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SKILL SET
Recognize the importance of a digital mindset and ways to
leverage technology.

TOPIC
Key Technologies driving business and finance

Course learning objective

After completing this topic, you should be able to identify key technologies that are driving business
and their impact on the finance function.

Introduction

What has drastically changed the role of the finance professional in the last 20 years? Technology.
Technology has become integral to the vast majority of business and finance tasks. For individuals
working in accountancy and finance, an understanding of the key technologies driving change in
business and finance is now essential rather than ideal. Without this understanding, the finance
function’s ability to add value to the business is limited.

This topic will identify the key technologies driving business and will consider their impact on the role
of the finance function. It will also explain why some people believe that the convergence of many of
these technologies will produce change on a massive scale, creating ‘the fourth industrial revolution’.

Key technologies affecting business and finance

Technology is driving changes in business models and business processes, including processes
within the finance function.

Let’s start by identifying and explaining some of the key technologies affecting business and finance.

Cloud computing

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Cloud computing is the practice of using a network of remote servers, hosted on the internet and
usually owned by a third party, to store, manage, and process data and to host software applications.

Using cloud servers eliminates the need for businesses to operate their own servers and the need to
employ staff to support them.

Venders offer cloud-based services, for example, ‘software as a service’. Data and software are
accessed by users through web browsers and mobile apps, enabling data to be accessed from
anywhere at any time, while still being secure.

Cloud providers also offer a range of backup and replication services. If an outage or disaster
occurs, resources can be moved to a different location and operations can continue.

The trend towards cloud computing shows no signs of slowing down, with growth fuelled by the
ongoing growth of mobile technology and the Internet of things (both covered later in this topic).

Real-world example

Businesses of all sizes are using use cloud service providers such as Dropbox, Box, and Google for
file storage and collaboration. These services enable many individuals to access and contribute to
files stored in the cloud. An additional advantage is that cloud-based services are able to be
accessed by individuals from other organisations, providing external collaboration and mobile
access in an environment that provides effective file management and security. In addition to
increased efficiency, significant cost savings have been reported due to the reduced need to operate
and maintain on-site file servers.

Mobile

Individuals can access systems and data anytime, anywhere using internet-enabled mobile devices
such as smartphones and tablets. Increasingly, data can be accessed and updated anywhere,
anytime.

Mobile-responsive websites, and apps designed for mobile, are now the norm. The convergence of
mobile and cloud technology enables communication and collaboration within organisations and
across stakeholders based anywhere in the world.

Mobile devices connected to the internet have increased the availability of employees and increased
their ability to be productive regardless of location.

Businesses continue to invest in mobile technology because of the potential benefits, including the
following:

● Increased workforce efficiency, collaboration, and productivity

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● Streamlined procedures
● Agility, enabling the business to capitalise on opportunities more quickly

Real-world example

Most accountancy software providers now offer mobile apps, providing easy access to financial
data.

The apps integrate with cloud-based accountancy software, enabling users to access up-to-date
information wherever they are.

Internet of things

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The Internet of things (IoT) refers to the ability of items, which are primarily not computers, to
connect to the internet and to other devices.

Internet-enabled items or things include cars, home appliances, hospital equipment, manufacturing
machines, and wearable devices. ‘Things’ also include components and parts, for example, a jet
engine of an airplane.

Widespread connectivity opens up a huge range of possibilities. For example, the car of an individual
driving to a meeting could have access to the individual’s calendar and, if the connected car knows
that traffic is heavy, send a message to the other party notifying them that the individual will be late.
As another example, a connected photocopier requiring servicing could request and schedule the
service.

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Taking a wider view, many people envisage the IoT leading to ‘smart cities’ in which the IoT and the
cloud enable data to be managed in real time to help city authorities, businesses, and residents
make decisions that improve the quality of life, reduce waste, and improve efficiency.

Real-world example

Effective use of IoT can be seen in the shipping industry. Shipping companies have partnered with
technology businesses to design systems that provide real-time information to stakeholders.

Sensors on ships send data to cloud-based systems, communicating information such as ship
location, fuel consumption, and cargo temperature.

Process automation

Process automation, sometimes referred to as business process automation or robotic process

automation (RPA), involves automating recurring business processes through integrating different
software applications.

Rather than having employees perform simple tasks and manage business processes, software is
configured to perform individual tasks and to coordinate the process. For example, a procurement
and ordering process involving sequential steps, with each step signed off by a different manager,
could be automated using approval management software.

Automating accounting processes will free up finance professionals to take on other tasks. Finance
professionals who embrace technology and automation will also gain expertise that will make them
valuable when business process transformation comes to other functions within the organisation.

Process automation is facilitating ‘continuous accounting’. Data and transactions are processed as
they come in, distributing work evenly over the accounting period. This enables tasks that have
traditionally been performed at period end to become embedded within activities. This results in a
shortened close, the smoothing out of end-period spikes, and the generation of real-time reporting
and analytics. As a consequence, the accounting function becomes better aligned with the rest of
the business.

Real-world example

Many mortgage lenders are moving to automated, digital workflows.

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The mortgage application process includes many repetitive elements, such as reviewing and
confirming the accuracy of data, verifying identity, and verifying income.

Lenders are employing techniques such as optical character recognition, screen scraping, and
automated data entry to reduce human involvement in the process.

‘Bots’ (software robots) are able to perform many review and verification tasks and are able to keep
borrowers informed about the status of their application.

Human involvement is then focused on dealing with nonstandard situations.

Robotics

A robot is a programmable machine that physically interacts with the environment and is capable of
carrying out a series of actions. Robotics is concerned with the design, manufacture, and operation
of robots.

Robots have existed in manufacturing environments for decades, for example, on industrial
assembly lines.

Robots are now appearing in nonindustrial environments, for example, offices, hospitals, and order-
fulfilment centres.

The increased use of robots has also been fuelled by the growth of the IoT and the cloud, enabling
the monitoring and control of the performance of machines including robots.

Real-world example

Welding is a task that has proven to be well suited to the use of robots. Robots are able to perform
repetitive tasks over long periods of time, without suffering from boredom, fatigue, or injury.

Educational institutions, recognising that many welding tasks in the future will be automated, have
begun teaching welding robot programming and maintenance.

3-D printing

3-D printing refers to the process of creating a three-dimensional object by building up layers. Using
3-D printing enables a design to become a physical product using a computer, appropriate software,
and a 3-D printer.

