The Future of the Finance Function

Survey 2017
Insights from the FSN
Modern Finance Forum
on LinkedIn

© Copyright 2017 FSN Publishing Limited. All rights reserved

Letter from Lena Shishkina, Head of Finance, EMEA and APJ, Workday

Dear Colleagues,

Workday is pleased to partner with FSN to sponsor the “Future of

the Finance Function” 2017 Survey. The report provides expert
insight from more than 750 senior global finance professionals
across various industry sectors, exploring the challenging market
conditions facing the CFO function and how it can continue to
meet the changing needs of the business.

The results reveal some thought-provoking insights into the

Lena Shishkina
Head of Finance, EMEA and attitudes of finance professionals, particularly in relation to how
APJ, Workday they work with other business partners, and their attitudes
towards non-financial data. It was clear from the study that CFOs
understand the additional responsibility they have in improving
productivity and learning how to manage and analyse the data
for an increasingly complex set of stakeholders. Yet, more than
80 percent believe they are failing to win this new battle, with
many seeing their inability to master such complex data sets as a
serious threat to the finance function.

One of the main challenges comes from data held in multiple

legacy systems, where it is disparate, disorganised and difficult
to access. Business stakeholders need fast access to reliable,
accurate data to better inform decisions. If such data has to
be reconciled from multiple systems then the potential for
inaccuracy increases and the whole thing quickly falls apart.
The survey also reveals that, despite the availability of a myriad
of new technologies, CFOs are still struggling to make headway
with technology innovation. The route cause for this seems clear:
legacy technologies have become such an entrenched part of
day-to-day operations, that only true technology transformation
will pave the way for the future of finance operations.

The journey to such transformation has historically been a

complex one, hence why so many CFOs have decided to stick,
rather than twist, when it comes to their finance systems. The
tide does appear to be turning, and the report found that CFOs
are now starting to directly engage technology vendors, to better
understand how emerging technologies can help with their goals.
Previously, this process was led by third-parties or consultants,
but the era of the cloud and the simplicity it brings to the table is
helping CFOs directly engage.
2

© Copyright 2017 FSN Publishing Limited. All rights reserved

 Letter by Lena Shishkina, Head of Finance, EMEA and APJ, Workday

Modern systems, such as Workday are designed to support the

modern vision of finance, where transactions, control, analytics
and planning are all contained in one single model. While
taking advantage of these new models requires replacing legacy
systems, new approaches dramatically reduce the time, cost
and risk of implementation. Once in place, Workday provides a
single source of truth for all data, giving business partners the
information they need, when they need it.

We hope that this year’s report provides readers with valuable

insight and new ways of thinking about the role of finance in
dealing with issues, such as innovation and business partnership,
and that the study provides some context into how other finance
leaders are solving similar challenges across the industry.

It’s time to rethink finance.

Lena Shishkina

Lena Shishkina
Head of Finance, EMEA and APJ, Workday

© Copyright 2017 FSN Publishing Limited. All rights reserved

Table of Contents

Executive Summary 5

Chapter One Business partnering hamstrung by ignorance and distrust 8

Chapter Two CFOs are data complacent 12

Chapter Three CFOs turning to tech vendors to help navigate finance 16

transformation

Chapter Four CFOs struggling to realize tech progression 20

Chapter Five Finance innovation underrepresented and undervalued 24

How our research was conducted 28

About FSN 31
About Worday
32

© Copyright 2017 FSN Publishing Limited. All rights reserved

 Executive Summary

Executive Summary

The results of last year’s Future of the Finance Function 2016 survey described a
CFO whose role was over-hyped, under-delivered and littered with contradictions.
Business commentators and analysts were quick to heap new duties and skills
onto CFOs, but the survey found that many senior finance executives were still
bogged down in their traditional financial role, unable to find the time to upgrade
technology in order to focus on their strategic imperatives. The report identified
automation and standardization as key launch points for the evolution of the CFO
role, and data as the driver of insights that shape strategic decision-making.

The Future of the Finance Function 2017 builds on these foundations but finds gaps
in the way that data is located, shared and used to make strategic decisions. Despite
recognizing the value of data, CFOs and their senior finance executives are largely
confined to their existing data ‘universe’ and to not appear to be leveraging the
opportunities presented by new data sources.

Many don’t understand what data is available, where it is held and how to get at it,
which severely constrains the insight finance can add to corporate discussions. Data
and its analysis should not just be a key priority but an integral part of every aspect
of business strategy. The vast majority of finance professionals claim to be data-
driven but the survey casts doubt on the completeness and robustness of the data
on which they seek to rely.

Achieving effective data governance requires new technology platforms, preferably

unified ones, from which all parts of the business can share in the insight. Usefully,
finance executives have no trouble recognizing the efficacy of technology for the
finance function and the rest of the business. The survey found broad acceptance
of the importance of technologies like the cloud, blockchain and mobile apps to
improve finance productivity.

