Technology and social media in a CFO's world


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The 21st century CFO is no longer involved in pure financial strategy and, in many companies, they can be found contributing heavily towards strategic leadership.

How important is technology and social media within the CFO role?

Can social media applications add value to a CFO’s direction?

Brian Armstrong will share, from experience, how these two areas can add or detract from a CFO’s everyday routine.

Published in: Business, Technology
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Technology and social media in a CFO's world

  1. 1. W16 Technology and social media in a CFOs world Brian Armstrong Finance Director Microsoft Australia
  2. 2. Agenda > Technology – What we hear from Customers – Technology Trends > Social Media: Are you social media savvy? > Online Industry Dynamics > Social Media from a CFO Perspective – The good – The bad – And the ugly > What does it all mean to the bottom line? > Wrap / Q&A.
  3. 3. What We Hear from Our Customers
  4. 4. Technology Trends > Virtualisation > Unified communications and virtual collaboration > Optimised, standardised infrastructure > Energy efficiency > The Cloud: Software + Services.
  5. 5. Are you Social Media Savvy? Do you (or does your organization): – E-mail newsletter broadcasts? – Post or blog? – Solicit customer review or feedback? – Have a Facebook or Linked In page? – Produce podcasts, videos or webinars? – Tweet or re-tweet?
  6. 6. So, why am I here? > Do I Blog? > Do I Tweet? > As a MSFTee? > As a CFO?
  7. 7. Online Service Division (OSD) Investment Thesis WHY INVEST? The online services industry offers a combination of financial benefits and strategic value to other Microsoft businesses FINANCIAL OSD INVESTMENT THESIS STRATEGIC
  8. 8. Online Industry Dynamics Source: Internal estimates TIME SPENT ONLINE IS ONLINE AD SPEND: LONG SHIFTING TERM TREND 8 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 SHARE OF MINUTES $7.1 $6.0 $7.3 $9.6 $12.5 $16.9 $21.2 $23.4 Apr07 Apr09 6 $ in Billions SNS 2% 9% 4 Search 2% 2% 2 Portals 33% 26% Comms 23% 21% 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 Source: ComScore Source: IAB, PriceWaterhouseCoopers ONLINE PROFIT IS IN SEARCH NEW WAYS TO USE THE WEB FY12 Online Services: $70B+ Total Rev. ARE CONSTANTLY EMERGING Search Info Comms Content Ad Platform Revenue Profitability
  9. 9. Social Media – the good: new growth, lower costs > Marketing is going digital, but it takes people, technology & time > It will result in cost savings, business intelligence and market research > It will generate more revenue. The bottom line: Social Media drives growth with effectiveness and efficiency.
  10. 10. Social Media – the bad: what return? Return on… > Engagement? > Participation? > Attention? > Trust? > Competitive Intel? The bottom line: we need to see measurable results from social media.
  11. 11. The dark side of social media
  12. 12. Social Media – the ugly: impact and control > Employee productivity? > Negative ROI? > Nothing in social media protects you from being publicly stupid > Your brand and reputation > Analysis paralysis – vendor reporting. The bottom line: marketing decisions around social media are based on gut-level instincts.
  13. 13. What is a CFO to do? > Step 1: Establish a baseline > Step 2: Establish an activity timeline > Step 3: Review sales revenue – # Transactions (Frequency) – Net New Customers (Reach) – $ per transaction (Yield) > Step 4: Map activities to sales > Step 5: Look for patterns and prove relationships. The bottom line: keep it simple, educate marketing on how to measure ROI.
  14. 14. In short... > Technology trends and social media drive increased efficiency and effectiveness > With Social Media, the CFO should: – Expect cost savings and increased revenue – Understand and question short-term vs. long term activities – Facilitate making tradeoffs (zero based) – Bring business insight to marketing – Mitigate risk.
  15. 15. Thankyou
  16. 16. Disclaimer: This paper represents the opinion of the author(s) and not necessarily those of the Institute of Chartered Accountants in Australia (the Institute) or its members. The contents are for general information only. They are not intended as professional advice - for that you should consult a Chartered Accountant or other suitably qualified professional. The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers.