Focus on the Future of FinanceNoel Tagoe, PhD, FCMA, CGMAYvonne Hinson, PhD, CPA, CGMA
Based on rigorous and robust research
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Four questions and an answer!
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What is your business
environment like?
What challenges are your finance
functions facing?
How is your finance function addressing the
challenges?
How are you winning the war
for top rate finance talent?
1 42 3
The changing business environment
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What is your business environment like?
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Fast paced and
unpredictable
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Disruption
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Managing on the edge
of chaos
Driven by …
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GlobalisationGeopolitics
Demographic changes
Customer empowerment
TechnologyAutomation
Organisations are expected to be …
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innovator
agile
resilient • Rapid• Dynamic• Proactive• Reactive
Who understand the ecosystems in which the inhabit and operate
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And the place of their business models in the ecosystems
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Challenges and response of the finance function
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What challenges is your finance function facing?
Various stakeholders expect the finance function to …
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Board Customers & Vendors
Business Leaders
Investors & Analysts
Maximise shareholder value with minimal risk
Ensure ease of doing business at lower transaction cost
Ensure predictable and sustainable profitable growth
Influence strategy and business decisions with real time insights
The finance function also faces the …
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challenges & opportunities of automation
Where finance professionals might be replaced by machines …
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4 work days
16,000 work daysOLD HUMAN SYSTEM
NEW MACHINE LEARNING (AI) SYSTEM
And finance people do …
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Lead the finance team
Partner for value to influence and shape how the organisation creates
and preserves value
Assemble and extract data and provide limited insight
Specialists generate further insights in their
areas of specialism
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How is the finance function addressing the challenges?
Role of finance function …
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• Enable• Shape• Narrate
creation and preservation
of value
This requires transformation …
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Optimise
Diversify
Transform
Time/Difficulty
Value
Transformation involves …
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Transforming Finance
Cost centre to Value centre
Author and narrator of the
value story
Strategic value partner
Enable through control
From cost centre to value centre …
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Superior Value
FINANCE AS VALUE CENTRE
Insight, Influence & Impact
Superior Delivery
FINANCE AS COST CENTRE
Economy & Efficiency
Architect of Future Value
Performance Insight
Cost Excellence
Operational Excellence
Author and narrator of value story …
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In a world deluged by irrelevant
information clarity is power
“
”Yuval Noah Harari
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Value
Difficulty
HINDSIGHT
INSIGHT
FORESIGHT
DESCRIPTIVE (Discover and Report)
DIAGNOSTIC (Analyse)
PREDICTIVE (Predict)
PRESCRIPTIVE (Decide and act)
What happened?
Why did it happen?
What will happen?
How can we make it happen?
Author and narrator of value story …
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Finance and the
value story
Society
Investors
Employees
Regulators Customers
Suppliers and
partners
Author and narrator of value story …
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Narrative Visuals
Data
Engage
CHANGE
Enable through control
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Enable through control
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Which car would you drive fast?
A car with excellent brakes or a car with faulty brakes?
Enable through control
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Use your controls to enable action
not to stop action!
Strategic Partner for Value
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Navigator … to … Co-pilot
Strategic Partner for Value
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Information Insight Influence Impact
Collate
Analyse
Communicate
Enable through control
Finance works in isolationFinance works with others
Competencies and Skills
How are you winning the war for top-rate finance talent?
People or machine?
Machine Advantage Human Advantage Human-Machine Collaboration
In a digital world
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Technology is important …
… but people are even more important
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The hardest part of digitally transforming a company is not the technology - it’s the
sociology
“
” Safra CatzCEO, Oracle
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The future is people collaborating intelligently
with machines
CGMA Competency Framework
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CIMA Professional Qualification
C
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Some new areas in the qualification
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• Data Strategy
• Data Analytics
• Data Visualisation
• Cyber Security
• Ecosystem analyses
• Digital technologies
• Digital costing
• Digital literacy
• Business models
• Integrated reporting
Resources to help you
C
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New CGMA/CIMA Qualification Resources
Qualification update micro site launched today!
www.cimaglobal.com/future
• Re-inventing finance for a digital world whitepaper
• Digital mindset pack
• Updated syllabus
• NEW Exam Blueprints
• Timeline for changes
• FAQs
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Academic Resources
CGMA Academic Website:
www.cgma.org/academicpartners
• Business Games
• Awareness Resources
• Academic Update Newsletter
• Thought Leadership
• Upcoming Events/News
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Thank you
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