But the survey also identified a disconnect between accepting technology and
realizing the positive outcomes of it. Just 40% of respondents consider that the
financial close will be replaced by real-time reporting by 2030. It seems they are

Figure 1:
Just 40% of respondents
consider that the financial close
40% will be replaced by real-time
reporting by 2030.

© Copyright 2017 FSN Publishing Limited. All rights reserved

 Executive Summary

struggling to leverage technology to improve business processes, possibly because

over half of senior finance executives who responded to our survey are daunted by
the prospect of overhauling their own legacy systems.

When they do finally decide, or convince the rest of the C-suite, to overhaul their
own systems, they are increasingly turning to vendors directly to find what they
need. Historically they would have called on consultants to interpret the convoluted
tech jargon and to weigh up the benefits of each software option. But these days
vendors provide enough information for finance executives to do much of their due
diligence on their own.

Taking charge of their own technology requirements demonstrates a commanding

knowledge of one of the main business growth drivers and CFOs who do that will
be accepted as credible business partners. But the survey found that business
partnering is fraught with miscommunication and mistrust.

Unfortunately, for almost half of senior finance executives, lack of trust is hampering
the success of their business partnerships. This manifested in 67% of survey
respondents being engaged too late in critical commercial developments to really
add any value to the process.

But the finance function does have a very necessary role in the strategic progress
of the business. They need to be the financial architects of new, disruptive
business models that can compete in today’s marketplace. At the moment, this
isn’t happening. CFOs and their executive leadership team are so focused on the

Figure 2:

67% of survey respondents

find they are engaged too
67% late in critical commercial
developments to really add
any value to the process.

© Copyright 2017 FSN Publishing Limited. All rights reserved

 Executive Summary

importance of explaining financial consequences and reducing financial risk that

they don’t have the time or the understanding to try to effect commercial or
operational change in the business.

This is a substantial hindrance to the evolution of the modern finance function,

because understanding the operational side of the business will give CFOs the
arsenal they need to become champions of innovation. With an already clear
view of the financial ebbs and flows of the business, true understanding of the
commercial side gives CFOs a fully rounded perspective from which they can
spearhead an innovation framework. Finance has a broad overview from which to
support innovation, coupled with the natural prudence to ensure the risks are well
understood and managed.

Contributing to the innovation trajectory of a business is the next logical stage in

the CFO evolution. Financial governance, strategic development, performance
management and business partnering have become more embedded in the finance
function. The CFO have shed their image as bean-counters. Now CFOs who are
ready for the next phase of their journey will have to step up their data governance
so they can use technology to generate the insight to drive innovation and growth.

© Copyright 2017 FSN Publishing Limited. All rights reserved

 Chapter 1

Business partnering
hamstrung by
ignorance and
distrust
Finance must work smarter to
break down the barriers with other
functions that are preventing strong
business partnership.

© Copyright 2017 FSN Publishing Limited. All rights reserved

 Business partnering hamstrung by ignorance and distrust

As the CFO’s role becomes increasingly strategic, they are being called
upon to be business partners to other business units. This is both an
element of their strategic evolution and a consequence of it. Business
partners are expected to work alongside other business functions,
supporting and advising them on strategic direction using the insight
gained through the finance function. That, at least, is the theory. But
37% of CFOs are
struggling to make their mark
The Future of the Finance Function Survey 2017 has revealed that in the boardroom.
their input is often an afterthought, there is a lack of trust between
the finance function and other business operations, and business
partnering lacks depth and quality.

When partnering with other business functions, senior finance

executives considered their main priorities to be explaining the
financial consequences of operational decisions, ensuring decision-
making is strategically aligned and reducing financial risk. These
are compelling and necessary priorities but they limit the scope of
finance’s outreach. Finance executives can add another level of support
to commercial and operational performance, but both these priorities
were at or near the bottom of their list. CFOs and their executives
don’t appear to see it as their role to coach or nurture business units to
make better commercial decisions. But this is a missed opportunity and
an important part of the strategic role that finance can play.

It’s important to remember that finance’s business partnering role is

tied up in this increasingly strategic contribution to the organisation.
From the shop floor to the boardroom, finance is slowly moving out of
the number-crunching corner, but there is still some way to go. 17% of
senior finance executives believe they play an active role in board-level
strategic planning and decision-making, and a further 45% are nearing
that goal. But the remaining 37% are struggling to make their mark in
the boardroom.

Most CFOs and senior finance executives at least see their business
partnering role as influential. Only 30% believe that business
partnering is advisory only, without any real influence. But across
the organisation, finance is struggling to be accepted by the business
units they’re supposed to be supporting. For example, 67% of survey
respondents reported that business units involve their business
partners too late in critical commercial developments. And almost half
felt a lack of trust was an obstacle to effective business partnering.

© Copyright 2017 FSN Publishing Limited. All rights reserved

Business partnering hamstrung by ignorance and distrust

The reason for this mistrust is surely tied up in the historical finance
role – i.e. as a cost center, counting beans and generating quarterly
reports, largely oblivious to the nuances of operational divisions. If
CFOs are to make a larger contribution to the business, they will need
62% of CFOs survey to convince the rest of the enterprise that they have something to
offer.
respondents blamed
management information for
hindering effective business And they do.
partnering.

The nature of trading is changing rapidly. These days everything is

being repackaged as a service. Software that was once sold outright is
now offered as a licensed service, renewed periodically but still owned
by the developer. Even airplane engines, which would once have been
sold to airplane manufacturers, are now leased and managed, rather
than sold outright. This shift to ‘Everything-as-a-Service’ requires
financial input to manage product pricing and bundling. If finance isn’t
engaged in developing these new business models, companies will be
left behind.

But 42% of senior finance executives say the finance function does not
have sufficient understanding of business operations. Without that
understanding, finance won’t be able to build the financial models that
will sustain a competitive operation.

Figure 3:

CFOs STRUGGLING TO MAKE AN CFOs NEED TO REVIEW THEIR CFOs FIND THEMSELVES
IMPACT IN THE BOARDROOM PRIORITIES SIDELINED

37% of CFOs say they are a

long way from being
Only of CFOs rated helping
business units become 67% of CFOs claim that
finance are often involved
able to play a pivotal role
in board-level strategic 25% more commercial as a
high priority.
too late on in the process.

planning and decision

making.

53% of CFOs are unable to

find the time to invest in
business partnering.

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 Business partnering hamstrung by ignorance and distrust

Unfortunately, 62% of survey respondents blamed management

information for hindering effective business partnering. It’s easy to slice
and dice data to produce a foregone conclusion, and finance executives
don’t trust the reports that are being produced to support some
decisions from other areas of the business. The trust issue runs both
42% of senior finance
executives say the finance
ways. function does not have
sufficient understanding of
It’s not clear if finance is deliberately being left out of the picture business operations.
by being engaged too late in commercial decisions to make a real
difference, or if CFOs themselves are hindering the process by pushing
commercial support and advice well down their priority list. Either way
something must be done.

The benefits of business partnering are immense. Finance has a

unique and valuable insight into all aspects of a company which would
benefit other business units. But it’s a two-way street. The finance
function of the future will need to fully understand operational and
commercial processes, combining this knowledge with financial
insight, to develop a strategic business partnering blueprint. And
it requires other business units to recognize that finance has a
contribution to make and begin to engage with them at the start of
decision-making process so their input can become more than just an
afterthought.

Today’s idea of business partnering is hindered by an inability to “With Workday, Redstone

connect the right stakeholders with the right data, and a lack of Federal Credit Union found
confidence in the quality of information, brought about by an that the percentage of time
accumulation of technology systems each with their own version its finance team spent on the
preparation of data versus
of the truth. Finance has greater responsibility today in guiding analysis significantly shifted
the business, providing more detail, dimensionality and graphical from 70/30 to 30/70.“
representation of data to a wider group of stakeholders. Legacy
technology was not built to provide this level of detailed reporting,
hence the world of integrations and connections which drive
confusion and a mistrust of data.

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 Chapter 2

CFOs are data

complacent

It’s time for the finance function to truly

master the reporting and analysis of
non-financial data.

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CFOs are data complacent.

Last year, the Future of the Finance Function 2016 revealed a new
generation of CFOs and senior finance executives striving to fulfill
a substantially expanded role. They are being called on to shape
strategic direction, champion business partnering, embrace technology
to improve productivity and learn how to manage and analyze the
“It’s clear that the surge in
burgeoning volume of data. The report described finance executives
non-financial data, mixed with
who were moving towards a more data-driven approach to decision- a wider set of more demanding
making but often falling short – a third still relied too much on gut feel, business stakeholders is a
rather than hard facts when making business decision. challenge for CFOs. Yet, rather
than becoming complacent,
working with traditional
And while 81% of respondents believed that CFOs will ultimately be
financial data, the CFO must
responsible for corporate data in the future, almost two thirds believed rise to this challenge, as the
an inability to master the variety and volume of new business data was rest of the business looks to
a serious threat to the future finance function. the function for better business
decision making guidance.”
Results from FSN’s most recent Future of the Finance Function 2017
survey bears out the increasing importance of data to competitive
strategy, but it also identifies a data complacency that is limiting the
effective discovery and use of new sources of insight.

78% of respondents this year said decision-making has become more

data driven over the last three years. But at the same time, they
concede that the data remains disparate, disorganized and difficult to
access. This raises deeper questions about the breadth and integrity of
data that the finance function is able to draw on to make decisions.

