Post on 20-Jan-2021
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© 2014 IBM Corporation
The Evolving Role of the CFO Naomi Hill Vice President of Finance & CFO IBM UK and Ireland
Contact: hillnj@uk.ibm.com
© 2014 IBM Corporation 2 Source: The Customer-activated Enterprise; IBM Institute for Business Value
CxOs vary in their views about which external pressures are most significant, but unite in ranking technology in the top three
Technology factors
Market factors
Macro-economic factors
People skills
Regulatory concerns
Socio-economic factors
Globalisation
Environmental issues
Geopolitical factors
CEO CFO CHRO CIO CMO CSCO
External forces impacting the enterprise (3–5 Years)
© 2014 IBM Corporation 3
Social Mobile
Big Data Cloud
Technology is transforming business and society
© 2014 IBM Corporation 4
CEOs consider technology the single most important external force shaping their organisation’s future
CEO Studies 2004–2013
2004 2006 2008 2010 2012 2013
Technology factors
Market factors
Macro-economic factors
People skills
Regulatory concerns
Socio-economic factors
Globalisation
Environmental issues
Geopolitical factors
© 2014 IBM Corporation 5
The importance of the CFO role: CFOs rank second only to CEOs in collaborative influence
Source: The Customer-activated Enterprise; IBM Institute for Business Value
© 2014 IBM Corporation 6
CFOs report that almost all aspects of their role have increased in importance over the past 3 years
Source: The Customer-activated Enterprise; IBM Institute for Business Value
Importance 2010
50% 100%
Areas of importance
Importance 2013
Measure/monitor business performance
Provide inputs into enterprise strategy
Develop talent in the finance organisation
Optimize planning, budgeting and forecasting
Drive enterprise cost reduction
Support/manage/mitigate enterprise risk
Drive integration of information across the enterprise
Execute continuous finance process improvements
Strengthen compliance programs/internal controls
Manage investor/stakeholder relations
Process transactions
90% 80% 70% 60%
© 2014 IBM Corporation 7
The Global CFO Study identified 4 Finance profiles, with one group, Value Integrators, outperforming the rest
Source: The Customer-activated Enterprise; IBM Institute for Business Value
Finance Efficiency
Value Integrator Performance optimisation
Predictive insights Enterprise risk management Business decision making
Disciplined Operator Finance operations focused
Information provision Performance interpretation
Constrained Advisor Analytics focused
Sub - optimal execution Fragmented data
Scorekeeper Data recording Controllership
Multiple versions of the “truth”
Business Insight
Finance efficiency and business insight
© 2014 IBM Corporation
Value Integrators are now pushing the boundaries of efficiency and insight – evolving into Performance Accelerators
Source: The Customer-activated Enterprise; IBM Institute for Business Value
Finance Efficiency
Business Insight
Performance Accelerator • Links strategy and execution • Instills innovation to spur
profitable growth • Focuses on enterprise
transformation and business model innovation
• Drives analyses and provides predictive insight
• Captures higher value by turning insights into action
• Encourages smart risk taking • Optimizes resource allocation
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Pushing beyond current boundaries
on efficiency
Harnessing new analytical capabilities unavailable
just a few years ago
© 2014 IBM Corporation 9
Today, three imperatives guide the most effective CFOs
CFOs design integrated operating models and
processes that are the foundation of
a globally integrated enterprise that
proactively adapts and continually
positions for the future.
CFOs are guiding the evolution
of the organisation’s value creation engine
with profit opportunities to create the future.
New analytics and data sources enable CFOs to
offer predictive and prescriptive insights
and drive a forward-looking culture
that permeates the organization and
better shape the future.
Help the business make better decisions by
anticipating the future and not just analysing the past
Drive enterprise agility through
enterprise integration
Lead business model innovation through new
discipline of performance
© 2014 IBM Corporation 10
Driving Enterprise Agility Through Enterprise Integration
Replicated and inflexible operations
Decentralized management
Business process complexity
Lack of consistent data world-wide
Common world-wide processes and applications
Right skills, right place, right cost
Innovate and radically simplify processes
Enable growth and productivity
Replicate
Multinational Globally Integrated
Connect
Replicated and inflexible operations
Decentralised management
Business process complexity
Lack of consistent data world-wide
Common world-wide processes and applications
Right skills, right place, right cost
Innovate and radically simplify processes
Enable growth and productivity
20th Century
21st Century
© 2014 IBM Corporation 11
Help the business make better decisions by anticipating the future, not just analysing the past
Predict potential threats and opportunities Spot and analyze
trends and anomalies
Assemble and interact with
relevant information
Compare “what-if” scenarios
Understand customer sentiment and behavior
Plan, budget and forecast resources
Assess & manage
risk
Measure and monitor behavior
Turn insight into action, optimizing
results
Align strategic and operational decisions
Business Insight
Manage Risk
Operational Efficiency
Business Analytics
© 2014 IBM Corporation 12
Lead business model innovation through new discipline of performance
Analytics around the correlation between key attributes and deal performance validate our acquisition strategy and improve our selection process
Likelihood of a deal achieving objectives Exhibits attribute
Does not exhibit attribute
Analytical views
© 2014 IBM Corporation 13
CFO Priorities
Drive Enterprise Agility Through Enterprise Integration
Make Better Decisions by Anticipating the Future Lead Business Model Innovation Through a New Discipline of Performance
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