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The Digital Accountancy Forum4 October 2017
Disruption and the auditCapturing the potential of emerging technologies and disruptive business models
www.pwc.com
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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
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The changing expectations of clients
EfficientEffectiveInsightfulOn demand
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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
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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
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The three pillars of successful disruption
+1
Emergingtechnologies
2Disruptive
businessmodels
3Upskilled
people+
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Pillar 1 – emerging technologies
1. Artificial intelligence2. Augmented reality3. Blockchain4. Drones5. Internet of Things6. Robots7. Virtual reality8. 3D printing
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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
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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
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People + Technology
Slide 10
AI brain as basisfor human decisions
Decisions as inputfor AI brain
+HI AI
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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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