Finance today and tomorrow

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<ul><li><p>ArgonProconsulting</p><p>training</p><p>Finance today and tomorrow Some thoughts about the changing and developing role of finance and IT</p><p>15.1.2016Timo Nurminiemi </p></li><li><p>ArgonProconsulting</p><p>training</p><p>2</p><p>AGENDAFinance today and tomorrow</p><p>1. How did we end up here?2. Are robots stealing our jobs?3. The world is not quite ready4. When everything has been automated5. What did we learn?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>315.1.2016 3</p><p>How did we end up here...?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>4</p><p>History in brief</p><p> 60s Invoicing using typewriters, document transfered by ordinary post, book-keeping machine, own (physical) cash box, </p><p> 70s</p><p> 80s</p><p> 90s</p><p> 2000-</p><p> 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), </p><p> First PCs, floppy discs, printers, spreadsheets, MS Excel (1985), Lotus Notes 1.0 (1989), Windows 1.0, </p><p> Windows becomes more common, OLAP-tools, Internet, ERP systems becomes more common, electronic data transfer, firstfinancial shared service center set up in Finland, </p><p> Paperless office, digitalization, forecasting, analysing, data warehouses, grafic reporting, dashboards in reporting, business intelligence, </p></li><li><p>ArgonProconsulting</p><p>training</p><p>5</p><p>Are robots stealing our jobs?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>6</p><p></p><p>In certain businesses robots and </p><p>automation has replaced human </p><p>labor almost totally</p></li><li><p>ArgonProconsulting</p><p>training</p><p>7</p><p>The robot density in the general industry </p><p>(all industries excluding </p><p>automotive 2014)Rep. of South Korea </p><p>365Japan 211</p><p>Germany 161Sweden 142Finland 122</p><p></p><p>Theres still room for improvement in Finland</p></li><li><p>ArgonProconsulting</p><p>training</p><p>8</p><p></p><p>Sometimes you need a step backward</p><p>But Toyota is deliberately</p><p>taking a stepbackward</p></li><li><p>ArgonProconsulting</p><p>training</p><p>9</p><p></p><p>Robots are already involved in all kinds of administration and support work and activities </p><p>- Finance, IT, HR,</p></li><li><p>ArgonProconsulting</p><p>training</p><p>10</p><p></p><p>From Offshoring to Reshoring</p><p>Reshoring whether for </p><p>financial, quality or</p><p>ethicalpurposes. </p></li><li><p>ArgonProconsulting</p><p>training</p><p>11</p><p></p><p>ExpensesSpeed</p><p>Efficiency= Competitiveness!</p><p>The future of finance?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>12</p><p>Buy-/sellside robots in financial markets have already caused quite a </p><p>many market disturbances</p><p>Elwin de Groot (Rabobank): Blame the robots for Greek market wobbles (June 2015)</p></li><li><p>ArgonProconsulting</p><p>training</p><p>13</p><p></p><p>Yet after going through these exercises, it occurred to me that none </p><p>of the robots know anything close to my whole situation. They never asked </p><p>about my present employer Vanguard 401(k) account, an IRA rollover from </p><p>another corporate retirement plan, my wifes assortment of former-employer </p><p>stock, whether we own a home or have 529 college-savings accounts or have lots of debt, or whether I have a habit </p><p>of overpaying for antique maps now and then. </p><p>Those are the things that only an investment advisor with a pulse, a </p><p>business card and a license would ask. And its why many people wont be </p><p>ready to let the robots run their finances, no matter how smart and </p><p>friendly they are.</p><p>Lost game?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>14</p><p>By passing logic tests like this, robots </p><p>are able to build up human-like reasoning </p><p>skills that will prove useful in future </p><p>technology such as driverless cars.</p><p>However, the development continues</p></li><li><p>ArgonProconsulting</p><p>training</p><p>15</p><p>Company boards are also soon likely to </p><p>feature a robot-like intelligent system that will forecast, calculate and take management </p><p>decisions with incomparable </p><p>efficiency and speed.</p><p></p><p>wherever the worlds best robots </p><p>are, you will also find the best jobs</p></li><li><p>ArgonProconsulting</p><p>training</p><p>16</p><p></p><p>This developmentpath will require</p><p>even more solid and uniform relationshipbetween finance and </p><p>IT functions.