Technology Strategy for Impact

North Carolina Association of CPAs

Emerging Leaders Conference

October 23, 2013

Donny C. Shimamoto, CPA, CITP, CGMA

Technology Strategy for Impact

Speaker Biography

Donny C. Shimamoto, CPA.CITP, CGMA Donny Shimamoto, CPA.CITP, CGMA, is the founder and managing director of

IntrapriseTechKnowlogies LLC, a CPA consultancy focused on organizational development and advisory services for the middle market and nonprofits. Donny is a recognized national expert in IT management and international author/speaker on business intelligence initiatives. Donny helps many nonprofits by bridging accounting and IT to strengthen organizational governance and risk management, improve business processes through technology, and increase the effectiveness of decision through business intelligence and evidence-based management.

Donny is a member of the AICPA Governing Council and is the chairman of its Information Management & Technology Assurance Executive Committee. Donny was recognized as one of 2013’s Top 100 Most Influential People in Accounting by Accounting Today, Top Thought Leaders in Public Accounting by CPA Practice Advisor in 2012 and 2013, received the 2009-2010 President’s Award from the Hawaii Society of CPAs, was named to CPA Technology Advisor’s 40 Under 40 list in 2007 & 2009, and was also a Hawaii Top High Tech Leader in 2004.

Audience Polls – Demographics

Organization Type/Size

– Small Org

– Medium Org

– Large Org

– CPA Firm

Part of Organization

– Accounting/Finance

– IT

– Programs

– Audit

– Consulting

Role in Organization

– Lead Executive

– Executive Leadership

– Dept Director/Manager

– Dept Staff

Choose one from each set of options that best matches how

you view your organization and your role at work.

© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

Technology Strategy for Impact

Technology and the Role of Accountant

Technology in Perspective

– Developing the IT Strategy

– Developing Your IT Plan

Top Technology Initiatives Survey Results

– Top 10 Technology Initiatives

– Analysis of Confidence Levels

– Segment Comparison and Analysis

Finalizing Your IT Plan & IT Strategy

© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.4

• Spectrum of Accountants’ Roles

• Accounting Organization Evolution

• Accountants’ Role in Achieving Impact

Technology and the Role of the Accountant

5

Spectrum of Accountants’ Role

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Source: CIMA

Stage Transaction Controlling the Planning & Integrated Functional

Management Business Analysis Excellence

Role Bean Counters Process Managers Business Partners Value Managers

Key Capabilities

Challenge Number of Consistent process Talent and insight Leadership and

transactions excellence into valuable drivers performance

management

[Accounting] Organization Evolution

Expectations have increased for

[Accounting] organizations

• Dominated by

reporting and

compliance

functions

• Focused on process

and risk minimization

• Focused on decision

support

• Provides sound

financial analysis to

management for

making financial and

operating decisions

• Integral part of management

team to support value/wealth

creation

• Identifies opportunities and

provides critical information

and analysis to make superior

operating and strategic

decisions

• Financial

accounting

• Management reporting

• Tax

• Audit

• Treasury

• Performance

management

• Analysis

• Superior decision support to

invest wisely

• Business Development

• Enterprise risk management

Source: McKinsey & Company

1 2 3 4

Accountants’ Roles in Achieving Impact

Accountants often stop at the Analysis stage (which is where technology will also take you).

We need to go all the way through to IMPACT!

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• Alignment between the mission, business strategy and the IT strategy is critical.

• Analyze the ecosystem, drivers, and business strategy—the combination of all of these drive the IT strategy.

• Use the IT strategy to drive the IT plan and associated initiatives

Technology in Perspective


Developing the IT Strategy

Cloud Computing

Mobile Big Data

• Evolution of Service Offerings

• Workflow & Process Efficiencies

• Staff Enablement & Work-Life Fitness

• Local to Global Opportunities

TechnologyDrivers

Mission

Enhancement

Strategies

Economic Uncertainty

Customer Price

Pressure

Increased Oversight

BusinessDrivers

IT Strategy



Audit TaxClient

Accounting

Impact of the IT Strategy

to Firm’s Major Service Lines

• Efficiencies

• Effectiveness

• Innovation

• Efficiencies

• Collaboration

• Innovation

• Efficiencies

• Transformation

• Revenue Growth


Key Outcomes:

