How future-ready CFOs are driving

real-time business performanceEmpowering the enterprise with data-driven financial insights

TCS 2020 CFO Study

Key findings

September 2019TCS Business 4.0

TM

Institute

TCS 2020 CFO Study

Forward-thinking CFOs are considering how they can play a strategic role in helping transform the

business from a traditional model to one that enables executive access to insights in real time.

They are asking questions like: “How can I turn the rising tide of enterprise data into real-time

insights that drive growth across the entire business? How can I better manage control,

responsibility and accountability to transform my organization to support future-ready digital

business models? And how can I best leverage new technologies—like blockchain, analytics,

machine learning and AI—to enable new forecasting models and a truly agile finance

organization?”

Because finance leaders in every industry are asking these questions, the TCS Business 4.0

Thought Leadership Institute spoke to more than 500 enterprise CFOs in North America and

Europe in the upcoming 2020 TCS Chief Finance Officer Study to do a deep-dive on these topics.

During the remainder of 2019 and into 2020, TCS will release a series of reports that examine the

ambitions of the real-time CFO in large organizations. Where they are heading, what do they

want to do differently, and what it will take to get there?

This deck introduces the initial research findings.

Click here for more information on the study, and to receive each report as soon as it is released.

Research snapshot

Study demographics

High tech (tech, web/cloud…

Financial services (incl. banking,…

Insurance

Retail

Consumer packaged goods (food a…

Travel, transportation & hospitality

Telecommunications service…

Automotive

Industrial manufacturing

Life sciences & healthcare

Media, entertainment & informati…

Healthcare

Information services

16%

13%

12%

11%

10%

6%

6%

6%

6%

6%

5%

1%

1%

Sector Job Title

S1. In which country is your main place of work? S2. In which of the following sectors does your organization operate? S3. What is your job title? S4. What is your organization's total revenue size currently? S5. To your best estimate,

what proportion of your company's key operational and financial performance data can you access, and take action upon, with immediate effect?

Our findings reveal stark differences in business attitudes and processes between those at

"real-time" businesses and those at their more traditional counterparts. For the purpose

of this analysis, we refer to these two groups as, respectively, "real-time leaders" and

"slow-time followers".

Real-time leaders (n= 98) = Those who are able to access, and take action upon, with

immediate effect, 90-100% of key operational and financial performance data.

Slow-time followers (n= 91) = Those who are able to access, and take action upon, with

immediate effect, 1-29% of key operational and financial performance data.

Real-time leaders vs slow-time followers

Hover over the map to view the percentage of respondents from each country

The companies surveyed have at least $1bn in annual revenues

500+ respondents overall

Key storylines

The growth catalyst - CFOs have a clear view of their "futurist" role and how it can operate both within and beyond

the finance function. From building the economic case for new technologies and business models, to devoting more

time to innovation and driving an agenda of cultural change, the emboldened CFO is laying a framework that will

fundamentally change the way they - and their businesses - operate.

Embedding front-to-back transformation - Delivering the cultural changes needed to embed new "front-to-back"

enterprise models and technologies is a major challenge facing CFOs; 50% admit that their organizations' execution of

change management is falling short. New digital leadership approaches that empower the enterprise by sharing

control, responsibility and accountability emerge as a key focus.

Agile finance, competitive future - CFOs view new agile forecasting models as tools for overcoming the common

challenges they face, no matter where they are in their transition to becoming a real-time business. When it comes to

forecasting, executives must take care not to become so blinded by technology priorities that they leave themselves

open to disruption: fewer than one in four cite "competitor landscape" as a forecasting priority over the next six years,

and fewer than one in three (29%) cite "customer demand."

New horizons: instantaneous data and promising technologies - New technologies and applications are fast-tracking

the CFO’s "data view," but most struggle to capture and clean the data required for robust decision making. Seven in

ten executives agree that finance must serve as the proving ground for blockchain technology, but only a minority are

sufficiently educated on the widespread data benefits it will bring - giving them the tools to accelerate even further

ahead of the pack.

1. Next-generation CFO

"That external customer-facing piece is really

important - negotiating, communicating and

relationship-building. I see people come up

through finance functions and they generally

don't have that type of core leadership

capability. They've accelerated and dealt with

their internal business quite well, but then,

when push comes to shove, they're unable to

work those situations and help move the

business forward."

