The Management Accountant in a Digital World The interface of strategy, technology, and cost of information

IMA Platte Valley Chapter September 12, 2017
The Management Accountant in a Digital World
The interface of strategy, technology, and cost of information
Presented by: Liv Apneseth Watson
IMA Platte Valley Chapter
September 12, 2017

Today Agenda
•About Workiva, Inc
•The Elephant in the Room
•How Did We Get Here?
•Today's Data Life Cycle
•The Emerging Programmable Economy
•What Every Management Accountant Needs to
Know About Good Data Governance

My Story!
MTV
Videos
EU
Skateboard
Champion
Around the
World with
XBRL
Workiva,
Inc .
NYSE: WK

23%
2016 Annual Revenue
Growth
$178.6 Million
2016 Annual
Revenue
96%
Revenue Retention
95%
Customer
Satisfaction
3.1 Billion
Data Elements
Over 2,900 customers. Used in 120 countries.
70%
500 Largest
Companies
About Workiva

The Elephant in the Room
Data as an Asset

The ability to manage
torrents of business
reporting data is
critical to any size
company’s success
Forget big data — let's talk about all business
reporting data

The Future of Financial Reporting Survey 2017

What If the US Regulatory
Burden Were Its Own Country?

How Did We Get Here?

A Brief Ancient History of Data
C 18,000 BCE
Tally
Sticks
C 2400 BCE
Abacus
300 BC – 48 AD
The Library
of
Alexandria
C 100 – 200 AD
The
Antikythera
Mechanism

A Brief History of The Emergence of Statistics
1663 1865
Coined the term
“Business
Intelligence”
by Richard Millar
Devens
John Graunt
1880
The US Census Bureau
The bureau estimates that it
will take them 8 years to crunch
all the data collected in the
1880 census.
Design an early
warning system
for the bubonic
plague

A Brief History of The Early Days
of Modern Data Storage
1926 1928 1944
Fremont Rider published a
paper titled "The Scholar and
the Future of the Research
Library".
An early attempt to quantify
the amount of information
being produced. This led him
to speculate that the Yale
Library, by 2040, will contain
200 million books spread over
6,000 miles of shelves.
"When the wireless technology
is “perfectly applied the whole
Earth will be converted into a
huge brain,,,, and the
instruments through which we
shall be able to do this will be
amazingly simple compared to
our present telephone. A man
will be able to carry one in his
vest pocket.”
----- Nikola Tesla
The Magnetically Tape
An innovation by Fritz
Pfleumer. The principles
he develops are still in use
today, with the vast
majority of digital data
being stored magnetically
on computer hard disks.

A Brief History of The Beginnings
of Business Intelligence
1958
Mr. Hans Peter Luhn
defines Business
Intelligence as “the
ability to apprehend
the interrelationships
of presented facts in
such a way as to guide
action towards a
desired goal.”
William C Dersch
presents the Shoebox
Machine at the 1962
World Fair. It can
interpret numbers and
sixteen words spoken in
the English language into
digital information.
Defines Business
Intelligence
1962
Speech
Recognition
An article in the New
Statesman refers to the
difficulty in managing the
increasing amount of
information becoming
available.
1964
Big
Data

A Brief History of The Start of Large Data Centers
1965
The US Government plans
the world’s first data
center to store 742 million
tax returns and 175
million sets of fingerprints
on magnetic tape.
Edgar F Codd presents his
framework for a “relational
database”. The model
provides the framework that
many modern data services
use today, to store
information in a
hierarchical format.
The World’s First
Data Center
1970
Relational
Database
(MRP) systems represented
one of the first mainstream
commercial uses of
computers to speed up
everyday processes and
make efficiencies. Until now,
most people have probably
only seen them in research
and development or
academic settings.
1976
Material Requirements
Planning (MRP) systems
Erik Larson pens an article for
Harpers Magazine speculating on
the origin of the junk mail he
receives. He writes: “The keepers of
big data say they are doing it for the
consumer’s benefit.
1989
Big Data
1977

How Did We Get Here?
1991 1998 2008 2009
HTML
Tim Berners-Lee set
out the specifications
for a worldwide,
interconnected web of
data, accessible to
anyone from
anywhere.
XBRL
SEC adopts rule requiring
XBRL for public company
and mutual fund reporting
as well as credit rating
agency disclosures
Satoshi Nakamoto and
“Bitcoin: A Peer-to-Peer
Electronic Cash System”
Paper available at
https://bitcoin.org/bitcoin.pdf
+
Bitcoin
software
released by
Nakamoto
"Blockchain 2.0"
Distributed Ledger
2009

Data is meaningless unless it is organised in a
way that enables people to understand it,
analyse it and ultimately make decisions and act
upon it timely, i.e. by creating digital
consumable information.
Smart Data

