Workforce of the Future for Finance Impacts of the Digital Age - PowerPoint PPT Presentation

Workforce of the Future for Finance Impacts of the Digital Age Media Financial Management Association Los Angeles, CA - February 21, 2019

What are the key business issues driving workforce disruption? 78% of CEOs are concerned about the availability of key skills RPA Multi Generational Workforce Workplace “Gig” Purpose Tax 37% of CEOs are worried AI Employee Reform about automation putting Reskilling Experience jobs at risk Culture Mobility Diversity & 60% think few people Inclusion Digital will have stable, long-term employment in the future Skills Total Rewards shortage 2 PwC | Workforce of the Future PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

New tools demand New skills required Imperative to attract and digital literacy to remain competitive retain Millennials The finance operating model is evolving What is your workforce strategy? Data analytics, visualization and Automation dramatically reduces cycle time of all communication are table stakes finance activities and the size of finance 3 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Workforce of the Future Three lenses through which to consider your workforce of the future opportunities Workforce Workforce Strategy Experience Workforce Strategy Workforce “What capabilities do we need?” of the Future Workforce Experience “How can our people thrive?” Workforce Environment Workforce “What is our optimal place mix?” Environment 4 PwC | Workforce of the Future PwC Digital Services Confidential information for the sole benefit and use of PwC’s client.

The day in the life of a leading technology CFO 3:00am 3:15am 3:30am 6:00am 6:03am 6:05am Booking, billing and Sales & Booking Performance notes CFO sits down at the CFO receives CFO utilizes voice revenue transactions Dashboards are are generated local café and approval request recognition software captured and automatically served leveraging natural queries the Booking from High Risk to alert to Brand populated by a bot via a visualization language generation Dashboard using Customer Desk via commercial team for and fed to the tool on the CFO’s (NLG) and added to iPhone voice AI assistant on follow up Booking finance data lake. mobile. the visualization. recognition software mobile. commentary This particular bot is Financial reports are Outlier transactions CFO orders double CFO asks AI assistant CFO receives double supervised by a pushed to the CFO’s are identified by ML latte and pays using to drill down on latte and heads to governance bot collaboration stream algorithms and digital currency. Customer History by office managed by the with the Controller shipped to the High date and product. CFO’s Automation group for discussion Risk Customer Desk Satisfied with the CoE in the close review. workflow. review, she approves via thumbprint ID. 5 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Next Generation Finance 101 Today’s Finance methods, structures and systems were designed to support analog or discrete processes. Tomorrow’s Next Generation Finance model will: Be digitally enabled and focused on speed Integrate and analyze information on a real time basis Transact events as they occur Dramatically reduce the cycle time of all finance activities and the size of finance Require a new level of skills to remain competitive 6 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Next Generation Finance will significantly reduce in size and require a dramatic shift in Finance skills & capabilities Future state headcount Current state headcount Analytics Insight Insight & action & action Process mining Reporting & compliance Cloud Reporting & compliance Transaction processing Blockchain Transaction processing Robotics 7 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Key characteristics of a Next Generation Finance Model Insight & action Reporting & compliance Transaction processing • “Siri” based on -demand insights • Transition from accounting focus • Eliminate offshoring/ to business events 75% headcount reduction • >1,000x data available for analysis • Accelerated SEC/Statutory/ • Real-time digital AP/AR settlement Tax filings • Deep business knowledge • Elimination of reconciliations needed to interpret AI and • Continuous audit • Virtual closing and consolidation business analytics • Instant Treasury/cash • Shift to exception management • Dynamic portfolio investment position visibility • Distributed ledger scenario modeling • Fraud/compliance analytics • Real-time analytics – anywhere • Increased regulator transparency • Plug-and-Play integration Digital Architects & Data Scientists will play key roles in Finance 8 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Finance will evolve to be increasingly automated and digitized Today Plan Transact Account Control Comply Report Analyze Advise • Strategic • Supplier • Transaction • Accounting • Statutory • Enterprise • Enterprise • Business • Target setting payments accounting close reporting performance performance advisor • Financial • Employee • Asset • Account • Tax filing reporting management • Strategy management payments accounting reconciliation • Statutory • Financial • Portfolio execution • Forecasting • Customer • Tax accounting • Error compliance reporting analysis support • Tax/Treasury receipts processing • Policy • Management • Performance • M&A support • Cash • Internal audit compliance reporting analysis • Board management • Investment engagement analysis Tomorrow Plan Transact Account Control Comply Report Analyze Advise 9 9 PwC | Workforce of the Future PwC | Workforce of the Future Finance focus Automated and digitized Confidential information for the sole benefit and use of PwC’s client.

Tomorrow’s changing landscape will demand data science and analytical skills 23% 69% Graduates will have deep Of employers say they will data science and analytics prefer job candidates with skills deep data science and analytical skills over ones without Data science and analytics skills, by 2021 How will employers fill the talent pipeline? Student supply Employer demand 10 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Financial Controllership roles of the future (Example: Global Technology Company) Emerging Business Analytics and Data Digital Growth Value Scientist Engineer “new” roles Partner Manager  Multiple emerging roles must be considered to take advantage of emerging trends These new competencies must be  integrated into both the Finance Responsible from Responsible for Responsible for Responsible for professional development ideation to delivery leveraging cross- developing and identifying and of big business functional and implementing implementing framework and the workforce opportunities, e.g., business data to decision models emerging skillset growth, cash or inform strategic, based on collating technologies, profitability. operational and multiple sources of including automation Focused on domain specific data, data flows, and projects within the delivering outcomes decisions. modeling techniques. business. and partners closely Critical bridge Looks to improve Works with the GPO with Analytics between the data data architecture. to drive digital Manager. scientist and process enablers. business growth. partner 11 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.

Financial Controllership roles of the future (Example: Global Technology Company) Compliance Digital Global Transform- Emerging Emerging “transformed” roles and Risk Process ation Lead Technical Manager Accountant Owner “transformed” roles  The existing roles will decrease and evolve to become “insights”, “business partnering” and Leads the Subject matter Owns end to end Responsible for risk organizational expert in a innovation and and compliance “technology” oriented roles, transformation in a specialized process standardization of requirements in a working with emerging roles program based role area, with deep global process and highly digitized and works with knowledge of related technology design. environment.  Trends will impact all roles. FCO’s and partner digital and Connected with Monitors integrated Existing roles will decrease by network to technology tools. leading practices risk including implement solutions. Coaches and reviews across industries cyber security, data 40% and nature of the work done Evolve to product team on tool design, and also runs an privacy, regulatory today will change. manager post process and system. innovation lab for and policy. implementation of the process. solutions. 12 PwC | Workforce of the Future Confidential information for the sole benefit and use of PwC’s client.