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In FT Crunch Time Future of Finance in Digital World Noexp
In FT Crunch Time Future of Finance in Digital World Noexp
An Indian Perspective
Brochure / report title goes here |
Section title goes here Crunch time – Future of Finance in a Digital world | An Indian Perspective
Contents
Crunch time – Future of Finance in a Digital
World: An Indian Perspective 04
Data Dilemma – a key challenge for
the 21st century CFO 08
The evolving role of CFOs in
a digitally smart India 10
Eight exponential technologies to
shape the future of Finance 14
Robotics Process Automation (RPA) 20
Cognitive Computing 26
Advanced Analytics 34
Mobility 40
Visualization 44
In-memory Computing 46
Blockchain 48
Internet of Things (IoT) 52
Developing a digital culture in the organization 58
From Acuity to Acumen 60
Bibliography 62
02 03
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Finance in a Digital world | An Indian Perspective
Imagine a day five years from now. The tool is capable of mining internal data
global CFO of a Fortune 100 company as well as external big data, as it builds
is rushing to her office to handle a crisis models and options.
situation. The CFO has a Masters in
Data Science and is known widely in the 10:45 a.m. – Meanwhile, the “Finance
industry for her sharp business acumen Factory” Manager running the shared
and decisiveness. This was going to be one service centre prepares to run a real
more test of prowess. time virtual close. The centre is run on
automated robotized processes supported
10:00 a.m. – In her self-driving car, by human judgement and robust cyber-
she is updated on the financials via an secure controls.
alert on her wearable mobile device.
A key operating company is coming 11:30 a.m. - Finance teams collaborate
dangerously close to breaching its with their global colleagues who possess a
cryptocurrency denominated liquidity mix of business and technology skills. They
limits. She has to act fast to prevent a use their control reports and validate the
funding crisis. virtual close and the appropriate predictive
and prescriptive analytics scenarios. The
10:25 a.m. – In her office, she initiates a CFO collates the results and provides her
set of simulations to view the real time recommendations of fund management.
positions of global liquidity status to
explore immediate inter-country funding 12:00 p.m. – The crisis is averted and
transfers on Blockchain. A cognitive liquidity is restored to the stressed
intelligence solution pulls up data to operating company on Blockchain. Once
create an instant dashboard of global again the CFO has proven herself to be a
treasury. She directs a voice activated master in crisis management, networking,
query to analyze scenarios and predict and optimal leverage of exponential digital
various possible outcomes. The cognitive technologies.
04 05
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Welcome to the future of Finance in a We have based our research on global c. Eight exponential technologies that Six predictions for the Future of Finance:
digital world! Deloitte thought papers and have are likely to define the future of digital
Much as the situation above may seem contextualized for the Indian scenarios Finance
futuristic and not aligned to real life, each based on our interactions and interviews in d. Developing a Digital DNA for Finance
of these technologies exists today and are India. As Digital India is unfolding into our – the bridge between Acuity and
being adopted by finance leaders across daily lives and the front end of businesses The Finance processes of the future will
Acumen.
the world to redefine the way they deliver are becoming increasingly digital, finance be run as utilities – automated and inter
value to their enterprises. As organizations leaders are getting ready for this shift in connected through a global data exchange.
Our research is guided by the Deloitte
are experimenting with exponential their traditional operating models. This
framework of the four faces of the CFO
technologies at the front end of business white paper delves into their challenges Predictive and prescriptive analytics will
(Fig 1) and how the digital ecosystem is
and customer experience, there is and opportunities and attempts to provide be a mainstream expectation from Finance –
acting as a catalyst and contributor to the
an increasing demand on all support some perspectives for making smarter sourced from structured and unstructured data
reallocation of time between the bottom
functions, to improve their digital dexterity. decisions for that inescapable future. (Big data).
quadrants (Operator and Steward) to the
Finance is no exception. Our research has been around four key
top quadrants (Catalyst and Strategist). A
themes of digital evolution in Finance, given
digitally savvy Finance is expected to find Social outcomes of business will feature
In this white paper, we have tried to identify below:
more time for business partnering and prominently in the finance reporting
the key trends that are defining the future a. The dilemma of data - a key challenge decision support and this whitepaper tries Information will become ubiquitous and requirements. Models to measure and report
of Finance in the digital world and the for the 21st century CFO to outline how some of the leading finance available in real time and the role of will evolve in their maturity and acceptance.
impact of eight underpinning technologies
b. The evolving role of a CFO in a digitally teams in India are working on making that Finance at most will be to ensure that the
that are likely to enable this transformation.
smart India shift happen. right information is made available to the right
stakeholders in the right format. Cyber security
will form an indispensable part of finance Finance talent of the future will be made
Figure 1 : Deloitte’s Four Faces of Finance leader’s arsenal. up of individuals belonging to Generation Y
and Generation Z with diverse expectations
Catalyst 22% 31% Strategist 22% 33% around work and value systems. Millennials
and centennials will invade into the world of
The Catalyst stimulates behaviors The Strategist provides financial finance leadership with very high levels of digital
across the organization to achieve Leading edge leadership in determaining strategic
Technology will be all pervasive and eight dexterity and analytical mind set.
strategic and financial objectives, driving business direction and aligns financial
value through: strategies through: core exponential technologies will form the
•• Business finance and partnering Threshold •• Strategic planning and execution core of digital finance. Digital will not just be a
Performance c e
an
platform or an ecosystem, but more like the
Ex
rf
io
Finance
Function
l
Effi
t ro
on
ci
en
C
cy
*Deloitte’s CFO Program facilitates CFO Transition Labs. The averages shown are sourced from 290 CFOs that participated in the CFO
Transition Labs during the period June 2010 to January 2016
06 07
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance
Brochure in title
/ report a Digital
goesworld
here ||Section
An Indian Perspective
title goes here
Finance organizations often find it hard to Business is going Digital: incomplete master data would compound
keep pace with the growing requirements Business dynamics in India are changing. complexity and may result in tax credits
of their businesses. Technology has Customer preferences, trends, fashion, being deprived due to inability of
enabled organizations to receive significant technology are fast changing. Indian automated set off in the GST Network
amount of data which needs to be consumer now has the purchasing power (GSTN).
optimally utilized for decision making. and the appetite for new, fast changing
Information is flooding into business, trends. To survive, businesses have to Data dilemma: Call of action for
pushing data volumes through the roof. even launch products in hours instead of Finance in the digital world
Apart from internally generated business months. These products can disappear
data there is a lot more data outside just as quickly and so can the customers. 01. Undertake a thorough scan of master
the business which influences decision Finance needs to do more things in real data and fix inconsistencies. Set
making. Years of investments in business time, a post mortem approach would be up a data stewardship function for
intelligence solutions have helped the detrimental. sustenance of master data discipline.
finance community to meet with the Focus on articulating the common
demands of data. However, the demands Developing data sensitivity in finance minimum requirements for data
of the digital economy are throwing up talent: interchange and data standards for the
newer requirements of actionable insights The traditional pool of finance talent organization.
