
> Nothing in social media protects you from being publicly stupid
> Your brand and reputation
Social Media – the ugly: impact and control
> Your brand and reputation
> Analysis paralysis – vendor reporting.
The bottom line: marketing decisions around social media are based on gut-level instincts.
> Step 1: Establish a baseline
> Step 2: Establish an activity timeline
> Step 3: Review sales revenue– # Transactions (Frequency)
– Net New Customers (Reach)
What is a CFO to do?
– Net New Customers (Reach)
– $ per transaction (Yield)
> Step 4: Map activities to sales
> Step 5: Look for patterns and prove relationships.
The bottom line: keep it simple, educate marketing on how to measure ROI.
> Technology trends and social media drive increased efficiency and effectiveness
> With Social Media, the CFO should:– Expect cost savings and increased revenue
– Understand and question short-term vs. long term activities
In short...
– Understand and question short-term vs. long term activities
– Facilitate making tradeoffs (zero based)
– Bring business insight to marketing
– Mitigate risk.
Thankyou
Disclaimer: This paper represents the opinion of the author(s) and not necessarily those of the Institute of Chartered Accountants in Australia (the Institute) or its members.The contents are for general information only. They are not intended as professional advice - for that you should consult a Chartered Accountant or other suitably qualified professional.The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers.The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers.
