WORLD ACADEMY OF INFORMATICS AND MANAGEMENT SCIENCES
ISSN : 2278-1315
How service areas within the finance function are fusing and
McKinsey’s research examined groups of occupational
evolving
activities and ranked them according to their susceptibility
“The future of finance is fusion rather than erosion.”
to automation (Figure 4). Work activities at risk of
automation include: data collection, data processing and
This is the prediction of a banking sector interviewee. The
predictable physical work. Less automatable activities
changing mandate for the finance function and the impact of
include: managing others, applying expertise, stakeholder
new technology puts more emphasis on finance as a discipline
interactions and unpredictable physical work.
across the business, rather than as an overhead function. This
What’s interesting about the McKinsey infographic is how it
fusion process, evident from our research, is bringing together
sits when overlaid across the digital age’s hexagonal shaped
different internal areas of the finance function, as well as
finance function (Figure 5), below.
fusing finance with the rest of the business. The following
section reflects on the interview research, to explore the
changing role of finance as a discipline in the business, based
Figure 5: The potential for automation of the finance
on the interviews we conducted. Here, we consider how the
function in the digital age
digital age is impacting on the different service areas within
finance, and compare this with the traditional hierarchical or
segregated structures (Figure 6).
The left side of the table presents an overview of services
provided within the finance function, and the right side
indicates where they are migrating.
Figure 6: Migration of hierarchical / segregated service
areas in a digital age
It confirms what our interviews are exploring – that
advances in technology, and particularly in robotic process
automation, are providing opportunities to automate many
routine, clerical activities. Cognitive computing, such as
artificial intelligence, machine learning and natural language
programming, are also providing opportunities to automate
advanced data analytics, report writing and even
conversations. Higher up the hexagon, new technologies
will augment what humans can do and support roles that
require personal interaction and the ability to manage others
– which are areas less likely to be automated.
FINANCE FUNCTION CAPABILITY
Historically, the finance function has had a mandate to focus
on organizational efficiencies and reduce operational costs.
In many organizations, this focus has heralded lean
operational processes, and now there is no more fat to trim.
Technology is also at a point where machines can be left to
monitor process costing and highlight patterns of efficiency.
This shift has refocused the finance function towards
revenue and value creation which, in turn, has impacted the
function’s shape. Level 2 – ‘partnering for value to
influence and shape how the organization creates and
preserves value’ – becomes the focal point for these
activities, and is another reason for the bulge in the finance
function shape at this point. There are also implications for
the competencies required by finance professionals in Level
2 and these are explored in our briefing paper, ‘Emerging
theme 4: Changing competencies and mindsets’.
Together, these developments are radically altering the
delivery model for the finance function. As the delivery
model evolves, its shape adapts into the emerging hexagonal
structure present in our research.
www.waims.co.in
Management and
transformation
Many
finance
transformation
projects
have
stalled.
Most
accountants are
so busy working
with
legacy
systems
they
don’t have the
capacity to take
on a broader role.
Some also lack
the analytical and
commercial skills
needed.
In
addition,
management
accountants’
potential
to
contribute isn’t
always
Leading the finance team
A new shared vision for finance’s role
provides a mandate for further change.
Change will be constant, so an ability
to adapt and manage change will foster
the agility needed to survive and
prosper.
Change management and project
management are already important
disciplines in finance.
Changes to structure, systems and
skills must be aligned, and progress in
transformation must be measured and
managed. Change is the new normal
for businesses.
ENDEAVOR 2019 | WAIMS ACADMIC PRESS
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