that are often not easily available from the includes accountants trained in the skills 02. Induct data science skills in finance
existing tool sets. of compliance and book keeping. The data teams in a phased manner. These skills
deluge in the new age Finance will require often come at a premium and may
Unstructured data: a completely new skill set from Finance– require an active academic partnership
The massive growth of structured data the ability to synthesize large volumes of to groom talent with an orientation
is challenging enough, but the amount data and identify trends and patterns. specifically for Finance. This is a techno-
of unstructured data from video, This does not come easy and will require functional role that requires deep
photographs, and text raises analytical finance talent to undergo trainings in data understanding of the core analytics
challenges that many finance organizations science and upskill in statistical tools. More solutions, supplemented with business
are not prepared for. The existing importantly, there will need to be a material appreciation.
technology landscapes and infrastructure shift in the mindset that co-existing with 03. Invest in understanding the potentials
is often found wanting to handle the sea of large volumes of data and analysis will of external big data mining – from
data entering the business. CFOs are over be an integral part of Finance skills going structured and unstructured sources.
burdened with data. forward. It is not just enough to mine data,
knowing where to find the insights and
Lack of analytical tools: Fidelity of master data: how to deploy the insights for decision
To resolve the problem of unstructured One of the complex challenges that support will also be equally important.
data CFOs require strong analytical tools most finance teams grapple with is the This is a discipline in its own right and
to decipher the data. The complexity of IT dependability of the master data. As requires a role within Finance.
landscape makes it difficult to get the right businesses have grown over the years, 04. Make insights driven decision making a
information without adequate analytical and M&A activities thrived, master data part of Finance value system. This is a
tools. Finance is struggling to evolve the set discipline has remained an often ignored cultural shift and requires leading from
of standard algorithms and data models governance requirement. As India the top. The CFOs should insist upon
that would underpin the business needs gets ready for a GST implementation, insights for every decision support
first and offer dynamism to the changing the importance of having a sanctified and exhort their teams to a culture of
business scenarios. and reliable master data cannot be inquisitiveness and numeracy.
over emphasized. Duplicate records or
08 09
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
How is the role of an Indian CFO If we look at the way the sociological and
changing? economical ecosystem is evolving, we are Traditionally, CFOs in India have
Traditionally, the role of a CFO has been on the verge of a digital disruption of the been playing the role of an
evolutionary, where he was seen to excel at nature that very few countries across the Operator and a Controller not only
managing accounting, working capital, cost world would have seen. Initiatives such in large home grown
control, inventory, and capital expenditure. as Aadhar, the Unified Payment Interface conglomerates but also in
He was considered as a controller with (UPI), and the Jan-Dhan Yojana are classic multinational companies which
a focus on transaction processing and examples of how the economy is being have significant global influence.
financial reporting. This trend was introduced to Digitalization.
prevailing not only in large Indian home But that facet is fast changing…
grown companies but also in multinational The government first established the
companies which had significant global platform and the ecosystem which have
influence. In some cases, the CFOs were now paved the foundation for the next
able to break out of the archetype and steps, a classic example being the Aadhar
craft a role of Finance as a true enabler for enabling Direct Bank Transfer (DBT). The
business decisions. However, this process recent wave of demonetization has only
of evolution has been a long journey and accelerated the process and ubiquitous
required significant change management at mobile opportunities make the journey
various levels. easy and accessible for all.
It is now almost clichéd to consider a It is only natural that if the entire frontend
CFO as a strategic business partner–this is getting digital and becoming more
expectation is a given. The challenge is to autonomous, the functions that support
prepare the finance leaders for this new this ecosystem should keep pace with
ask from the business and society. The these fast economic and business model
wave of digital revolution in India has made changes. The way Indian businesses and
this ask even more competitive–not only finance leaders are taking up the challenge,
is the CFO expected to excel as a business over a period of time, Indian finance
partner, the role demands the incumbent organizations will probably get recognized
to thrive and contribute in an ever evolving as one of the most digitally sophisticated
digital ecosystem. Finance organizations anywhere in the
world, well aligned to the government’s
vision for Digital Bharat!
10 11
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
It is almost a foregone conclusion that, Digital finance for a Digital India: Call applications in Finance. Indian banks
12 13
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Innovations in technology in the last fifty next big shift: cognitive computing, where
years have enabled the finance function systems not only present data but truly
to move from hindsight to insight. While process that data and generate actionable
it took thirty years for the technology information. Refined datasets will empower
of the twentieth century to capture and the CFO to focus on making the decisions
distribute data, a shift in half that time has that maximize business and customer
empowered people to leverage that data impact. Amplified intelligence leveraging
through performance tracking, mobile internal and external data will strengthen
devices, and robotics process automation. the role of the CFO as a Strategist and
Smart CFOs are currently investing a Catalyst but only if technologies are
heavily in fully robotized and automated leveraged to optimize the Steward and the
transactional processes and controls, Operator roles first.
which is a stepping stone to enable the
Machine Learning
Maturing Emerging General Purpose
Computing
Citizen Data
Quantum
Deep Learning
Computing
Natural Language
Autonomous
Smart Advisors
Affective
Science
Operations
Communication
Virtual Customer
Processing
Seamless
Assistants
Computing
Mechanized
Automation
Compleixity
Outsourcing
Offshoring
Cloud
Six Sigma
Kaizen
Time
Technological developments in the twentieth century enabled only hindsight: broad historical reporting on key performance indicators. The
power of personal computing generated insight through statistical analysis that helped organizations understand their historical performance.
Cognitive computing will yield foresight by leveraging advanced analysis, machine learning, and modelling to predict future performance. (Source:
Image based on Gartner’s Hype Cycle for Emerging Technologies.)
14 15
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Visualization
ty In
b ili co -M
o m em
M pu o
People ti ry
ng
Op Fina
an ss
er nce
Fin sine
ce
at
Advanced
Analytics
ion
Strategy
Bu
Process
al
Blockchain
Specialized Finance
C
Co og Operating Model
m nit
pu i v
ti e c s
ng ti
bo
Ro
Internet of
Things
Internet ofCloud
Things
This entire ecosystem of this octagon coming full benefits of these technologies. This is a
together and all working on a cloud platform once in a generation opportunity and it is
are going to define the future of Finance, important for the CFOs to realize that if they
from a technology play. But it is important to do not leverage on the opportunity right
remember that these eight are not separate now, if they do not ensure that we respond
pieces. They are all a part of the continuum, with speed and alacrity, they will possibly
and it is only when the continuum comes sleepwalk into a digitally disrupted future
into play that Finance will start realizing the with little preparedness.
16 17
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Figure 4: Value from the Octagon Areas where the eight technologies will impact Finance:
The eight technologies will bring in a wave of disruption in core Finance areas. While FP&A
The eight technologies collaborating in tandem will revolutionize the finance function is the area where maximum disruption is seen, there are other transaction based areas
where we will see significant influence. The chart below summarizes the key areas in Finance
disrupted by these elements.