The survey found that over two-thirds of senior finance executives are
yet to make headway in gaining ownership and control of all the data
they need. This may be because 58% say that valuable data is scattered
across the organisation, and 48% admit that other functions are not
good at sharing data with finance.

But CFOs can’t add real value if they only have access to the financial
information they generate themselves. To deliver strategic insight, they
must analyze different types of data from across the organisation. But
when access to that data is difficult, and in some cases deliberately
obstructed, their efforts may be thwarted from the start.

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 CFOs are data complacent

This is a critical issue, because the effective use of data is one of the
principle drivers of competitive advantage, and the type and nature of
data is growing and changing constantly. To make a strategic difference,
new data needs to be reflected in the critical reports finance functions
“CFOs can no longer rely use to inform strategic decisions, but they’re falling short here too.
on gut feel. Decisions must 47% of senior finance executives struggle to add new sources of data
be data driven, meaning to regular reporting. By failing to offer up new insight to the board
fast, accurate information, when the business environment is changing all around them, finance
available in real time to any
relevant business stakeholders
seriously impairs the board’s decision-making ability.
in a format that they can
understand and immediately This has been highlighted by CFO roundtable discussions facilitated
by FSN, during which executives stressed the need to jolt board
discussions from the repetitive, often backward-looking agendas of
today towards foresight and future strategies.

CFOs recognize this need for foresight. They acknowledge that new
sources of data add insight and are critical to growth, but many
organizations still have difficulty even identifying these new sources.
The survey found that only 40% of senior finance executives have
managed to formally identify how new sources of data can give
them a competitive edge. For example, the ‘internet of things’ offers
companies the potential to measure, in real time, consumer behavior,
product inventory, supply chain logistics and other data that can
directly influence the financial performance of a business. But if more
than half of CFOs and their executives haven’t even identified what
new sources of information will give them the edge, then they are a
long way from competing effectively against companies that are using
their own data effectively.

Figure 4

58% 48% 47% 40% 24%

58% concede that 48% say other functions 47% struggle to add Only 40% have managed 24% do not know what
valuable data is are not good at sharing new sources of data to to formally identify how data is available to them.
scattered across the data with finance. regular reporting. new sources of data i.e.
organisation. IOT could give them a
competitive edge.

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© Copyright 2017 FSN Publishing Limited. All rights reserved

CFOs are data complacent

Using data to get ahead means companies need to know what to look
for and where. But almost a quarter of survey respondents do not
know what data is available to them within the business. This may be “Using a single finance
because almost half the respondents said other divisions don’t easily system means having the
share their data with finance. Protectionism and data-hoarding has ability to create one source
of truth and data that the
many causes, but ultimately it is obstructing the effective use of that business can trust and rely
data to enable strategic decision-making. on. Multiple systems mean
data reconciliation to build
While data is clearly recognized as a driver of sound business decisions, a complete picture, which
CFOs and their finance executives appear unable to move from their increases the potential
for data inaccuracies and
comfort zone to embrace new types and sources of data. Static board potential errors.”
reports that illustrate the past rather than illuminating the future
direction of the business pay only lip-service to a data-driven finance
function. Non-financial data is increasingly recognized as a vast source
of insight from which to make essential predictions, about products,
consumers, supply requirements, logistics and human resources. But
without understanding what data is available, where it is held and how
to access it, finance is severely constrained when it comes to adding
insight.
“With Workday Financial
The finance function of the future will need to bring scattered data Management, our
together under a common platform so that sharing data becomes consolidation is dynamic and
the rule rather than the exception. When corporate data is in one on demand. Any member of
the team, at any time, can
place, accessible to everyone who needs it rather than only to those get a real-time consolidated
that have gathered it, CFOs can discover new data sources, and begin view of the company.”
to develop a data-driven competitive edge. It will also enhance the
finance function’s ability to add new sources of data to their regular TripAdvisor
reporting, providing the board with comprehensive forward-looking
insight to make better business decisions.

The goal of finance should be to arm business partners with fast,

accurate, up-to-date information they can use to make better
decisions. Legacy technology was not built with such a vast array of
disparate datasets or stakeholders in mind, and finance must look at
how it approaches this new world where data context truly is king.

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 Chapter 3

CFOs turning to
tech vendors to help
navigate finance
transformation
How quickly can you automate and
standardise business processes
and meet business change with a
cumbersome legacy finance system
that was not built for this modern
business era?