Finance director, global telecoms company

Key findings

Emerging technologies and the new business models they enable will be a

key focus for CFOs. There are striking differences in priorities across

industries.

The cultural changes needed to embed new practices are rising up the CFO

agenda, yet there are warning signs that many are not paying due attention

to skills development in this area. The majority are setting their sights on

developing the "futurist" role.

Our real-time group makes a clear case for change, highlighting the priority

skills their more traditional counterparts cannot afford to be complacent

about, even in the early stages of their transition journey.

Technology-enabled business model evolution/transformation

Capital allocation for digital transformation initiatives

New product and service development

Embedding new cultures and ways of working

Enterprise-wide analytics governance

Enterprise-wide data governance

Blockchain evaluation and adoption

Enterprise-wide talent management

Non-traditional risk management

44%

40%

37%

33%

33%

31%

29%

28%

26%

Total Retail Financial services Insurance CPG High tech

Q1. Thinking ahead, to five years' time, in which aspects of company leadership do you expect the CFO in your organization to be playing a critical role? n=508

Where is the CFO heading?

Emboldened CFOs are setting their sights on a framework that will fundamentally change the way they – and their businesses

- operate. Building the economic case for new business models and technologies and devoting more time to innovating new

products and services stand out, though driving cultural change is also rising up the agenda. Notable industry differences

highlight that there is no one-size-fits-all approach to CFO transformation.

Areas where the CFO is expected to be playing a critical role in five years' time

% top three

4 in 10 CFOs are developing the "futurist" remit

Long-term strategic planning e.g.…

Core financial capabilities

Understanding of advanced…

Process optimization

Enterprise-wide data analytics

Lateral and innovative thinking

Data modelling and simulation

Change management delivery…

Data governance

Soft skills

43%

33%

32%

31%

30%

29%

29%

27%

27%

19%

Q3. How would you rate your skills and capabilities in each of the following areas? n=508 Q2. What skills and capabilities are your priority for development as your organization moves towards becoming a real-time business? n= 508

CFOs rate themselves highly in terms of "soft" interpersonal skills, which is reflective of shifting attitudes in terms of the

role they play in building relationships across the enterprise. But with cultural management rising up the CFO agenda, there

are warning signs that this is not being given sufficient attention. Developing strategic change management skills is a lower

priority, even though respondents are least likely to rate themselves as "proficient" in this area.

1 - Soft skills e.g. interpersonal (52%)

2 - Core financial capabilities (49%)

3 - Lateral and innovative thinking (48%)

4 - Long-term strategic planning e.g. scenario planning; horizon

scanning (44%)

5= - Understanding of advanced technologies (42%)

5= - Enterprise-wide data analytics (42%)

7 - Process optimization (41%)

8 - Data modelling and simulation (40%)

9 - Change management delivery strategies (39%)

10 - Data governance (38%)

Current skills and capabilities Priority areas for development

% top three% rank 8,9,10 (proficient)

Get the basics right, then focus on tech capabilities

Real-time CFOs are pursuing different skills from their more traditional counterparts. This "leader" group is more likely to

focus on developing technology and analytical capabilities to maximize the value of the data they have access to - and it's

paying off: they are more satisfied across the board with how quickly they can perform tasks.

Long-term strategic planning e.g.scenario planning; horizon scanning

Understanding of advancedtechnologies (e.g. blockchain)

Core �nancial capabilities (e.g. cashmanagement)

Enterprise-wide data analytics

Data modelling and simulation

Data governance

Lateral and innovative thinking

Process optimization (e.g. simpli�cationand standardization)

Change management delivery strategies

Soft skills (e.g. interpersonal)

45%

35%

37%

30%

36%

29%

35%

31%

31%

36%

28%

32%

28%

24%

28%

32%

21%

25%

13%

26%

Real-time leaders

Slow-time followers

Q2. What skills and capabilities are your priority for development as your organization moves towards becoming a real-time business? Real-time leaders: n=98, Slow-time followers: n=91 Q4. How satisfied are you with the speed at which

your organization performs the following tasks?