Investor x x x x x
Relations
All these technologies are likely to sit on top of a Cloud environment that uses scalable,
elastic technology to deliver services over the Internet. Instead of making large investments
up front, Finance can get the full stack of finance functionality “as-a-service”, delivered
through public, private, or hybrid clouds. Adoption of Cloud, with sufficient security
features, will be an essential component of the octagon.
18 19
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance
Brochure in title
/ report a Digital
goesworld
here ||Section
An Indian Perspective
title goes here
Organizations using RPA solutions typically Applied alone, RPA has great potential
experience benefits beyond cost reduction. for automating routine tasks, those that
are methodical, representative, and rule
based. Some illustrative tasks that can be
automated are:
20 21
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Finance*
Opening email and Scraping data
(40%-60%)
attachments from the web
Level 2
Accounts Payable Accounts Fixed Assets Travel and Cash General Accounting
Logging into web/ Connecting to (80%-100%) Receivable (50-60%) Expenses Management (45-60%)
enterprise applications system APIs (40-50%) (85-90%) (30-40%)
Level 3
40%
40%
40%
40%
40%
40%
40%
60%
80%
60%
80%
60%
80%
60%
80%
60%
80%
60%
80%
60%
80%
20%
20%
20%
20%
20%
20%
20%
Moving files and Making
floders calculations
Receive Invoice Processing of Work Order Expense Manage Business Journal entries Financial
Sales Orders Creation Processing Advances statements
Copying and Extracting structured (General) analysis
pasting data from documents
Approve Invoice Credit Control Asset Movement Expense Petty Cash Trial balance Financial and
Processing Accounting preparation and regulatory
(Leadership) review reporting
Filling in forms Collecting social media
statistics Release Invoice Debtors Asset Ageing Open Purchase Petty Cash Account
Management Analysis Orders Management reconciliation
(B2C)
Reading and writing to Following “if/then”
databases decions/rules Prepare Payment Debtors Dispose Assets Manage T/E Manage Expense Intercompany
Run Management (Accounting only) Reporting Reimbursements accounting
(B2B)
22 23
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Figure 9: Layered approach to leveraging RPA RPA in action: Indian and Global Use cases
Process candidates:
01. Issue/exception management
Step 2: RPA + OCR
02. Spend analysis
03. Vendor invoice processing
Process candidates: 04. Vendor master updation/maintenance
Step 1: Vanilla RPA 01. Vendor invoice processing 05. Vendor reconciliation
02. Vendor master updation/ 06. T&E processing Case 1: Case 2: Case 3:
maintenance 07. Other misc. activities: issue tracker A leading private bank in India A large bank deployed a full Robotics After exploring ways to improve its mature
Process candidates: 03. Vendor reconciliation updation implemented RPA across 200 processes Process Automation (RPA) implementation shared services operation, a global
01. Vendor master updation/ 04. T&E processing across the organization, including retail using 100 robots running 18 processes to manufacturer concluded it could bypass
maintenance 05. Other misc. activities: issue tracker Likely benefit: 40-50% banking operations, agri-business, trade handle more than 85,000 requests each traditional Business Process Outsourcing
02. Vendor reconciliation updation & forex, treasury and human resources week. The output capacity delivered by and focus instead on robotics and cognitive
03. T&E processing
management among others. Robots the robots was equivalent to roughly 230 technologies. The company could au-
04. Other misc. activities: issue tracker
Likely benefit: 25-30% are currently processing over 10 lakh Full-time equivalents (FTE) delivered at 30 tomate an equivalent of 80 percent of its
updation
transactions daily, bringing in unparalleled percent of the cost of recruiting more staff. FTE workload.
operational efficiency, higher accuracy and Additionally, two of the top five quality fails
Likely benefit: 10-15% a massive reduction in processing time for were eliminated following introduction of
customer services. the robots.
24 25
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance
Brochure in title
/ report a Digital
goesworld
here ||Section
An Indian Perspective
title goes here
Cognitive Computing
“Simulation of human thought”
Figure 11: Cognitive systems perform a variety of tasks to tackle problems similarly as humans used to do
Learn and
improve
Continuously Discern an Look & Feel to create an Computer Vision
learn and Identify Semantics expression’s “Image” in memory
improve meaning based
performance on contextual
Hear & Read to “Register” Natural Language
based on cues
Reason and make in memory Processing
feedback
Decisions
26 27
Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Machine Learning As an example of machine learning in recognition. A variety of specific algorithms Figure 13: NLP and NLG can be effectively used in Finance and Accounting processes to significantly reduce manual effort
Machine learning is a branch of the larger practical use in Accounts Payable, a are used for this purpose — frequently
discipline of Artificial Intelligence, which Cognitive BOT can be trained in processing organized in taxonomies, these algorithms
Natural Language Processing Natural Language Generation
involves the design and construction of a series of transactions and be disciplined can be used depending on the type of
computer applications or systems that are to handle specific exceptions with the right input required.
able to learn based on their data inputs set of action items and issue resolution
Structured Data Structured Data Structured
and/or outputs. Basically, a machine mechanisms. BOTs can also be trained on Machine Learning process:
Key Info
learning system learns by experience; that “Intelligent Scheduling” of invoices which The Machine learning set up process
is, based on specific training, the system is the accountant has to manually keep track typically involves two phases namely
able to make generalizations based on its of. the Learning phase and the Prediction
exposition to a number of cases and then phase. In the learning phase, the BOT is Machine
Learning Engine
is able to perform actions after new or Further, the discipline of machine learning introduced to a series of data that it would
unforeseen events. also incorporates other data analysis be working on. It then goes through a
Unstructured
disciplines, ranging from predictive structured training exercise which includes Text
Ontology Linguistic
analytics and data mining to pattern Pre-processing, Learning, Error analysis,
corpus
etc.
•• Ingests unstructured data (emails, tweets) •• Ingests structured data (spreadsheets)
Figure 12: Depicting the Machine learning process
•• Output designed for machine consumption •• Output designed for human consumption
Phase 1) Learning
•• Cognitive capacity lies in the ability to •• Cognitive capacity lies in the ability to
disambiguate variations in speech imitate natural variability in human speech
Pre-processing Learning Error Analysis
Training •• Normalization •• Supervised •• Precision/recall •• Driven by natural language •• Driven by rulesets
Data •• Dimension reduction •• Unsupervised •• Over lifting
•• Image processing •• Minimization •• Test/cross validation data Model
Natural Language Processing 02. Part of Speech Tagging – Here gives the consumer an easy to digest and
(NLP) enables computers to analyze the language is broken down to its actionable insight. A sample Flash P&L
Phase 2) Prediction and understand the human language. grammatical parts of speech like nouns, report may look like this – “Commercial
This enables the user to have “natural verbs, adjectives, etc. which can be hours are trending above plan (+ x %) due
conversations” with a system rather than used as inputs for the next stage. to both professionals count and utilization
Model through programming (read artificial) 03. Text to Speech – After the relevant and above forecast (+ x %) mainly due to
languages. NLP is an attempt to make output is selected the programme increased utilization.” Futuristic scenarios
computers “intelligent” such that they converts this data back into speech include Tax disclosures, C-Suite Memos,
communicate and behave as humans do. format which can be easily understood Compliance reports, etc. where the
Prediction Predicted Data Simplistically, NLP consists of three steps: by humans. underlying data is fairly standardized.
