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2014 High Performance Finance Research 
The new focus for 
the digital CFO 
Consumer 
Goods and Services 
Results
Copyright © 2014 Accenture All rights reserved. 
2 
High Performance Finance Research 2014 
Accenture has a legacy of fina...
Copyright © 2014 Accenture All rights reserved. 
3 
High Performance Finance Research 2014 
Relevance of this research 
Al...
Copyright © 2014 Accenture All rights reserved. 
4 
High Performance Finance Research 2014 
Key findings | Global 
Managin...
Copyright © 2014 Accenture All rights reserved. 
5 
High Performance Finance Research 2014 
Key findings | Consumer Goods ...
Copyright © 2014 Accenture All rights reserved. 
6 
High Performance Finance Research 2014 
Global findings indicate that ...
Copyright © 2014 Accenture All rights reserved. 
7 
High Performance Finance Research 2014 
Permanent volatility is also a...
Copyright © 2014 Accenture All rights reserved. 
8 
High Performance Finance Research 2014 
Globally, effectiveness of the...
Copyright © 2014 Accenture All rights reserved. 
9 
High Performance Finance Research 2014 
How important are the followin...
Copyright © 2014 Accenture All rights reserved. 
10 
High Performance Finance Research 2014 
Satisfaction with overall per...
Copyright © 2014 Accenture All rights reserved. 
11 
High Performance Finance Research 2014 
CG&S respondents appear less ...
Copyright © 2014 Accenture All rights reserved. 
12 
High Performance Finance Research 2014 
CG&S respondents face similar...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
28% 
16% 
36% 
39% 
36% 
45% ...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
CG&S CFOs are measured on sim...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
Like their global counterpart...
Copyright © 2014 Accenture All rights reserved. 
16 
High Performance Finance Research 2014 
Globally CFOs have seen their...
Copyright © 2014 Accenture All rights reserved. 
17 
High Performance Finance Research 2014 
CG&S CFOs have similarly seen...
Copyright © 2014 Accenture All rights reserved. 
18 
High Performance Finance Research 2014 
Both global and CG&S organiza...
Copyright © 2014 Accenture All rights reserved. 
19 
High Performance Finance Research 2014 
Like their global counterpart...
Copyright © 2014 Accenture All rights reserved. 
20 
High Performance Finance Research 2014 
The involvement of CG&S CFOs ...
Copyright © 2014 Accenture All rights reserved. 
21 
High Performance Finance Research 2014 
… which is also the case with...
Copyright © 2014 Accenture All rights reserved. 
22 
High Performance Finance Research 2014 
Global CFOs consider building...
Copyright © 2014 Accenture All rights reserved. 
23 
High Performance Finance Research 2014 
CG&S CFOs consider finding th...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
Compared to their global coun...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
CG&S organizations are ahead ...
Copyright © 2014 Accenture All rights reserved. 
26 
High Performance Finance Research 2014 
CG&S organizations, as well a...
Copyright © 2014 Accenture All rights reserved. 
27 
High Performance Finance Research 2014 
CFOs are considered quite imp...
Copyright © 2014 Accenture All rights reserved. 
28 
High Performance Finance Research 2014 
CG&S CFOs are considered even...
Copyright © 2014 Accenture All rights reserved. 
29 
High Performance Finance Research 2014 
Globally, satisfaction levels...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
There are similarly high leve...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
18% 
14% 
10% 
10% 
20% 
10% ...
Copyright © 2014 Accenture All rights reserved. 
32 
High Performance Finance Research 2014 
Global and CG&S CFOs are simi...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
Global respondents are largel...
Copyright © 2014 Accenture All rights reserved. 
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High Performance Finance Research 2014 
CG&S respondents express simi...
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The Digital CFO in Consumer Goods

Accenture’s 2014 High Performance Finance Research shows that CFOs are concentrating on cost-effectively serving a worldwide consumer base while reducing operational spend.