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3-D printing starts with a digital file derived from computer-aided design (CAD) software. The design
is exported as a Standard Tessellation Language (STL) file which is ‘sliced’ into hundreds, or even
thousands, of 2-D layers. A 3-D printer uses the 2-D layers as building blocks, which it layers on top
of each other to create a 3-D object.

3-D printing offers big savings in a wide range of industries, including manufacturing and health care.

3-D printing is having an impact in other industries. For example, in engineering, British Formula One
motor racing company Williams uses 3-D printing to create parts used for testing in wind tunnels. In
footwear, manufacturer Adidas has partnered with Silicon Valley startup Carbon to produce 3-D
printed soles.

Real-world example

In the UK, Open Bionics, a startup, supplies 3-D printed prosthetic hands for children to the National
Health Service.

The use of 3-D printing has enabled more lightweight designs and has reduced production costs for
a prosthetic hand from £60,000 to £5,000.

Artificial intelligence

The field of artificial intelligence, or AI, is concerned with computers performing tasks that would
normally require human intelligence.

AI is difficult to define precisely, but it includes the ability of a computer system to plan, reason, learn,
sense, build knowledge, and communicate in natural language.

AI insights are based on an analysis of data and information. The more data and information the
system is fed or has access to, the greater the potential for AI.

Applications of AI in business include the following:

● Smart email categorisation

● Personal assistants, such as Siri, Cortana, and Google Now
● Automated responders and online customer support
● Sales and business forecasting
● Automated insights, especially for data-driven industries such as financial services

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One area that has been a challenge for AI development, but in which progress is being made, is for
computer systems to learn to be creative and to display social intelligence.

Real-world example

The use of AI in accounting

In accounting, routine processing tasks that were traditionally reliant on human input are becoming
increasingly automated. For example, digital documents and transactions are being automatically
imported or uploaded into the system.

Through the use of AI, the system is able to use the treatment applied to past transactions to ‘learn’
the appropriate account codes for invoices and other transactions.

Data analytics is an area well suited to AI. Analytic tools are able to analyse vast amounts of data
and uncover hidden patterns that human beings do not have the processing power to identify in a
cost-effective manner.

Apps are available that enable users to scan or photograph an invoice or receipt using their
smartphones and then apply AI to process the transaction.

Month, quarter, and year end routines are increasingly automated, with data automatically posted
and consolidated from multiple sources.

In procurement, software robots or ‘bots’ are able to track supplier prices.

Businesses are also experimenting with the use of chatbots to respond to routine queries, for
example, a request for an invoice copy.

In the area of audit, some commentators believe advances in technology will eventually make it
viable to audit all transactions using automated routines, rather than relying on sampling.

Autonomous vehicles

Autonomous vehicles include self-driving cars and unmanned aerial vehicles (UAVs), which are often
referred to as drones.

In recent years, the technology behind autonomous vehicles has made huge strides. Self-driving
taxis can now be seen on the streets in places such as Singapore and Pittsburgh, Pennsylvania, in
the United States, as part of real-world testing programmes.

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Almost all major automotive manufacturers have plans to produce cars with some level of
autonomous driving capability within the next few years.

Motor vehicle manufacturers are transitioning to becoming ‘mobility providers’, and taxi companies
such as Uber are already planning for a future without the need for human drivers.

In addition to the advances in self-driving car technology, UAVs, or drones, have seen widespread
adoption and have been used for the following tasks:

● Video and photography — especially for marketing purposes

● Agriculture — to monitor crops and livestock, spray pesticides, and spread fertiliser or
water
● Delivery services for low-weight items
● Emergency services — to enable a dangerous or difficult situation to be viewed at a
safe distance
● Maintenance and inspection of oil pipelines and communication cables
● Land surveying
● Conservation work — to monitor ecological environments and animal populations
● Media coverage — enabling the easy capture of aerial footage
● As communication transmitters — providing worldwide internet connectivity

Drones often incorporate sensors that capture data and software that performs data analytics.

Real-world example

In London, taxi firms are partnering with self-driving software specialists with the aim of having self-
driving taxis operating in London by 2021.

The software providers are producing digital road maps that include the position of kerbs, road
signs, and traffic lights, which will be used to help the self-driving vehicles navigate around the city.

Proponents of this initiative believe the introduction of self-driving mini-buses will help reduce
congestion, improve air quality, and reduce the space required for car parks or parking lots.

Big data and data analytics

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Big data

The knowledge domain that deals with the creation, collection, analysis, and storage of large data
sets has been labelled ‘big data’. The characteristics of big data are commonly referred to as ‘the
four Vs’:

● Volume – refers to the amount of data being captured from transactions, social media,
customer relationship management systems, and sensors (IoT). The volume of data
has exploded in recent years and continues to increase.
● Velocity – refers to the speed at which 'real time' data is being streamed into systems
and organisations. To be useful, this data needs to be processed in a reasonable
amount of time.
● Variety – is related to the many different forms of data. Structured data is held in
defined file structures, such as a transaction file. Unstructured data includes ‘free text’,
such as social media posts, emails, images and video, and machine-generated data
collected from sensors embedded within systems.
● Veracity - is related to the quality and reliability of the data that is being analysed. High
veracity data has many records that are valuable to analyse and that contribute in a
meaningful way to the overall results. Low veracity data, on the other hand, contains a
high percentage of meaningless or unreliable data. Problems with data sets can
include bias, abnormalities, inconsistencies and duplication.

Data volumes are growing, and the pace of that growth is accelerating. Sensor data, log files, social
media, and other sources of data continue to emerge, creating a volume, velocity, and variety of data
that far outstrips traditional data warehousing approaches.

Forward-looking organisations seek ways to leverage this data for competitive advantage. The
variety of data makes it difficult to manage and analyse using traditional database management and
query tools. This has led to the development of data analytics tools.

Data analytics

Data analytics tools examine large amounts of data to uncover hidden patterns, correlations, and
other insights.

Increasingly, businesses can analyse data in real time and make timely decisions based on the
results of the analysis.

For example, an analysis of customer feedback may enable the drivers of customer satisfaction to
be better understood and may also reveal customer needs that may justify the creation of a new
product or service.
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Decisions based on data will, generally, be more likely to prove successful than decisions made
without supporting data. Personal opinions and ‘hunches’ have a part to play, but they should be
considered in the context of what the data tells us.

Real-world example

In the airline industry, engine manufactures such as Rolls-Royce are incorporating on-board sensors,
linked to satellite technology, within their engines. This enables engine operation to be monitored, in
real time, through live data feeds. Data is analysed to identify improvements in engine efficiency.

