Fourth Industrial Revolution| Impacting Finance & Audit Presented by : CA Anand Prakash Jangid Dt: 25 th September, 2019 Bahrain
2 Disclaimer This material is used by Anand P Jangid during an oral presentation; it is not a complete record of the discussion. This presentation is for informational purposes and does not contain or convey specific advice. It should not be used or relied upon in regard to any particular situation or circumstances without first consulting the appropriate advisor. No part of the presentation may be circulated, quoted, or reproduced for distribution without prior written approval from Anand Prakash Jangid.
Check-in
4 The Luddites were a protest group that primarily operated between 1811 and 1816. They were primarily workers in the garment industry. They started riots and destroyed machinery. These days, the name Luddite is applied to anyone who struggles with or opposes new technology. In particular they feared the loss of work from automation and the replacements of skilled labour with unskilled.
Roadmap For Today’s Discussion A- Automation & AI Understanding 1 3 5 C- Cyber 7 the 4 th IR Way security forward The new – B- Check In D- Data ABCD of Blockchain Analytics finance & 2 4 6 8 audit 5
HEADING: 2030 COVFEFE
HEADING: 2030 COVFEFE
HEADING: 2030 COVFEFE
HEADING: 2030 COVFEFE
Disruption UBS trading floor 2005 and 2016
4th Industrial Revolution What’s happening? Different technologies are coming together (convergence) Physical This is bringing different areas together Digital Biological This affects social & economic sectors The way we work, buy The way we travel The way we live and sell things
Did not exist in 2006 • iPhone ► Android • iPad ► Oculus • Kindle ► Instagram • 4G ► Snapchat • Uber ► Whatsapp • Airbnb • Android
Time to reach 100 Million customers • Telephone 75 Years • Web 7 Years • Facebook 4 Years • Instagram 2 Years • Pokemon Go 1 Month
Cyber Physical Systems A cyber-physical system ( CPS ) is a system of collaborating computational elements controlling physical entities. CPS are physical and engineered systems whose operations are monitored, coordinated, controlled and integrated by a computing and communication core. They allow us to add capabilities to physical systems by merging computing and communication with physical processes.
Today’s Factory
Tomorrow’s Factory
Top 10 Skills to be relevant in Industry 4.0
Financial Services & Investors ( WEF-Future of Job Report) 10/11/2019 20 Source- World economic forum
Financial Services & Investors Source- World economic forum 10/11/2019 21
Statement by Nokia CEO During the press conference to announce Nokia’s smartphone division being acquired by Microsoft, Nokia CEO ended his speech saying this “we didn’t do anything wrong, but somehow, we lost”. Upon saying that, all his management team, himself included, teared sadly.
Why it happened at Nokia !!! • The advantage you have yesterday, will be replaced by the trends of tomorrow. • To change and improve yourself is giving yourself a second chance………. To be forced by others to change, is like being discarded. • Those who refuse to learn & improve, will definitely one day become redundant & not relevant to the industry. They will learn the lesson in a hard & expensive way
Latest today
The new ABCD
The new ABCD A Automation & AI B Blockchain C Cyber security & control D Data analytics 26
Explosion of digital data: 90% of the world’s data created in the last 2 years
tools & technologies • Large volume of data • External data • Un-structured data • Statistical modeling • Machine Learning • Real-time analysis • Interactive visualization
How Machine Learning Works?
What is Process Mining?? Blurred Audit Trail is the reason!!! Process mining is a process management technique that allows for the analysis of business processes based on event logs. Purchase Order# Activity Timestamp User Item 1864Create PO 22/11/2015 09:15RamS Chairs 1865Create PO 22/11/2015 09:18UshaB Tables 1866Create PO 22/11/2015 09:20RamS Chairs 1864Approve PO 22/11/2015 09:22AnujS Chairs 1864Receive Goods 22/11/2015 09:23PDS Chairs 1865Approve PO 22/11/2015 09:24AtulD Tables 1864Enter vendor Invoice 22/11/2015 09:26NitaM Chairs 1866Approve PO 22/11/2015 09:28AnujS Chairs … … … … … Case Other Event Timestamp Resource ID Data
Process flow generated from actual log data Inference drawn from flowchart • Close to 60% Purchase orders are modified. Many of them more than once. This result in process inefficiencies • More than 200 instances of manual payment • Significant number of invoices without PO • Invoice posted without GR
What type of questions analytics can answer Foresight Hindsight Insight Where is the What if these problem? trends continue? What happened? What actions are What will happen needed? next? Why is this What’s the best happening? that can happen?
Challenges Today Cost- Transferring money take time and cost (3 to 16%) Interm rmediari ries s are are slow in their r tas task- Auth thenti ticati tion, , Identi tificati tion, Cleari ring , Settl tling g etc tc. . Th The time betw tween Cre redit card ard org rganizati tions s have esse senti tially cre reated wal alled tra ransa sacti tion an and settl tlement can an be long gar ardens s wi with th a a high gh price of entr try. . Merc rchants ts must t pay y the high gh costs sts of onboarding, g, wh which often involves s consi siderable pap aperw rwork an and a a time-consu suming vetti ting g pro rocess ss Fra raud, , cyb yber-attac acks s an and even simple mistakes s ad add to to the cost st an and complexity of doing g busi siness, ss, an and they expose se al all par arti ticipants ts in the netw twork rk to Duplicati tion of eff ffort rt an and the need for third- risk if a a centr tral sy system, , such as as a a ban ank, , is party arty val alidati tion an and/or the pre rese sence of compromise sed inte termediari ries s ad add to to the inefficiencies Privac acy is undermined They are Th are centr tral alized an and hence can an be hac acked Sending a a PPT T to to you vs vs sending g you a a Asse set/ t/currency (Intellectu tual al) Half of the people in the world don’t have access to a a ban ank ac account t an and have had ad to to develop par aral allel payment sy systems to to conduct t tra ransa sacti tions
The Disruption has begun The blockchain will do to the financial system what the internet did to media ” Joi Ito, Neha Narula and Robleh Ali - Harvard Business Review
What is a blockchain? timestamped auditable database consensus protocol append-only log Secured via cryptography Addresses ‘ cost of trust ’ • Hash functions for tamper (Byzantine Generals problem) resistance and integrity • Permissioned • Digital signatures for consent • Permissionless • Consensus for agreement
BLOCKCHAIN is a TRUST PROTOCOL using technology, maths and coding resulting in elimination of MIDDLEMEN and addressing such concerns as: • Trust of Safety - my bank is not subtracting value from my bank balance • Trust of Issuance – my bank is not printing money from nowhere • Trust of correctness – my bank ensures consistency & correctness of information
Questions? THANK YOU CA ANAND PRAKASH JANGID +91-9620233516 , +1-6303987329 anand@ajafirm.com
Recommend
More recommend
