6.2 Digital mindsets & The FF and process automation & The ethics of technology usage

Question 1

A digital mindset is the concept of

Answer 1

• Seeing beyond the individual elements of digital change, to understand the deeper all-pervading ways that digital technology will transform every aspect of society and therefore impact organisations.
• Leaders and staff are required to think about the longer term vision for the org and how it will appear in a digital world

Question 2

Important dimensions of the digital mindset (Forbes):

Answer 2

• Provide vision yet empower others - clear vision of how bus should evolve and support initiatives of employees in translating this vision into tangible action
• Give up control yet architect the choices - empowering employees to adapt the org but maintaining sufficient oversight to shape and direct the process
• Sustain yet disrupt - existing bus processes must be sustained to ensure profitability but new ideas must be nurtured for their potential to spark future change
• Rely on data yet trust your intuition - data is a powerful tool in decision making but the digital mindset must look beyond the numbers and use intuition
• Be skeptical and open minded - important to be cautious but also consider and try new things to learn lessons and see what fits

Question 3

Implications of a digital mindset on the finance professional:

Answer 3

• it is important that finance professionals accept that technology will increasingly change and disrupt
• change adept org are able to deal with change
• a key element is for staff to have a growth mindset (continuously develop and learn)
• change will be embraced as a challenge and opportunity and not seen as threat

Question 4

Skills required by future finance professionals:

Answer 4

• Analytical skills - much of the data produced will come from automated processes and accountants will analyse this data for meaning and insight
• Business acumen - having a wide understanding of all aspects of bus is crucial for effective decision making and to provide insight to other functions
• Judgement - making decisions, evaluating data sources and applying knowledge to make sound judgements
• People skills - interpersonal skills including ability to communicate, empathise and understand people
• Leadership - they have wider understanding of the bus which means they are often in senior executive positions

Question 5

The automation paradox

Answer 5

• Increased automation of routine tasks takes them out of human control
• This can lead to a loss of these skills on a practical level
• Retaining expertise and understanding of the basic functions of accounting systems will be a challenge for modern finance professionals

Question 6

Legal considerations of technology use:

Answer 6

• Data protection - General Data Protection Regulation (GDPR) is a legislation which details the following principles about data:
  
  • Used fairly, lawfully and transparently
  • Used for specified explicit purposes
  • Used in a way that is adequate, relevant and limited to what is necessary
  • Accurate and kept up to date
  • Kept for no longer than necessary
  • Handled in a way that ensures appropriate security
• Data controllers have to ensure adequate safeguards and controls to implement these data principles

Question 7

Ethical and social consideration of how org handles technology and data are important because:

Answer 7

• an org that handles tech and data in an ethical way will give investors confidence
• customer confidence in data security is vital and important for brand confidence
• consumers feel safer dealing with bus that are proactive and responsible in their use of data
• employees are attracted to bus with a strong ethical stance on how tech and data is used
• ethical handling of tech and data helps ensure long term sustainability
• it demonstrates a proactive awareness of the risks associated with data and tech

Question 8

Corporate digital responsibility (CDR) is a

Answer 8

• Relatively new concept which extends the idea of Corporate Social Responsibility to the digital world
• CDR involves a commitment to protect both customers and employees and ensure new technologies and data are used productively and wisely.

Question 9

Development of a CDR strategy would include the following five areas:

Answer 9

• Digital stewardship - using data in a responsible and secure way in line with expectations of what’s reasonable
• Customer expectations - around data use and need for transparency are increasing
• Giving back - bus can share data in a benevolent way to help society
• Data value is becoming more apparent to customers and the need to reward and incentivize customers to give more data will be norm
• Digital inclusion - about ensuring all members of society have the skills, tools and ability to access online digital world