Data visualisation

Data visualisation is the presentation of data in a pictorial or graphical format.

There are two main categories of data visualisation technology: visual reporting and visual analysis.

● Visual reporting – uses charts and graphics to communicate performance. The most
popular type of visual report is a dashboard or scorecard, which provides a visual
snapshot of performance and highlights performance anomalies.
● Visual analysis – enables users to explore data to discover new insights. Visual
reporting structures the navigation of data around predefined metrics, whereas visual
analysis provides a much higher degree of interactivity. Using visual analysis, users can
filter, compare, and correlate data in real time. Many visual analysis tools also offer
statistical or predictive analytics.

Real-world example

Various studies have shown that data presented in a visual format, such as a chart, is far more likely
to be understood than data presented using text and figures.
Including source data alongside a chart is often considered good practice. However, in some
situations, providing access to the source data may hinder understanding by deflecting attention
away from the chart, creating information overload.

Blockchain

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A blockchain is a digital, distributed transaction ledger with identical copies held on the computers of
the network members.

All parties can review previous entries and record new ones. Transactions are recorded one after the
other, in a chain of blocks — the 'blockchain'.

The links between blocks and their content are protected by cryptography, so previous transactions
cannot be destroyed, altered, or forged. The result is a transaction ledger that can be trusted without
the involvement of a central authority.

Please watch the Blockchain Brief below:

Real-world example

Blockchain is a relatively new technology, and its potential is not yet fully understood. Medical
records are one area of potential use for blockchain. Over the course of an individual’s life, his or her
health information is likely to be collected by a range of different organisations.

Doctor visits, dentist visits, hospital visits, optician visits, physiotherapist visits, and so on all produce
data. Using blockchain technology, this data becomes part of a chain, which creates a permanent,
secure record that can be made available, in real time, to a wide range of groups and individuals.

FinTech

The term ‘FinTech’ is a combination of the words ‘financial’ and ‘technology’. The term represents the
application of technology to financial services or to any financial aspect of business including new
software and applications, processes, and business models.

In recent years, FinTech has become closely associated with the end-to-end processing of
transactions over the internet using cloud services.

FinTech has evolved and is disrupting and reshaping commerce, payments, investments, insurance,
and even money itself with the advent of cryptocurrencies such as Bitcoin.

Real-world example

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In the UK, a FinTech startup named iwoca (instant working capital) utilises data analytics to reduce
the time and bureaucracy involved in accessing and approving applications for business capital. By
analysing data linked to the business and its trading history, a realistic assessment of lending risk
can be obtained very quickly.

Biometrics

Biometrics is concerned with the measurement and analysis of unique physical or behavioural
characteristics.

Biometrics is often applied to enable the identification of a person using characteristics such as his
or her voice, iris (eye), fingerprint, finger veins, or face. The identification of individuals based on
biometrics is widely used in system and device security and to control which individuals can access
secure areas.

Employees’ biometric profiles can include information about their skills, certifications, and
authorisations. If an employee doesn’t have appropriate privileges, he or she can be prevented from
starting a machine, opening a door, or logging in to a server.

Real-world example

Smartwatches may be used to monitor employee arrival (‘clock in’) and departure (‘clock out’) time,
with data sent directly to workforce management and payroll systems. Sometimes management
smartwatch apps go further, providing integrated time tracking, monitoring the time employees
spend on particular tasks to facilitate time management. Smartwatches may also collect biometric
data, measuring and recording indicators such as heart rate during tasks.

Wearables

The terms ‘wearable technology’ and ‘wearables’ refer to electronic technologies or computers that
are incorporated into items worn on the body.

These wearable devices can perform many of the same computing tasks as smartphones and can
provide additional features such as biofeedback and tracking of physiological function.

Currently, the smartwatch is the most popular wearable, and the health care sector is driving most
demand in wearables.

The use of both smartwatches with a health and fitness app and specialised fitness watches is
widespread. These devices enable wearers to track and monitor activity levels and basic body

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functions such as heart rate.

Other applications of wearable technology include the following:

● The smart cap, which monitors alertness levels in truck drivers and issues a warning if
the driver is displaying signs of fatigue
● Advertisers who utilise wearable headsets or smart glasses to monitor reactions to
different advertisements
● Samsung’s smart clothing, for example, their Body Compass workout shirt, which
monitors biometric data

Wearables are internet enabled and form part of the IoT.

Real-world example

Upon arrival, Disney World guests are issued a MagicBand — a wristband that includes RFID (radio
frequency identification) technology. The wristbands communicate with sensors located around the
theme park, act as hotel keys, and provide access to rides and other facilities. The bands enable
Disney to track guests throughout the park and to identify bottlenecks such as rides with excessive
wait times. This enables additional staff to be deployed where needed and enables staff to
encourage visitors to go to facilities with spare capacity.

Virtual reality and augmented reality

The term ‘virtual reality’ (VR) is used to describe a three-dimensional, computer-generated

environment that can be explored and interacted with by a person.

VR usually requires the individual to use wearable technology such as a headset or smart glasses.
Other devices used to create the illusion of reality include omnidirectional treadmills and special
gloves.

Terms such as ‘immersiveness’, ‘realism’, and ‘a sense of presence’ are used to describe how
realistic and effective a VR experience is.

VR can be used to provide education and training opportunities. For example, a medical student
wearing a VR headset can perform surgery on a virtual patient.

Augmented reality, or AR, in contrast to VR, involves digitally adding to the physical world.

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The success of Pokémon Go provides an example of what’s possible with AR. Pokémon Go allowed
users to explore their real-world environment and catch Pokémon.

AR has also been applied to offer an enhanced retail customer experience. For example, IKEA has an
app that enables people to see how an item of furniture would look in a particular room or space.

Real-world example

VR enables potential customers to ‘try before they buy’. For example, a customer considering a new
kitchen is able to be immersed in an VR version of different potential designs, enabling a better-
informed choice to be made.

Other examples of VR technology applications include tourism, with holiday makers able to ‘visit’ a
hotel before deciding whether they wish to make a booking.

Knowledge check

Match items by dragging and dropping each item into the corresponding box.

Question
Drag each situation to the technology most likely to add value.

Situation Technology

A paint manufacturer wants to provide 3-D printing

potential customers with the ability to see
how a building or room would look if
painted in a specific colour.

A car manufacturer requires a prototype

Data visualisation
vehicle panel to test the design for wind
resistance.

