technology outlook 09.12.13
DESCRIPTION
Technology Outlook 09.12.13. Jim Boomer, CPA.CITP, CGMA, MBA www.boomer.com j [email protected]. Agenda. The Profession Today. Updated 08/30/13. Metrics. Fiscal Year. FTE = 2,080 hours. Metrics. Firms continue on the path to recovery…although it was hard work Compressed tax season - PowerPoint PPT PresentationTRANSCRIPT
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Agenda
The Profession
TodayCloud & Mobile
New Opportunitie
sStrategic
Implications
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The Profession Today
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Metrics2008 2009 2010 2011 2012
Revenue per FTE $142,677 $138,859 $143,685 $152,775 $173,542
Average hourly Rate $138 $140 $146 $152 $171
% Chargeable 49.5% 47.8% 47.5% 48.2% 48.8%
% of Revenue Invested in Technology
5.3% 6.0% 6.4% 6.5% 5.8%
Investment in Technology per Charge Hour
$7.39 $8.45 $9.34 $9.88 $9.86
Ratio of IT Personnel to End Users 1-32 1-35 1-32 1-33 1-32
Fiscal Year
FTE = 2,080 hours
Updated 08/30/13
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• Firms continue on the path to recovery…although it was hard work– Compressed tax season– Reduced staff numbers
• Technology spend is down as firms take a “wait and see” approach
• We will likely see a flattening or decline in financial numbers as staffing #’s catch up to financial performance
Metrics
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Our FY2012 technology spend:
A.IncreasedB.Remained FlatC.DecreasedD.I don’t know
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Leading Trends• Succession/ Talent
Development• Cloud
Opportunities• Mobile Devices/
Consumerization• Remote Workforce• Desktop Video
Conferencing
• Electronic Signatures
• Growth in Advisory Services
• Mergers & Acquisitions
• Process Improvement
• Role of the IT Leader
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A Storm is Brewing• 78 million Baby Boomers
approaching retirement age• Only 50 million in Generation X
won’t offer one-to-one replacement
• Leaves Gen Y & Millennials to fill the gap
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Cloud & Mobile
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Cloud Progress
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What’s Holding Many Back?
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General Trends• Momentum building • Attitudes are changing
– Business Leaders– IT Professional
• Vendors were pushing the message & now are trying to keep up
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Applications
Network Engineering
Spam/VirusBackups
Systems
Hosted SolutionsProcesses/Workflow
Virtualization
Apple IBM
Integration
Infrastructure
Device Independent
Web 2.0 Software
In-House Data Center
Bandwidth Software Updates
Licenses
Subscriptions
Privacy - Security
EmailInnovation - Revenue
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Cloud Computing
More focus as an agent to facilitate efficiency rather than as a transformational force
Accenture Survey
Very few think the cloud is going away
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Cloud Computing
It’s commodity applications that shift to the cloud first
CDW
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Specific Cloud Trends1. Hybrid Cloud Growth2. Increased focus on Cloud
Security3. Growth of Mobile Cloud4. Bring Your Own Cloud (BYOC)
Boom5. Increased focus on SLA6. Increased focus on
openness & integration
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MOBILE
MDMBYOD
BYOT
BYOA
Policies
Security
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Consumerization of IT
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What is Consumerization of IT?“The growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations.”
- Wikipedia
“The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development.”
- Wikipedia
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The Way Things Used To Be!
• New technologies started in business markets until the products commoditized and prices fell.
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Evolution of iDevice
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What Does This All Mean?
• Businesses must rethink how they procure and manage IT equipment/services
• A dependency has developed between businesses and many of the consumerized services (search, mapping & social media)– Will advertising-based services infiltrate the core
systems (email, CRM, intranets, etc.)• Challenges with providing enterprise level
security on consumer grade products and services
The Consumerization trend is all about driving innovation in technology from the perspective of the individual consumer or employee.
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1. Mobile Devices2. Mobile Apps3. Enterprise App
Store4. Collaboration
Revolution5. Cloudy
Expectations
6. Work-from-Home
7. Walking in User’s Shoes
8. Rapid Innovation & Prototyping
9. Fun on the Job10.Consumerizatio
n in other Industries
Consumerization of IT Today
Source: 2013 HorizonWatching Trend Report
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Mobile Device Management Platforms
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http://www.enterpriseios.com/wiki/Comparison_MDM_Providers
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Work is what you do, not where you go!
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Mobile Workforce Challenged
• Reining in remote workers & flexible work arrangements
• We see it continuing to grow and expand
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The New Face of Collaboration
GOT BANDWIDTH?
