Sponsored by:

Page 2

Future of finance – EY perspective

Technology

Three technology innovations set to transform the finance function: 1. Advanced data analytics and forecasting2. Robotic process automation3. Cloud and software-as-a-service (SaaS)

People► Building a smarter, more forward-looking and resilient finance function► Challenging the assumptions about what constitutes finance talent

Where from here?

Context1

2

3

4

Page 3

► 55

The DNA of the CFO series

Part 1: Do you define your CFO role? Or does it define you? The disruption of the CFO's DNA.The CFO role is being reshaped by four forces: digital, data, volatile risk and stakeholder scrutiny and regulation.To meet these challenges, CFOs need to re-evaluate their own competencies, and those of their team. Visit ey.com/dnaofthecfo to learn more.

Part 2: Is the future of finance new technology or new people? Preparing for the future finance function.Technological innovation is providing an opportunity for CFOs to transform their finance function into a fact-based decision center for the whole organization. But as many traditional finance tasks are automated, the profiles and skills of finance people will need to evolve.

Page 4

While automation and new technology will have a transformative effect on finance functions, people will continue to play an essential, albeit different role.

Page 5

Technology

Page 6

Three technology innovations set to transform the finance function

Advanced data analytics and forecasting1

Robotic process automation2

Cloud and SaaS3

Page 7

Advanced analytics capabilities will transform forecasting, risk management, and management’s understanding of value drivers

EY asked CFOs if they could only focus on one thing to improve Finance, what would it be? The highest rated response was:

“Improving big data and analytics capabilities to transform forecasting, risk management and understanding of value drivers is a priority for the finance function”

Improve ability To predict outcomes

Help CFO’s better understand

the financial impact of strategic

and operational decisions

Provide better and faster

Information To key

stakeholders

Finance functions are mastering the processing of large amounts of data, keeping track of new types of data and incorporating them into their models as they emerge.

1

Page 8

Robotics process automation (RPA) will drive evolution in how finance is delivered

65%Standardizing and automating processes and building agility and quality into processes

Combining state-of-the-art technology with process improvement

58%

Respondents emphasized the importance of RPA technology as a significant priority for the finance function:

2

Page 9

RPA executes processes as humans do, at a significantly lower cost

RPA People

People build relationships, provide subjective judgement, deliver low-frequency and exception tasks, and manage change and improvement► Resolve discrepancies► Approve invoices for payment► Manage working capital

Robots deliver repetitive, deterministic, high-volume tasks efficiently► Vendor master data management► Process invoices and payments► Duplicate invoice check► Invoice/PO matching

Finance Process:Accounts Payable

An effective deployment plays to both robotic and human strengths:

How does Robotic Process Automation (RPA) work?

RPA uses software to execute business processes in a

repetitive, audited and controlled manner

It orchestrates existing legacy applications for transaction

processing, data manipulation, response triggering and

communication

It does all of this with very limited human participation

2

Page 10

Cloud and SaaS technology drives analysis, reduces costs, provides greater flexibility, improves disaster recovery

Cloud and SaaSvalue to the finance function

Enhance decision making capabilities

► Drives analysis and decision-making by enabling disparate teams to more seamlessly access and analyze the same information

Reduce costs► Eliminates costly capital and

operational expense associated with hosting and maintaining traditional information systems

Provide greater flexibility► Supports flexibility in provisioning of

new technologies► Improves disaster recovery as back-up

solutions can be accessed remotely

Cloud services provide the capacity for finance to access ERP and other systems on the web, rather than through physical servers.

While Cloud and SaaS provide significant opportunities toimprove performance, they will need to be weighed against the need to conform to

out of the box processes and the loss of control over which and when new functionality will be rolled out to the business

3

Page 11

People

Page 12

Priority one: A smarter, more forward-looking, better aligned, more resilient operating model

Future operating

model

Smarter

Better aligned to the business

► All transactional finance processes will be fully automated in outsourced or captive finance factories.

► Transactional information will be available sooner and will be more accurate

► Finance professionals will spend more time working alongside key internal stakeholders, challenging their strategic plans and modeling and predicting different scenarios.