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A government agency requires a system Biometrics

that ensures only authorised personnel
can access agency devices.

An electricity company needs to inspect

overhead power cables in a remote,
UAV
rugged landscape.

The senior management team of a

consulting business has requested an
easy-to-interpret dashboard showing
progress towards key targets. AR

SUBMIT

Knowledge check feedback

3-D printing
A car manufacturer requires a prototype vehicle panel to test the design for wind resistance.
3-D printing enables the rapid development of prototypes suitable for testing purposes.

Data visualisation
The senior management team of a consulting business has requested an easy-to-interpret
dashboard showing progress towards key targets.
Data visualisation involves helping people understand the significance of data by placing it in a visual
context. A dashboard typically includes visual aids such as charts and traffic light or RAG (red,
amber, green) indicators.

Biometrics
A government agency requires a system that ensures only authorised personnel can access agency
devices.
Biometrics may be used as an access control, for example, requiring a fingerprint, iris scan, or face
recognition to access a device.

UAV
An electricity company needs to inspect overhead power cables in a remote, rugged landscape.
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UAVs or drones are suited to the efficient inspection of items located in difficult-to-reach areas.

AR
A paint manufacturer wants to provide potential customers with the ability to see how a building or
room would look if painted in a specific colour.
AR could be used to enable customers to overlay the paint colour onto the ‘reality’ of the room or
building being considered for painting.

The fourth industrial revolution

The technologies discussed in this topic are having a huge impact on business. Klaus Schwab,
founder of the World Economic Forum, believes that the human race stands on the brink of a
technological revolution that will fundamentally alter the way we live, work, and relate to one another.
Schwab refers to this as the fourth industrial revolution.1

● The first industrial revolution took place in the 18th and 19th centuries, mainly in
Europe and America. The main driver for change was the steam engine, which provided
power to mechanise production.
● The second industrial revolution occurred early in the 20th century. Electricity was the
key driver of change, enabling mass production.
● The third industrial revolution, sometimes referred to as the ‘digital revolution’, started
around the 1980s. Digital technology superseded many electronic and mechanical
devices. The personal computer, the internet, and the proliferation of information and
communications technology were key elements of the third industrial revolution.
● The fourth industrial revolution, as identified by Schwab, involves the merging of
technologies and the blurring of lines between the physical, digital, and biological
spheres. Schwab sees this revolution as having the potential to affect all areas of life,
‘connecting everything in one huge network’.

To fully understand the potential of the fourth industrial revolution, Schwab says it is necessary to
‘connect the dots’ by developing an understanding of the relationships between different
technologies.

1
Schwab, Klaus. Shaping the fourth industrial revolution. Geneva: World Economic Forum, 2018.

The impact of the fourth industrial revolution on business

Schwab identifies four areas of business affected by the fourth industrial revolution.2

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● Customer expectation – Ultimately, for change to be effective and profitable it must

benefit the customer. As technology develops, customer expectations are increasing.
For example, customers are no longer prepared to be given a one-day window in which
a delivery could be expected to arrive. Customer expectations moved to a half-day
window, then to a couple of hours, then to an expectation of real-time progress
updates. More than ever, customer expectations are driving organisational change.
● Product enhancement – Physical products and services are being enhanced with
digital capabilities that increase their value. As an example, think about the amount of
technology now included as standard in new cars. Technologies are being applied to
improve material quality, making products more durable and resilient, while data and
analytics are transforming how assets are maintained.
● Collaborative innovation – In many industries, ensuring the availability of data
generated by IoT applications will become crucial and will require collaboration. Data
capture and analysis across a huge range of products and services requires new forms
of collaboration, particularly given the speed at which innovation and disruption are
taking place. Technology expertise, whether developed in-house or through partnering
with another organisation, has become a core requirement for many organisations that
in the past had little need for expertise in this area.
● Organisational forms – The growth of global platforms, such as the cloud, is enabling
and encouraging the development of new business models. Schwab believes that
‘talent, culture, and organisational forms will have to be rethought’.

The following are examples of how technologies associated with the fourth industrial revolution are
affecting business.

Examples of the fourth industrial revolution affecting business

Impact – Increased automation and efficiency

Explanation – Because everything is connected, manufacturers can optimise the production
process. Bottlenecks and problematic parts of the supply chain can be identified and reconfigured
quickly.

Impact – Constant monitoring

Explanation – The IoT enables almost everything to be monitored in real time. If a machine breaks
down, the machine is able to alert the relevant people and provide appropriate data to enable the
problem to be rectified promptly.

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Impact – Increased customisation

Explanation – Increased computer processing power, VR capabilities, digital manufacturing plants,
supply chain optimisation, and 3-D printing all enable cost-effective customisation. Businesses are
now able to produce a customised product at a realistic price point, for example, customised shoes
that provide the perfect fit.

Impact – Improved workplace environment

Explanation – The work environment can be closely and constantly monitored. Temperature,
humidity, and air quality can be maintained to create optimal working conditions. This should lead to
a safer, healthier workplace and increased efficiency.

Impact – Increased importance of data mining and data analytics

Explanation – Data is an asset to be leveraged. As the amount of data businesses produce, gather,
and store grows, so does the need for effective and efficient tools to mine and analyse data pools.

Professional and business services

In the United States, the professional and business services industry is estimated to be the second
largest employment sector and is expected to grow to approximately 21 million jobs by 2024. AI,
data analytics, machine learning, and cloud platforms are among the most important technologies
disrupting the industry.

Four themes are emerging:

● Business model transformation – Digitalisation empowers firms to change every facet

of how professional services firms go to market: their services, value propositions,
target customers, and price points. Firms are repositioning themselves with new
services for the digital world and fostering an ecosystem of partners across the
industry value chain and beyond.
● Intelligent automation – Expertise is the primary offering of the professional services
industry, and traditionally it has been provided by humans. However, emerging
technologies such as analytics, AI, and deep learning are augmenting professionals’
abilities to ‘do’, ‘think’, ‘learn’, and ‘feel’. This can both enhance the quality and volume of
expertise and lower the cost to provide it.
● Digital agility – Companies that can anticipate change, react faster than competitors,
and adapt their strategies and processes in light of disruptive events are able to stay
ahead of the curve. Organisations are becoming more responsive by developing a
flexible workforce, promoting an agile culture, and investing in smart digital
infrastructure to encourage productivity and creativity.
● Talent empowerment – Reimagining the employee experience to offer the right value
proposition will be imperative for firms in the digital world. They will need to leverage
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new technologies or models to source talent, and the will need to maintain high
engagement levels by ensuring that talent is appropriately trained and dynamically
managed.3

2
Klaus, Schwab. ‘The Fourth Industrial Revolution: What It Means and How to Respond.’ Foreign
Affairs. December 2015.

3
World Economic Forum. ‘Professional Services: approaching a digital tipping point.’

Knowledge check

Match items by dragging and dropping each item into the corresponding box.