• Automated & efficient processes Improved execution/profitability

• Improved work processes Increased employee satisfaction

• Better workflow and project management Reduced risk

• Higher quality of service Increased client satisfaction / impact


Back OfficeLines of Business

Sales & Marketing


to your Business’ Divisions

Key Outcomes:




• Higher quality product/service Increased customer satisfaction

• Efficiencies

• Effectiveness

• Innovation

• Efficiencies

• Collaboration

• Transformation

• Efficiencies

• Revenue Growth

• New Markets



Back Office Programs Fundraising


to your Nonprofit’s Mission

Key Outcomes:

• Automated & efficient processes Improved execution/”profitability”


• Better workflow and program management Reduced risk

• Higher quality of service Increased constituent satisfaction / impact

• Efficiencies

• Effectiveness

• Innovation

• Efficiencies

• Collaboration

• Transformation

• Efficiencies

• Revenue Growth

• Innovation


Once you know your IT Strategy then you can determine your IT Plan (tactical)

Identify technology initiatives that will provide the expected outcomes

– Identify the initiative and expected impact first

– Then determine the technology

Sometimes selection of the technology will be determined by the current infrastructure

Sometimes you purposely want to consider a new infrastructure, especially the cloud

– Once you have all your initiatives, budget and prioritize them



Highlights of the AICPA’s 2013 Top Technology Initiatives Survey results

• Survey Methodology & Changes

• Respondent Profile

• Top 10 Technology Initiatives

AICPA Top Technology Initiatives Survey Results

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Survey Methodology & Changes

Developed by the AICPA’s Information Management &

Technology Assurance Division

– CPAs with an interest in Information Technology

– Certified Information Technology Professionals (CITPs)

Continued new survey methodology from 2012

– Continued focus on top priorities and increased focus on

understanding sub-elements driving priorities

– Exploration of respondents’ confidence in ability to fulfill

priorities

Surveyed AICPA and CPA Canada members with

interest in Information Technology

– *NEW* Corroboration with CPA Canada for 2013

U.S. Respondent Profile

Public

Accounting -

Firm Support

12%

public

Accounting -

Service Line

24%

Business &

Industry

36%

Education

5%

Government

& Military

6%

Consulting &

Law

6%

Nonprofit

6%Other

5%

U.S. Industry Profile

Staff

8%

Manager

20%

Director/ VP

22%Executive/

Partner

38%

Audit

Committee

0% Other

12%

U.S. Job Responsibility

Top 10 Technology Initiatives

U.S. Priorities

1 Managing and retaining data

2 Securing the IT environment

3 Managing IT risks and compliance

4 Ensuring privacy

5 Managing system implementation

6 Preventing and responding to computer fraud

7 Enabling decision support and analytics

8 Governing and managing IT investment and spending

9 Leveraging emerging technologies

10 Managing vendors and service providers

Confidence Level of the Top Initiatives

U.S. Confidence LevelsGoal (Initiative) Confidence

SurveyRank

Managing and retaining data 55% 1

Securing the IT environment 51% 2

Managing vendors and service providers 47% 10

Managing IT risks and compliance 47% 3

Ensuring privacy 45% 4

Managing system implementation 44% 5

Preventing and responding to computer fraud 44% 6

Governing and managing IT investment and spending 38% 8

Enabling decision support and analytics 37% 7

Leveraging emerging technologies 27% 9

Comparison of 2012-2013 Results (US)

Initiative2013

Ranking2012

Ranking

Managing and retaining data 1 2

Securing the IT environment 2 1

Managing IT risks and compliance 3 3

Ensuring privacy 4 4

Managing system implementations 5 6

Preventing and responding to computer fraud 6 9

Enabling decision support and analytics 7 7

Governing and managing IT investment and spending 8 8

Leveraging emerging technologies 9 5

Managing vendors and service providers 10 10

2013 U.S. General Assessment

#1 Priority: Managing and Retaining Data

– CPAs ranked Data Management as the top priority, unseating Information Security for the first time in years

There is a strong correlation between a CPA’s top priority and high confidence of the initiative

Exception: Managing vendors and service providers CPAs ranked managing vendors and service providers as one

of the lower priorities this year, but was more confident that it was being done appropriately

May be contributed to the addition of the SSAE 16 reporting standards and SOC1, SOC2, and SOC3 reports

