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Future of finance
28 April 2020
2© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
One column textAgenda• Dealing with the ‘new’ normal
• KPMG Digital Finance Academy
Dealing with the ‘new’ normal
4© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Cross-sector business disruptors
Experience
centricity
New business
models
Big
data
Convergence
of industry
models
Changing
workforce
demographics
Emerging
technology
Shifting
geopolitical and
regulatory
environment
“Growth
or die”
Finance
COVID-19
5© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
The CFO agenda for disruptionLeading strategy and
capital allocationIncreasing role in innovation
Trends and economics behind disruption
Approaching disruption at the organisational level
Maintaining an innovation portfolio
Disciplined portfolio process and structure
Extreme
automation
Insights
and analysis
Organisational
simplification
Skills
and talentIntegrating new technologies:
Cloud ERPs
Robotics
Artificial intelligence
Blockchain
Mobile
New insights through:
Automated descriptive and
diagnostic analytics
New predictive and
prescriptive analytics
Integrated business planning
Local decision support
Changing work:
Fewer people
Less hierarchy
Fewer offshore locations
Changing requirements:
Both strategy and finance skills
Process and control leaders
Relationship and collaboration
Leading finance organisations have developed an agenda to deal with disruption
Risk managementResponse to disruption impacts how risks and
controls are managed in an organisation and
the need to continuously evolve.
6© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Finance has to respond to the COVID-19 economic impactA new factor to consider on the finance agenda
Establishing the finance agenda COVID-19: Significant economic
impact
Resilience
Recovery
New Reality Adapting to the
new world
Aligning the
journey
What to do
now
KPMG has been helping finance organisations develop
an agenda to deal with evolving business disruption
COVID-19 infuses a new consideration
for finance which requires a staged
agenda as we work through local and
global business challenges
7© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
The finance ‘new’ normal
Financial impact Recovery measuresCost-consciousness
The new normal
Preparing for a longer
recovery
• Permanent disruption
• Structural change in ways of
working
• Changing business models
• What might change: The way
we work, customer interactions
Workforce management
• Managing employee morale
• Ensuring productivity
• Assessing workforce resilience
• What might change: remote
working, reduced down time.
Cost consciousness
• ‘Cash is king’ – a revelation
• Liquidity crunch and cash flow issues
• Conscious expenditure spend
• Working capital optimization – need of
the hour
• What might change: Short to medium
term focus on conserving value
Financial reporting guidance and
disclosures
• Financial reporting matters to consider
• Changes in accounting and reporting
issues
• What might change: Materiality
thresholds, potential impairment, going
concern assumption
Finance leaders are on the corporate frontline – their time to act is NOW.
8© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Evolution of finance
Business
profitabilityGrowth
Responsible for driving long-term business
performance and enabling agility to flex quickly
as the business changes
Collaborate with the business to
perform integrated finance processes
Act as a strategic thinker—decisive, challenging,
innovative, and ambitious—to enable an
“art of the possible” mind set
Conduct critical analytics to maximize the
business portfolio and promote sustained growth
Finance of the future has an evolving role, broader than we have seen before, with new expectations, interactions, and evolving
priorities, which help drive business profitability and growth for the organisation
9© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
What you need to start considering?A fit-for-purpose organisational structure for finance with clear alignment to evolving business strategies is critical to
navigate the disruption. For sustainable success, finance organisations need to consider the following design priorities.
What works gets done:
Higher-value services
Sophisticated data modelling and virtual visualization
Innovation and new capital allocation approaches
Management of digital workforce (robots and
artificial intelligence)
End-to-end process management
Who does the work:
Reshaped support structure
Outsourcers as partners vs. doers
Flexible, more contingent workforce
Transactional layer is marginalized
Emphasis on partnerships and reducing silos
High skill set employees / digital skill set
Where work gets done:
Geography no longer matters
Virtual delivery centres/ “no shore”
Local need highly reduced or eliminated
Globally controlled
How work gets done:
Automation and integration
Experience centricity
Robotics and artificial intelligence everywhere
Language neutralization removes barriers
One-office combined (back, middle, front)
10© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Where do you begin?