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RULES OF VIDEO – COME AS YOU ARE
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TOOLKIT ESSENTIALSCategory SolutionsFeedback Tools 15Five, Good Old Fashioned PhoneProject Management Basecamp, Asana, WORKetc.Face-to-Face Virtual Meetings
Google+ Hangouts, Zoom, GoToMeeting, MS Lync, 8X8
VOIP 8x8, ShoreTel, CiscoExpenses ExpensifyBill Payment, Invoicing Bill.comStill Lacking Trust? TransparentBusiness
Source: CIO.com – Bosses Without Borders: Essential Tools for Managing Remote Employees - http://tinyurl.com/jwg8kbu
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For CPA Firms
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Electronic Signatures
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Does your firm allow employees to work from home?
A.Yes, open to everyoneB.Yes, open to select individualsC.No but we are consideringD.No and no plans to do so
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New Opportunities
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Advisory Services
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TransactionalServices
AdvisoryServices
Valu
e-A
dd
Strategic PlanningSuccession PlanningSourced CFOEstate PlanningBudgetingCashflowPayroll - HR
Bill PaymentFinancial ReportingReconciliationsQB SupportTax
Moving from Compliance to Advocacy
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Moving from Compliance to Advocacy
L-3 Strategic Planning
L-2 Budgets
L-2 CFO
L-2 Cash Flow
L-1 Financial Reporting
L-1 Payroll
L-1 Bill
Payment
L-1 Sales
TaxL-1 Income Tax
Tier Price/Month
L-3 $ 2,000
L-2 $ 3,000
L-1 $ 2,000
Total $ 7,000
Compliance
Advocacy
Valu
e to
Clie
nt
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Bundling – Provide Options!
L-3 Strategic Planning
L-2 Budgets
L-2 CFO
L-2 Cash Flow
L-1 Financial Reporting
L-1 Payroll
L-1 Bill
Payment
L-1 Sales
TaxL-1 Income Tax
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Bill PaymentFinancial ReportingTax Return
Bill PaymentFinancial ReportingTax ReturnTax PlanningSales TaxPayroll
Bill PaymentFinancial ReportingTax ReturnSales TaxPayrollBudgetingCash FlowInsurance ReviewSuccession PlanningEstate PlanningStrategic PlanningAccountability ReviewUnlimited phone/email
Starting at… $$$ Starting at…$$$$ Starting at…$$$$$
Basic Premium Corporate
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State of CAS
ExecutionInterestEarly Market
Tornado
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Primary Challenges• Champion• Shift in Mindset
– Assurance vs. Advisory– Historical Perception of Bookkeeping
• Building the team (resource allocation)
• Change Management• Disruptive Technology
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• Enablers– Technology/Cloud– Integrated
Solutions– Value Pricing– Niche Focus– Entrepreneurial
Mindset– Growth Focus
• Barriers– Politics/
Leadership Buy-in– Change
Management– Historic
Perception of Client Accounting Resource Commitment
Moving from Compliance to Advocacy
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Is your firm leveraging the cloud for Client Accounting/Advisory
Services?A.YesB.No but planning to do so soonC.No and no plans to do so
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What’s Old is New Again!
Strategic Implications
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$500-$1,000/Mo/Person
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A New Way of Working
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Lean Six Sigma• Lean
– Making a process more efficient– Gaining capacity in a process– Speeding up the throughput of a process
• Six Sigma– Making a process that rarely produces
defects or quality issues– Higher quality– Remove variation as much as possible
Reduced to the most fundamental of definitions, “Lean is the purposeful elimination of wasteful activities”.
Six Sigma is a business problem-solving model designed to improve profitability by improving quality and eliminating variation.
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Lean Strategies for Public Accounting:• Process Improvement Project
Facilitation:• Tax• Assurance• Client Accounting Services
• Lean Training for CPA Firms• Certified Lean Six Sigma Green Belt
Training for CPAs• Consulting / Value Added Services
Niche Development Coaching
Twitter: @FlowtivityEmail: [email protected]
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Leadership - Culture – Technology
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Succession/ Redundancy• Primarily focus on partners• What about other functional areas?
– Technology– Training & Learning– HR
• Would you be prepared togo on sabbatical for:– 3 months– 6 months
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The Changing IT Professional
• Managing the services• Integration & workflow• Processes – more involved in the
business and less on the hardware• Tightly aligned with Training &
Learning Professional• Innovative and strategic
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The Metamorphosis of the CIO• Nature of the enterprise is changing
– Socially enabled enterprise– Operate in a digital business ecosystem
• CIOs must understand the business and how to apply IT in new ways to benefit the business– Don’t get hung up on the technology– Focus on supplying vision, direction &
supporting technology
http://blogs.hbr.org/cs/2013/05/the_metamorphosis_of_the_cio.html
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A Seat at the Table