Priority areas for development Satisfaction with the speed at which organization performs certain tasks

Financial reporting

Moving talent to higher-value tasks

Freeing up cash for growth initiatives

Adjustment of budget forecasts

Adjusting customer-facing

messaging/content

Monitoring and optimizing supply

chain

52%

11%

51%

19%

49%

13%

48%

18%

48%

16%

46%

15%

Real-time leaders

Slow-time followers

% Top three % Very satisfied

Slow-time followers

are more likely to be

focusing on skills that

will deliver short-term

operational changes

2. Front-to-back transformation

Key findings

Real-time firms are more likely to have begun investing in their change

management strategies, highlighting further that this must be an early focus of

a successful transition. This group may well widen their advantage unless the

majority take action imminently.

CFOs are clear that they don't yet have the finance function skills they need

for the future real-time business, but indecision over where the true value lies

must be addressed if finance executives are to deliver a smooth journey

towards machine management.

"CFOs are becoming more involved in the

large transformation programmes within the

company in terms of: How do we simplify the

processes? How do we bring more

accountability within the organization? How

do we drive and improve levels of

performance? And how do we bring more

leadership within the ranks to really drive

the initiatives?"

CFO, global technology/telecoms company

90% of real-time firms are taking steps to change behaviors

Empowering internal teams and making them

accountable for digital change in their part of…

Adding new performance metrics to measure

progress in adopting new ways of working

Establishing cross-enterprise key performance

indicators (KPIs) to avoid conflicting stakehold…

Investment in workshops, employee engagement

and other education and training

Appointing 'champions of change' to pilot new

applications (e.g. new FP&A software) and…

Incentivizing executives to take on unfamiliar

tasks and responsibilities

CEO sponsorship of change management strategy

47%

43%

42%

42%

38%

35%

34%

Total sample Real-time leaders

Q12. To what extent do you agree or disagree with the following statements? Q9. To become a real-time business, what are the most effective ways to change employee behavior? n=508; Real-time leaders: n=98 Q10. To what extent are

each of these initiatives implemented across your enterprise?

Delivering the cultural changes needed to embed new enterprise models and technologies is a major challenge facing CFOs today: 58% say

the CFO is responsible for digital change, yet half admit that their organizations' execution of change management is falling short.

All respondents recognize that empowering teams with new digital leadership approaches will be key, but real-time firms also acknowledge

the importance of executive buy-in. Overall, many risk being left behind by real-time leaders due to implementation "paralysis".

5%

18%

8%

24%

10%

22%

7%

18%

10%

31%

7%

27%

7%

28%

Real-time leaders

Total sample

Will not implement/Will consider implementing in the futureMost effective ways to change employee behavior

% top three

Finance will need skills in innovation, data visualization and data science

Q12. To what extent do you agree or disagree with the following statements? Q11.Thinking ahead to 2025, which finance function skills do you expect will deliver the most value for the business? n=508

Talent development is a major component of any change management strategy, yet the majority of CFOs appear unclear about where the

true value lies across nine key skills areas. The real-time leaders display greater clarity and may offer welcome guidance to the rest: nearly

half (44%) of all respondents say they don't yet have the finance function skillsets that will deliver the most value to the business in 2025.

Analytical skills

Financial modelling

Traditional skills in �nance and accounting

Advanced data visualization

Data science

Commercial acumen

Communication skills/ability to in�uence

Ability to innovate

General management

46%39%

43%37%

37%32%

36%35%

32%35%

29%30%

29%30%

28%33%

22%29%

Real-time leaders

Total sample

Skills expected to deliver the most value in 2025

% top three

Traditional finance

skills are rated sixth

most valuable by the

total sample

3. Agile finance,

competitive future

Key findings

CFOs place great importance on keeping ahead of technology trends, but must

be careful that this focus doesn't come at the expense of other critical areas,

leaving them vulnerable to disruption.

Forecasting issues vary greatly depending on the stage of transition to a real-

time business. The real-time leaders are more likely to be grappling with

people-centric challenges, highlighting the importance of implementing

strategic change management as early as possible.

CFOs are yet to embrace the FP&A advantages from blockchain technology -

those that are doing so have the tools to pull even further ahead.

"The real power of analysis comes when

you're able to connect the financial

perspective with the operational data, and

then present it in a way that business

counterparts are able to understand. We

have created a tool that allows non-finance

executives to slice and dice the costs in

every possible way, so, within five minutes,

they have a greater grasp of costs and know

what questions to ask."

CFO, global technology/telecoms company

40% prioritize tech - is this leaving CFOs open to disruption?

