finance today and tomorrow
Post on 09-Jan-2017
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Finance today and tomorrow Some thoughts about the changing and developing role of finance and IT
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 automated5. What did we learn?
How did we end up here...?
History in brief
60s Invoicing using typewriters, document transfered by ordinary post, book-keeping machine, own (physical) cash box,
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 PCs, 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,
Are robots stealing our jobs?
In certain businesses robots and
automation has replaced human
labor almost totally
The robot density in the general industry
(all industries excluding
automotive 2014)Rep. of South Korea
Germany 161Sweden 142Finland 122
Theres still room for improvement in Finland
Sometimes you need a step backward
But Toyota is deliberately
taking a stepbackward
Robots are already involved in all kinds of administration and support work and activities
- Finance, IT, HR,
From Offshoring to Reshoring
Reshoring whether for
financial, quality or
The future of finance?
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)
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 wifes 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 its why many people wont be
ready to let the robots run their finances, no matter how smart and
friendly they are.
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
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.
wherever the worlds best robots
are, you will also find the best jobs
This developmentpath will require
even more solid and uniform relationshipbetween finance and
Robots already implemented in finance and accounting
RPA = Robotic Process Automation
RPA can open an email, examine the attached spreadsheet, and check that the information complies with set rules
The world is not quite ready
Cyber attacks are here!
Sources: FICS/Cyberlab, 2014, Jukka Viitasaari, Teollisen internetin tilannekuva 2014
Fake president frauds on the rise
CFOs are taking itseriously
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
1,2 ZB4,4 ZB
When wasthe last time
How to produce a tool with the
flexibility of Excel and security of a (coded) software
Spreadsheet risk - A uniform cause of
worry this is ourcommon fear
It may become quite costly
When everything has been automated
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 ...
Traditional Finance and accounting will fade away
it will be raplaced by future oriented financial management.
When everything has been automated
What is left is value adding human interaction
ital Automation and
Future accounting, forecasting
Modelling and analysis
Already today there is a need for finance people who speaks (understands) IT and vice versa
The skills and talents needed will also change
IT-dept. Finance 60s
Multitalents 2000 =>
What did we learn?
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 departments challenge Huge risks realising already every day
Finance people needs more IT skills and IT people needs more finance skills