Question
Drag each real-world example to the business area affected by the fourth industrial
revolution.

Real-world examples Business areas

A large corporation with legacy systems Customer expectations

and a rigid hierarchy struggling to
compete with an agile startup using new
IT

A presumption that service

Product enhancement
representatives are contactable via social
media

German car manufacturer Daimler and

electronics company Bosch announced
that they’ve chosen Nvidia Drive Pegasus Collaborative innovation
as their AI computing platform

Video doorbells enable individuals to

answer their home front door from
anywhere using their smartphones
Organisational forms

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SUBMIT

Knowledge check feedback

Customer expectations
A presumption that service representatives are contactable via social media
Customer expectations are growing. Both business customers and consumers expect organisations
to use technology effectively to improve all aspects of the customer experience.

Product enhancement
Video doorbells enable individuals to answer their home front door from anywhere using their
smartphones
Products that have existed in largely the same format for many years are now connecting to the IoT,
which opens up product enhancement opportunities.

Collaborative innovation
German car manufacturer Daimler and electronics company Bosch announced that they’ve chosen
Nvidia Drive Pegasus as their AI computing platform for self-driving vehicles.
Automated vehicles are complex computers on wheels. The expertise required to develop self-
driving cars requires collaboration across businesses with different areas of expertise.

Organisational forms
A large corporation with legacy systems and a rigid hierarchy struggling to compete with an agile
startup using new IT
The pace of technological change can make it difficult for large, traditionally structured
organisations to react quickly enough to take the lead in innovation. Large organisations may need
flatter organisational structures to enable decisions to be made more quickly.

Conclusion

Technology has had a profound impact on the workplace for several decades. But the pace of
change has quickened and is now having a hugely disruptive effect on business.

Organisations are using technology to create new business models, move closer to customers,
improve productivity, and innovate. At the same time, technology is also driving rapid change in

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customer expectations and work culture. Collaboration and teamwork — both locally and globally —
are more important than ever.

Technologies such as cloud computing, mobile, and the IoT are enabling organisations to make
increased use of real-time data in decision-making. Businesses are deploying cloud-enabled
collaborative applications and data analytics software to improve efficiency, introduce new business
models, and deliver products and services that meet the ever-increasing demands of customers.

Technology is having a huge impact on the finance function. Effective use of technology enables
accounting processes to be automated and data to be accessed and, to some extent, analysed, in
real time. This frees up time for finance professionals to focus on providing insight and information,
which enables better quality decisions to be made.

Klaus Schwab coined the term ‘the fourth industrial revolution’ to represent the scale, scope, and
impact of technological changes currently underway.

The fourth industrial revolution is leading us to a world in which:

● everything is digital,
● everything is connected, and
● everything creates data.

Perhaps the greatest driver of the change and disruption that characterise the fourth industrial
revolution is the potential of different technologies to interact with each other.

TOPIC
Leveraging technology in the finance function

Course learning objective

After completing this course, you should be able to identify how leveraging technology enables the
finance professional to add value to the business.

Introduction
In business, robots are working alongside human beings to build cars, deliver packages, trade
stocks, and carry out many other activities. Smart machines are operating in hospitals, ships, retail
outlets, factories, and homes.

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What does this have to do with the future of finance? Everything!

The technologies driving these changes are already affecting the finance function. Over the next
decade or so, the pace of change driven by digital technologies is predicted to increase dramatically,
disrupting all areas of business including the finance function.

The term digital transformation is used to refer to fundamental changes in business activities,
processes, competencies, and models that enable organisations to use digital technologies to add
value.

This topic will focus on the digital transformation of the finance function.

A digital mindset

Finance professionals now have access to a range of digital tools including cloud computing, mobile
devices, and data analytics, which can facilitate the transformation of the finance function.

However, taking advantage of these new and exciting drivers of change requires a digital mindset. In
this context, ‘mindset’ refers to the attitudes and assumptions that shape an individual’s thinking. A
digital mindset requires those involved in finance to see old processes with fresh eyes, free from
preconceived notions of how things should be done.

Without this mindset, many opportunities to transform the finance function will not be identified, and
others that are identified will be rejected as ‘too difficult’ or ‘too different’.

Having a digital mindset requires an individual to have some understanding of digital technologies to
be able to identify possibilities. However, obtaining an understanding of technologies and
applications is in many ways the easy part of the equation.

What may be more difficult for many finance professionals, who perhaps have been encouraged to
be risk averse, is being open to the possibility of radical change. The danger of being too risk averse
and unwilling to embrace change is that finance becomes cut adrift from other areas of the
business, a relic of the analogue age.

Developing a digital mindset

Some finance professionals have an affinity for technology. These individuals tend to have a digital
mindset, and they tend to be open to the application of digital technologies across the finance
function. Other individuals are reluctant to embrace technology and lack a digital mindset. However,
a digital mindset can be encouraged or developed.

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Step 1: Develop a default position of ‘think digital first’.

The future of the finance function is digital. Therefore, the default position for finance professionals
should be a desire to use and embrace digital technologies. Being open to the potential benefits of
digital technologies will open up a huge range of opportunities.

Step 2: Accept that digital transformation is likely to be uncomfortable.

Both the opportunities and the challenges of digital transformation may come up at inconvenient
times, disrupting existing plans. However, change needs to be embraced at speeds never before
seen in business. A change initiative may initially fail or require rethinking to be successful. Although
steps should always be taken to minimise risk, the realisation that some change initiatives may fail is
not justification for continuing with the status quo.

Step 3: Become an advocate for digital across your organisation.

Finance is often one of the first organisational functions to undergo digital automation and
transformation. Therefore, finance professionals should be well placed to advise individuals in other
functions about digital transformation. By doing so, finance professionals can raise the profile of the
finance function and help drive cultural change across the organisation.

How the finance function uses digital technologies

The basic activities of the finance function

In the report ‘The changing role and mandate of finance’, the Association of International Certified
Professional Accountants identified five basic activities of the finance function.

These activities are shown as labels on the arrows in the following diagram.

