Download - Finance today and tomorrow
ArgonProconsulting
training
Finance today and tomorrow… Some thoughts about the changing and developing role of finance and IT
15.1.2016Timo Nurminiemi
ArgonProconsulting
training
2
AGENDAFinance today and tomorrow
1. How did we end up here…?2. Are robots stealing our jobs?3. The world is not quite ready4. When everything has been automated…5. What did we learn…?
ArgonProconsulting
training
4
History in brief…
60’s Invoicing using typewriters, document transfered by ordinary post, book-keeping machine, own (physical) cash box, …
70’s
80’s
90’s
2000-
DOS-OS, first ready-made software for finance and accounting, need for specific account numbers in accounting, first general chart of accounts in Finland (1978), … First PC’s, floppy discs, printers, spreadsheets, MS Excel (1985),
Lotus Notes 1.0 (1989), Windows 1.0, … Windows becomes more common, OLAP-tools, Internet, ERP
systems becomes more common, electronic data transfer, firstfinancial shared service center set up in Finland, … Paperless office, digitalization, forecasting, analysing, data
warehouses, grafic reporting, dashboards in reporting, business intelligence, …
ArgonProconsulting
training
6
http://www.wsj.com/articles/robots-dont-mean-the-end-of-human-labor-1440367275
In certain businesses robots and
automation has replaced human
labor almost totally
ArgonProconsulting
training
7
The robot density in the general industry
(all industries excluding
automotive 2014)Rep. of South Korea
365Japan 211
Germany 161Sweden 142Finland 122
http://innorobo.com/en/about-innorobo/the-industrial-robotics-market-in-europe/
There’s still room for improvement in Finland…
ArgonProconsulting
training
8
http://qz.com/196200/toyota-is-becoming-more-efficient-by-replacing-robots-with-humans/
Sometimes you need a step backward…
”But Toyota is deliberately
taking a stepbackward…”
ArgonProconsulting
training
9
http://greenjobinterview.com/2015/02/recruiting-robot-human-interaction-ancient-news/
Robots are already involved in all kinds of administration and support work and activities
- Finance, IT, HR,…
ArgonProconsulting
training
10
http://www.active8robots.com/blog/collaborative-robots-bringing-work-back-home/
From Offshoring to Reshoring…
”Reshoring … whether for
financial, quality or
ethicalpurposes.”
ArgonProconsulting
training
11
http://www.wsj.com/articles/the-new-bookkeeper-is-a-robot-1430776272
ExpensesSpeed
Efficiency= Competitiveness!
The future of finance?
ArgonProconsulting
training
12
Buy-/sellside robots in financial markets have already caused quite a
many market disturbances…
Elwin de Groot (Rabobank): “Blame the robots” for Greek market wobbles (June 2015)
ArgonProconsulting
training
13
http://finance.yahoo.com/news/i-asked-a-few-robots-how-i-should-invest--here-s-what-they-said--131949010.html
“Yet after going through these exercises, it occurred to me that none
of the robots know anything close to my whole situation. They never asked
about my present employer Vanguard 401(k) account, an IRA rollover from
another corporate retirement plan, my wife’s assortment of former-employer
stock, whether we own a home or have 529 college-savings accounts or have lots of debt, or whether I have a habit
of overpaying for antique maps now and then.
Those are the things that only an investment advisor with a pulse, a
business card and a license would ask. And it’s why many people won’t be
ready to let the robots run their finances, no matter how smart and
friendly they are.
Lost game?
ArgonProconsulting
training
14
“By passing logic tests like this, robots
are able to build up human-like reasoning
skills that will prove useful in future
technology such as driverless cars.”
However, the development continues…
ArgonProconsulting
training
15
”Company boards are also soon likely to
feature a robot-like intelligent system that will forecast, calculate and take management
decisions with incomparable
efficiency and speed.”
http://www.opuscapita.com/news-and-events/robots-soon-in-financial-management-and-company-boards
“…wherever the world’s best robots
are, you will also find the best jobs”
ArgonProconsulting
training
16
http://diginomica.com/2015/09/15/finance-and-accounting-next-target-for-the-robot-revolution/#.VpKBo1U8L4Y
This developmentpath will require
even more solid and uniform relationshipbetween finance and
IT functions.