Smart Structured Data
Automating rules for validating data
XBRL Element Composition
Standard label Base properties
Calculations
References

Chapter 9, Information
Technology,
Co-authored by Liv Watson
Contextual Reporting

Today's Data Life Cycle
Management

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel
Email
PDF
Screenshot
Phone Calls
Source: Workiva, Inc

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel (CSV)
Document
Excel
Email
PDF
Screenshot
Phone Calls
HFM /BPC
Excel (CSV)

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel
Email
PDF
Screenshot
Phone Calls
Large Data
Set
Staging
Documents
Rounding
Adjustments
Footing
Excel (CSV)
Document
HFM /BPC
Excel (CSV)

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel
Email
PDF
Screenshot
Phone Calls
Large Data
Set
Staging
Documents
Consistent
Text
Analytical
Review
Rounding
Adjustments
Footing
Excel (CSV)
Document
HFM /BPC
Excel (CSV)

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel
Email
PDF
Screenshot
Phone Calls
Excel (CSV)
Document
HFM /BPC
Excel (CSV)
Key Challenges
• Data Governance
• Time to Report
• Not Sustainable
• Excessive Manual Effort
• Lack of Time For Review
• Collaboration
• Duplicative Processes
• Version Control

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel
Email
PDF
Screenshot
Phone Calls
Excel (CSV)
Document
HFM /BPC
Excel (CSV)
Large Data Set
Staging Document
Single point for:
Adjustments
Rounding
Footing
Analytical Review
Consistent Text

Structured Data
Unstructured Data
ERM/ERP/GL
Core System Data
Excel
Email
PDF
Screenshot
Phone Calls
Excel (CSV)
Document
HFM /BPC
Excel (CSV)
Key Enhancements
• Increased Data Governance
• Version Control
• Decreased Time to Report
• Sustainable/Repeatable
• Automate Manual
Redundancies
• Detailed Analytical Review
• True Collaborative Process
• No Unintended Changes
• Audit Trail

SEC
Investor
Relations
Statutory
Reporting
10-K
10-Q
8-K
XBRL
S-1
S-4
Proxy
FRS 101
FRS 102
UK IFRS
Earnings Presentation
Call Script (CEO/CFO)
FAQ Book
Board Presentations
Road Show
Presentation
Industry/Peer Analysis
Structured
Data
Unstructured
Data
HFM /BPC
Excel (CSV)
ERM/ERP/
GL
Core
System
Data
Excel (CSV)
Document
Excel
Email
PDF
Screenshot
Phone Calls
Large Data Set
Staging Documents
Single Point For:
Adjustments
Rounding
Footing
Analytical Review
Consistent Text
Reimagine Data Architecture

Corporate
Acct/Fin
Policies &
Procedures
Doc Sign off
Monthly/Quarterly
Packages
Executive Flash
Reports
Variance Analysis
Sales/Operations
Reports
Consolidated B/U
Reports
Flash Reports
Forecast
Business
Unit Fin
Front Line B/U Reports
War Room Reports
KPI Reports
Sales/Marketing Per BU
Costs Vs Actual
Manufacturing/Variance
Total Cost of Quality
Quarter Comparisons
Working Capital Analysis
Variance Analysis
FP&A/
Strategic
Planning
1, 3, 5 Year Plans
Budget to Actual
KPI Reports
"What If" Scenarios
Flash Reports
Monthly/Quarterly Packages
Annual Operating Plan
General Accounting
Policies
White Papers
Certifications/Sign Off
Legal
Corporate
HR
Structured
Data
Unstructured
Data
HFM /BPC
ERM/ERP/
GL
Core
System
Data
Excel (CSV)
Document
Excel
Email
PDF
Screenshot
Phone Calls
Large Data
Set
Staging
Documents
Consistent
Text
Analytical
Review
Rounding
Adjustments
Footing
Excel (CSV)

The overall condition of data
assets is directly dependent
on the company’s ability
to align people,
processes, lines of
business, and
technologies. It requires
that all of these things work
together to produce the
desired outcomes that make
data fit for its business
purpose.
Key Takeaway

What every management accountant should know
about the Emerging Programmable Economy
Gartner Says the Programmable Economy Has the
Potential to Disrupt Every Facet of the Global Economy

A massive technology-enabled
transformation of traditional concepts of
value exchange, empowering individuals and
smart machines to both define value and
determine how it is exchanged.
The Programmable Economy

< 50 % of the an organization's structured
data is actively used in making decisions.
<1 % of its unstructured data is analyzed or
used at all.
> 70 % of employee has access to data they
should not.
> 80 % of analysts time is spent simply
discovering and preparing data.
SSOTs to MVOTs Architecture
What is Your
Data Strategy?

