Future of Corporate Management – Digitization of the … better the question. The better the...
Transcript of Future of Corporate Management – Digitization of the … better the question. The better the...
The better the question. The better the answer�.The better the world works.
Future of CorporateManagement –Digitization of the CFOagendaMarkus Heinen
25th November 2016
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Markus HeinenPartner and Chief Innovation Officer EY GSA
Focus topicsØ Strategy & InnovationØ Purpose led TransformationØ Business Model Innovation
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Did you know?
Nearly 3.5 zettabytes (3.5x1021)
of new information will be created worldwide this year.
Just 1 zettabyte is equivalent to
250 billion DVDs
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It’s estimated that by 2049, the computationalcapabilities of the entire human species may be exceeded
by a $1,000 computer
Did you know?
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IdentityCapability
Tools andtechnology
Process andfunction
People andOrganization
structureBusiness
modelOperating
model
Spec
trum
Lens
esLe
nses
Obj
ecti
ves
Improveworkflow,
increase skillsand develop new
capabilities
Driveefficiency andeffectiveness
Streamlineorganizationand improve
accountability
Align modelwith priorities
and enablestrategy
execution
Promotegrowth,
innovation andprofitability
Define anddeliver on anew brandpurpose
Leading with purpose provides a differentiated approachfrom strategy to execution
Purpose
WHY ?WHAT ?HOW ?
123456
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3x more The likelihood of employees stayingin a purpose-driven Organization
They are also 1.4times more engaged
89% of clients believe a purpose-driven company will deliverthe highest quality products& services
72% of global consumers wouldrecommend a company witha purpose, a 39% increasefrom 2008
Sources: The Energy Project, What Is Your Quality of Life at Work (2013); Edelman, The goodpurpose study (2013); Raj Sisodia, Firms of Endearment, 2007; Havas,Meaningful Brands Index (2013) , EY Beacon 2014
Purpose led companiesoutperformed the S&P 500by 10 times between 1996and 2014
10x
‘Meaningful brands’ connected to humanwell-being outperformed the stock market by120% in 2013
120%
INDICATORS OF CHANGE – on Purpose
Investments focused onactivating the company’spurpose generate higheraverage annualized returns by13% vs S&P 500 (4%)
13%
Companies with aclear sense of Purposeare the new leaders inCustomer Retention with75% retention rate
75%
Employees are twice asoptimistic about the future of theirorganization when they feelconnected to a higher purpose
2x
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of Fortune 500companies in 2006no longer exist.
50%
INDICATORS OF CHANGE – on Business Models
By 2016, 89% ofcompanies expect tocompete mostly on the basisof customer experience.
62.5%Approximate increase ofinnovations from 1996 to 2012in Europe
81% of business leaders rank knowledge top,78% above products and 73% short-term financialtargets.
50 billionconnected things in 2050
84% of emerging marketconsumers make causerelated purchases at leastannually
5 mn + 1 mnBusiness Model Canvas booksdownloaded and sold
84 %of S&P 500 Market Value in 2015has been Intangible Assets
64 % of companies expectto change their businessmodel(s) in the next 5 years
Digital (Disruptive)Technologies enable newbusiness models at scale
“Platforms” rise all overthe place and scale newbusiness models withoutowning assets
Sources: Gartner (2015), World Economic Forum (2015), EY studies (2015) , Strategyzer (2015), Ocean Tomo, LLC, 2015 AnnualStudy of Intangible Asset Market Value
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of Generation Z agree that business hasa responsibility to create a better world.74%
The sharing economy will grow by
3.000% from 2015 to 2030.
of the workforce in advancedeconomies could retire within a decade1/3
By 2019, approximately one quarter of theentire U.S. workforce will be independent workers (self-employed, independent contractor, freelancer, tempcontractor, etc.).
INDICATORS OF CHANGE – on People & Organization
By 2020 approx. 5 million jobs willbe lost as artificial intelligence, robotics andother socio-economic factors replace the needfor human workers or change their roles.
