4.4 The impact of technology on the activities of finance professionals

Question 1

The FF can view technology as both a

Answer 1

• an opportunity and
• a threat

Question 2

Technology can be viewed as an opportunity and used to

Answer 2

• improve the efficiency and productivity of finance professionals activities
• it can free up their time to work on more interesting, challenging, value-adding work
• may require FF to build new capabilities

Question 3

Technology may also be viewed as a threat since it can

Answer 3

be used to reduce or replace many of the traditional roles and activities

Question 4

The information to impact framework clearly shows that: (pg 119)

Answer 4

• Technology and automation will play an important role in all the activities of the FF but particularly in the assembly and analysis activities
• this will free up resources of FF professionals who can focus more on the advising and applying / executing activities

Question 5

The FF will need to develop it’s

Answer 5

competencies:
- firstly so that they can use the up to date technology
- secondly so that they have the necessary skills to provide the influence and impact required

Question 6

Org are using technology to support the automation of management information processes and to provide reporting to the rest of the bus on a self-service basis:

Answer 6

• this is resulting in a narrowing of the level 4 activities (diamond shape) of finance operations to generate information and preliminary insight
• it has also increased the need for skills and talent at level 3 (working with specialists to provide further insight) and level 2 (communicating insight to influence users and bus partnering to influence and impact the org)

Question 7

The two main technological changes that have impacted the FF:

Answer 7

• New data sources and analysis methods
• Automation and cognitive computing

Question 8

New data sources and advanced methods for analysing this data are providing

Answer 8

• opportunities for better informed decision making
• for example, predictive analysis has improved forecasting and reduced the need to rely on personal judgement
• analytics will extend to areas such as FP&A pulling demand for talent from level 4 of the diamond to level 3

Question 8

A 2016 McKinsey report studied which functions could be automated by advancing technology: (pg 121)

Answer 8

Most automatable activities:
- Data collection (64%)
- Data processing (69%)
Less automatable activities:
- applying expertise (18%)
- stakeholder interactions (20%)
Least automatable activity:
- managing others (9%)

Question 9

New technology being used includes:

Answer 9

• Robotic process automation (RPA) - provides opportunities to automate many routine, clerical activities
• Cognitive computing, such as artificial intelligence (AI), machine learning and natural language programming - provide opportunities to automate advanced data analytics and report writing
• Higher up the diamond, new technology will change what FP can do and support roles that require personal interactions and the ability to manage others (these are less likely to be automated)

Question 10

Summary of the various viewpoints of contemporary FF: (pg 129)

Answer 10

Level in diamond - I2IFW - Activity - Position - Automated

Level 4 - Information - Assemble - Smart finance factory - Data collection

Level 3 - Insight - Analyse - Digital centre of excellence - Data processing

Level 2 - Influence - Advise - Strategic bus partner - Stakeholder interactions / applying expertise

Level 1 - Impact - Apply - Senior finance team - Managing others / stakeholder interactions