Q5_1. Between now and 2025, what aspects of forecasting do you expect to be: Most important for your organization to conduct? Q5_2. Between now and 2025, what aspects of forecasting do you expect to be: Most difficult for your

organization to assess? Q7. In your mind, what are the principal benefits of agile FP and A systems in your enterprise? n=508

Finance executives cannot afford to overlook the customer and competitor landscape if they are to maintain growth and

accelerate transformation, particularly as these areas are considered to be more difficult to predict. Industry differences

highlight other key aspects that CFOs should turn their attention to or risk facing major obstacles down the line.

Technology evolution

Financing/capital

Customer demand (including demographics)

Payments landscape (e.g., blockchain and…

Business partnerships (product, supply chai…

Talent/skill needs

Product/service lifecycles

Business model lifecycles

Political stability/instability

Competitor landscape (including existing a…

Acquisition candidates

40%

39%

29%

28%

26%

26%

25%

24%

24%

23%

16%

Total

Between now and 2025, which aspects of forecasting do you expect to be the most important?

% top three

And which aspects will be most difficult to predict:

Technology evolution

Financing/capital

Customer demand (including demographics)

Payments landscape (e.g., blockchain and…

Business partnerships (product, supply chai…

Talent/skill needs

Product/service lifecycles

Business model lifecycles

Political stability/instability

Competitor landscape (including existing a…

Acquisition candidates

28%

24%

29%

27%

27%

27%

27%

24%

31%

30%

25%

Total

% top three

Agile FP&A overcomes challenges at all stages of transformation

Q6. What are the biggest challenges you face when compiling accurate forecasts? n=508 Q7. In your mind, what are the principal benefits of agile FP&A systems in your enterprise? Real-time leaders: n=98, Slow-time followers: n=91

Comparing real-time leaders and slow-time followers highlights the forecasting issues that businesses face, depending on where

they are in their real-time transitions. Slow-time firms are more focused on the technical, whereas real-time firms are more

likely to be faced with people challenges: workforce resistance, inconsistent data, difficulty working with the C-suite (although

all are faced with skills shortages). Agile FP&A unlocks key benefits no matter where your business is on its journey.

Creates better quality data

Encourages collaboration across business

functions

Enables modelling and analysis of future

business scenarios

Better strategic decision making

Enhances C-suite collaboration

Responsive cost control across different business

functions

Enhanced ability to measure ROI

Highlights skills shortages

Aids integration of newer technologies

Strengthens recruitment pipeline

Overcomes workforce resistance to new ways of

working

38%

21%

37%

25%

30%

16%

27%

33%

26%

25%

24%

33%

24%

34%

23%

32%

21%

15%

20%

16%

20%

19%

Real-time leaders

Slow-time followers

Principal benefits of agile FP&A systems

% top three % top three

Skills shortages and weak recruitmentpipeline

Workforce resistance to new ways of working

Di�culty of collaborating with C-suite

Cost control across different businessfunctions

Inconsistent or inaccurate enterprise-widedata

Siloed business functions lackcross-collaboration

Di�culty of integrating newer technologies

FP&A systems are in�exible

Inability to model future business scenarios

Inaccessible enterprise-wide data

40%41%

40%32%

38%24%

36%30%

32%23%

32%32%

31%37%

27%32%

21%22%

5%26%

Real-time leaders

Slow-time followers

Biggest challenges of compiling accurate forecasts

4x more real-time firms are "very confident" in blockchain for FP&A

Q19. Which of the following benefits from blockchain technology do you expect your company to have gained by 2025? Q8. On a scale of one to five, how confident are you that the following technologies could have a positive impact on your

FP&A capabilities? n=508; Real-time leaders: n=98, Slow-time followers: n=91

Overall, CFOs are less confident in blockchain for FP&A than in other Businesses 4.0 technologies, and the difference is even

starker when we look only at "very confident". But real-time leaders are far more likely to see the value and be investing

accordingly: 45% expect to have gained more reliable data through blockchain technology by 2025, compared with only 27%

of slow-time followers (see slide 18).

Cloud Advanced analytics Automation AI/Machine learning Internet of Things (IoT) Blockchain

79%

94%

56%

77%

94%

59%

80%

93%

57%

75%

92%

58%

74%

90%

48%

70%

88%

51%

Any confidence Very confident

Total

Real-time leaders

Slow-time followers

4. New horizons:

data and tech

Key findings

A more consistent, holistic approach to data collection is needed across the

different levels. Both people and technology challenges abound, and only a

minority are unlocking the full advantages available.