Example:

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The impact of technology on the activities of the finance function

The following are some of the impacts of technology on these five basic activities.

Activity: Assemble information

Explanation: Data is collected from multiple sources, cleaned, and made available for analysis.
Examples of the impact of technology:

● Cloud computing facilitates data collection and availability.

● The Internet of Things increases data sources.
● Automation enables routine, rules-based tasks to be performed without (or with
minimal) human intervention.
● The huge amount of data able to be collected creates big data.

Activity: Analyse for insight

Explanation: Financial and nonfinancial data is analysed to identify trends, patterns, and insights.
Examples of the impact of technology:

● Big data includes both structured and unstructured data, requiring advanced analytics
tools.
● Advanced analytics tools enable hidden patterns and insights to be identified.
● Machine learning and artificial intelligence (AI) help discover these insights.
● The finance professional is well placed to provide insight and guidance.

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Activity: Advise to influence

Explanation: Information and insights are communicated, contributing to decision-making.
Examples of the impact of technology:

● Insights discovered through advanced analytics often require human interpretation.

● Use of the cloud and mobile technology to make information available in real time.
● Data visualisation techniques help with communication and interpretation, and help
avoid information overload.
● The wider impact of technology encourages finance professionals to collaborate with
colleagues from other functions and to exert greater influence across the business.

Activity: Apply for impact

Explanation: Information and insights are used in strategic planning, budgeting, performance
measures, and performance reviews to help ensure the required impact is achieved.
Examples of the impact of technology:

● Budgeting and forecasting processes are largely automated.

● Finance professionals have more time to input into strategic planning.
● Finance plays a central role in developing key performance indicators.
● Real-time data availability and analysis enable timely control action.

Activity: Learn and develop acumen

Explanation: Experiences gained help inform consideration of subsequent proposals. This learning
develops acumen and improves judgement for an organisation.
Examples of the impact of technology:

● AI and machine learning develop and improve over time, with experience.
● Finance professionals play a wider role, acting as a strategic adviser and partner.
● Individuals and the organisation as a whole also gain experience and knowledge
(acumen).

The broad roles of the finance function

In recent years, fuelled partly by developments in technology, the role of the finance function has
expanded from traditional accounting and reporting to incorporate a broader range of tasks, such as
providing insight, guiding strategic decision-making, and helping deploy solutions across the
organisation.

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The Association report ‘The changing role and mandate of finance’ identifies four broad roles of a
modern finance function.

The following are some examples of the wider roles of finance.

Role: Reporting
Explanation: The finance function’s professional objectivity means the information provided is less
likely to be subject to bias than the views of others in the business.
The finance function is a trusted source providing data integrity.
Examples of the impact of technology:

● The impact of technology is greatest at this end of the scale.

● Routine, rules-based reporting is automated.
● The cloud facilitates data collection, pooling, and availability.
● Data visualisation techniques provide easy-to-interpret dashboards.
● Biometrics provide enhanced system security.

Role: Questioning
Explanation: The finance professional moves away from being part of a reporting factory to
providing analysis.
Analysis generates insight and questions and opportunities to innovate or reduce risk.
Questioning also initiates collaboration with colleagues across the organisation and opportunities to
improve performance.
The finance function scans the environment and alerts the business to strategic opportunities or
threats.
Examples of the impact of technology:

● Big data and advanced analytics enable hidden patterns and insights to be discovered.
● Data visualisation techniques facilitate investigation and analysis of data pools.
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● Cloud-based systems and mobile technology enable collaboration anytime, anywhere.

● Software robots (‘bots’) monitor the environment for changes.

Role: Developing solutions

Explanation: The finance function includes subject matter experts able to guide strategic decision-
making and decisions about major investments, initiatives, or strategy.
Finance professionals act as stewards with professional objectivity and are well-positioned to
provide transparency and question constructively.
Finance professionals also facilitate organisation-wide conversations to generate innovative
solutions.
Examples of the impact of technology:

● The direct impact of technology decreases, with a corresponding increase in the

impact of the skills of finance professionals.
● Enterprise resource planning (ERP) systems facilitate a coordinated approach.
● Platforms that enable collaboration are used, for example, cloud and mobile
technology.
● The finance professional’s prior experience of digital transformation places finance in
an influential position.

Role: Deploying solutions

Explanation: Finance professionals partner with others across the organisation to add value through
planning, decision-making, and ongoing performance management in business units.
Finance professionals help deploy major initiatives and solutions by engaging in change
management, strategy implementation, risk management, and project management.
The chief financial officer promotes value creation by serving as a strategic adviser, overseeing
performance across the organisation, and communicating with shareholders and investors.
Examples of the impact of technology:

● Technology has a reduced impact at this end of the scale.

● Relationships and interactions across different organisational functions are key.
● The finance professional’s business and interpersonal skills become increasingly
important.
● Accountants are highly regarded for their professionalism and accounting expertise but
also require more general commercial skills and knowledge to enable them to fulfil a
broader role.

Using technology to add value to the finance function

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This section will take a slightly different perspective, using the technologies that finance
professionals have access to as a starting point and considering how these tools may be used to
add value to the finance function and, ultimately, to the business.

In this context, ‘value’ means anything that helps the organisation achieve its objectives either more
efficiently (for example, at a lower cost) or more effectively (for example, to a higher standard).

The following examples identify ways in which various technologies can be applied to add value to
the finance function.

Technology: Process automation

How it may add value in the finance function:
The term ‘process automation’ includes technologies referred to as process robotics or robotic
process automation.

Digital processes are far cheaper and quicker than human processes. An individual can process a
few transactions per minute; a computer system can process thousands.

The automation of processes and rules-based, repetitive tasks reduces costs, reduces errors, and
improves efficiency.

Operations within the finance function that are well suited to automation include the following:

● Recording and classifying transactions, for example, coding to the appropriate general
ledger account
● Accounts payable and accounts receivable (coding invoices, making and coding
payments to suppliers, receiving and coding payments from customers, matching
transactions)
● Performing reconciliations including the bank reconciliation (direct link to bank enabling
transactions to be imported; automated coding of transactions through machine
learning)
● Financial reporting, which is largely rules-based and therefore also suitable for
automation (Software can apply rules and can also learn from experience [AI].)

The automation of manual processes and rules-based reporting frees up the time of finance
professionals, enabling them to spend more time on analysis and supporting decision-making
across the business.

Automation often relies on algorithms. An algorithm is simply a list of rules to follow to solve a
problem.

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The overall impact of automation includes reduced emphasis on the traditional compliance aspect
of the accountant role.