Robots already implemented in finance and accounting
RPA = Robotic Process Automation
ArgonProconsulting
training
17
http://www.accaglobal.com/gb/en/member/accounting-business/insights/robot-takeover.html
“RPA can open an email, examine the attached spreadsheet, and check that the information complies with set rules”
ArgonProconsulting
training
19
Cyber attacks are here!
Sources: FICS/Cyberlab, 2014, Jukka Viitasaari, Teollisen internetin tilannekuva 2014
ArgonProconsulting
training
20
Fake president frauds on the rise…
http://belgium.marsh.com/Portals/95/Documents/Alert%20FPF%202pager.pdf
http
://w
ww
.cha
nnel
web
.co.
uk/c
rn-u
k/ne
ws/
2440
228/
fake
-pre
side
nt-fr
aud-
on-th
e-ris
e-de
loitt
e-w
arns
http://www.aig.com/chartis/internet/uk/eni/aig-fraud-alert-a4-3page-v5_tcm2538-516102.pdf
ArgonProconsulting
training
21
http://www.cgma.org/Magazine/News/Pages/cyber-security-spending
Risks areincreasing…
CFO’s are taking itseriously…
ArgonProconsulting
training
22
”IDC: The amount of digital information is going to explode by 2020” In digital world only 25 percent of data is
original and the rest (75 percent) is copy.
Who will pick and process thismassive amount of (finance) data and evaluate what is relevant? And what are the tools for that?
Based on estimates approximately 0,5 percent of new data is coming from Finland
20202010 2012 2014 2030
1 333 ZB
44 ZB
1,2 ZB4,4 ZB
ArgonProconsulting
training
23
Spreadsheet risk…
When wasthe last time
you eventhought
about this…?
http://www.eusprig.org/horror-stories.htm
ArgonProconsulting
training
24
http://ww2.cfo.com/spreadsheets/2014/10/spreadsheet-error-costs-tibco-shareholders-100m/
How to produce a tool with the
flexibility of Excel and security of a (coded) software
tool?
Spreadsheet risk - A uniform cause of
worry… this is ourcommon fear…
It may become quite costly…
ArgonProconsulting
training
26
”Automation will increase speed, efficiency and competitiveness.”
”Remember - All this should support the management and steering of Your organisation”
”Reliable and promptly delivered financial information will support high-quality decicion making ...”
Then what…
”Traditional Finance and accounting will fade away…”
”… it will be raplaced by future oriented financial management.”
ArgonProconsulting
training
27
When everything has been automated…
What is left is value adding human interaction…
Man
ual/p
aper
offic
e
Pape
rless
offic
e
Elec
tron
ic
Dig
ital Automation and
robotics (RPA)
”Intelligent finance”
”Future accounting”, forecasting
Futureorientedfinancial
management
Modelling and analysis
Foresighting
ArgonProconsulting
training
28
Already today there is a need for finance people who ”speaks” (understands) IT …and vice versa
The skills and talents needed will also change…
”Coder” ”Accountant”
IT-dept. Finance 60’s
”Coder” ”Accountant”
FinanceIT-dept.
90’s
”Multitalents” 2000 =>
”firewall”
ArgonProconsulting
training
30
Outlook for the future
When all routines has been automated… How to build processes and systems (software
tools) focused to forecasting and future? Future oriented financial management!
The amount and need for knowledge and information will grow exponentially How to pick up the relevant information from
massive amount of data? And fast enough? In some businesses an hour (or day) may be too
slow - in some businesses a month is ”fast enough” reporting period.
Cybersecurity - not only IT department’s challenge Huge risks realising already every day
Finance people needs more IT skills and IT people needs more finance skills Need for IT-Finance ”multitalents”
Which one is more relevant or
important -reporting history
by the ”lastdecimal”, orfocusing on
forecasting and the future?
ArgonProconsulting
training
31
The world, technology and business models are changing…
Finance and IT people must also change and adapt… What is needed is cost efficiency, new ways of thinking and new kindof talents…