For more information view us on www.accenture.com/ConsumerGoods

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The Digital CFO in Consumer Goods

  1. 1. 2014 High Performance Finance Research The new focus for the digital CFO Consumer Goods and Services Results
  2. 2. Copyright © 2014 Accenture All rights reserved. 2 High Performance Finance Research 2014 Accenture has a legacy of finance research, covering five phases: Accenture’s ongoing research into the role of finance and enterprise performance mastery in an organization’s journey to High Performance High Performance Business Research Phase I (2003) High Performance Finance Research Phase II (2004/06) High Performance Finance Research Phase III (2007/08) High Performance Finance Research Phase IV (2010/11) High Performance Finance Research Phase V (2013/14) •In 2003, Accenture launched a research study to empirically determine the key ingredients of a high-performance business •Thus far, over 6,000 companies have been studied, including more than 500 that meet our criteria as high performers I •Investigated the role of finance in overall high performance •Over 150 CFO interviews globally and 170+ companies benchmarked •Ongoing study of the relationship between the finance function and high performance. •Conducted 14 group interviews with 100 finance executives from Global 500 companies •Explored the most pressing global challenges for finance executives •How they addressed these challenges. •The strategies and practices leading organizations employed to contribute to high performance in finance and the enterprise at large •Explored the environment that impacts Finance and creates a gap between laggards and high performance finance organizations •Priorities of HPF organizations may be aligned to Customers of Finance, while laggards may focus on transactional activities and are disconnected from customer priorities •Investigated the impact of globalization and technology on the CFO agenda, and how finance organizations establish the foundation for the digital enterprise by simplifying processes and enabling analytics to drive economic outcomes •Main focus lies on the themes the Digital Enterprise and CFO Led Transformation II III IV V
  3. 3. Copyright © 2014 Accenture All rights reserved. 3 High Performance Finance Research 2014 Relevance of this research Almost 40% of respondents represent companies with revenues in excess of US$10bn The findings in this research are based on interim findings from 617 Global respondents versus 56 Consumer Goods and Services respondents Respondents were evenly spread across all major geographic regions 62% of respondents were CFOs and the remainder were other senior finance executives
  4. 4. Copyright © 2014 Accenture All rights reserved. 4 High Performance Finance Research 2014 Key findings | Global Managing volatility Navigating complexity The CFO as architect of business value •Finance functions have made significant progress in addressing powerful external forces that affect performance •Compared with our 2011 study, a lower proportion of CFOs say that regulation, permanent volatility, big data and analytics, and talent, are having a high impact on the performance of their finance function •CFOs are more satisfied with the performance of their teams than at any time since 2008 •Many of the key challenges facing finance relate to complexity, including complex legacy systems, addressing multiple stakeholders needs, supporting complex operating models, and mitigating new and complex risks •CFOs are structuring finance so that it has the flexibility to respond to complexity. They are implementing new operating models and technologies—a common theme is standardization •Companies are reducing their focus on cost control, and placing greater emphasis on growth activities •23% expect that their CFO will drive a broad enterprise transformation agenda in two years’ time The rise of digital on the CFO agenda •Many organizations are planning to invest heavily in digital technologies •Most organizations are at a relatively early stage of harnessing big data •CFOs are not just involved in digital technology investment decisions; some are getting in the driver’s seat High-performance businesses have more influential CFOs •They are more likely to report high levels of satisfaction with their finance function •They tend to have CFOs who have seen their strategic influence grow in recent years •They are more likely to have carried out operating model rationalization •They tend to have finance leaders that are more engaged in assessing technology investments