Technology: The cloud

How it may add value in the finance function:
Organisations can replace outdated, fragmented, and inflexible legacy systems with a flexible,
always-available cloud-based system, which also reduces infrastructure support costs.

Cloud-based ERP systems enable the organisation to manage data and processes efficiently and
help encourage coordination across different functions.

Cloud ERP technology enables the linking of nonfinancial information with financial information,
allowing finance professionals to offer a wider range of information, services, and insight.

Software-as-a-service (SAAS) technology provides reduced setup costs and rapid implementation,
improving agility.

Technology: Mobile
How it may add value in the finance function:
Mobile technology, particularly smartphones, provides access to data and applications anytime,
anywhere.

Mobile applications (or ‘apps’) enable business leaders to access data on the go in a user-friendly
format.

Technology: Data visualisation

How it may add value in the finance function:
Data visualisation techniques such as dashboards, charts, and RAG (red, amber, green) indicators
provide information in a format that is easily understood.

Large data sets can be explored in a flexible way, enabling hidden patterns and relationships to be
uncovered.

Real-time reporting using visualisation techniques and mobile technology enables information to be
pushed directly into the hands of business leaders in the format they require.

Technology: AI
How it may add value in the finance function:
Computer systems can process and analyse huge amounts of data — both structured and
unstructured. This provides a powerful basis for learning.

Computer systems can identify more complex patterns in data than humans are able to. Machine
learning enables systems to adapt and learn from past experience.
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Humans simply cannot analyse and extract insight from the volumes of data being created today. It
is essential to use machine learning techniques to gain meaning from, and make best use of, big
data.

To date, applications of AI include the following:

● Using machine learning to code accounting entries, enabling automation of processes

● Analysis of unstructured data, such as contracts and emails, through deep learning
● Using machine learning predictive models to forecast revenues

Fraud detection through machine learning models of ‘normal’ activities and identification of
potentially fraudulent activities

Please click here for a supplementary article on process automation.

Technology: Big data, data analytics, and business intelligence

How it may add value in the finance function:
Big data increases the amount of data that can be analysed and converted into insights.

Advanced analytics tools search data pools and use AI to identify hidden relationships and generate
predicted future outcomes.

The term business intelligence (BI) is often used to refer to technologies related to the collection,
analysis, and presentation of business information. BI is concerned with data-driven decision-
making.

Decisions based on data are, in general, more likely to produce the desired outcome than decisions
made without supporting data.

Effective use of BI allows a greater analysis of business drivers, leading to better quality decisions,
which help achieve competitive advantage.

Technology: Blockchain
How it may add value in the finance function:
With blockchain technology, new transactions originate with one user but propagate to a network of
identical ledgers, without a central controller. All transactions and records are permanent, unable to
be tampered with or removed.

Blockchain has the potential to affect accounting by reducing the costs of maintaining and
reconciling ledgers and by providing certainty about the ownership and history of assets.

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In the past, the finance function was focused mainly on cost and compliance. The function is
evolving by delivering more relevant information more quickly and with a forward-looking view. The
new focus is on the future and value creation.

Implications for finance professionals

Already, finance professionals are experiencing a need to develop new skills and a digital mindset.

Technological advances will result in job losses in some areas (for example, bookkeeping), but these
reductions will be mitigated by the creation of new roles as the finance function transitions to fully
embrace technology.

This transition will include a shift in the role of finance professionals towards that of a business
adviser, providing valuable insight and support at a strategic level. Analytics and reporting may
eventually be entirely assumed by machines, but accountants will be expected to interpret data and
to add to the insights generated by technology.

This will require accountants and other finance professionals to be confident and competent in their
use of technology and will require them to develop commercial acumen outside of the area of
traditional financial responsibilities.

As finance professionals spend more time collaborating across the wider organisation,
communication and interpersonal skills will increase in importance, helping to instil trust and
confidence.

Knowledge check

Match items by dragging and dropping each item into the corresponding box.

Question
The Association report ‘The changing role and mandate of finance’ identifies five basic
activities of the finance function.

These activities are shown as numbers in the diagram below.

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Match each number with the correct activity.

Activity Number

Acumen 1

Analyse

Advise 2

Apply

Assemble
3

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SUBMIT

Knowledge check feedback

1
Assemble
Data is collected from multiple sources, cleaned, and made available for analysis.

2
Analyse
Financial and nonfinancial data is analysed to identify trends, patterns, and insights.

3
Advise
Information and insights are communicated, contributing to decision-making.

4
Apply
Information and insights are used in strategic planning, budgeting, performance measures, and
performance reviews to help ensure the required impact is achieved.

5
Acumen
Experiences gained help inform consideration of subsequent proposals. This learning develops
acumen and improves judgement for an organisation.

The future of the finance function

Based on a review of research, studies, and predictions, there are 10 key factors likely to shape the
future of the finance function.

1. The trend towards automation will continue

Routine transaction processing and routine rules-based reporting will become increasingly
automated. Human input will be required only when unusual transactions or situations occur.

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2. Increased emphasis on collaboration and partnering

Finance professionals will be expected to provide commercial insight and to support managers
across the business by providing specialist advice (for example, in relation to obtaining finance and
in effective tax planning). Finance team members will need to be comfortable working in cross-
functional teams.

3. Reduced headcount

Automation will reduce the number of staff required in the finance function, particularly roles
associated with transaction processing.

4. A more flexible workforce

Finance department staffing needs will become more flexible. For example, more staff may be
required during periods when new IT systems are being introduced. This is likely to lead to an
increased use of freelance workers.

5. Increased use of AI

Software agents and ‘bots’ will use past behaviour to learn about the information needs of different
stakeholders. Algorithms will be developed that will enable information to be produced and delivered
to stakeholders without the need for users to specifically request it.

6. Information available in real time

Finance systems will become increasingly cloud-based, with data and information able to be
accessed instantly anywhere, anytime, for example, via mobile apps. Alongside this, finance
processes will become dynamic, continuous processes.

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7. Reduced emphasis on the traditional reporting cycle

Access to real-time information will reduce the importance of the traditional accounting reporting
cycle. Information produced after period-end will increasingly be seen as out of date.

8. Increased use of data visualisation

The way financial information is communicated will increasingly become visual, for example,
through the use of dashboards that incorporate charts, dials, and other visual indicators.

9. Finance team involvement in devising business strategy

Finance professionals will play an increased role in helping formulate and shape business strategy,
for example, by performing what-if comparisons across multiple scenarios.