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 CFOs turning to tech vendors to navigate transformation

Business transformation projects are essential for companies to remain

competitive in the fast-changing corporate landscape. They need to
churn their outdated legacy systems, automate, standardize, and add
functionality just to keep up with nimble start-ups and inventive new Finance has typically called
on IT to guide new technology
business models. A decade or so ago, senior management would have
decisions and acquisitions, so
needed to engage software consultants to advise on the best options the emergence of cloud and
for their needs, at a time when the language of technology needed an its potentially game-changing
interpreter and a go-between. And while this is still common practice, benefits can cause confusion and
vendors are becoming more adept at providing the information CFOs stifle innovation, purely from a
risk management perspective.
need to make their own choices and engage directly rather than going
This is why businesses are
through a middleman. engaging cloud vendors directly,
and quickly learning about the
Finance is still some way off the technology bandwagon though. speed and ease of deployment
Only 6% of CFOs and senior finance executives feel certain they cloud can bring.
really understand the technologies available, and only a further 31%
broadly know what is on the market. The question of who should own
corporate technology is unresolved, but there is increasing support for
it to fall under the CFO’s remit. The argument is that finance sits at the
confluence of all parts of the business and is best placed to strategically
ascertain the technology needs. But even if the CFO hasn’t yet taken on
the mantle of technology evangelist, finance needs to take control of its
own technology requirements now. Unfortunately, only half of finance
executives believe their finance function has the skills to evaluate
technology.

And if they have the skills, only a quarter of senior finance executives
have the time to investigate opportunities for technology innovation.
This leads to a catch-22 of time-consuming, inadequate technology that
is never updated because of a lack of time to find something new. For
those executives who find time to investigate opportunities, a third of
them struggle to identify a suitable solution to fit their needs, which is
proving a major obstacle to moving away from outdated legacy systems.

Once the right technology is finally identified, 56% of senior finance

executives cannot find the internal resources to manage such large
projects. In addition, the pressure of regular reporting prevents more
than half of CFOs from finding a sufficient window of opportunity to take
the plunge with a new system. This is not helped by the fact that half of
them find the idea of upgrading legacy systems a daunting challenge.

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CFOs turning to tech vendors to navigate transformation

Indeed, the common theme amongst the senior finance executives

who took part in the survey is that introducing new technology is
daunting. It is often indecipherable, unmanageable or too time-
consuming for CFOs who are still just getting to grips with the vast
“It’s perhaps not surprising
that finance is trailing other technology marketplace that promises to transform the finance
areas of the business when function.
it comes to new technology
adoption. Yet, while the function At the moment, finance is falling well behind in embracing new tech
may traditionally be viewed
responsibilities. The marketing function has long been an early adopter
as risk averse, the demand for
automation, fuelled in part by of customer-engagement technologies, and even operational logistics
artificial intelligence, will inspire has seen its fair share of smart tech improvements. CFOs complain
CFOs to drive transformation that they don’t have the capability or knowledge to choose the right
across the function sooner systems, but technology should be a core competency of the finance
rather than later.”
function because so much of its operations are now tech dependent.
It is equally important that data be viewed as a core competency
requirement, because these days organizations live or die by their data-
driven insight.

With the future in mind, CFOs and senior finance executives are
increasingly turning directly to vendors to help with major finance
transformation. While 65% still consider external consultancies as
a viable option in tech decision-making, 55% are also happy to go
directly to software vendors to provide direct assistance.

Figure 5:

2 Only half of CFOs believe

their finance function has the
skills to evaluate technology.

1
Only 6% of CFOs felt
comfortable that they
really understood the
technologies available
to them and only 37%
agreed to knowing what is
available in the market.

3 4
Just ¼ of CFOs actually have the 56% of CFOs struggle
time to investigate opportunities to find the internal
for technology innovation. resources to manage
such large projects.

5
34% of CFOs struggle to
identify a suitable solution
to fit their needs.

6 55% of CFOs are putting

their trust in software
vendors to assist with
finance transformation.

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 CFOs turning to tech vendors to navigate transformation

The difference today from a decade ago is that CFOs can carry out their
own due diligence on vendors, from direct website information, product
demo videos and full specifications, to case studies, online ratings and
client comments. “CFOs complain that they
don’t have the capability or
knowledge to choose the right
The way people choose software is changing too. The larger vendors systems, but technology should
now host vendor conferences where they can showcase their products be a core competency of the
and partnerships, selling directly to finance executives rather than finance function.”
consultancy middlemen. Vendors may not have the capacity to install
and manage every direct client, but they will have a network of
implementation partners who can take companies through the process
and provide support.

As CFOs take on a more strategic role, they continue to be time-poor

and somewhat in the dark about the available technology solutions.
Vendors who can demonstrate domain knowledge, case studies, proof
of concept, webinars and other online collateral that can be easily
researched, offer a direct route to the major system overhaul that
will give finance executives back some of their much-needed time for
strategy.

It seems finance and technology remains a complex relationship for

many organisations. Finance needs to realise that today’s technology
can provide the tools to become the partner the business requires
and drive efficiency. Perhaps more importantly, innovative
technologies, such as cloud computing, also enable them to create
a competitive advantage over other organisations. CFOs should
see technology as a huge opportunity rather than a threat to the
business.