01. Speech to Text – This is where the
New Data
computer understands and interprets NLP is extensively being tested in Natural Language Generation (NLG):
what humans are telling them. In-built generation of Flash Profit & Loss Reports, NLG is the name given to the natural
algorithms and routines convert our Profitability Analysis, R&D Spend, Sales/ language processing task of generating
language into a programming language Margin Reports, Credit Reporting, FP&A natural language from a machine
the computer can understand. and related areas. NLP can present representation system which includes
Once the Learning process is completed, is also contributing in Robotics Process makers in their enterprise want a better
contextual narratives for these which significant analysis, inferences, and
it is exposed to an advanced-level training, Automation (RPA) where the process understanding of the analysis they receive
generating meaningful insightsfor the user.
which includes Predictive analysis, that automation keeps improving based on a and they want Finance to simplify it for
would be complementing the human self-learning feedback loop. them”. Finance is expected to play the
analytical work in the future. role of a “translator” of business data and
Natural Language Processing (NLP) for this, there is an increasing need for
Machine Learning is effective where large and Natural Language Generation Finance to dig deep into the data sets and
volumes of data exist. Thus, it becomes (NLG) patterns and understand the underlying
a highly effective tool in areas of Finance. Consider these statistics – “74% of firms layers of reasons. Today, NLP and NLG are
Some recent advances in use cases have want to be data driven but only 29% vital tools in the armoury of the finance
been found in risk assessment, audit say they connect analytics to action”; office to achieve this goal to graduate as a
functions and FP&A. Machine learning “88% of finance leaders say that decision “translator” for business performance.
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Figure 14: NLG process where raw data is processed to provide meaningful reports to the selected audience Used in Finance, Cognitive technologies 1. Powerful Trend Analysis - c. Machine learning in other Finance
working alongside the existing ERP systems Humans do not have the capacity areas:
and Robotics can upend operational to scan vast amounts of data and In other areas of Finance, tools have
finance and bring about unprecedented come up with scenarios and identify been developed that use machine
Data Natural Language Generation Audience speed, agility, and transparency to patterns. This is where algorithms learning technology to scan electronic
processes. These processes have a are powerful. They can examine papers and automatically identify and
deterministic way for exception handling structured as well as unstructured extract key accounting information
(Employee T&E processing, Management data and come up with meaningful from a wide range of documents such
Reporting, Internal audits, etc.) and are and impactful analysis. These as contracts, policies, agreements,
an ideal fit for cognitive automation, thus scenarios may prove invaluable purchase orders, sales orders,
creating bandwidth at all levels in Finance. in a planning cycle in providing commercial invoices, etc. These tools
Analyze Infer Generate Insights perspectives beyond what is then improve with every human
a. Machine learning in Internal Audit: available merely from the ledgers interaction, which will over time
In audit, because of recent advances and past performance data sets. increase their power as they gather
Produces an analysis and text automatically in machine learning, standard audit 2. Forecast Accuracy - Forecasts more information.
techniques like sampling are on the are generally driven at product
verge of becoming obsolete. This level sales values. Machine learning NLG in Finance:
Generates standardized text from the same domain knowledge base
directly affects the audit industry’s algorithms can detect patterns NLG in Finance can be used in generating
employment model, which has at lower level feeder drivers such financial, statutory, and compliance reports
Tailors the text to the user’s expertise level and context been dependent on hiring scores as brand categories, product which can consume a significant amount of
of graduates to carry out mundane categories, purchase orders, and human effort.
administrative work. This is because even invoices to discover interesting
Drives actionable insights, increases productivity, and operational efficiency developments in data mining have relationships and dependencies,
given auditors the ability to collect, which can then be used as inputs
analyze, and test entire data sets. In the into the planning cycle and thus
past they relied on restricted samples enable more accurate forecasts.
of data. 3. Dynamic Forecasting - Machines
Cognitive computing in the CFO’s with setting the organizational strategy and are capable of dynamically updating
office: objectives, formulating the hypotheses, With a Cognitive BOT in the audit team, scenarios based on changing input
Presence of Cognitive workforce in the determining the criteria, and performing the auditors can analyze an entire set parameters. They can simulate
Finance world will bring about a symbiotic evaluations. Cognitive enabled computing of accounting journals, rather than and re-simulate scenarios while
relationship between humans and machines will do the routine, manual, just taking a sample of journals that tweaking data and thus act as
machines to perform transactions and transactional work to prepare the way provide a snapshot. This wider view can informative decision tools. This
analytics more efficiently and accurately. for insights and effective management highlight anomalies like entries posted makes the planning cycle more
Humans will still rule the Finance world decisions. by unexpected people or at odd times, elastic.
such as weekends. Other examples 4. Interactive self-service - Machine
include analysis of the entire set of Learning is now allowing companies
expenses and potentially expose claims to build self service solutions on
Figure 15: Cognitive computing in Finance for personal travel, etc. platforms that can mine swathes
of data and provide relevant
Accounts Payable b. Machine Learning in FP&A: and contextual responses to any
Employee T&E processing For the FP&A function, the key aspect standard human query around
of planning is to obtain an accurate financials. A leading global FMCG
Enterprise Risk Financial Planning and
understanding and prediction of sales company is investing in Cognitive
Management Analysis
volumes. Many a time, though the computing to build forecasting
plans are made for sales profiles, the models for its key categories and
Cognitive computing in
sales forecasts turn out to be wrong. markets where executives can
Finance
Inaccurate revenue forecast remains direct queries to the platform and
one of the biggest risks for the CFOs. expect responses that offer powers
Internal Audit Management and A recent study shows that more than of simulation and deep learning
Financial Reporting 50% of companies feel their pipeline insights, humanly impossible to
Database Management forecast is only about 50% accurate. obtain otherwise.
Machine learning has the potential to
improve this process by:
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Figure 16: NLG’s potential use in Finance reporting Cognitive computing in action: Indian and Global Use cases
NLG’s potential can be used within existing Finance reporting functions and expand the
envelope to other key reporting needs
Additional
Insights not
Tax Disclosures Generated
Today
R&D Spend A professional services organization is A news agency uses cognitive software to
Reports Sales / Margin automating standard commentary related automate corporate earnings news articles.
