WORLD ACADEMY OF INFORMATICS AND MANAGEMENT SCIENCES
ISSN : 2278-1315
innovation is itself driven by people. In this context, we are
Core modernization = mainstream
defining people as a combination of changing demography,
Cloud
which is increasingly tech savvy, and the rise of greater
Process robotics
consumer empowerment. There are also two systemic
Visualization
change drivers that are playing out in the supply chain
Exponentials = early adopters
environment, in reaction to all the technological innovation.
Advanced analytics
These are globalization and geopolitics. All the change
Cognitive computing
drivers discussed in our interviews are not considered to be
In-memory computing
acting independently of each other. They are intertwined
Blockchain
across a spider’s web, with technology at its centre as the
Used in combination, Deloitte suggests the seven technologies
most important disrupter impacting the finance function
are assisting organizations in improving performance and
currently. As the finance function moves from working in
helping the finance function serve its customers more
isolation to working with others in an organization, so the
effectively. Underlying these tools, although not explicitly
people driver of change will have a greater impact.
highlighted by Deloitte, is the Internet of Things, which is
brought about by cheap and ubiquitous sensors embedded in
Artificial intelligence (AI) and machine learning are not new
everyday objects. These sensors are then enabled to send and
concepts. In fact, artificial intelligence has been around as
receive data, via networked connections, that continually fuel
an academic discipline since the 1950’s. Today,
both the modernization and exponential tools with real-time
technological innovation is fundamentally changing the
information.
tasks and role of the finance function. What’s also different
Our interview research reveals that the core modernization
is that we are on the cusp of something new, where
tools are becoming mainstream features of many
computer performance, through machine learning and
organizations’
finance
functions.
The
exponential
algorithms, could outpace human performance.
technologies are emerging with innovator and early adopter
organizations, but have yet to break into the mainstream.
Opportunities in this new future will require human
adaptability, through learning faster and governing more
FINANCE CORE MODERNIZATION TOOLS:
smartly when working with technology. However, at this
point in time, our interview research indicates that the
CLOUD
adoption of new technology is not evenly distributed across
This is the provision of shared computing services over the
all organizations, sectors and industries. In an interview with
Internet, whether networks, storage or applications. ‘A cloud
a Big Four accounting firm representative, they paraphrased
is a colony of millions of computers that are braided together
words attributed to science fiction writer William Gibson:
seamlessly to act as a single large computer’. Cloud solutions
“The future ‘of finance’ is already here – it’s just not very
offer flexibility because organizations don’t have to invest in
evenly distributed”. This shouldn’t be surprising. It reflects
IT architecture or costly updates and maintenance.
different organizations’ journeys, in multiple ecosystems, to
their goal of creating the most efficient and effective
The music people listen to and the films people watch now
business model that delivers value to their stakeholders.
live in clouds, which they rent rather than own. Cloud
What’s clear is that one organization’s current technology
technologies are giving rise to the sharing economy, embodied
adoption is another organization’s technological past. Yet,
in companies such as Spotify, Uber and AirBnB.
as organizations are neither talking with each other nor
These companies aren’t built on traditional physical products;
sharing their experiences widely, there is no composite
Uber doesn’t own any taxis and AirBnB doesn’t own any
picture or vision of the technological finance function of the
bedrooms. Consequently, when valuing their assets, the
future for practitioners to use as a benchmark.
finance professional increasingly needs to focus on intangibles
that aren’t recorded on the balance sheet.
As part of our ongoing research into the future of finance,
we aim to emphasize a harmonious approach and best
PROCESS ROBOTICS
practice so that practitioners, organizations and finance
functions evolve to reap the benefits from disruptive
Automating processes and repetitive manual tasks, through
technologies. This will be embodied in the changing skills
technological solutions, reduces costs and improves
and knowledge areas within our CGMA resources.
efficiency. More importantly, by automating tasks such as
data entry and report generation, it frees resource within the
FINANCE FUNCTION TECHNOLOGY DISRUPTION
finance function to focus on real business value.
A 2016 Deloitte report into Finance in a digital world, based
on interview research, focused on technology disruptions
Within the finance function, repetitive manual tasks between
that finance functions were experiencing. The report listed
systems are termed by some as ‘swivel chair processes’.
seven technologies that modern finance functions must have
Normally this involves a complicated technical work-around,
on their radar. Deloitte categorizes these tools as either ‘core
where an accountant manually enters data into one system,
modernization’ or ‘exponentials’. Core modernization tools
before then inputting the same data into another system.
are ones that focus specifically on updating financial
Without the swivel chair, the turning from one system to
systems and existing capability, whereas exponential tools
another would greatly impede the transfer of data. Process
concentrate on delivering new capabilities to the finance
robotics already has the capacity for automating the
function.
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