  5. 5. Copyright © 2014 Accenture All rights reserved. 5 High Performance Finance Research 2014 Key findings | Consumer Goods and Services (CG&S) Key challenges facing the CG&S CFO Key priorities Key digital investments •Navigating permanent volatility, and also dealing with changes in the regulatory environment •Ensuring that the finance function is effective and flexible in delivering what the business needs •Dealing with legacy systems and managing new and complex risks •Finding the resources to execute transformation plans and overcoming resistance to change •Adoption of big data/analytics to accelerate insights and drive integration of business services •Providing insightful analytics to all enterprise functions •Ongoing functional cost reduction, operating model rationalization, and supply chain optimization •Partnering with the CEO to drive transformational change •Big data and analytics will experience particularly strong increases in investment, as will cloud computing •Social media will continue to play a key role in accessing new consumers and establishing a competitive advantage •The CFO is heavily involved in assessing technology investments, especially in redefining the cost model of the business and monitoring the return on these investments, once new technologies are deployed
  6. 6. Copyright © 2014 Accenture All rights reserved. 6 High Performance Finance Research 2014 Global findings indicate that regulation and permanent volatility are having the biggest impact on the finance function 21% 29% 34% 38% 39% 53% 55% 54% 55% 56% 26% 16% 12% 6% 6% Talent - Major changes in demographics, needs, and skills of the finance workforce Digital Technology – Existing and emerging technologies such as mobility, social media, cloud, SaaS (Software as a Service) applied to create a digital … Big Data and Analytics - Increasing amount and sources of data volumes; and lack of synergy across systems and platforms Permanent Volatility - Globalization, uncertainty, pricing pressures and volatility Regulation - Shifting legislative, regulatory and compliance regimes High impact Moderate impact No impact or low impact How would you rate the effect of the following environmental developments on your finance function’s performance? Global findings •Regulation and permanent forces such as globalization and pricing pressures seem to have the highest effect on the performance of the finance function on a global level •Regulation shifts are seen as of much greater impact in the global sample than the CG&S one •The majority of the surveyed companies rate the environmental developments as having a moderate or high impact, something which seems to underline the need for an agile and flexible Finance function Digital Enterprise
  7. 7. Copyright © 2014 Accenture All rights reserved. 7 High Performance Finance Research 2014 Permanent volatility is also a concern for CG&S respondents, as are regulation and big data and analytics How would you rate the effect of the following environmental developments on your finance function’s performance? CG&S findings •Permanent volatility is the most significant environmental factor for the finance function of CG&S companies, though its perceived impact is lower than in the global sample •Regulation and big data and analytics are considered by CG&S executives to have an equally high impact •Overall, the global sample of respondents considers the impact of environmental developments to be greater than that of CG&S respondents Digital Enterprise 34% 30% 30% 29% 18% 59% 63% 52% 55% 46% 7% 18% 16% 36% Permanent Volatility - Globalization, uncertainty, pricing pressures and volatility Regulation - Shifting legislative, regulatory and compliance regimes Big Data and Analytics - Increasing amount and sources of data volumes; and lack of synergy across systems and platforms Digital Technology – Existing and emerging technologies such as mobility, social media, cloud, SaaS (Software as a Service) applied to create a digital business Talent - Major changes in demographics, needs, and skills of the finance workforce High impact Moderate impact No impact or low impact 7%
  8. 8. Copyright © 2014 Accenture All rights reserved. 8 High Performance Finance Research 2014 Globally, effectiveness of the finance function for business is considered very important How important are the following dimensions to the overall performance of your finance function? CFO-led transformation 66% 58% 51% 51% 50% 48% 43% 29% 28% 27% 18% 17% 30% 37% 44% 42% 44% 49% 48% 63% 65% 61% 59% 71% 3% 4% 5% 6% 5% 3% 8% 8% 6% 11% 20% 11% 1% 1% 1% 1% 1% 1% 1% 3% 1% Effectiveness of the finance function for the business (delivering what the business needs) Finance workforce effectiveness (productivity of the finance professional) Contributing to financial performance of the enterprise Flexibility of the finance function (ability to rapidly change in response to changing market conditions) Managing financial and non-financial risks Efficiency of the finance function for the business (cost to serve) Driving positive enterprise-wide change (leading programs beyond the finance function) Contributing to the strategic direction of the enterprise Addressing regulatory/compliance issues Preparing for growth Addressing sustainability issues (e.g. tracking carbon footprint) Capitalising on M&A opportunities – as acquirer or potential target Very important Important Unimportant Not important at all