T&E / Compliance
Reports to weekly and periodic financial results After an initial learning curve, the process
Variance Generation
across all businesses. This automation of automated reporting is virtually error-
10K / Q MD&A, effort will be freeing up time for the finance free. The company now produces 3,700
Already
Footnotes Future team doing this work to focus on more earnings stories per quarter, a 12-fold
Automated Flash Reports
strategic tasks. increase over its manual efforts.
Current
Limited Frontier
Feasibility
Hedging
Analysis
Variability
Use of NLG has the promise to free up time Cognitive Computing holds immense
from business analysts in trying to discern potential for use in Finance and many
patterns and create lengthy texts of large global organizations have started
variance/other reports. If that drudgery is their early experiments with the use of
taken away, the FP&A teams can focus time Cognitive science. It is only expected that
and attention on critical business analysis as routine operational processes get auto-
and predictive forecasting, which requires mated through Robotics, the next curve of
human intelligence and inference. Enabled evolution for Digital Finance will come in
by NLG and visualization, Finance Centres the shape of Cognitive Computing, when
of Excellence of the future can deliver computers start thinking like humans and
highly-tailored reporting packages with are able to predict and prescribe solutions.
actionable insights to business leaders. A We are seeing real life examples through
crucial impact of the forthcoming changes Apple’s Siri and Amazon’s Alexa or through
will be on the finance talent of the future. Google Maps. It is a matter of time when
Traditional Finance roles like Financial Finance adopts the power of Cognitive
Controller, Accounts Payable, or Accounts computing in its core DNA and starts
Receivable clerks may all but disappear unleashing quantum benefits to augment
and instead we will have Data Scientists, the insights dimension of Finance.
Scenario Planners, Market Makers, and
Behavioural Scientists running the show.
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Advanced Analytics
“Where data turns into meaningful information”
What is Advanced Analytics? and coming out with insights, which can
Owing to onset of the new world order support decision making and add value to
with greater technological evolution, com- the organization.
plexity in business operations and huge
data volumes, it has become imperative Analytics as an enabler:
for Finance organizations to step up and Analytics is helping finance organizations
evolve as a business partner rather than across the globe to meet the emerging
just a transactional role player. challenges. Finance function frequently
has access to the data, tools, and people
Finance executives are left to consider to realise the true potential of analytics.
how to provide business leaders with Increasingly, the techniques available can
more timely, accurate information, to now move us from simply reporting on
make quicker, more effective decisions. what has happened to predicting and even
This depends on doing the basics right: anticipating future events.
collecting the data in a structured manner
Business Partnering
Advanced
Decision Strategy
New Data Sources Analytics
Support Advice
Organizations are already making Moving beyond historical reporting: historical data) to a value unlocking
significant investments in advanced ‘An era of advanced analytics’ technique capable of deciphering strategic
analytics, which have made their way into Analytics has evolved from being a mere insights and predicting future challenges
the toolset of many finance teams around data analysis technique with operational for the top management.
the world. problem solving capability (based on
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Figure 18: Basic to Advanced Analytics Figure 19: Investment in Advanced Analytics and its strategic impact
Optimization algorithms
Foresight
Va
lu
Advanced forecasting
e
Insight
Strategic Impact
Exceptions and alerts
Analytical • Classifications
Descriptive
Insight • Discoveries
Slice and dice queries and drill downs Basic
Analytics
Hindsight
Conduct “rear-
view mirror” Management reporting Context & Relevance
assessments Query/Ad hoc • Analysis
exploration • KPIs
Enterprise data management
Reporting • Slice & Dice
Based on the level of complexity and modeling, mining, and machine learning Data Information Knowledge Insight & Foresight
maturity, there are three categories of techniques to make future predictions (e.g.,
Retrospective Prospective
analytics: Descriptive, Predictive, and forecasting in FP&A) whereas Prescriptive Investment in Business Analytics
Prescriptive Analytics. Descriptive analytics analytics goes beyond descriptive and
works on historical information and derives predictive models by recommending one
insights from it (e.g., MIS reports, Tax or more courses of action, and showing
analytics etc.). As per Deloitte’s estimates, the likely outcome of each decision
70-80% of analytics deployed qualifies to (Simulations, What-if Analytics, etc.) Advanced Analytics in the CFO’s office:
be descriptive in nature. Predictive and Leading finance organizations must focus Advanced Analytics help CFOs manage
Prescriptive Analytics are an advanced on creating value by increasing their performance in alignment with the
form of analytics and are capable of solving investments in advanced analytics to stay business strategy, model business
complex business problems. Predictive ahead of the curve in terms of innovation processes, and gain deeper insight into
analytics utilizes a variety of statistical and efficient decision making. cost and profitability drivers. Plans,
budgets, and forecasts become more
accurate using analytics tools. This can help
finance organizations to better understand
the significance of KPIs, and their true
relationship to performance.
36 37
Crunch time – Future of Finance in a Digital world | An Indian Perspective Brochure / report title goes here |
Section title goes here Crunch time – Future of Finance in a Digital world | An Indian Perspective
Figure 20: Pertinent issues faced by the CFOs and how analytics can act as the “Resolver”: Advance Analytics in action: Indian and Global Use cases
Business Regression
Partnering Finance Cost Reduction Forecasting Reduced Finance delivery costs by
Case 1: Case 2: Case 3: Case 4:
How do we reduce our cost to Clustering leveraging increased automation
The HR department of one of A global pharmaceutical Using an advanced analytics Using advanced analytics and
Financial Planning deliver Finance services? and artificial intelligence to reduce
Classification the biggest conglomerates in manufacturer wanted to use model, a leading entertainment regression analysis, a driver-
and Analysis FTEs and associated manual work
Optimization India sought to understand data analytics to align its conglomerate involved in based budgeting / forecasting
Simulation the reasons that drive staffing model with the best-in- gaming segment was able to model was developed for a
Enterprise Value Creation
Finance Operating Guidance and data driven attrition, the risk of leaving class standards to optimize its better forecast the demand healthcare major. This model
Model Machine Learning
How do we track the value and recommendations on best for different employee finance service delivery. Several for new games under various was capable of comparing
return on our investments more Anomaly Detection investments, including success segments, and business regressions were run with pricing, advertising, and various drivers to operating
Finance Operations effectively? Natural Language probability units needing improvement. the independent variables to social scenarios by genre and expenses, identified key
Improvement Processing With an endeavor to become determine the best regression platform for each title. It was relationships, and developed
Improved Financial Forecasting Improved forecasting, using a a data driven organization, model for Finance FTEs and also able to predict the effects a streamlined, enhanced
machine learning bot that scans the company wanted thereby, helped in right sizing of changes in game prices budgeting and forecasting
How do we get more agile and
M&A Finance ERP transactional databases and to leverage predictive of the organization. The model on the sales of each game. process. Due to better
accurate in forecasting revenues
industry (external) factors to modelling techniques to also enabled the organization The model was also capable forecasting capability, there
and costs?
forecast new product sales identify employees at risk to identify opportunities by of optimizing the prices to was a reduction in variance
of attrition and deploy HR region and explore options maximize expected profits by and thereby, more accurate
The field of analytics is rapidly maturing; today, there are a library of solutions that address a host of
actions to increase employee to close the gap and increase game. reporting.
