HfS Webinar Slides: Finance in the Digital Age

The Services Research Company
Finance in The Digital Age
Webcast Production, April 21st 2016
Mohit Bhatia
Vice President
Mondelēz International
mohit.bhatia@mdlz.com
Phil Fersht
CEO & Analyst
HfS Research
phil.fersht@hfsresearch.com
Reetika Joshi
Research Director
HfS Research
reetika.joshi@hfsresearch.com
Kim Huddle
Managing Director
KPMG
khuddle@kpmg.com
Shantanu Ghosh
Senior Vice President
Genpact
shantanu.ghosh@genpact.com

Agenda
• Introduction
• Study Findings
• Panel Discussion
• Wrap-up

About HfS, The Services
Research Company

Overview:
• 20 years’ business experience in the global IT and business process
outsourcing and shared services industry
• Coined the “As-a-Service Economy” in 2014
• Industry analyst, author, speaker, strategist and blogger
• Advised and cogitated on 100’s of global IT services, BPO and shared
services engagements
• Meddles with the largest global network of enterprise services and
operations professionals
Career Experience:
• Practice Lead, IT Services & BPO Research, Gartner, Inc
• Global BPO Marketplace Leader, Deloitte Consulting
• Consulting Practice Lead, IDC Asia/Pacific
• IT Markets Practice Lead, IDC Europe
Education:
• BS with Honors in European Business & Technology, Coventry University,
United Kingdom
• Diplôme Universitaire de Technologie in Business & Technology from the
University of Grenoble, France
phil.fersht@hfsresearch.com
Phil Fersht, Founder, CEO and Analyst, HfS Research

Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com

© 2016 HfS Research Ltd. Proprietary │Page 8
…With a More Serious Side Too! www.hfsresearch.com

© 2016 HfS Research Ltd.
The HfS Service Buyer Summits… next up San Fran
www.hfsevents.com/san-francisco-2016

Then onto New York…
www.hfsevents.com/new-york-2016

8. Plug & Play Digital Business
Services
Plug into “ready to go” outcome-focused, people
/ process / tech solutions with security measures
and consumption-based pricing
Being As-a-Service…
AS-a-SERVICE IDEALS INTELLIGENT OPERATIONS
1. Writing off Legacy
Adopting longer-view mindset to overhaul
obsolete processes and scrap legacy tech
investments. A preparedness to invest in change
2. Design Thinking
Reimagining processes with service partners to
achieve defined, prioritized outcomes
3. Brokering of Capability
Source/manage expertise from all available
sources to address capability gaps
4. Collaborative Engagement
Moving beyond the FTE model to drive
sustained, continual value
5. Intelligent Automation
Embracing automation and cognitive computing
to augment human performance
6. Having Actionable &
Accessible Data
Applying insights from integrated data, in real-
time with meaningful business context
7. Holistic Security
Proactively managing data across the entire
service chain of people, systems & processes

The C-Suite wants new providers, new leadership and their
operations redesigned…
77%
69%
62%
54%
54%
54%
46%
46%
27%
36%
24%
43%
23%
25%
28%
48%
Replace your existing (legacy) service provider(s) with “As-a-
Service” driven providers
Identify / hire a transformational leader / change agent
Invest in specialized external services to redesign operations
Accomplish creative problem solving / "Design Thinking"
Invest in external IT services to help us migrate away from
legacy systems
Invest in specialized change management support to reorient
operations staff
Hire in new operations talent to redesign processes
Invest in effective analytics tools & skills
Significant Impact
C-Level Middle Management
How much impact would taking the following actions help you reach your desired “As-a-Service” end-
state, if you were to make them today?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Buyers > $1 Billion Revenues = 178

Work in As-a-Service Progress: Digital and Data the real
drivers, but current model is still delivering value
66%
53%
52%
39%
31%
23%
21%
17%
13%
Reducing the overall cost of process delivery
More digitally-aligned operations
Access better data to improve our business
Move to an outcomes-driven sourcing model
Reduced reliance on manual labor to deliver processes
Responding to disruptive competitors
Ability to access, in "real time", more flexible pools of
skilled labor
Pre-empting competitors in our target growth markets
No more value to be found in current sourcing model
What are the most significant drivers in your move to the “As-a-Service Economy”? (Choose
top 3)
Source: "Ideals of As-a-Services" Study, HfS Research2015
Sample: Enterprise Service Buyers = 178

Overview
• Tracks verticalized technology-enabled operations in banking, financial services and
insurance
• Tracks enterprise analytics services across business functions and industry verticals
• Conducts Blueprint reports across service areas in global sourcing
Previous Experience
• Project Manager in the sourcing research wing of the business research and consulting firm
ValueNotes, encompassing a range of responsibilities, including research product design
and development for the outsourcing community, management of custom research
engagements, and development of thought leadership through targeted content and
community interaction
• Niche BPO and KPO coverage, including analytics, medical transcription, market research,
and e-learning
• Bespoke engagements, including in-depth competitive intelligence studies, market and
investment opportunity assessments, demand-side surveys, and marketing communication
optimization for outsourcing buyers, providers, consultants, and investors
Education
• Bachelor’s in Business Administration, Symbiosis International University, India
• Master’s in Marketing Management with Beta Gamma Sigma honors, Aston Business
School, UK
Reetika Joshi
Research Director, Operations & Analytics Strategies
HfS Research
reetika.joshi@hfsresearch.com
@joshireetika

© 2016 HfS Research Proprietary │Page 18
New Research Provides A Snapshot of ‘Digital F&A’ Today
With responses from 160 buyers, 130 service providers and 90 advisors, this study
presents challenges, opportunities and future implications for the finance and
accounting market as a whole.
■ Still A Long Way To Go In F&A Outsourcing. The
dominant operating model for F&A is still shared
services and internal business units.
■ Room For Improvement In Finance Operations
Performance. Most buyers express a ‘Satisfied’ state
(63%) with only 9% being Very Satisfied with the
operational performance of F&A processes.
■ Digital presents a real opportunity to address the
current operational state of F&A. We find F&A
executives hopeful about the future of digital
enablement, ‘sold’ on the value proposition and
business outcomes, but struggling to see the business
impact today, leading to heightened expectations from
service providers in the next two years.
As a Finance executive shared on
the nuances of operational
satisfaction, “In P2P, most of
transactional work went over into
BPO just fine. It was in vendor
contacts and problem solving
where we initially didn’t fully
anticipate the problem solving
layer, but the territory finance
teams did. We wound up putting a
senior layer of problem solvers
into our BPO and that really
moved us up on satisfaction.”

Finance Professionals Buy Into Digital Transformation
To what extent do you agree / disagree with the following statements?
Source: “Finance In The Digital Age”, HfS Research 2016
Sample: Enterprise Buyers = 160
35%
32%
23%
25%
28%
49%
50%
53%
51%
46%
13%
16%
16%
19%
18%
7%
4%
6%
Enterprises thatembrace digital transformation across
business functions will gain more ground than their
competitors in the next couple of years
Successful digital transformation impacts the whole service
experience for end customers and internal employees, by
integrating the front, middle and back office processes
The new wave of digital technologies is fundamentally
changing the way that the finance function operates
Finance professionalswho embrace digital technologies will
experience fastercareer progression
Service providers that fail to embed more digital capabilities
within their finance and accounting operations will see their
value proposition fade away
AgreeStrongly Agree Somewhat Neutral Disagree Somewhat Disgree Strongly

…But 1 in 2 Buyers Is Unsatisfied With Digital Impact Today
How satisfied are you with the impact of digital technologies in your F&A processes today?
7%
8%
7%
12%
10%
10%
6%
46%
44%
45%
40%
41%
41%
44%
35%
34%
37%
30%
34%
33%
40%
11%
13%
9%
13%
14%
15%
8%
6%
Record to Report
Overall
Order to Cash
Financial Planning & Analysis
Procure to Pay
Treasury, Budgeting
Audit
Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied

Buyers’ Wish list—Be More Data-Driven & Efficient Processes
Thinking about the adoption of digital technologies, how important would you say the
following business drivers are to your finance organization?
35%
39%
32%
31%
30%
23%
31%
19%
23%
57%
49%
51%
52%
52%
59%
49%
56%
47%
7%
10%
15%
16%
17%
17%
19%
23%
29%
Improve operational insights to increase productivity
Gain operational efficiency to help staff focus on higher
value activities
Break from legacy technology that is holding back our
organization
Create a more analytical culture among staff
Enhance our collaborative capability with our
customers and partners
Promote more creative thinking and collaboration
among staff
Expand market insights to improve competitiveness
and growth opportunities
Lessen the need to keep hiring new staff to support
business growth
Improve the mobility experience of employees
Huge importance Some importance Minimal importance No importance at all

Investments in Digital Enablement Are Low As of Today
14%
15%
11%
10%
10%
9%
43%
39%
41%
42%
33%
26%
30%
38%
36%
35%
23%
34%
13%
8%
11%
14%
35%
31%
Cloud-based / SaaS platforms upon which to build
shareable digital capabilities
Analytics and big data tools and applications
Mobility tools and applications
Interactive / collaborative tools, applications and
social media
Cognitive computing platforms and machine
learning
Robotic process automation (RPA) tools and
applications
Investing heavily to get ahead of the curve About the right amount for today's needs
Some investment, but not enough Minimal / no investment
What have been your investments so far in embedding Digital components into your F&A
processes?

Buyers ‘Satisfied’ With Digital F&A Are Behaving Differently
■ They expect a much bigger impact in the next two years and are accordingly
investing more
■ They are significantly more focused on data-driven collaboration
■ They are better coordinated with IT and don’t see alignment as a key challenge
■ Their top-five definitive plans of action involve digital talent expansion
■ They have far stronger views on changing talent requirements for future finance
professionals
8% 44% 34% 13%
Overall Satisfaction With Digital Impact on
F&A
Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied

Agenda
• Introduction
• Study Findings
• Panel Discussion
• Wrap-up

Overview
• Mohitjoined Mondelēzin April 2015 and is responsible for leading the strategy and
execution of the overall Finance & Tax Shared Services agenda including partnering with
the service providers and Mondelezleadership.
• This position is also responsible for the enabling finance organization supporting Mondelēz
Business Services (MBS). Since he is based in New Delhi, he also plays the role of being the
Client Executive representing MBS for the APAC region.
• Very recently, in addition to his existing responsibilities, he was given charge of the Global
Finance transformation program.
Previous Experience
• Mohitis a Chartered Accountant and has about 28 years of experience which includes
almost 5 years as a Public Company CFO.
Misc
• He has a wife and a 14 year old daughter. He loves to spend time with them and holiday
whenever he gets a chance. His other interests include listening to music, fine dining and
reading.
Mohit Bhatia
Vice President, Mondelēz Business Services Finance
Mondelēz International
Mohit.bhatia@mdlz.com

Overview
• Kim has over 25 years of industry experience in Operations, Service Delivery, and Advisory
with a primary focus on organizational and operational transformation.
• Kim has helped companies realign their structure, governance and management processes,
establish shared service centers, evaluate and transition services to outsourcing
arrangements, plan and transition processes to onshore and offshore centers, re-engineer
administrative business processes, and reduce the overall cost structure and spend on
goods and services.
Previous Experience
• Kim has extensive experience across many industries in delivering services as well as
assisting companies improve the delivery of their general and administrative support
services. Her functional areas of focus span Finance and Accounting, Human Resources,
Procurement and Customer Service and Logistics, Supply Planning, Customer Care,
Information Technology, Data & Analytics and Enabling Technologies.
• Provided advisory support for a large CPG company leading a $1.25 billion restructuring
initiative which includes development and implementation of Global Business Services,
reorganizing the Commercial Operations, optimizing the Supply Chain organization and
expanding Global Data and Analytics capabilities.
• Led project to support a Latin American MFG Company to evaluate and develop strategic
alternatives for their information technology, finance and accounting and human resources
shared services operations across all business units globally.
• Provided advisory support to the executives at a large financial group as they evaluated
their current delivery model in the areas of Finance and Accounting, Credit and Global
Banking Operations.
Kim Huddle
Managing Director, Shared Services and Outsourcing Advisory
KPMG
khuddle@kpmg.com

Overview
• Shantanu Ghosh is responsible for Genpact'sservice lines that cut across all industry
verticals - Finance & Accounting, Sourcing and Procurement, Customer service and Human
Resources.
• In addition, he leads Genpact's Consulting and Risk advisory services. He joined Genpactin
early 2005 and has built the Finance and Accounting (F&A) business for global clients
outside of GE, making Genpact an industry leader in the domain of F&A services.
• He frequently represents Genpactat industry forums and contributes to thought leadership
efforts through white papers and webinars.
Previous Experience
• Prior to joining Genpact, Shantanu was CFO for GE India with oversight responsibility for all
GE businesses in the country. In this capacity, he led the implementation of GE’s risk and
compliance frameworks in the different operating companies, was the head of GE’s
Corporate Audit team in India and was responsible for GE’s Finance Management Training
Program for India.
• Shantanu joined GE as the CFO and pricing leader for GE’s Consumer Finance business in
India. Before GE, Shantanu worked with Unilever India.
Education
• Shantanu is a Chartered Accountant and has a Bachelor’s of Commerce Degree from St.
Xavier’s College, India.
Shantanu Ghosh
SVP – CFO Services & Consulting
Genpact
Shantanu.ghosh@genpact.com

Plans to Improve Digital Finance: Analytical Capability & Digital IT
Do you plan to execute on the following actions to improve your 'Digital finance' experience
over the next 24 months?
Source: “Re-architecting Finance" Study, HfS Research 2016
30%
29%
19%
24%
28%
22%
20%
11%
17%
17%
42%
40%
50%
44%
37%
38%
36%
44%
29%
20%
19%
20%
23%
22%
23%
24%
30%
27%
27%
27%
9%
11%
8%
9%
12%
16%
14%
18%
27%
35%
Invest in effective analytics tools & skills
Invest in internal IT talent to help migrate from legacy finance systems
Invest continuously in developing competencies for mid and senior level
finance staff to understand and drive Digital transformation
Retrain internal operations talent to redesign finance processes
Invest in external IT services to help us migrate away from legacy finance
systems
Hire in new talent that "gets Digital" to redesign finance processes
Invest in 3rd party services to redesign finance operations to incorporate
Digital technologies
Creative problem solving / Design Thinking with service partner
Identify / hire a transformational leader / change agent
Invest in robotic process automation
Have made definitive plans to execute Considering, but no actions yet Undecided No plans at all

Digital Outcomes: F&A Leaders Seek Rapid Cycle Time
Optimization From Digital
To what degree do you think the adoption of digital technologies will impact the following in
the next two years?
34%
28%
26%
26%
25%
21%
19%
53%
49%
65%
54%
62%
54%
53%
11%
20%
8%
17%
13%
21%
25%
Cycle time optimization
Agility of the business to drive changes in operating
model
Cost and productivity
User experience in finance processes
Leveraging financial and non-financial data for better
decision making
Internal and external customer experiences of finance
processes
Operational risk management
Huge impact Some impact Minimal impact No impact at all

Senior Management Disconnected From Operational Layer’s
Issues
18%
18%
18%
18%
16%
13%
9%
3%
1%
6%
7%
10%
3%
4%
Overall
Order to Cash
Procure to Pay
Treasury, Budgeting
Financial Planning &
Analysis
Record to Report
Audit
SVP+
VP and Below
How satisfied are you with the impact of digital technologies in your F&A processes today?
(Very Satisfied)