A Flexible Data and Information Architecture
Single-Source-of-Truth
SSOTs
Multiple-Version-of-the-Truth
MVOTs
Updates to the data element in the SOOTs
location propagate to the entire system without
the possibility of a duplicate value somewhere
being forgotten no matter what formatting.
Any possible linkages to SOOTs data element are
by reference only in the MVOTs.

Reporting with SSOT to MVOTs

BlockChain + XBRL
FinTech
Aims to compete with traditional
financial methods in the delivery of
financial services.
RegTech
Aims to address regulatory
compliance challenges through
technological innovation.
• The integration of blockchain and XBRL provides a seamless data solution, with blockchain as a
potential output from XBRL based reporting.
• Blockchain’s smart contracts and smart assets might be facilitated by XBRL’s powerful, persistent
data model.
• General Data Protection Regulation (GDPR) might be an issue for the use of Distributed Ledger
Technologies).
+

Smart Contracts, Blockchain & Data Standards
• A token is a digital representation of an asset which
could be debt, equity, cash or a physical asset (i.e. a
vehicle or a piece of artwork).
• The blockchain is a digital distributed ledger that
records and facilitates transactions.
◦ Tokens, which are representational units of an
asset, provide the mapping of an account to an
asset and maintain a record of ownership. They
are used on a blockchain to assign ownership
and rights of underlying assets that are
transacted through smart contracts (digital
contractual agreements) on the blockchain.
XBRL US and ConsenSys are developing a blockchain token standard
Creating a standard method
to tokenize transacted assets
is necessary to communicate
ownership and value.
Without standardization, the
speed, accuracy and
automation promised by
smart contracts on the
blockchain,
Campbell Pryde, President and CEO, XBRL US

A Note About
"Smart Contracts"

Smart constructs are neither “smart”,
nor are they contracts in a legal sense
unless they are bound by a separate,
real-world legal framework.
Smart contracts are business rules
encoded in software; they are as good
as the person or team devising the
rules and the developer(s) turning
those rules into code.
“Smart Contracts” is in Many Ways Misleading

Smart Audits

Audit 4.0
Auditing is also adapting to the new Programmable
Environment
Audit 4.0 will significantly change the auditing
profession by automating current procedures, enlarging
their scope, shortening timing, and eventually improve
the overall assurance quality.
Source: http://aaajournals.org/
doi/pdf/10.2308/jeta-10494
Audit Data Standards

CAR Lab
ASSURANCE
OF REPORTS
ASSURANCE
OF KEY
PROCESSES
ASSURANCE
OF DATA
ELEMENTS
THE ENVOLVING AUDIT FRAMEWORK

The Digital Transformation of
Currencies

Name Description
Dentacoin
Aims to improve dental care worldwide and make it affordable by utilizing
the blockchain.
PotCoin
An ultra-secure digital crypto-currency, network, and banking solution for
the $100B global legal marijuana industry.
BitCoen The world's first kosher crypto currency.
PutinClassic (PUTIC)
A digital souvenir. Digital versions of this coin are made unique by use of the
blockchain.
KarmaCoin
Aim to make it the primary digital currency for rewarding good deeds and
spreading good karma.
Whoppercoin
Burger King Russia released 1 billion Whoppercoins using Waves, a
cryptocurrency platform. You get one every time you buy a Whopper.
"The Internet of Money" - Initial Coin Offering

What every
Management
Accountant needs
to know about
Good Data
Governance

Data Governance (DG)
• DG is the overall management of the availability, usability, integrity and security of
data used in an enterprise.
• Businesses benefit from data governance because it ensures data is consistent and
trustworthy.
◦ Step 1 - Data Stewardship: A data governance framework involves defining
the owners or custodians of the data assets in the enterprise.
◦ Step 2 - Data Security: Define how the data will be stored, archived, backed
up and protected from mishaps, theft or attacks.
◦ Step 3 - Authorized Personnel: Establish standards and procedures that
defines how the data is to be used by authorized personnel.
◦ Step 4 - Controls: Establish controls and audit procedures to ensures
ongoing compliance with internal data policies and external government
regulations, and that guarantees data is used in a consistent manner across
multiple enterprise applications.

A Global "DG" Framework

Best Practice is to align the
interdependencies of disparate
people, processes, lines of
business, and technologies is
through a well- orchestrated data
governance program single source
of truth linked to multiple views of
the source at its core.
Final Thoughts

Thank You!
Liv Watson Sr. Director of Strategic Customer Initiatives
Workiva Inc. (NYSE: WK)
2900 University Blvd Ames, IA 50010
Phone: + 1515 203 5532
Email: liv.watson@workiva.com
Skype: livwatson

The Management Accountant in a Digital World The interface of strategy, technology, and cost of information

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