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 Chapter 4

CFOs struggling
to realize tech
progression
Change is the only constant in today’s
business world. The emergence of
disruptive technologies will allow CFOs
to reduce the time spent on manual
processes, and focus more on providing
the deeper, contextual analytics and
insights needed by other business
partners. Moving to this new world
requires financial transformation and
CFOs need to have an appetite for
self disruption if they are to remain
effective.

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CFOs struggling to realize tech progression

From consumer insight to productivity improvements, technology is

the key driver of business improvement and success. For the modern
CFO, one of the many facets of their role is to recognize and spearhead
technology that provides strategic advantage. The results of The Future
of the Finance Function 2017 survey show that they recognize the
importance of new technologies, like cloud, blockchain and mobile apps,
but they appear less sure of the process improvements the finance
function will be able to reap from them in the future.

The finance function is being transformed by the abundance and

ingenuity of new technologies. The most enabling of these is the cloud,
which has allowed new software to proliferate widely through quick
implementation without complex IT involvement.

These days cloud software is available for every process and function,
and can quickly solve productivity and process problems or inefficiencies
at relatively low cost. The cloud also confers business agility, for example,
adding users in new markets, facilitating collaboration through shared
access hosted in the cloud, and encouraging that collaboration through
innovative social tools. Which is why half of survey respondents believe
that 80% of transactions will be processed in the cloud within three
years.

But the cloud has enabled another potentially monumental new

technology that looks set to revolutionize a long-stagnant aspect of
finance. Blockchain technology and the distributed ledger technology
(DLT) that derives from it, is being developed to facilitate invoice
raising, verification and processing, to replace the often insecure and
inefficient methods of invoicing currently in use. Still in its infancy, the
technology is gaining traction via applications that take advantage of
43%
the high data integrity and security of DLT. It will take some time, but
43% of survey respondents believe invoicing will no longer exist in 2030, 43% of survey
instead transactions will be processed through central hubs like DLT or respondents believe
blockchain. invoicing will no longer
exist in 2030, instead
transactions will be
DLT innovations may be some way off, but CFOs and senior finance processed through
central hubs like DLT or
executives recognize the immediate advantages of mobile applications to blockchain.
improve finance function productivity. Over 80% of survey respondents
believe there is a convincing case for mobile business apps in the finance
function. Finance executives need to be able to access, manipulate and
analyze corporate data or news, and then deliver or share the outcomes,
all while on the move. And the survey results show broad agreement
with mobile app productivity improvements.

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 CFOs struggling to realize tech progression

With such expanded enthusiasm for technology from CFOs and

their senior finance executives, it would seem logical that they
would expect productivity and business processes to improve
commensurately, but they don’t.
42% Just 42% of respondents believe that productivity will have
increased two to three times by 2020. Considering the scale of
productivity improvements that can be gained by introducing
Just 42% of respondents
believe that productivity smarter, faster more automated systems, this implies that survey
will have increased two respondents have little confidence in being able to leverage the
to three times by 2020.
technology they seem keen to accept.

In addition, just 40% of respondents consider that the financial

close will be replaced by real-time reporting by 2030. With
40% a modern finance system and a centralized data repository,
companies could implement real-time reporting immediately.
But they don’t, often because their own technology is not up to
Just 40% of respondents the task. 51% of CFOs and financial managers are daunted by the
consider that the prospect of moving off legacy systems. But without the migration
financial close will be
replaced by real-time to more modern, innovative and highly functional systems,
reporting by 2030. organizations will never realize productivity gains, and find time to
focus on the more strategic aspects of their role.

Change can be daunting, and technology more so when it’s being

thrust upon a relative newcomer like finance. Finance executives
are still overwhelmed by the complexity of their legacy systems,
often remaining tied to spreadsheets and the ‘spreadsheet-spiral™.
FSN’s recent survey on the Future of Financial Reporting found a
self-perpetuating trap of spreadsheet overuse because of rigid ERP
and CPM systems and a high dependency on the IT function for
even the simplest of system changes.

71% of organizations already depend on spreadsheets for collecting

data across most of their business units. Instead of trying to
work around an aging system or calling in IT, 69% turn to more
spreadsheets to paper over the cracks in the reporting process. Just
32% of CFOs and their senior finance managers believe that the
finance function will move away from spreadsheets by 2030.

