TOPIC 4 - The finance function in a digital era Flashcards
Whats RPA stand for
Robotic process automation
What is RPA
Involves software agents that mimic the path taken by human beings to make the process more automatic
What are the 4 applications of RPA
Data assembly
Basic analytics
Automate basic operations
What can data assembly do
automatically merge data across fragmented systems
What does basic analytics
perform basic analytical tasks on structured and sometimes unstructured data
What can automate basic operations
carry out certain tasks automatically
Example of data assembly
Data stitching across ERP
Example of basic analytics
Account comparisons
Example of automate basic operations
Transaction processing
What developments are happening in RPA
Rapid technology developments
3 benefits of RPA
Eliminate repetition
Cost Reduction
Improved delivery
When should you use RPA
When your objective is cost reduction
The finance function is responsible for
accounting operations
analysis
planning
decision making
control
What is the finance function
a division within a corporation
Components of the finance function
Financial and management accounting
Financial planning and analysis
Project management and appraisal
Treasury
Internal audit
Benefits of finance functions
-cast net for new efficiency opportunities
-increase data driven insights
-help other parts of the organization
How do finance functions cast a wider net for new efficiency opportunities
-increased efficiency in transactional activities
-subsequent improvements in transactional efficiency will likely show diminishing returns
How do finance functions increase data driven insights
provide clearer, faster, and richer insights to the entire organisation with the help of advanced data analysis (e.g., advanced analytics and machine learning)
How do finance functions help other parts of the organization
Given the finance function’s end-to-end view of the firm, there are opportunities for the finance function to help other parts of the organisation – sometimes called “business partnering”
How has the shape of the finance function changed
Hierarchical Triangle - Traditional Shape into Hexagonal Structure - New Shape
Triangle versus Hexagon
Large numbers of workers report upwards to a series of ever-smaller number of managers
vs
Expert teams collaborate to achieve shared corporate objectives
Triangle base vs hexagonal base
A broad set of finance workers that carry out more clerical, routine, or administrative tasks
vs
Technological automation is eroding many of these tasks resulting in a narrower base of the hexagonal shape
Triangle Middle vs hexagonal Middle
A narrower set of middle managers who are reported to from more employees below
vs
New central bulge due to the shift towards higher-value services –employees often work as part of multi-disciplinary teams
Triangle top vs hexagonal top
A narrower group of senior finance managers
vs
A collaborative finance leadership approach with the CFO and other senior finance function staff working alongside the CEO