Source: Future of Jobs Report, World Economic Forum, 2016
Top skills in 2020 shift to Critical Thinking,
Creativity and Emotional Intelligence

Analytics, Creativity, Automation and End-to-end Process
Capability dominate talent requirements in finance
45%
37%
35%
34%
32%
30%
25%
21%
43%
51%
51%
57%
51%
58%
54%
52%
11%
12%
13%
9%
17%
11%
21%
27%
Analytical skills to improve operations / productivity
Proactively identifying new ways of doing things
Understanding / using automation
Improving end-to-end processes
Influencing senior executives
Defining business outcomes
Understanding Lean principles
Application of design thinking
Increasing significantly Increasing somewhat No change / decreasing
To what extent are the following talent requirements increasing in importance to gain more
value from your finance professionals?

Most Buyers view Service Providers as Execution Shops…
28%
52%
17%
3%
A vital partner that plugs critical gaps
in terms of skills, global scale, domain
knowledge and technology
A great vehicle to drive down costs
and improve efficiencies
An access to cheap labor, but little
value beyond that
General disappointment
Source: The HfS Working Summit for Service Buyers, December 2015
(Sample 53 enterprise outsourcing leads)
Buyers: What do you really think about service providers?

Less than a third of providers are chasing digital talent…
38%
32%
32%
31%
30%
29%
27%
25%
11%
33%
37%
45%
38%
36%
27%
24%
37%
56%
13%
29%
10%
23%
25%
24%
37%
22%
22%
16%
2%
13%
8%
9%
21%
11%
16%
11%
Investing in a robotic process automation platform
Taking short term revenue sacrifices with existing
clients to invest in Digital capabilities that add…
Investing in analytics talent
Aggressively pursuing risk-sharing deals with clients to
co-create Digital solutions we can industrialize
Investing in millennials with a Digital culture and
mindset
Investing in Digitally-savvy transformational consultants
Investing in a cognitive computing platform
Actively targeting acquisitions to add new Digital
capabilitles
Targeting re-bids with low-margin offers to steal away
high-potential clients
Aggressively pursuing this strategy with hard investments
Opportunistically pursuing, with some investments
Not doing enough to get ahead of this
Doing very little and hoping the old model keeps us alive for the foreseeable future
How aggressively is your firm taking the following measures to generate more Digitally-
aligned engagements with your clients?
Sample: Enterprise Service Providers = 130

Budget Restrictions And Lack of Process Standardization Stand
In The Way
What are the top 3 obstacles to your firm achieving more F&A business impact through
digital? Rank your top 3 with 1 being the biggest obstacle.
51%
48%
38%
33%
29%
22%
22%
20%
16%
13%
12%
Lack of budget
Lack of process standardization
Co-ordination between IT and business
Dealing with legacy systems
Middle management incentives
Failure to align digital to business outcomes
Senior manaement incentives
Senior management don't see benefit
Change management
Lack of service provider capability
Lack of IT department capability

The “Master/Slave” Model Dominates Today’s
Services Relationships
21%
69%
10%
Collaborative – we jointly
strategize and execute
Directive – we tell them
what to do
Dysfunctional – there’s a
general lack of
communication and
accomplishment
Buyers, please describe your relationship with your
primary service provider…

How buyers would improve the quality and outcomes
from their current service relationships…
28%
13%
9%
45%
4%
2%
Letting go and giving up more higher-value work to
our service provider(s)
Threatening to entertain competitive bid(s) to force
your current provider(s) to up their game
Bring back more work in-house and improve it
ourselves
Roll out an automation strategy in tandem with our
provider
Bring in a specialist advisor to recalibrate our
relationship(s) and get us on the right course for As-
a-Service
Not a lot – we paid for “cheap and cheerful” and
that’s what we’re stuck with

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