domains that are of interest to any CFO
engagement. Employee staffing efficiencies.
lifecycle data was analyzed
Figure 21: Advanced Analytics areas of CFO interest using statistical analysis
to find which explanatory
CFO Issue Platform
variables were the most
Reduce Cost Optimize Process Improve Forecast Create Value powerful predictors of leaving
rates. Factors associated
Reporting Strategy Information and Data Outlier KPIs and Scoreboard
Relevant Benchmark Analytics with high risk of leaving and
Analytics Analytics Analytics
risk areas (business units,
Intercompany & Transfer Enterprise Performance grades, ages, individuals)
M&A Performance Analytics Advanced Planning & Modeling
Pricing Analytics Management Analytics were identified alongside
segments with high leaving
Variable and Controllable Cost Statutory and Regulatory M&A Scenario Planning Multi-dimensional Financial
rates to determine variation
Analytics Analytics Analytics Analytics
in the attrition rate across
Reconciliation Analytics Integrated Planning Analytics Enterprise Risk Analytics Investor Relations Analytics business units. A predictive
model was developed to
Payables/Receivables Analytics Inventory Analytics Capital and Project Analytics Tax Strategy Optimization
identify employees at risk and
SG&A and Controllable Asset/Capital Deployment and recommend the appropriate
Liquidity and Cash Analytics Hedging Analytics
Expense Analytics Planning Analytics HR action to increase his
engagement with the company.
Close Acceleration and Quality Operating Model & Activity
Analytics Capabilities
Mobility
“Information and insights on-the-go”
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Mobilization across the Value Chain i. U se of mobile apps for managing Mobility in action: Indian and Global Use cases
Mobilizing across the value chain involves the full cycle of travel management–
collaboration between the organization booking trips to submitting expense
and its value chain partners. Mobilizing claims and getting notified on reim-
the channel can streamline the entire bursements. Many providers are now
value chain operation, allow quicker time offering mobility as a USP for their
to market, and resolve issues before they travel solutions.
become problems. ii. Workflow approvals for Accounts
payable processes, including
Employees showing highest demand for exception approvals, are slowly gaining
BYOD policies are those who serve exter- acceptance and are believed to be
nal clients, those who like to use the latest on the cusp of an explosion through
Case 1 Case 2
technology in their personal life, and those mobile leverage.
A two-wheeler manufacturer felt the A mattress manufacturer was facing an
who connect to the internet while traveling. iii. Workflows can also be applied for
need to capture the spare parts orders issue of unauthorized dealer selling. Due
For customer facing functions such as approvals for changes in master data;
through a mechanism which was readily to unauthorized selling, they faced a loss
Sales, Marketing, and Services, mobility e.g., vendor master changes often
available with parts distributor executives. of 5-7% in the top line. As that specific
can help employees connect better require multiple parallel approval
Accordingly, they developed a mobile app mattress brand (under which there was
with customers and help in faster issue layers.
which was integrated with the company’s unauthorized selling) operated at an av-
resolution. In terms of sales, it helps the iv. With mobile wallet payments becoming
CRM platform for channel partners. erage margin of 15%, loss of 5-7% affected
employees to track and maintain leads and main stream in India, it is only a matter
With this app, a customer is assigned an its bottom line. The company decided to
get real time competitive information and of time when corporate payment
executive based on the executive-wise deploy a Radio-frequency identification
for customers, it could help in purchase solutions for B2B payments can also get
tagging of the customers created on the (RFID) chip in the mattresses for tracing the
by enabling connectivity through multiple on to mobile app-based payments.
CRM. The app empowers the executive product supply source for an unauthorized
channels. v. The biggest use of mobility in Finance
to check the stock and price of any part dealer. The RFID technology was then
today is in the use of dashboards and
on the fly. The app has the complete integrated with their home grown ERP, so
Mobility in the CFO’s office: reporting, where most BI solutions
list of parts and also included minimum that the unique product number could
Enterprise mobility is gaining acceptance are coming with an embedded mobile
order quantity and price, which is readily be stored for production slip generation
in the finance functions as many finance enablement option. Many corporate
available with the executives. With this and MRP label. Handheld mobile devices
leaders realize that the demands of the leaders are now demanding mobility
information, executives could commit on with RFID readers were then provided to
millennial workforce cannot be met without in reporting to be an essential
the delivery of parts. mystery customers, so that they could
smart mobile solutions. Some of the areas ingredient of an enterprise information
carry it to an unauthorized dealer to collect
where Mobility is becoming mainstream in management strategy.
the unique product numbers online. Once
Finance are:
the serial numbers were collected via RFID
readers, the dispatch history of the product
movement could be known very easily. The
product supply source, i.e., the distributor
or the dealer who had sold the product
to an unauthorized dealer was easily
identified. With the implementation, the
company was able to reduce unauthorized
selling by nearly 50%.