10. Finance professionals are viewed as experts in analytics

As finance experts become experienced in the use of analytic tools, managers from other functions
will seek to use this expertise to help identify trends, opportunities, and risks.

Ultimately, the finance function of the future will use technology and the technical and professional
skills of finance professionals to deliver better quality information cost-effectively and in a timely
fashion.

Ethical implications
Ethical behaviour involves ‘doing the right thing’. For finance professionals, ethical behaviour also
requires professional competency in the role being performed, exercising due care towards
stakeholders, and acting to uphold the public interest.

Accounting bodies such as the US-based American Institute of Certified Public Accountants (AICPA)
and the UK-based Chartered Institute of Management Accountants (CIMA) have developed their own
ethical codes to guide their respective members. All CGMA designation holders are members of
either AICPA or CIMA and, therefore, subject to the ethics code of their applicable membership
organisation.
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When issued in 2015, the CGMA Code of Ethics (the CGMA Code) applied to CGMA designation
holders. The CGMA Code is aligned with the requirements pertaining to members in business and
industry found in both the AICPA’s Code of Professional Conduct and CIMA’s Code of Ethics.

However, as of the release date of this course material, the CGMA Code has been removed from
public access and is currently under review by the professional standards teams at the Association
of International Certified Professional Accountants. Until such time as the CGMA Code may be re-
released, the material throughout this topic is derived from CIMA’s Code of Ethics (the Code). With
the substantial alignment of the CGMA Code to the codes of ethics issued by both AICPA and CIMA,
the ethics material herein is appropriate for all students in this programme.

The fundamental ethical principles for accountants established by the Code apply and remain
relevant in the digital age.

Ethical implications of the growth of technology in the finance function

Ethical principle: Integrity

Being straightforward, honest, and truthful in all professional and business relationships. Not being
associated with any information that contains a materially false or misleading statement, or which is
misleading by omission.
Possible ethical implications:

● Ensuring automated processing and reporting routines produce accurate information

that does not mislead.
● Obtaining consent whenever data is collected and processed, and doing so in a
transparent manner.

Ethical principle: Objectivity

Not allowing bias, conflict of interest, or the influence of other people to override the accountant’s
professional judgement.
Possible ethical implications:

● Not allowing pressure to ‘be positive’ about embracing new technology prevent the
raising of concerns about the ability of the technology to produce accurate and
meaningful information.

Ethical principle: Professional competence and due care

An ongoing commitment to professional knowledge and skills based on current developments in
practice, legislation, and techniques.
Possible ethical implications:

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● Ensuring an adequate understanding of new technologies and how they work to enable
the accountant to express an informed opinion of the suitability of the technology and
the quality of the information produced.
● Concerns about having sufficient knowledge of a technology to assess and address its
ethical implications.
● For example, it would be difficult for an accountant to design suitable procedures for
use with distributed ledgers without an understanding of the technology.

Ethical principle: Confidentiality

Not disclosing professional information unless the accountant has specific permission, or a legal or
professional duty, to do so.
Possible ethical implications:

● The erosion of privacy due to the huge increase in data collected, analysed, and shared
is an often-raised concern.
● Cloud technology has implications for data security and compliance across different
regulatory regimes.
● System security breaches are increasingly leading to identity theft, fraud, and
blackmail.
● If biometric data is collected, the highly personal nature of this data means that total
transparency is required with regards to how biometric technology is being used, and
the intended use of the data collected.
● The finance function often has a central role in ensuring customer data is secure and is
only used for agreed-upon purposes.
● Reduced trust in the security of central databases may encourage the growth of
blockchain technology.

Ethical principle: Professional behaviour

An obligation to comply with relevant laws and regulations and avoid any action that could
negatively affect the reputation of the profession.
Possible ethical implications:

● Ensuring appropriate use of technologies such as biometrics and AI, which have the
potential to push moral and ethical boundaries.
● Not attempting to transfer responsibility for information to systems that use advanced
technologies such as AI; finance professionals must retain responsibility for the
information produced by the finance function.

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Given these implications and concerns, sound ethical principles and behaviour are perhaps more
valuable in the digital age than ever before.

Professional accountants operating in the digital age need to:

● build knowledge of emerging technologies and digital issues, to reduce the risk of
compromising professional competence and due care.
● ensure there are appropriate mechanisms for reporting unethical behaviour, to reduce
the risk of breaches.

Knowledge check

Match items by dragging and dropping each item into the corresponding box.

Question
The management accountant at XCU, a marketing business, has a number of concerns
relating to threats to ethical principles.

Match the concern with the relevant ethical principle.

Concern Ethical principle

The management accountant has been Integrity

asked to produce a report covering the
security risks posed by cloud-based
systems but has little knowledge or
experience of cloud-based systems.

Professional competence and due care

The CFO recently managed a project that
automated production of the management
accounts. The management accountant
has identified a serious defect in the
reports produced by the automated
process.
Objectivity

XCU obtains consent from clients to use

their personal data for marketing
purposes but the language about consent

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is buried within a lengthy terms and

conditions document.

SUBMIT

Knowledge check feedback

Integrity

XCU obtains consent from clients to use their personal data for marketing purposes but the
language about consent is buried within a lengthy terms and conditions document.
The ethical principle of integrity requires the management accountant to be straightforward, honest,
and truthful in all professional and business relationships.

Professional competence and due care

The management accountant has been asked to produce a report covering the security risks posed
by cloud-based systems but has little knowledge or experience of cloud-based systems.
The ethical principle of professional competence and due care requires the management accountant
to undertake only those tasks that the accountant has the required skills and experience to perform
competently.

Objectivity

The CFO recently managed a project that automated production of the management accounts. The
management accountant has identified a serious defect in the reports produced by the automated
process.
The ethical principle of objectivity requires the management accountant to not allow a conflict of
interest or the influence of others to override his or her professional judgement.

Conclusion

As computing power increases, routine finance activities will increasingly become automated. As a
consequence of this, the role of accounting and finance professionals will move from processing
transactions and producing reports towards identifying and interpreting patterns, trends, and
insights significant to an organisation’s success.

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The accountants of the future will provide increased value to the business through real-time support
and analysis and input into strategic decision-making.

The scale and pace of technological developments makes the future more uncertain than ever.
However, finance professionals have a responsibility to be thinking about what’s likely to happen and
to prepare for it. For those leading the finance function, this means working to get the right people
and technology in place to take advantage of the inevitable disruption ahead.

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