the digital accountancy forum · for new forms and mechanisms to create value. mckinsey –...

The Digital Accountancy Forum4 October 2017

Disruption and the auditCapturing the potential of emerging technologies and disruptive business models

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Rapid change

MIT believes that artificial intelligence, robotics, infinite computing, ubiquitous broadband networks, digital manufacturing, nanomaterials and synthetic biology will produce greater gains over the next two decades than we have achieved in the past 200 years.

A Washington University study estimates that 40%of Fortune 500and S&P 500 companies won’t exist in 10 years.

CNBC interview with Dr. Peter Diamandisan MIT aerospace engineer, 7 June 2014

From a study from the John M. OlinSchool of Business, Washington University

The changing expectations of clients

EfficientEffectiveInsightfulOn demand

Every industry is built around long-standing, often implicit, beliefs about how to make money… They are often considered inviolable – until someone comes along to violate them… By turning one of these beliefs on its head – reframing it – incumbents can look for new forms and mechanisms to create value.McKinsey – Disrupting beliefs: A new approach to business-model innovation, July 2015

Reframing beliefs

Reframing our beliefs

Value comes from time and materials

The audit is an annual process

Sampling is the way to test

We can only do things ourselves

Value comes from value

Trust should be delivered on demand

Everything that can be tested shouldbe tested

The best work comes from the best people, whoever and wherever

TomorrowToday

The three pillars of successful disruption

+1

Emergingtechnologies

2Disruptive

businessmodels

3Upskilled

people+

Pillar 1 – emerging technologies

1. Artificial intelligence2. Augmented reality3. Blockchain4. Drones5. Internet of Things6. Robots7. Virtual reality8. 3D printing

Pillar 2 – disruptive business models

1. Subscription 2. Freemium 3. Free4. Marketplace 5. On-demand 6. Access-over-Ownership 7. Hypermarket 8. Experience 9. Pyramid10. Ecosystem

Digital TransformationJo Caudron & Dado Van Peteghem

World Economic Forum The 10 skills you needto thrive in the Fourth Industrial Revolution

Pillar 3 – upskilled people

1. Complex problem solving2. Critical thinking3. Creativity4. People management5. Coordinating with others6. Emotional intelligence7. Judgment and decision making8. Service orientation9. Negotiation10. Cognitive flexibility

People + Technology

Slide 10

AI brain as basisfor human decisions

Decisions as inputfor AI brain

+HI AI

Audit – what could it be five years out?

Trust over more

Historic assurance a thing of the past

Audit on demand – in time for itto be of use

A quantum leap in quality, insightand value

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