  9. 9. Copyright © 2014 Accenture All rights reserved. 9 High Performance Finance Research 2014 How important are the following dimensions to the overall performance of your finance function? CFO-led transformation 68% 57% 54% 50% 45% 45% 38% 36% 27% 23% 16% 13% 30% 38% 45% 41% 50% 50% 54% 54% 66% 64% 54% 68% 4% 7% 4% 4% 9% 5% 11% 29% Effectiveness of the finance function for the business (delivering what the business needs) Flexibility of the finance function (ability to rapidly change in response to changing market conditions) Finance workforce effectiveness (productivity of the finance professional) Managing financial and non-financial risks Contributing to financial performance of the enterprise Efficiency of the finance function for the business (cost to serve) Driving positive enterprise-wide change (leading programs beyond the finance function) Preparing for growth Addressing regulatory/compliance issues Contributing to the strategic direction of the enterprise Addressing sustainability issues (e.g. tracking carbon footprint) Capitalizing on M&A opportunities – as acquirer or potential target Very important Important Unimportant Not important at all 7% CG&S respondents also rate effectiveness, as well as flexibility and productivity, as very important for the finance function 2% 1% 18%
  10. 10. Copyright © 2014 Accenture All rights reserved. 10 High Performance Finance Research 2014 Satisfaction with overall performance of their finance function is quite high How satisfied are you with the overall performance of your finance function across the following dimensions? CFO-led transformation 42% 38% 35% 35% 33% 28% 22% 19% 15% 15% 14% 7% 45% 46% 48% 48% 46% 55% 67% 66% 67% 59% 67% 69% 9% 14% 12% 13% 15% 13% 9% 11% 15% 21% 16% 19% 4% 2% 4% 4% 5% 4% 2% 3% 3% 5% 3% 4% 1% 1% 1% 1% Effectiveness of the finance function for the business (delivering what the business needs) Finance workforce effectiveness (productivity of the finance professional) Flexibility of the finance function (ability to rapidly change in response to changing market conditions) Managing financial and non-financial risks Driving positive enterprise-wide change (leading programs beyond the finance function) Contributing to financial performance of the enterprise Efficiency of the finance function for the business (cost to serve) Contributing to the strategic direction of the enterprise Addressing regulatory/compliance issues Addressing sustainability issues (e.g. tracking carbon footprint) Preparing for growth Capitalizing on M&A opportunities – as acquirer or potential target Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied
  11. 11. Copyright © 2014 Accenture All rights reserved. 11 High Performance Finance Research 2014 CG&S respondents appear less satisfied than their global counterparts How satisfied are you with the overall performance of your finance function across the following dimensions? CFO-led transformation 39% 39% 36% 34% 25% 25% 21% 16% 16% 14% 9% 5% 46% 34% 48% 43% 59% 57% 63% 64% 63% 64% 66% 63% 18% 11% 14% 13% 16% 9% 18% 16% 18% 21% 29% 5% 9% 5% 9% 4% 7% 4% 2% 4% 4% Effectiveness of the finance function for the business (delivering what the business needs) Driving positive enterprise-wide change (leading programs beyond the finance function) Flexibility of the finance function (ability to rapidly change in response to changing market conditions) Finance workforce effectiveness (productivity of the finance professional) Managing financial and non-financial risks Contributing to financial performance of the enterprise Efficiency of the finance function for the business (cost to serve) Addressing regulatory/compliance issues Preparing for growth Contributing to the strategic direction of the enterprise Addressing sustainability issues (e.g. tracking carbon footprint) Capitalizing on M&A opportunities – as acquirer or potential target Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied
  12. 12. Copyright © 2014 Accenture All rights reserved. 12 High Performance Finance Research 2014 CG&S respondents face similar challenges as compared to their global counterparts, and they find legacy systems and managing complex risks most daunting Which of the following are your greatest challenges as a senior finance executive? Digital Enterprise 55% 50% 48% 46% 28% 26% 25% 22% 22% 20% 18% 15% 13% 61% 48% 48% 50% 21% 16% 16% 29% 29% 21% 18% 14% 11% Global CG&S Complex legacy systems and environment The need to optimize the capital structure of the enterprise Managing the complex needs of all stakeholders (board of directors, investors, etc.) Managing new and complex financial, business and operational risks The need to support complex enterprise operating models, making process standardization difficult across finance Adapting the service model to align with business strategies and improve performance Lack of integration between corporate vision, strategy, operating plans and reporting processes Not enough time to focus on value-oriented finance capabilities due to high level of manual work, attention on controls or regulatory requirements Finding and retaining a skilled finance workforce Converting increased volumes of data into business insight to meet the speed required for decision making Inadequate access to appropriate enterprise-wide performance management information Lack of value-oriented culture and finance acumen throughout the enterprise Insufficient funding to enhance the finance function’s capabilities