More forward-looking

More resilient

► The future finance function will combine finance data with external information to help model and predict business outcomes, identifying the most profitable opportunities

► The future finance function will be more focused on managing uncertainty through strategic risk management.

► It will use predictive analytics to investigate the implications of strategic decisions, to plan for possible shocks, and to manage the growing threat of cyber risk.

1

Page 13

Priority two: challenging the assumptions about what constitutes finance talent

Rethinking what constitutes

finance talent

Look beyond traditional financial analysis skills

Develop better finance business partners

Find digital finance talent

Use alliances to go beyond what your organization can deliver alone

2

Page 14

What’s next for the Finance Function?

A clear vision for the future finance function, which:► Is aligned with the

organization’s overall purpose and business strategy,

► gives finance team members around the world a common ambition,

► provides focus for efforts and investment decisions.

A bold technology strategy for the finance function which builds systems and tools that enable disparate teams to share information and make connected, data-driven decisions.

Invest in developing new skill sets and attracting new profiles by:► finding or developing the

new skills and capabilities required to exploit new technologies and increasing volumes of data,

► building their people’s softer skills, such as their communication and influencing skills

1. Define a vision 2. Rethink technology 3. Invest in people

Imperatives for future Finance Operations

Flexible Cloud Deployment

Inter-operability

Embrace Digital Technology

Governance& Compliance

360° view & access

Digitize Financial Processes Seamless

Information Flow

360

DigitalWorkplace

Value add focused

Business CentricServices

Re-Imagine Service Delivery Customer

Satisfaction

Integrate the moving parts

When using CRM, billing and planning systems • Avoid content silos• Deliver analytical insight across application

boundaries• Simplify access with minimal training• Provide self-service capabilities

DigitalWorkplace

Seamless Informatio

n Flow

360° view & access

360

Forecasts & hidden relation-

ships

Integrate the moving parts

Content sharing with customers is the norm rather than the exception:• Documentation received from suppliers

or subcontractors • Quality inspections• Proofs of service/delivery• Expenses for recharge

Information-Fueled

Business Processes

OpenText Confidential. ©2016 All Rights Reserved. 18

Example Process: Opportunity to Cash

Campaign &Lead Gen

Opportunity& Quote Sales Order Engineering

(Project)Production &

Delivery Service

Quote

Product Information

Collaterals

Lead Sheets

Contract

Product Specification

Sales Order

Order Confirmation

Requirements Specification

Enginering Drawings

Project Documentation

Detailed Specification

Purchase Orders

Material Requirements

Quality Inspections

Case / Problem Documentation

Customer emails

Solution Description

LegacySystem

How to act fast and accurate and compliant

Replace transactional work with agile processes • Optimize and automate:

• Eliminate manual steps• Leverage a shared service

organization• Measure results

• Trust built-in compliance:• Segregation of duties• Contextual intelligence

Order to Cash

Procure to Pay

Record to Report

Example: Top five value drivers for optimizing invoice-to-pay

Value Driver Baseline Improvement % Estimated Benefit (Annual) Assumptions and Benefit Rationale

Reduce Accounts Payable invoice processing costs related to invoice routing, exception handling, and duplicate invoices

$1,799K 36.5% - 63% $602K - $1,039K Based on previous studies 40-60% of AP spend is related to invoice processing

Reduce missed early payment discount rate $1,514K 40% - 50% $555K - $694K

ADP estimates that average early payment discounts are in the range between 1.6% - 2% of invoice value

Reduce payment processing costs for approvers $1,982K 30% - 40% $548K - $731K Based on previous studies it takes 15

minutes on average to approve an invoice

Reduce cost of data entry for paper invoices $1,439K 41% - 62% $541K - $818K Based on previous studies 30-50% of AP

spend is related to invoice entry

Increase additional discounts due to improved vendor relations $5,311K 10% - 20% $446K - $892K

Paystream estimates that 66% of companies are offered discounts on approximately 5% of their invoices

TOTAL - Client $2,692K - $4,174K

Your gain.Guaranteed governance

Reduced administrative

costs

Faster implementation

Reduced legal risk and liability

Reduced service center response

time

Real-time forecasts and closing

Increased staff productivity

Better customer satisfaction

Reduced IT administration and

storage costs