2013 Top Initiatives by Segment (U.S.)

Public Accounting

1 Managing and Retaining Data

2 Securing the IT environment

3 Ensuring Privacy

4Managing IT Risks and Compliance

5Preventing and Responding to Computer Fraud

6Managing System Implementations

7Leveraging Emerging Technologies

8Managing Vendors and Service Providers

9Governing and Managing IT Investment and Spending

10Enabling Decision Support and Analysis

Business, Industry, and Gov’t

1 Securing the IT Environment

2 Managing and Retaining Data






8 Ensuring Privacy



2013 Confidence by Segments (U.S.)

Public Accounting

43% Managing and Retaining Data

34%Managing Vendors and Service Providers

31% Securing the IT environment

31%Managing IT Risks and Compliance

30%Managing System Implementations

27% Ensuring Privacy

27%Preventing and Responding to Computer Fraud

26%Governing and Managing IT Investment and Spending

23%Enabling Decision Support and Analysis

18%Leveraging Emerging Technologies

Business, Industry, and Gov’t

70% Securing the IT Environment

70% Managing and Retaining Data

65%Managing IT Risks and Compliance

64% Ensuring Privacy

62%Preventing and Responding to Computer Fraud

61%Managing Vendors and Service Providers

57%Managing System Implementations

53% Enabling Decision Support and Analysis

51%Governing and Managing IT Investment and Spending

37%Leveraging Emerging Technologies

2013 AICPA Top 10 Technology Initiativesfor Public Accounting (PA)

Top Technology Initiatives2013

Confidence2012

ConfidenceChange in Confidence

1 Managing and Retaining Data 43% 66% -23%

2 Securing the IT environment 31% 67% -36%

3 Ensuring Privacy 27% 60% -33%


31% 56% -25%


27% 39% -12%


30% 35% -5%


18% 46% -28%


34% 47% -13%


26% 36% -10%


23% 31% -8%

2013 AICPA Top 10 Technology Priorities for Business & Industry (B&I)

Top Technology Initiatives2013

Confidence2012

ConfidenceChange in Confidence

1 Securing the IT Environment 70% 64% +6%

2 Managing and Retaining Data 70% 55% +15%


65% 59% +6%


57% 50% +7%

5Enabling Decision Support and Analytics

53% 50% +3%

6Governing and Managing IT Investment/Spending

51% 45% +6%


37% 48% -11%

8 Ensuring Privacy 64% 31% +33%

9Preventing & Responding to Computer Fraud

62% 30% +32%

10Managing Vendors & Service Providers

61% 35% +26%

Summary Analysis of Top Tech Initiatives

Strong correlation between top priorities and high confidence of the initiative

Exception: Leveraging Emerging Technologies

– CPAs expressed considerably low confidence in the ability to leverage emerging technologies, such as mobile devices, cloud computing, and big data

#1 Top Priority: Managing & Retaining Data

– Data Management is increasingly a concern for CPAs

CPAs in Public Accounting are losing confidence in their ability to address technology priorities while CPAs in Business & Industry are gaining confidence

What to do with the Top Tech Initiatives

Validate your organization’s list and prioritization of technology initiatives

– Have you considered all of the initiatives on the top 10 list?

– How do your priorities compare to those of the others in your segment?

– Why might others have a higher or lower prioritization of an initiative than you?

– Should you reevaluate anything on your list?

Remember that the survey results is just another data point to help with evaluation of your initiatives list

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After identifying and validating your initiatives (i.e. developing your IT Plan):

• Revisit Alignment with the IT Strategy and Business Strategy

• Ask: Is Your IT Strategy Achieving Impact?

Finalizing Your IT Plan & IT Strategy

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Revisit Alignment w/ Business Strategy

Back OfficeLines of Business

Sales & Marketing

Does the IT Plan still align with the IT Strategy (and

desired outcomes) and the overall Business Strategy?

Key Outcomes:




• Higher quality product/service Increased customer satisfaction

• Efficiencies

• Effectiveness

• Innovation

• Efficiencies

• Collaboration

• Transformation

• Efficiencies

• Revenue Growth

• New Markets


Is Your IT Strategy Achieving Impact?

Technology will take you to Analysis.

Are you ensuring that your initiatives go all the way through to IMPACT?

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Thank you for your attention and participation!

Any Questions?

Donny C. Shimamoto, CPA, CITP, CGMA

Email = [email protected]

Voice = (808) 735-8324

Twitter = @donnyitk

Technology Strategy for Impact

Business

Transcript of Technology Strategy for Impact