  13. 13. Copyright © 2014 Accenture All rights reserved. 13 High Performance Finance Research 2014 28% 16% 36% 39% 36% 45% Today 2 Years Primarily on cost control Primarily on investment in growth-oriented activities (e.g. innovation, market expansion, etc.) About evenly split between cost control and growth 22% 11% 24% 28% 55% 61% Today 2 Years The focus of CG&S respondents is more balanced between growth investments and cost controls, and that balance is expected to become more prevalent in the future Which ONE of the following best characterizes your company’s/organization’s overall focus today and which do you expect to characterize your focus in two years’ time? CFO-led transformation Global findings CG&S findings
  14. 14. Copyright © 2014 Accenture All rights reserved. 14 High Performance Finance Research 2014 CG&S CFOs are measured on similar parameters as compared to their global peers, with other profitability metrics significantly trumping the importance of EBITDA Which of the following are used to measure the performance of your CFO? CFO-led transformation 58% 50% 45% 44% 39% 34% 32% 30% 28% 28% 24% 13% 10% 64% 38% 45% 34% 36% 43% 39% 29% 34% 36% 23% 11% 5% Profitability EBITDA Return on Capital (ROC) / Return on Invested Capital (ROIC) Cost/Cost Ratios Total Shareholder Return (TSR) EPS/Net Income Cash Flow Operating Income Margin Cost of Finance as a % of Revenue Revenue Growth Return on Equity (ROE) Other finance function measures (e.g. days to close) Non-financial measures (e.g. attrition) Global CG&S
  15. 15. Copyright © 2014 Accenture All rights reserved. 15 High Performance Finance Research 2014 Like their global counterparts, CG&S CFOs are likely to partner mainly with the CEO, COO and CSO to drive transformational change Which of the following C-level executives does the CFO partner with to drive transformational change? CFO-led transformation 81% 46% 39% 25% 24% 24% 21% 21% 83% 40% 40% 23% 21% 9% 32% 34% Chief Executive Officer Chief Operating Officer Chief Strategy Officer Chief Information Officer Chief Procurement Officer Chief Risk Officer Chief Marketing Officer Chief Human Resources Officer Global CG&S
  16. 16. Copyright © 2014 Accenture All rights reserved. 16 High Performance Finance Research 2014 Globally CFOs have seen their influence increase in areas like enterprise functions, regulation, strategic decision making etc., but reduce in areas like leveraging digital technologies, transaction processing etc. Over the past two years, to what degree has the CFO’s influence across the following enterprise activities changed? CFO-led transformation 21% 21% 20% 17% 16% 12% 12% 11% 11% 10% 10% 10% 40% 40% 40% 43% 45% 61% 40% 33% 30% 35% 32% 26% 32% 36% 37% 37% 37% 25% 47% 53% 54% 43% 55% 55% 6% 2% 3% 3% 2% 2% 1% 2% 4% 12% 2% 7% 1% 1% 1% 1% 1% 2% Partnering effectively with other enterprise functions Proactively responding to regulatory changes Providing insightful analytics to the company/enterprise Executing business transformation initiatives Building the business case for transformation Challenging and supporting strategic decision-making Influencing the strategic planning process Transforming the business model Executing transaction processing activities Identifying growth opportunities Transforming the operating model Leveraging digital technologies (e.g. Cloud, analytics, mobile) Significant increase Increase No change Decrease Significant decrease
  17. 17. Copyright © 2014 Accenture All rights reserved. 17 High Performance Finance Research 2014 CG&S CFOs have similarly seen an increase in their influence across the spectrum of enterprise activities Over the past two years, to what degree has the CFO’s influence across the following enterprise activities changed? CFO-led transformation 19% 15% 15% 13% 13% 11% 11% 11% 11% 11% 9% 9% 42% 43% 40% 47% 30% 62% 40% 34% 32% 32% 55% 47% 34% 42% 45% 30% 53% 26% 49% 51% 43% 38% 30% 42% 6% 9% 4% 4% 11% 19% 6% 2% 2% Providing insightful analytics to the company/enterprise Executing business transformation initiatives Building the business case for transformation Partnering effectively with other enterprise functions Transforming the business model Challenging and supporting strategic decision-making Transforming the operating model Executing transaction processing activities Leveraging digital technologies (e.g. Cloud, analytics, mobile) Identifying growth opportunities Proactively responding to regulatory changes Influencing the strategic planning process Significant increase Increase No change Decrease Significant decrease