Access to better data will be key to CFO transformation: it will reduce reliance

on the CTO for future technology requirements and increase confidence in

longer-term decision making.

CFOs must educate themselves on the value of blockchain to drive investment.

Currently, the focus is on security, but real-time leaders see value in a range of

different business areas enabling them to make the case for investment

accordingly.

"A lot of UK finance functions are catching up

with a lack of technology investment; if

you're able to weave blockchain platforms in

at the same time, then it can allow you to

accelerate."

Finance director, global telecoms company

Only 1/3 always seek enterprise data for decision-making

Q15. To support decision-making, how often do you target (i.e. identify and seek to use) specific new data sets among the following levels of data? n=508 Q16. You answered never/rarely/adhoc. What are the main reasons for this?

Enterprise n=332; Ecosystem n=291; Universe n=369

CFOs must invest in the tools and processes to extract maximum value from the different types of data - currently, only a minority

always use each of the levels available to support decision making (ecosystem data emerge as the most popular). Challenges differ

across the levels, but a more consistent, holistic approach is needed to accelerate progress towards transformative business models.

Enterprise data

Always 34.65%

Ad-hoc 48.51%

Rarely 15.84%

Never 0.99%

Enterprise data Ecosystem data Universe data

Data sets are often misleading or of

questionable value

Concern about information security

Lack of skillsets to extract insights

from this data

32%

30%

27%

Enterprise data Ecosystem data Universe data

Main reasons for answering 'never', 'rarely' or 'adhoc'

% top two

Better data will lessen CFO reliance on the CTO

Q18. Based on the knowledge you have today, how confident are you in your ability to forecast investment requirements for new technologies (e.g. blockchain, IoT and other 'edge' technologies, AI) across the enterprise, for the following

timeframes?

Insert headline

Currently, 61% say the CTO/CIO currently takes the lead in identifying technologies needed in more than three years' time.

Access to better data will increase the CFOs' confidence in their ability to predict future technology needs, and better

technology will improve FP&A to deliver long-term planning. Combined, these two elements will accelerate the

transformation of the CFO role.

Within the next 12 months

Between one and three years

Between three and seven years

More than seven years

84%

70%

57%

47%

"Technology decisions must be [made by] a mix

of the CFO and the CTO. We need to engage with

technology teams about our desired alternative

outcomes, and then it becomes a business and

technology dialogue."

Finance director, global telecoms company

Real-time leaders expect blockchain benefits within five years

Q19. Which of the following benefits from blockchain technology do you expect your company to have gained by 2025?

Blockchain technology can help businesses extract insight from the different levels of data, with the majority recognizing

security as the benefit most likely to be gained. Real-time leaders, however, recognize that the value doesn't end there, citing

a multitude of business benefits.

Enhanced IT security

Improved customer relationships

Greater e�ciency in making/receiving payments

More reliable data (providing a single source of the truth)

Lower business costs

Greater transparency in transaction history

Improved traceability/predictability in the supply chain

More mutually bene�cial supplier relationships

46%

41%

47%

39%

39%

40%

38%

41%

35%

38%

45%

27%

38%

32%

44%

37%

43%

32%

37%

47%

40%

35%

34%

34%

Total

Real-time leaders

Slow-time followers

CFOs must build blockchain

knowledge: 61% of the total

sample say understanding

how to integrate blockchain

with other technologies is a

bigger barrier to adoption

than understanding the ROI

yet less than 1/3 are

prioritizing ‘understanding of

technologies for

development’

Executive Sponsors Ashok Pai - VP & Global Head, TCS Cognitive Business Operations

Dave Jordan - Global Head, TCS Consulting & Services Integration

Dinanath Kholkar - VP & Global Head, TCS Analytics & Insights

Kuma Amitesh Pandey - Global Head of Sales, TCS Analytics & Insights

Lakshmi Srinivasan - Global Head, TCS Blockchain

Subhajit Das - Head of Solutions, TCS Blockchain Services

Vikas Gopal - Global Managing Partner, TCS Finance & Shared Services Transformation

Vikas Srivastava - Global Head, TCS Enterprise BPS Solutions and Offerings

Contact To learn more about TCS Business and Technology Services visit info.tcs.com/bts-home

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