TOPIC 4 - The finance function in a digital era

Question 1

Whats RPA stand for

Answer 1

Robotic process automation

Question 2

What is RPA

Answer 2

Involves software agents that mimic the path taken by human beings to make the process more automatic

Question 3

What are the 4 applications of RPA

Answer 3

Data assembly
Basic analytics
Automate basic operations

Question 4

What can data assembly do

Answer 4

automatically merge data across fragmented systems

Question 5

What does basic analytics

Answer 5

perform basic analytical tasks on structured and sometimes unstructured data

Question 6

What can automate basic operations

Answer 6

carry out certain tasks automatically

Question 7

Example of data assembly

Answer 7

Data stitching across ERP

Question 8

Example of basic analytics

Answer 8

Account comparisons

Question 9

Example of automate basic operations

Answer 9

Transaction processing

Question 10

What developments are happening in RPA

Answer 10

Rapid technology developments

Question 11

3 benefits of RPA

Answer 11

Eliminate repetition
Cost Reduction
Improved delivery

Question 12

When should you use RPA

Answer 12

When your objective is cost reduction

Question 13

The finance function is responsible for

Answer 13

accounting operations
analysis
planning
decision making
control

Question 14

What is the finance function

Answer 14

a division within a corporation

Question 15

Components of the finance function

Answer 15

Financial and management accounting
Financial planning and analysis
Project management and appraisal
Treasury
Internal audit

Question 16

Benefits of finance functions

Answer 16

-cast net for new efficiency opportunities
-increase data driven insights
-help other parts of the organization

Question 17

How do finance functions cast a wider net for new efficiency opportunities

Answer 17

-increased efficiency in transactional activities
-subsequent improvements in transactional efficiency will likely show diminishing returns

Question 18

How do finance functions increase data driven insights

Answer 18

provide clearer, faster, and richer insights to the entire organisation with the help of advanced data analysis (e.g., advanced analytics and machine learning)

Question 19

How do finance functions help other parts of the organization

Answer 19

Given the finance function’s end-to-end view of the firm, there are opportunities for the finance function to help other parts of the organisation – sometimes called “business partnering”

Question 20

How has the shape of the finance function changed

Answer 20

Hierarchical Triangle - Traditional Shape into Hexagonal Structure - New Shape

Question 21

Triangle versus Hexagon

Answer 21

Large numbers of workers report upwards to a series of ever-smaller number of managers
vs
Expert teams collaborate to achieve shared corporate objectives

Question 22

Triangle base vs hexagonal base

Answer 22

A broad set of finance workers that carry out more clerical, routine, or administrative tasks
vs
Technological automation is eroding many of these tasks resulting in a narrower base of the hexagonal shape

Question 23

Triangle Middle vs hexagonal Middle

Answer 23

A narrower set of middle managers who are reported to from more employees below
vs
New central bulge due to the shift towards higher-value services –employees often work as part of multi-disciplinary teams

Question 24

Triangle top vs hexagonal top

Answer 24

A narrower group of senior finance managers
vs
A collaborative finance leadership approach with the CFO and other senior finance function staff working alongside the CEO

Question 25

What are the four levels of finance jobs

Answer 25

1: Leading finance team
2: Partnering for value to influence/shape how the business creates and preserves value
3: Specialists- generate further insight in specific areas
4: Assembling/ extracting data and providing limited insight

Question 26

Four steps to developing an analytical mindset

Answer 26

1) ask the right questions; (2) extract, transform, and load relevant data; (3) apply appropriate data analytic techniques; and (4) interpret and share the results with stakeholders.

Question 27

Key generalist skills

Answer 27

-critical thinking
-business acumen (understanding wide range of business ideas)
-communication and leadership skills
-adapt and react

Question 28

What are the potential threats of RPA to a finance grad

Answer 28

More administrative and junior roles within the finance function may be replaced via machines.
-Automation of data collection
-Automation of less complex data analysis
-Automation of other clerical and routine tasks

Question 29

What are the potential benefits of RPA to a finance grad

Answer 29

-Automation = more focus of resources on value-added activities
-more data and better data analysis tools = better data driven insights and more integration with other parts of the organization

Question 30

How might KPIs improve the performance of the division?

Answer 30

-align the interests of the firm and the division’s employees
-feedback tool

Question 31

What characteristics do good KPIs possess?

Answer 31

-Tied to the firm’s strategy
-Timely
-Understandable and controllable by employees
-Accurately measurable
-Game-proof
-Standardized