  18. 18. Copyright © 2014 Accenture All rights reserved. 18 High Performance Finance Research 2014 Both global and CG&S organizations have initiated or completed activities such as functional cost reduction and operating model rationalization in the past two years, whereas CG&S organizations have focused relatively more on areas such as supply chain and new markets Which of the following has your organization initiated or completed in the past two years? CFO-led transformation 75% 66% 53% 43% 42% 35% 35% 31% 25% 23% 22% 19% 77% 70% 45% 52% 48% 34% 64% 29% 27% 38% 29% 18% Functional cost reduction Operating model rationalization Business portfolio rationalization New market entry Product/service rationalization Mergers and acquisitions Supply chain optimization Workforce rationalization Shared services creation/expansion Sustainability or Green initiatives Shift to digital technology and businesses Outsourcing Global CG&S
  19. 19. Copyright © 2014 Accenture All rights reserved. 19 High Performance Finance Research 2014 Like their global counterparts, CG&S CFOs are deeply involved in visioning functional cost reduction and operating model rationalization; their involvement is higher in areas such as product/service rationalization and new market entry For which of the following has the CFO been involved in vision? CFO-led transformation 72% 54% 35% 33% 32% 22% 21% 19% 18% 18% 13% 10% 72% 53% 38% 40% 26% 26% 30% 26% 26% 19% 9% 8% Functional cost reduction Operating model rationalization Business portfolio rationalization New market entry Mergers and acquisitions Global sustainability Product/service rationalization Shared services creation/expansion Supply chain optimization Workforce rationalization Outsourcing Digital revolution Global CG&S
  20. 20. Copyright © 2014 Accenture All rights reserved. 20 High Performance Finance Research 2014 The involvement of CG&S CFOs in design is even greater in areas such as functional cost reduction and new market entry For which of the following has the CFO been involved in design? CFO-led transformation 69% 45% 29% 28% 24% 20% 16% 16% 15% 14% 11% 9% 72% 40% 26% 34% 24% 22% 14% 14% 14% 14% 6% 4% Functional cost reduction Operating model rationalization Mergers and acquisitions New market entry Business portfolio rationalization Global sustainability Workforce rationalization Product/service rationalization Shared services creation/expansion Supply chain optimization Outsourcing Digital revolution Global CG&S
  21. 21. Copyright © 2014 Accenture All rights reserved. 21 High Performance Finance Research 2014 … which is also the case with implementation For which of the following has the CFO been involved in implementation? CFO-led transformation 72% 42% 28% 27% 21% 20% 17% 17% 13% 12% 12% 9% 76% 44% 18% 32% 22% 22% 12% 20% 20% 14% 10% 4% Functional cost reduction Operating model rationalization Mergers and acquisitions New market entry Global sustainability Business portfolio rationalization Workforce rationalization Shared services creation/expansion Supply chain optimization Product/service rationalization Outsourcing Digital revolution Global CG&S
  22. 22. Copyright © 2014 Accenture All rights reserved. 22 High Performance Finance Research 2014 Global CFOs consider building a business case and measuring the benefits of transformation as most challenging Which of the following aspects of business transformation does your organization find most challenging? (Enter consecutive answers in the range 1 to 3 where 1 is the most challenging) CFO-led transformation 50% 42% 34% 32% 31% 30% 28% 24% 19% 26% 27% 39% 36% 33% 36% 36% 40% 30% 24% 31% 27% 32% 36% 34% 36% 36% 51% Building the business case for transformation Measuring the business benefits of transformation Finding the resources to execute the transformation plan Achieving profitability without increasing revenues Identifying the right expertise to execute the transformation plan Reaching consensus among key stakeholders Managing the change process Overcoming resistance to change Explaining the benefits of the change to key external stakeholders 1 2 3
  23. 23. Copyright © 2014 Accenture All rights reserved. 23 High Performance Finance Research 2014 CG&S CFOs consider finding the resources to execute transformation plans and overcoming resistance to change as most challenging Which of the following aspects of business transformation does your organization find most challenging? (Enter consecutive answers in the range 1 to 3 where 1 is the most challenging) CFO-led transformation 45% 45% 41% 33% 33% 28% 23% 19% 13% 41% 27% 29% 42% 37% 32% 31% 25% 38% 14% 27% 29% 25% 30% 40% 46% 56% 50% Finding the resources to execute the transformation plan Overcoming resistance to change Measuring the business benefits of transformation Building the business case for transformation Managing the change process Reaching consensus among key stakeholders Identifying the right expertise to execute the transformation plan Achieving profitability without increasing revenues Explaining the benefits of the change to key external stakeholders 1 2 3