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Visualization
Visualization in Action: Use Cases
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
In-memory Computing
In-Memory Computing in Action: Indian and Global Use Cases
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
Blockchain
“Building digital trust”
st
eg
ly
seen. Several companies have done POCs reconcile all transactions within an is t will change the way Finance provides
ta
organization to measure performance leadership to the organization
Ca
What is so powerful about this new globally, with financial services industry
almost real time
technology? leading the way. The leading global banks
ce
an
Ex
There are several intrinsic features of the have been actively working together in the
ec
m
or
ut
Blockchain that lend it its power and al- Global Blockchain consortium R3, which is f
er
io
P
n
lows it to record and transfer value over the a consortium partnership of over 80 of the
internet in a peer-to-peer manner: leading financial institutions and regulators Finance
01. Near real time: It enables near led by R3, a distributed ledger technology Function
real time settlement of recorded firm. There are several use cases around l
Effi
t ro
transactions, removing friction, and global money movements (payments and
on
ci
en
reducing risk. remittances), trade finance, digital identity, C
cy
02. No intermediary: It is based on smart contracts, and several others that
cryptographic proof instead of trust, have been established and leading firms St
or
allowing any two parties to transact are investigating into. Reforming asset preservation and e wa Evolving risk intelligence gathering and
t
ra
r d
pe
directly with each other, without the reporting to stakeholders application
O
need for a trusted third party. The immutable, verifiable, and digitized Real time awareness of value transfers in
model of proof-of-existence will transform and out of the organization will provide
management of critical assets and reporting risk intelligence to executive strategic and
to internal and external stakeholders financial objectives
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a catalyst, steward, and operator for the Financial audit: With a company using Shareholder voting: Shareholder voting Blockchain in action: Indian and Global Use cases
organization, there are several specific use the Blockchain to post every transaction system can deploy the Blockchain to
cases where the Blockchain technology can on the Blockchain in real-time, the nature record the ownership of securities, and
prove to be useful for the Finance function. of financial audit will change completely. issue voting right assets and voting token
Some of these are listed below: Instead of having quarterly or annual audits assets for each shareholder. To exercise
a. Planning, Budgeting, and Forecasting by external auditors, the company could the vote, a user may spend voting tokens
b. Inter-company reconciliations look to audit its financials on a daily basis to cast votes on each meeting agenda item
c. Financial Audit and that too internally. Financial audits on a if they also own the voting right asset. This
d. Vendor Management Blockchain may eliminate the need for third system has been tested by NASDAQ in a
e. Shareholder Voting party validators, reduce audit expense and trial conducted in Estonia. Clear benefits
costs for books maintenance, and provide of such a system include: increased
Budgeting and expense management: better governance and transparency. transparency due to reduced manual
Conducting the budgeting and expenses intervention, greater trust in the corporate Case 1: Case 2: Case 3:
on a Blockchain involves placing the entire Requisition and vendor management: decision making, and better investor A leading consumer equipment A global e-commerce company is offering A bank in Japan has completed a three-
budget data on it and allowing the transfer Blockchain’s ability to hold assets, relations and shareholder participation. manufacturing company in India has a different approach to online retail by month trial on the application of mijin
of value (, i.e., money) on it to the various transfer titles and value, and execute Recently, Reserve Bank of India (RBI) has started using Blockchain to make payments connecting buyers and sellers directly. (a platform for creating Blockchains) to
parties connected with the Blockchain. It smart contracts will make it possible to published a white paper on the potential to their suppliers. Earlier, the process was The open-source project is creating a its accounting systems in a real-world
will create an audit trail for each and every create requisitions and manage vendors. use of Blockchain in India, based on a cumbersome and involved several steps decentralized network for peer-to-peer environment. In the demonstration, 2.5
dollar/rupee spend, providing greater Vendor data and identity can be easily proof-of-concept testing the end-to-end that included confirmation of delivery by commerce. Instead of visiting a website, million virtual bank accounts and an
transparency and internal accountability. held and verified using the digital identify technology play in the interbank remittance the company, raising of a physical bill of users download and install a program that environment with capacity to process
feature and smart contracts can execute process. The whitepaper concluded that exchange by the supplier, and submission directly connects them to other people 90,000 transactions every hour were
Consolidations and inter-company automated remittances and payments, the proof-of-concept provided an overall of invoice and transport documents to one looking to buy and sell goods and services, created, with significantly reduced risk of
eliminations: With the record keeping reducing vendor cash conversion cycle, good demonstration of the use cases and of India’s leading banks, for payment. removing the middlemen altogether. failure and fraud.
and transaction management features of eliminating the need for reconciliation, and helped broaden the understanding of
Blockchain, it can easily hold the financial promoting efficient vendor management. the technology and potential end uses. After the implementation of Blockchain,
transactions for the group companies and It is expected that RBI will stay in step the details of invoices processed in the
aid consolidation of the financials for the Accounts payable process: Upon with the global adoption of Blockchain for company’s Oracle system get transferred
group and elimination of inter-company addition of a vendor’s digital identity to accepted mainstream usage by monetary to the bank on the Blockchain, and then are
entries. The Blockchain does not work on the Blockchain and the negotiated terms authorities around the world and this discounted and funds are disbursed to the
the double entry book keeping system, on a Blockchain smart contract, using technology will gain credence and usage vendors of the company. On the due date,
instead it maintains a single records ledger shared sub-ledgers, vendors can see the soon. For the finance leaders, this is a the solution facilitates an automated debit
for all transactions. The immutable nature requisition requests in real-time. Smart profound transformation in the horizon from the company’s account maintained
and the historical record maintenance contracts can track individual assets to upending the traditional double entry with the bank. The entire process cycle for
will facilitate accurate consolidation of document their provenance, track their accounting protocols and driving significant bill discounting has come down from four-
financials, enforce documentation of ownership, combat frauds, and initiate efficiencies and economies. There are five days to almost real time; entire audit
intercompany transactions, and promote automated payments. As a result pro- many unanswered questions still such trail is maintained and transactions have
intercompany synergies. cessing time will be reduced and security as revenue recognition principles for a become completely paperless.
can be enhanced. The system will also Blockchain transaction. It is only expected
eliminate the need for reconciliation of that the ecosystem supporting Blockchain
PO and invoices; and drive better vendor will gradually fall in place as the regulatory
relations. framework evolves.
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IoT Solutions
Business Process &
Business Model Innovation
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IoT in the CFO’s office: continuous data feed to ERP with Some typical analytical applications IOT in action: Use cases
Clearly, three underlying themes are driving minimal or no human intervention are comparatives for driver’s data,
the change in the way Finance operates that can be used to track re-order situational awareness, understanding
today: levels, raise purchase requisition, patterns etc.
01. Emergence of new ‘as a service’ etc. Physical verification of stock
business model: Riding high on taking is a potential area that can be The biggest value of IoT adoption
the availability of data through automated for inventory reporting, lies in the information generated by
Industrial IOT, new business models management during financials close sensors and connected devices which
have emerged. Traditional product process. generates abundance of data and
companies are making business model b. IoT enables predictive maintenance lays down foundation for a strong
shift that requires them to develop model and the capability of analytics application. The insights from
and flex their service muscles to create connected devices to upgrade data are used to recommend action
value for the end consumer. patches/download new features or to guide decision making rooted
making products more robust and in business context and aligned to
For example, New Billing Models will appreciate its value while in service. business strategy. Deploy full spectrum Case 1: Case 2: Case 3:
emerge complimenting the business This will facilitate ascertaining fair of Analytics from basic predictive to Factory floors in the plants operated A leading oil marketing company in India Owing to the benefits of Internet of
model, which will call for commercial/ value of assets and accounting for prescriptive to capitalize on the data by one of India’s leading conglomerate has revolutionized its entire supply chain Things technology, a leading flexible
pricing models to be innovated. This depreciation. sets generated from IoT ecosystems use the Intelligent Plant Framework that through IoT solutions like retail outlet packaging company deployed Low Energy
would further have ramifications on c. Some complex accounting such as: connects every machine node in the automation systems, tank farm automation Bluetooth Beacon in its production lines
taxation on the bundled services. calculation can be simplified. With a. Employing What-If analysis based factory and understands the rate of work systems, terminal automation systems, to transmit two way information, using
IoT in Finance: inter-connected devices, asset on the drivers will significantly and efficiency. The aim of the framework vehicle tracking systems, surveillance, sensors for uniquely identifying the ob-
a. Evaluate applicability of usage tracking and consumer usage data enhance the decision making is to let businesses reduce waste and and access control systems and even the ject, managing inventory real time, and
based billing; are made available, that were not agility and allow Finance to play organize production flows by providing Supervisory control and data acquisition location tracking. This was done to avoid
b. Assess awareness of how available in the traditional way an enhanced role as a business real time analytics based on large sets of (SCADA) systems used in operating inventory mismanagement — a mismatch
accounting standards apply, both of operation. With data made partner. Moreover, as volume of data collected from disparate machines facilities like cross country pipelines between the physical inventory that was in
in terms of revenue and cost available, conventional ways of data increases it can also lead to on the production floor. Various types and the refineries. In all these systems, the warehouse and the system inventory
recognition; accounting computations should generation of new scenarios which of analytics performed on the data were sensors installed in field units capture state that was in the enterprise system. The
c. Evaluate potential opportunities be relooked at a more pragmatic currently are based on experiential collected–financial impact analysis, utility information like temperature, pressure, reason for the mismatch was that when
where bundling of services can be approach. learning. consumption analysis, downtime analytics, flow rates, density, product levels, GPS the material was being moved physically it
applied; d. IoT can be used in efficient Working b.