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CFOs struggling to realize tech progression

To be sure, spreadsheets are a very useful tool, but there are new
“With Workday, we will have
tools that could radically improve costs, productivity and insight from
a single, unified suite of
the finance function. To believe that in 13 years finance professionals
applications in the cloud that
will still be mired in the spreadsheet spiral doesn’t bode well for meets all of our functional
modernizing the CFO role and the finance function’s place within an requirements and gives us
organisation. greater confidence in our
data outputs during this key
Finance executives recognize that technologies, like the cloud and phase of our growth. We
blockchain, are becoming an inevitable and integral part of the future are aiming to be the best UK
of the finance function but they are struggling to implement change. digital workplace and this
Finance functions that grasp the nettle and leverage this technology to means having finance and HR
improve their business processes and achieve productivity gains will systems that are intuitive and
allow self-service and manager
leave their contemporaries in their wake.
empowerment.”

Karen Elenor, Director of

Enterprise Services at Sky
Betting and Gaming

It’s hard to see the finance function of the future as reliant on

spreadsheets as the business of today. Given the emergence of new
technologies, such as automation and AI, we are about to see the
transformation of business as usual. Finance can get a head start
on this revolution by shifting away from multiple legacy tools and
placing the latest cloud-based technologies at the heart of their
operation.

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 Chapter 5

Finance innovation
underrepresented
and undervalued
The business and its needs have
changed remarkably in the last decade,
and for finance that means a move
from number cruncher to a strategic
partner responsible for shaping
business decisions. Finance and its
attitude to technology innovation must
reflect this change if it is to help guide
the business through future periods of
change and disruption.

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 Finance innovation underrepresented and undervalued

In the current fast-paced and ever-evolving market, companies are

struggling to grow. Without innovative ideas to modernize processes
and overhaul business models, they will, at best, remain shackled to
historic levels of performance, and at worst, become redundant.
Yet even as CFOs rise to their new strategic challenges, they are
73% percent of
organizations have reported
squandering a valuable opportunity to be the architects of this a move to a culture of
innovation. continuous planning over the
last 3 years.
Just 16% of CFOs and senior finance executives ranked innovation as an
area where they could add the most economic value to the business.
This fell well below areas such as strategy management (40%),
performance management (38%) and business partnering (43%).

The results suggest that the finance function may not be aware of
the value it can add through innovation, and remains wedded to its
comfort zone of more traditional finance-related support. While there’s
no disputing that those last three business skills are key value-adds for
the finance function, relegating innovation to the desultory bottom of
the list risks missing a compelling opportunity.

Of course, innovation itself is open to interpretation, and perhaps

this ambiguity is the reason why finance professionals are hesitant to
rank its value higher. There is often a misconception that innovation
must involve a radical departure from the status quo to be considered
effective, profitable or valuable. Business media is awash with
successful start-ups whose business model represents a complete
departure from old norms, and this can come to represent the epitome
of innovation.

Figure 6:

Just 16% of CFOs ranked innovation as an area where they

could add the most value. The results suggest that the
finance function may not be aware of the value it can add
through innovation, and remains wedded to its comfort
zone of more traditional finance-related support.

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Finance innovation underrepresented and undervalued

But innovation doesn’t have to be completely new. Innovation can

just as easily involve the reworking of old processes, often with new
technology, to create a substantial impact down the line. For example,
“To truly add value and lead
from the front, the finance using the cloud to improve access to data, encourage collaboration,
function needs to become a boost agility or enable scalability, are all innovative approaches that
digital pioneer and innovator.” don’t require an entire system or ideological overhaul. Any or all of
these innovations can improve productivity and performance, and are
easy to implement with cloud technology.

It is possible that the finance function is hamstrung by the mere

mention of technology. Finance professionals already face difficulties
seeing the value of back office system improvements. 41% are not
convinced there is sufficient return on investment to migrate away
from their legacy finance systems, and 53% struggle to convince the
board to prioritize investment in financial processes.

Within the finance function, there is little support for adding value
through technology. Just 19% of senior finance executives believe
they can add most value to finance through the deployment of digital
technologies. As a result, they struggle to find the time for it, with only
26% of executives able to set aside time to investigate opportunities for
technology innovation.

And yet, ask a senior finance executive whether they believe they play
an active role in encouraging technology deployment and innovation
across the enterprise and 60% will say yes. This despite 63% admitting
they are not sure what technology is available in the market.

To truly add value and lead from the front, the finance function of
the future needs to become a digital pioneer and innovator. It’s true
that finance systems are seen as relatively unglamorous compared to
the latest customer-facing apps, but there is innovation in even small
process improvements.

More broadly though, finance can be a very effective conduit of

organization-wide innovation because from their vantage point at the
center of the organization they can see all the key business drivers.
Finance is not blinkered by the functional silos of other departments,
who may develop very innovative strategies but then limit these to one
part of the business or fail to contribute to a comprehensive corporate
strategy.

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 Finance innovation underrepresented and undervalued

Innovation in isolation will only go so far. Finance can lend support

and add value to all parts of the business by coordinating innovation, “Finance can be a very
effective conduit of
recognizing the bigger picture and balancing the risks and advantages organization-wide innovation
of ideas. And CFOs who are leading the charge bring discipline and because from their vantage
analysis to the innovation process, building the company’s objectives, point at the center of the
risk profile and financial constraints into the decision-making process organisation they can see all
to develop projects that will help the business grow. the key business drivers.”