  24. 24. Copyright © 2014 Accenture All rights reserved. 24 High Performance Finance Research 2014 Compared to their global counterparts, CG&S organizations are similarly inclined to use digital technologies such as big data and analytics and cloud computing Organizations use digital technologies to … Digital Enterprise 65% 53% 23% 17% 14% 53% 51% 20% 14% 18% Big Data and/or Analytics Cloud Computing and/or Softwareas a Service (SaaS) Mobile Social Media N/A, not using digital technologies Global CG&S …deliver tangible business results for stakeholders 72% 57% 19% 13% 9% 63% 54% 10% 12% 10% Big Data and/or Analytics Cloud Computing and/or Softwareas a Service (SaaS) Mobile Social Media N/A, not using digital technologies … accelerate insights for better decision-making
  25. 25. Copyright © 2014 Accenture All rights reserved. 25 High Performance Finance Research 2014 CG&S organizations are ahead of their global counterparts in using digital technologies, especially social media, to access new consumers and establish a competitive advantage Organizations use digital technologies to … Digital Enterprise … create access to new consumers … establish a competitive advantage 62% 60% 58% 53% 18% 78% 59% 55% 39% 10% Social Media Mobile Big Data and/or Analytics Cloud Computing and/or Softwareas a Service (SaaS) N/A, not using digital technologies Global CG&S 67% 63% 56% 51% 28% 71% 67% 54% 63% 13% Cloud Computing and/or Softwareas a Service (SaaS) Big Data and/or Analytics Mobile Social Media N/A, not using digital technologies
  26. 26. Copyright © 2014 Accenture All rights reserved. 26 High Performance Finance Research 2014 CG&S organizations, as well as Global ones, rely heavily on cloud computing and big data/analytics to achieve integration of business services Which digital technologies are being used by your organization to achieve integration of business services across the enterprise (e.g. finance, HR)? Digital Enterprise 69% 66% 17% 11% 18% 67% 58% 14% 25% 14% Cloud Computing and/or Softwareas a Service (SaaS) Big Data and/or Analytics Mobile Social Media N/A, not using digital technologies Global CG&S
  27. 27. Copyright © 2014 Accenture All rights reserved. 27 High Performance Finance Research 2014 CFOs are considered quite important in driving a diverse set of outcomes for their organizations How important is having the CFO drive these outcomes for your organization? Digital Enterprise 49% 46% 43% 39% 32% 32% 29% 29% 26% 21% 17% 39% 43% 43% 51% 36% 49% 53% 39% 59% 64% 61% 9% 9% 11% 9% 21% 15% 14% 22% 11% 14% 19% 2% 1% 2% 9% 3% 3% 8% 3% 1% 2% 1% 1% 1% 1% 2% 1% 1% 2% 1% 1% Adapting swiftly to regulatory changes around the globe Delivering tangible business results for stakeholders Accelerating insights for better decision-making Creating cost transparency Developing new products, services and markets Reacting 24/7 to shareholder and market trends Establishing competitive advantage Creating access to new customers (B2B or B2C) Performing finance and accounting in the cloud Lowering operating costs despite rising complexity Integration of business services across the enterprise (e.g. finance, HR) Very important Important Neither important nor unimportant Unimportant Very unimportant
  28. 28. Copyright © 2014 Accenture All rights reserved. 28 High Performance Finance Research 2014 CG&S CFOs are considered even more important in driving many of the same outcomes How important is having the CFO drive these outcomes for your organization? Digital Enterprise 52% 52% 46% 38% 32% 30% 27% 25% 25% 21% 21% 36% 34% 38% 41% 46% 41% 52% 29% 29% 57% 48% 11% 13% 14% 16% 16% 27% 13% 34% 32% 16% 27% 4% 4% 7% 11% 13% 4% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Creating cost transparency Accelerating insights for better decision-making Delivering tangible business results for stakeholders Adapting swiftly to regulatory changes around the globe Establishing competitive advantage Lowering operating costs despite rising complexity Reacting 24/7 to shareholder and market trends Creating access to new customers (B2B or B2C) Developing new products, services and markets Performing finance and accounting in the cloud Integration of business services across the enterprise (e.g. finance, HR) Very important Important Neither important nor unimportant Unimportant Very unimportant
  29. 29. Copyright © 2014 Accenture All rights reserved. 29 High Performance Finance Research 2014 Globally, satisfaction levels with CFOs’ involvement in driving outcomes is quite high How satisfied are you that the CFO is sufficiently involved in driving these outcomes for your organization? Digital Enterprise 36% 36% 34% 26% 24% 24% 22% 18% 18% 13% 10% 48% 47% 47% 53% 55% 58% 54% 61% 59% 65% 67% 15% 13% 16% 17% 17% 14% 20% 18% 20% 17% 18% 1% 4% 2% 4% 3% 4% 4% 3% 3% 5% 5% 1% 1% Adapting swiftly to regulatory changes around the globe Delivering tangible business results for stakeholders Accelerating insights for better decision-making Reacting 24/7 to shareholder and market trends Establishing competitive advantage Creating cost transparency Developing new products, services and markets Performing finance and accounting in the cloud Creating access to new customers (B2B or B2C) Integration of business services across the enterprise (e.g. finance, HR) Lowering operating costs despite rising complexity Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied
  30. 30. Copyright © 2014 Accenture All rights reserved. 30 High Performance Finance Research 2014 There are similarly high levels of satisfaction among CG&S respondents with the involvement of their CFOs in driving outcomes How satisfied are you that the CFO is sufficiently involved in driving these outcomes for your organization? Digital Enterprise 38% 38% 30% 23% 20% 18% 16% 13% 11% 11% 7% 43% 39% 52% 54% 54% 52% 52% 59% 66% 52% 68% 20% 23% 13% 20% 21% 27% 30% 27% 23% 30% 21% 5% 4% 5% 4% 2% 2% 7% 4% Accelerating insights for better decision-making Adapting swiftly to regulatory changes around the globe Delivering tangible business results for stakeholders Creating cost transparency Reacting 24/7 to shareholder and market trends Establishing competitive advantage Creating access to new customers (B2B or B2C) Performing finance and accounting in the cloud Lowering operating costs despite rising complexity Developing new products, services and markets Integration of business services across the enterprise (e.g. finance, HR) Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied
  31. 31. Copyright © 2014 Accenture All rights reserved. 31 High Performance Finance Research 2014 18% 14% 10% 10% 20% 10% 16% 12% 41% 38% 47% 53% 20% 38% 25% 22% 2% Cloud Computing and or Software as a Service (SaaS) Mobile Social Media Big Data and or Analytics Cloud and mobile technologies will attract the greatest spending increases, both globally and among CG&S companies Over the next two years, how will the level of investment (this includes all personnel, technology, administration, and project costs) by the organization change for the following technologies? Digital Enterprise 11% 9% 7% 6% 28% 14% 21% 11% 48% 42% 55% 37% 14% 34% 15% 44% 1% 2% 1% 1% Cloud Computing and or Software as a Service (SaaS) Mobile Big Data and or Analytics Social Media Greater than 50% increase Between 26% and 50% increase Up to 25% increase No change Up to 25% decrease Between 26% and 50% decrease Greater than 50% decrease Global CG&S
  32. 32. Copyright © 2014 Accenture All rights reserved. 32 High Performance Finance Research 2014 Global and CG&S CFOs are similarly involved in assessing digital technology investments To what degree is the CFO involved in assessing digital technology investments? Digital Enterprise 27% 37% 19% 38% 59% 57% 40% 56% 14% 6% 41% 6% Guiding, prioritizing and managing technology investment decisions Monitoring the return on the investment from approval to post implementation Identifying what technologies should be retired as new technologies are deployed to ensure full benefit realization Redefining the cost model of the business as new technologies are implemented Drives decisions and actions Provides input Not at all Global CG&S 24% 35% 19% 37% 63% 58% 44% 58% 14% 8% 37% 6% Guiding, prioritizing and managing technology investment decisions Monitoring the return on the investment from approval to post implementation Identifying what technologies should be retired as new technologies are deployed to ensure full benefit realization Redefining the cost model of the business as new technologies are implemented
  33. 33. Copyright © 2014 Accenture All rights reserved. 33 High Performance Finance Research 2014 Global respondents are largely in agreement with these statements Please indicate the extent to which you agree or disagree with the following statements. Digital Enterprise 40% 31% 31% 23% 17% 43% 49% 55% 58% 58% 11% 15% 8% 14% 19% 5% 4% 6% 4% 5% 1% 1% The target setting process in our organization ensures alignment of goals across the enterprise We monitor the impact of volume, price and product mix changes on the business The capital planning process in our organization is fully integrated with the business planning and budgeting processes Business management has a high degree of confidence in the outputs of the budget and forecasting process The planning and budgeting process in our organization is based on clearly visible internal and external drivers Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
  34. 34. Copyright © 2014 Accenture All rights reserved. 34 High Performance Finance Research 2014 CG&S respondents express similarly strong levels of agreement Please indicate the extent to which you agree or disagree with the following statements. Digital Enterprise 41% 38% 20% 20% 14% 36% 45% 66% 59% 64% 20% 11% 7% 20% 14% 4% 7% 5% 2% 7% 2% We monitor the impact of volume, price and product mix changes on the business The target setting process in our organization ensures alignment of goals across the enterprise The capital planning process in our organization is fully integrated with the business planning and budgeting processes The planning and budgeting process in our organization is based on clearly visible internal and external drivers Business management has a high degree of confidence in the outputs of the budget and forecasting process Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

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