202%
Companies with engagedemployees outperform thosewithout by up to
Technology empowers employeesand makes flexibility, transparencyand immediacy at scale possible(‘Workforce of One’)
65% of all formal roles in2030 have not beendefined yet
Sources: World Economic Forum (2015); Raj Sisodia, Firms of Endearment, 2014; Havas, Meaningful Brands Index, 2015; The rise of the sharing economy 2015 by EY; Playing to win: thenew global competition for corporate profits (McKinsey 2015); The knowledge advantage (EY 2014)
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Collectivepurpose
Mindclarity
Digitalleadership
Officespace
Technologyexperience
Incentives& Rewards
Companiesare workingaggressivelyto adapt tothese trendsin a variety ofways …
Team
Organization
Individual
1
2
Strategy, workforceplanning andleadershipdevelopment
Teamingability
TODAYS RESPONSES
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Collectivepurpose
Mindclarity
Digitalleadership
Teamingability
Officespace
Technologyexperience
Incentives& Rewards
Companiesare workingaggressivelyto adapt tothese trendsin a variety ofways …
Team
Organization
Individual
1
2
3
Location andreal estate strategy
TODAYS RESPONSES
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Collectivepurpose
Mindclarity
Digitalleadership
Teamingability
Officespace
Technologyexperience
Incentives& Rewards
Companiesare workingaggressivelyto adapt tothese trendsin a variety ofways …
Team
Organization
Individual
Developing andmeasuring newcompetencies
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3
TODAYS RESPONSES
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Old EnterpriseManagement
New EnterpriseManagement
Stringent, efficient +effective processes
Flexible processes, easy toadapt - Agilityà end-2-end
processes still needed?
Tangible assets, ONEbusiness model
Intangible assets, MANYbusiness model(s)
Purpose-driven operatingmodel
Profit-driven operatingmodel Operating Model
DB
Tran
sfor
mat
ion
Spec
trum
Networks, shared economyHierarchical / matrixorganization Organization
Processes
Business Model
Purpose???
Technology???
People???
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Future of Finance – Finance Transformation
Increasing complexity
Need for digitization
Volatile marketconditions
Ad-hoc inquiries fromupper management
Organizationalchanges
Rigid data structuresrequire manual effortsto personalize
Finance will betransformedthanks tonew internaland externalchallenges
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Future of Finance - OVERVIEW
Execute
Continuousoptimization ofprocesses and
structures
Using Roboticsand ArtificialIntelligence/
machinelearning
1 Develop
Consider andimplement
public valueKPIs
3Enable
Steering andcreation of
transparency
Enable strategicdecision-making
2
Future of Finance
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Technology???
Future of Finance - EXECUTE Execute
Robotics andArtificial
Intelligence
1
Artificial IntelligenceBlockchain
Robotics
Wave upon wave of new disruptive technology…
Sm
art+
Con
nect
ed
Smart automationin Financebecomes realityby using RoboticsProcessAutomation,Machine Learning/ Problem solvingand AI Engines
Controllingexcellence nextgeneration (incl.
Fraudmanagement)
FinanceOperations,
including FSSC,Tax, HR (i.e. payroll
administration)
Treasury andEnterprise Asset
Management
Ultimate Objective is a light-out „Finance“ function
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Technology???
Future of Finance - ENABLE Enable
Steering andcreation of
transparency
2
Enabling the Financefunction by creatinghigh transparency is keyto create visibility andaccessibility ofinformation acrossbusiness practices anddomains
“Life”Finance
…
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Future of Finance - DEVELOP Develop
Consider andimplement
public valueKPIs
3
Public Value shows thecontribution oforganizations to society– as perceived by public.The credo “Perception isReality” offers anadditional view on socialvalue creation – beyondfinancial wealthindicators.
Technology???
PublicValue
Interaction
Perceptionby Society
Self-perception
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Technology???
Future of Finance – Public Value Scorecard
Public Value Scorecardalludes to BalancedScorecard and is aholistic view on publicvalue creation byintegrating customer,shareholder, CSR andstakeholderperspectives
Financial-economicIs it profitable?
Control/OrientationIs it useful?
Self-enhancementIs it decent?
AttachmentIs it politically acceptable?
Pleasure/avoidance of painIs it a positive experience?
Opportunities Risks
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Tomorrow
Today
The transition from simplysustaining business to creatinginspired employees, teams andorganizations is happening now
Innovate
IntegrateSustain
Future of Work
Inspiredemployeescreate inspiredresults
Exploit vs explore - Capability Ambidexterity
Inspire
The better the question. The better the answer�.The better the world works.
Will our today’s state-of-the-art Finance stillfulfill the needs oftomorrow’s futureenterprise ?
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