The CFO is ideally placed, at the confluence of all business

departments, to oversee a framework for innovation built around the
core business strategy. Many organizations may pay lip-service to an “Workday Financial
innovative ethos, but unstructured or ad hoc projects are unlikely to Management will give us
bring about effective change or growth. Instead, the new generation a financial system that can
of CFOs need to manage, coordinate and contribute to the process of take us into the future and
innovation, while always linking it back to the organization’s strategic easily scale with the business,
whether that be acquiring
objectives. They must look across financial and strategic outcomes to or merging a new company,
measure the success or otherwise, of innovative projects. This is the or launching a new brand
next plateau for the CFO role, and one which will position them as . By moving our financials
business growth leaders in an increasingly competitive market. to the cloud, we will create
new efficiencies that will give
our finance team the time
and freedom to focus on the
financial performance of our
brands and strategy for the
It’s understandable that embracing innovation comes second to future.”
getting the day job done, given the pressures facing finance on a
Danny Mansfield, Group
daily basis. Yet, given the constant nature of change, only through
Financial Systems Director,
implementation of the latest technologies can the CFO expect to stay Northern & Shell Network
ahead of the game and become the innovative partner the business Limited.
needs.

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 Chapter 6

Methodology

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 METHODOLOGY

The survey drew responses from 977 international senior finance professionals from our
49,000 strong FSN Modern Finance Forum on LinkedIn.

This survey covered finance professionals across 23 different industries. 81% of these
professionals were considered to have senior job titles and above.

Geography of Respondents

Africa

Asia PAC

Europe

Midldle East

North America

South America

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Organizational Size - Number of employees

1-20

21-50

51-100

101-250

251-500

501-1,000

1,001-5000

5,001-10,000

More than 10,000

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

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 Industry of Respondents

Aerospace & Defence

Automotive

Banking / Financial Services

Business Services / Consulting

Consumer Products

Education

Government (Federal, including

Military)
Government (State, Local)

Health care

Hospitalty / Leisure / Travel

Insurance

Manufacturing

Media & Entertainment

Non-profit

Oil and Gas / Mining / Energy

Pharmaceuticals / Life Sciences

Real Estate

Retail

Technology (Computers, Software)

Telecommunications

Transportation

Utilities

Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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About FSN

ABOUT FSN
FSN is a global publisher of thought leadership, research and “must-have” content for CFOs
and senior finance professionals around the world. FSN’s highly popular and active Modern
Finance Forum on LinkedIn has a membership of more than 48,000 readers in more than 23
countries and across every major industry segment. It is also the publisher of the popular
www.fsn.co.uk and www.fsnelite.com websites and regularly holds networking dinners and
events for its members.

Contact:

Gary Simon, CEO: [email protected]

Michelle Fabian: [email protected]

HQ Office in United Kingdom

Clarendon House
125, Shenley Road, ®
Borehamwood,
Herts, WD6 1AG

Switchboard: +44 (0)20 84452688

https://fsnelite.com

The Modern Finance Forum LinkedIn

http://www.fsn.co.uk

Disclaimer of Liability
© 2017 FSN Publishing Limited. All rights reserved. FSN is a registered trademark of FSN Publishing Limited (“FSN”). This publication may
not be reproduced or distributed, in part or as a whole, in any form without FSN’s prior written permission. This report is exclusively for your
personal use and cannot be shared outside your company, or via email, internet posting, social media or other external information storage
& retrieval systems.
Whilst every attempt has been made to ensure that the information in this document is accurate and complete some typographical errors or
technical inaccuracies may exist. This report is of a general nature and not intended to be specific to a particular set of circumstances. The
report contains the views and opinions of FSN Publishing Limited and FSN Publishing Limited make no representations or warranties with
respect to the accuracy or completeness of the contents of this report and specifically disclaim any implied warranties of merchantability or
fitness for a particular purpose. No warranty may be created or extended by sales representatives, or written sales materials. FSN Publishing
does not provide advisory services and no part of this research report should be construed or used as such. You should consult with a
professional where appropriate. FSN Publishing Limited and the author shall not be liable for any loss of profit or any other commercial
damages, including but not limited to special, incidental, consequential, or other damages.

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© Copyright 2017 FSN Publishing Limited. All rights reserved

 About Workday

ABOUT Workday
Workday is a leading provider of enterprise cloud applications for finance and human
resources. Founded in 2005, Workday delivers financial management, human capital
management, and analytics applications designed for the world’s largest companies,
educational institutions, and government agencies. Organizations ranging from medium-
sized businesses to Fortune 50 enterprises have selected Workday.

Contact:

[email protected]

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