Define
your CFO’s
vision and
organisation
goals
Establish
your new
“ways of
working”
Determine
your talent
strategy,
including roles
and risks
Assess your
learning and
development
Strategy
Begin
considering
people and
change
impacts
The list below outlines key activities required to strategically
engage and prepare your workforce for disruption:
11© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Inversion of existing paradigms in the finance functionFinance can leverage extreme automation to play an enhanced business partnering role to drive value
Insight delivery
Cognitive andanalytics
Data normalizationand governance
Foundationaland transactional
Current knowledge-work Value distribution
Future knowledge-work value distribution
Finance professionals will have to understand, create and leverage a symphony of digital tools and platforms
Finance capabilities
Platform based centralisation and digitisation of all operational finance processes – P2P, O2C and R2R
Data governance and digital controls enablement of operational and specialised finance processes –Reporting, Treasury, Tax etc
Leveraging data and cognitive tools to deliver predictive analysis and actionable insights
Enhancement of the business and corporate finance role to action the improvements in working capital and costs
12© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Transitioning to be true business partners
Most finance business partners are operating as administrators or cost managers.
Lifting the performance of finance business partners can help drive value and overall business performance.
How are you preparing your organisation to make the leap?
Month end coordinator
Transactional processing
and accounting
Standard and ad-hoc
reporting
Valu
e
Typical finance business
partnering organisations
today
Time and cost
Budget vs. actual
variance
Cost/project accounting
Short-term planning
Reviews and writes
commentary
Shareholder value
analysis
Root-cause analysis
Budgeting and
forecasting
Driving decisions
Strategic planning
Capital management
Value-based
management
Multi dimensional
profitability analysis
Operational and financial
perspective
Enterprise portfolio
perspective
Involved in major
business transactions
Profit and Loss
accountability
Statistical decision
modelling tools
Administrator
Cost manager
Partner
Performance driver
Strategist
Low
High
High
13© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Skills
and talentChanging requirements:
Both strategy and finance skills
Process and control leaders
Relationship and collaboration
Organizational
simplificationChanging work:
Fewer people
Less hierarchy
Fewer offshore locations
New skillsIn a rapidly changing environment, finance organisations must assess new
work to be done, and how this translates to the skill sets of their workforce
Data modeling, analytics,
and visualisation
Robotic share (RQ)1
Strategic trend analysis
Research capabilities
Design thinking
background
Programming expertise
Data utilization
and technology
Strategic thinking
Service management
Relationship management
Impactful storytelling
Feedback, communication,
negotiation
Program management
Navigation skills
Ambiguity and white space
Behavioral
Business modeling
Core financial driver
analysis
Process design and
navigation
Finance
technical
1Source: Man and Machine: The Future of Jobs, Forrester Podcast
Polling questions
KPMG Digital Finance Academy
16© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
How can the KPMG Digital Finance Academy help?Designed for finance professionals with at least four years of work experience in finance or a finance-related role.
increased on the job performance
fungibility
talent pipeline
Core finance skills - 14 hours• Financial reporting:
accounting fundamentals, financial statement analysis
• Financial planning and
analysis: budgeting,
decision support reporting
• Treasury: risk management,
fundamentals of treasury
• Investor relations: Effective
communication of company
equity story, latest trends
• Internal audit: life cycle,
fundamentals
Data technology skills- 12 hours• Robotic process
automation: challenges,
risks, benefits, lifecycles
• Machine learning/ artificial
intelligence: constituents,
role of data
• Digital finance close:
Automatic reconciliations,
Balance Sheet Certifications
• Fintech
• Data analytics
• Big data and Power BI
Behavioral Skills- 9 hours• Design thinking: strategy,
capability, application
• Agile methodology: need,
basis, principles
• Digital mindset: importance
in businesses
• Introduction to change
management: change
impact analysis, designing
matrix
17© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
Indicative learner’s journey – Eight weeks
WeeksOne and two
Weeksthree and four
Weeks
five and six
Weeksseven and eight
On completion on weekeight
Future of Finance webinar
Access to blended e-learnings from the modules opted
Assessments
‘Impact of disruptions in the market’ webinar
‘Ask me anything’ with KPMG Leader - Webinar
Participants who undertake thee-learnings will be awarded aKPMG in India certificate ofparticipation.
18© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
KPMG Digital Finance Academy | Snippets
19© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
20© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
21© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
22© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
23© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved..
KPMG Digital Finance Academy | FAQ
➢ Access to the e-learnings shall be provided for 8 weeks
➢ Certificate of completion only on successful completion of all or single cohort
➢ Hosted on KPMG’s Learning Management System (LMS)
➢ Option to cherry pick individual courses – however, a minimum of three courses have to be selected
➢ Reach out to [email protected] for registration related queries
Polling questions
Q&A
Thank you
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the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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