</p><p>Robots already implemented in finance and accounting</p><p>RPA = Robotic Process Automation</p></li><li><p>ArgonProconsulting</p><p>training</p><p>17</p><p></p><p>RPA can open an email, examine the attached spreadsheet, and check that the information complies with set rules</p></li><li><p>18</p><p>The world is not quite ready</p></li><li><p>ArgonProconsulting</p><p>training</p><p>19</p><p>Cyber attacks are here!</p><p>Sources: FICS/Cyberlab, 2014, Jukka Viitasaari, Teollisen internetin tilannekuva 2014</p></li><li><p>ArgonProconsulting</p><p>training</p><p>20</p><p>Fake president frauds on the rise</p><p></p><p>http</p><p>://w</p><p>ww</p><p>.cha</p><p>nnel</p><p>web</p><p>.co.</p><p>uk/c</p><p>rn-u</p><p>k/ne</p><p>ws/</p><p>2440</p><p>228/</p><p>fake</p><p>-pre</p><p>side</p><p>nt-fr</p><p>aud-</p><p>on-th</p><p>e-ris</p><p>e-de</p><p>loitt</p><p>e-w</p><p>arns</p><p></p></li><li><p>ArgonProconsulting</p><p>training</p><p>21</p><p></p><p>Risks areincreasing</p><p>CFOs are taking itseriously</p></li><li><p>ArgonProconsulting</p><p>training</p><p>22</p><p>IDC: The amount of digital information is going to explode by 2020 In digital world only 25 percent of data is </p><p>original and the rest (75 percent) is copy.</p><p>Who will pick and process thismassive amount of (finance) data and evaluate what is relevant? And what are the tools for that?</p><p> Based on estimates approximately 0,5 percent of new data is coming from Finland</p><p>20202010 2012 2014 2030</p><p>1 333 ZB</p><p>44 ZB</p><p>1,2 ZB4,4 ZB</p></li><li><p>ArgonProconsulting</p><p>training</p><p>23</p><p>Spreadsheet risk</p><p>When wasthe last time</p><p>you eventhought</p><p>about this?</p><p></p></li><li><p>ArgonProconsulting</p><p>training</p><p>24</p><p></p><p>How to produce a tool with the </p><p>flexibility of Excel and security of a (coded) software </p><p>tool?</p><p>Spreadsheet risk - A uniform cause of </p><p>worry this is ourcommon fear</p><p>It may become quite costly</p></li><li><p>ArgonProconsulting</p><p>training</p><p>25</p><p>When everything has been automated</p></li><li><p>ArgonProconsulting</p><p>training</p><p>26</p><p>Automation will increase speed, efficiency and competitiveness.</p><p>Remember - All this should support the management and steering of Your organisation</p><p>Reliable and promptly delivered financial information will support high-quality decicion making ...</p><p>Then what</p><p>Traditional Finance and accounting will fade away</p><p> it will be raplaced by future oriented financial management.</p></li><li><p>ArgonProconsulting</p><p>training</p><p>27</p><p>When everything has been automated</p><p>What is left is value adding human interaction</p><p>Man</p><p>ual/p</p><p>aper</p><p>offic</p><p>e</p><p>Pape</p><p>rless</p><p>offic</p><p>e</p><p>Elec</p><p>tron</p><p>ic</p><p>Dig</p><p>ital Automation and </p><p>robotics (RPA)</p><p>Intelligent finance</p><p>Future accounting, forecasting</p><p>Futureorientedfinancial</p><p>management</p><p>Modelling and analysis</p><p>Foresighting</p></li><li><p>ArgonProconsulting</p><p>training</p><p>28</p><p>Already today there is a need for finance people who speaks (understands) IT and vice versa</p><p>The skills and talents needed will also change</p><p>Coder Accountant</p><p>IT-dept. Finance 60s</p><p>Coder Accountant</p><p>FinanceIT-dept.</p><p> 90s</p><p>Multitalents 2000 =&gt;</p><p>firewall</p></li><li><p>ArgonProconsulting</p><p>training</p><p>29</p><p>What did we learn?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>30</p><p>Outlook for the future</p><p> When all routines has been automated How to build processes and systems (software </p><p>tools) focused to forecasting and future? Future oriented financial management!</p><p> The amount and need for knowledge and information will grow exponentially</p><p> How to pick up the relevant information from massive amount of data? And fast enough?</p><p> In some businesses an hour (or day) may be too slow - in some businesses a month is fast enough reporting period.</p><p> Cybersecurity - not only IT departments challenge Huge risks realising already every day</p><p> Finance people needs more IT skills and IT people needs more finance skills</p><p> Need for IT-Finance multitalents</p><p>Which one is more relevant or</p><p>important -reporting history</p><p>by the lastdecimal, orfocusing on </p><p>forecasting and the future?</p></li><li><p>ArgonProconsulting</p><p>training</p><p>31</p><p>The world, technology and business models are changing</p><p>Finance and IT people must also change and adapt What is needed is cost efficiency, new ways of thinking and new kindof talents</p></li><li><p>@TimoNurminiemi</p><p></p><p>ArgonProconsulting</p><p>training</p><p>@TimoNurminiemi</p><p></p><p>@TimoNurminiemi</p><p></p><p>Timo Nurminiemi</p></li></ul>