b. Visual Analytics approach can machine capacity analysis, WIP inventory coordinates, state/condition of devices, was not getting tracked real time inside the
d. Understand implications of Indirect Capital Management through use take existing capabilities to another analysis and so on. The key benefits speed and such physical attributes. These enterprise system. With the deployment
tax applicability and tax incidence of sensors to track RFID tags placed level by unlocking complex insights derived included higher efficiency derived attributes are captured and used for of Bluetooth Beacon, the effort involved in
as the organization migrates to the on products moving through supply that are lost in traditional reporting from machines, on-the-go visibility to both monitoring the processes as well as inventory management dropped by almost
new model. chains, thus improving inventory and by focusing on biggest business the output on the shop floor and waste controlling these systems. Key benefits 80 percent. The number of customer
management while reducing issues. reduction. included visibility into the entire supply complaints also went down by 40 percent.
02. “Data” as a new capital: The working capital and logistics costs. c. Tax analytics uses granular chain, better issue management, and
convergence of machines, internet, and enterprise data as the foundation improved efficiency.
technological innovations has resulted 03. Analytics for better decision for tax decisions. The objective is to
in the creation of a new capital “Data” making: The key to success in today’s enable deeper fact-based taxation
which generates large volumes of world lies in how fast data is turned into related decision making processes
accurate data at a low cost. information and decision is based on to gain insights.
the analysis made on the information. d. Risk analytics can help in
d.
IoT in Finance: Up-to-date analysis for decision establishing a baseline for
a. Instant and ceaseless inventory making is important for the company measuring risk across the
control would become ubiquitous to understand risks and opportunities organization and offer executives
through data feed via IOT. Asset and take immediate actions to gain clarity in identifying, viewing,
tracking is an established benefit a competitive edge. This is called understanding, and managing risk.
from IoT. Further, IOT envisages a “Analytics of Things”.
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Most of these technology tools with advanced features have been launched recently in India. More and more organizations are
adopting the tools first as a “Proof-of-Concept” before venturing into a full-fledged roll out. The table below summarizes the level of
maturity and mobilization complexity for each of the elements specifically with an India context.
Visual Visualization tools help depict the analyzed New skills required in Finance; integration
Declining
Peaking
Opening
Mature
ization data in a user friendly manner. Patterns, trends, with disparate systems for data structuring
and correlations can be displayed in an easily
digestible manner for efficient decision making
Declining
computing processing allows moment in time close and to support shorter cycle times; adoption is
Peaking
Mature
Blockchain Distributed ledger allows increased Early stages of adoption; commercially viable
Opening
Declining
Peaking
Mature
Robotics Automation of low, medium, and high Highest ROI can be found in transaction
Declining
Peaking
Opening
efficiency gains of x3 to x10 depending upon cognitive predictions is at the leading edge of
application; bots learn from new stimuli and applications and requires Finance to develop
evolve as new scenarios are presented new skillsets
Internet Using sensors for identification of all physical Early stages of adoption; commercially
Opening
Declining
of Things
Peaking
objects with the potential to dramatically viable products are still evolving. However,
Mature
reduce the cost of tracking inventory and these many local applications in warehouses and
objects across the supply chain. This can also inventory management in retail is already well
help in generating predictive information underway
Cognitive Deeper insights allow Finance to enhance Cross disciplinary support required to
Opening
Declining
Peaking
Computing business capabilities and move to granular develop and manage technological and
Mature
exception management; can be a driver to analytics platform; new skills are required in
improve enterprise value and increase speed the Finance organization
to insight
Advanced Predictive analytics helps in accurate New skills are required in Finance; additional
Opening
Declining
Peaking
Analytics forecasting, better risk management, and investments required to build advanced
Mature
Mobility On-the-go real time information available Integration with multiple legacy systems
Declining
Peaking
Opening
Mature
with finance organizations will allow and cross disciplinary support required for
faster turn around time and efficient effective implementation
decision making
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Crunch time – Future of Finance in a Digital world | An Indian Perspective Crunch time – Future of Finance in a Digital world | An Indian Perspective
the Organization
of organizational needs, developing team
a portfolio of processes or areas for b. Identify digital opportunities
digitalization, developing a business case, c. Analyze, standardize, and optimize
selecting the right tools, developing an processes for digitalization
agile methodology, a revised organization d. Identify training needs for the CoE team
“Embrace the change” structure, and a robust governance members
structure. e. Facilitate participation in training
programs for various Digital Tools
Preparing for a digital future is no this, some companies are transcending Organizations are responding to an implemented/planned to be
easy task. It means developing digital these constraints, and achieving digital increasingly digital market environment implemented
capabilities in which a company’s activities, capabilities that cut across the enterprise. by adding roles with a digital focus or f. Facilitate participation of the CoE team
people, culture, and structure are in sync changing traditional roles to have a digital members in
and aligned toward a set of organizational Organizations embracing Digitalization orientation. The list of “digital” business –– Publishing standards and best
goals. Most companies, however, are are making conscious efforts to create a roles and functions is extensive and practices
constrained by lack of resources and “Digital Culture” which is not only robust growing. There are now digital strategists, –– Ensuring smooth running of
talent, and pull of other priorities, leaving but perpetually sustainable. Some have chief digital officers, digital engagement operations of processes
executives to manage digital initiatives embarked upon a structured Digital managers, digital finance managers, digital –– Enforcing change management policy
that either take the form of projects or journey by establishing a dedicated team marketing managers, and digital supply g. Involve the CoE team members in
are limited to activities within a given or a Digital Centre of Excellence (DCoE) chain managers, among other positions. managing Digital Strategy
division, function, or channel. Despite which manages the people, process, and From a technology perspective, digitally –– Refining strategy
matured organizations are seeing –– Monitoring and reporting progress
significant synergy between IT and on activities planned
functional teams. The CIO has a key role
to play in the functioning of the CoE and
Figure 24: Elements of a Digital Centre of Excellence development of the Digital roadmap.
Expected Output
Technology (T)
•• Existing IT system Digital based solution
capabilities Center of
Excellence ‘Fail-safe’ approach with defined
(CoE) exceptions
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66
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK
private company limited by guarantee (“DTTL”), its network of member firms,
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