redefining boundaries & prospering in the age of disruption
TRANSCRIPT
CFO/HR Webinar: Redefining Boundaries & Prospering in the Age of DisruptionDECEMBER 15, 2016 VIRTUAL EVENT
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Chief Financial Officer Leadership Forums & Human Capital Leadership Forums
CFO San Francisco Wednesday, February 8, 2017
Human Capital San Francisco Wednesday, March 22, 2017
CFO Atlanta Thursday, April 6, 2017
CFO Los Angeles Tuesday, May 9, 2017
Human Capital Chicago Wednesday, May 10, 2017
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CFO/HR Webinar: Redefining Boundaries & Prospering in the Age of Disruption
Eric Lesser | Research DirectorCarl Nordman | Research Director
For this study we surveyed
business leaders…
Chief Executive Officers (CEOs)Chief Financial Officers (CFOs)Chief Human Resources Officers (CHROs)Chief Information Officers (CIOs)Chief Marketing Officers (CMOs)Chief Operating Officers (COOs)
818 643601
1,805723657
©2015 IBM Corporation8
©2015 IBM Corporation May 1, 20239
“The ‘Uber syndrome’ – where a competitor with a completely different business model enters your industry and flattens you.”CIO, Transportation, United States
©2015 IBM Corporation9
©2015 IBM Corporation10
CxOs expect industry convergence to have the biggest impact on their business
Total CEO CFO CHRO CIO CMO COO
70%
60%
50%
40%
30%
20%
10%
0%
Industry convergence
The “anywhere” workplace
Rising cyber risk
The redistribution of consumer purchasing power
The sustainability imperative
Alternative finance and financing mechanisms
The sharing economy
Top trends to impact business (in 3 to 5 years)
©2015 IBM Corporation11
29%
CxOs are terrified of outsiders making a land grab
More competition expected from other industries
+26%
2013
no change
39%
54%
43%
2015
More competition expected from within the same industry
“We used to look at the Four Seasons as a competitor. Now we look at disruptors like Airbnb.”
CMO, Travel, United Arab Emirates
Business landscape change (in 3 to 5 years)
©2015 IBM Corporation12
CEOs again selected technology as the most important external force that will affect their enterprise
External forces impacting the enterprise (in 3 to 5 years)2006 2008 2010 2012 20152004
Technology factors
Market factors
Regulatory concerns
Macro-economic factors
Socio-economic factors
Globalization
People skills
Geopolitical factors
Environmental issues
2013
©2015 IBM Corporation13
The technologies that CxOs expect to revolutionize business tomorrow are already in play today
Cloud computing and services
Mobile solutions
Internet of Things (IoT)
Cognitive computing
Advanced manufacturing technologies
New energy sources and solutions
Bioengineering
Man-machine hybrids
63%
61%
57%
37%
28%
23%
12%
10%
Technologies revolutionizing business (in 3 to 5 years)
©2015 IBM Corporation14
Most CxOs believe technology will cause them to reassess the way they run their business
Parts of the business most impacted by the next wave
Product/serviceportfolio
Operating model
Partnerships Deliverychannels
Revenue model
Customer types or segments
73%
68%
61% 60%57%
52%
©2015 IBM Corporation15
Industry convergence and technology will directly affect how companies seek out and manage talent
New skill requirements will force companies to reconsider their recruiting plans and brand image(e.g., GE TV advertisements with “Owen”, a new application developer explaining his job to friends and family)
Capture new fish in new ponds
Create an inviting landscape for new species to thrive
Watch out for game hunters looking to poach in yourterritory
Companies will need to design employee experiences that attract and retain individuals with unique talents and expertise (e.g., data scientists, content curators)
Competitors from previously unrecognized areas are looking to poach existing talent (e.g., Uber hiring robotics researchers from Carnegie-Mellon University)
©2015 IBM Corporation16
These changes will provide the impetus to transform the overall HR function…
Rapidly changing technologies and businesses will require HR organizations to quickly identify needed key skills and capabilities and build ongoing learning opportunities
Shift towards continual workforce planning and skills development
Develop tools and processes that treat employees as consumers
Focus on building collaboration and diversity of thought
As technology infiltrates all aspects of the business, employees will expect the same level of technology capabilities and experiences in their dealings with the HR function
Organizations will be constantly bringing in individuals with different skills, backgrounds and viewpoints, requiring those individuals to feel comfortable and to work together effectively
©2015 IBM Corporation17
…as well as require leadership capabilities that help employees adapt to a rapidly changing world
Leadership understands the impact of changing technologies on the workforce
Leadership balances the need to deliver business results with the ability to lead through change
The enterprise is prepared to manage a more complex workforce
“We need a chessboard of new executive capabilities.”
Peter Fasolo, CHRO, Johnson & Johnson, United States
Leadership capabilities addressing disruptive change63%
62%
46%
©2015 IBM Corporation18
Two groups of CFO respondents stand out
Finance Efficiency Enterprise-wide information standards Standard financial chart of accounts Common finance data definitions and
data governance Standard/common finance processes
Business Insight Operational planning and forecasting
capability Finance talent development Common planning platform
Value Integrators:19% of respondents were deemed Value Integrators for being most effective on 7 factors. They outperform on enterprise revenue growth and profitability.
*Performance Accelerators:4% of respondents (subset of Value Integrators by definition) exceled with more advanced analytics.
More Advanced Analytics Profitability and economic analysis Pricing Demand planning and forecasting Product and services development Mergers and acquisitions
Other finance teams
81%
*Value Integrators
19%
4%of total sample
©2015 IBM Corporation19
The stand outs grow faster and are more profitable
85%
55%
Revenue growth
85%
54%
Profitability
more55%
more57%
Enterprise performance
Other finance teamsPerformance Accelerators
©2015 IBM Corporation20
77%
58%
More focus on new markets +33%
Top CFOs are more likely to take the long view…Performance Accelerators are 61% more likely to be engaged in enterprise strategy…
…and 33% more likely to be focusing on new markets
Areas of effectiveness in organization
Business landscape change (in 3 to 5 years)
Performance Accelerators are enabled by far more effective traditional performance analysis capabilities
Areas of effectiveness in organization
Other finance teamsPerformance Accelerators
80%
41%
100%
62%
more61%
Provide input into enterprise strategy
100%
54%
Measure/monitor business performance
Optimize planning, budgeting and forecasting
Integrate financial planning with strategic and operational planning
95%
56%
100%
68%
more47%
more85%
more70%
©2015 IBM Corporation21
… and are more prepared for the “next wave”…
Performance Accelerators are more actively involved in exploring the potential of the next wave
Performance Accelerators leverage analytics better to identify the “next wave”, whether emerging opportunities or risks
Parts of business most impacted by the next wave Areas where predictive analytics applied
Other finance teamsPerformance Accelerators
95%
66%
Products/services portfolio
Customer types or segments 50%
83%
+66%
+44%100%
66%
Risk managementRevenue forecastingFinancial planning
100 %
61%
95 %
46%
more107%
more52%
more64%
©2015 IBM Corporation22
…because they “Integrate, analyze and adapt.”
They leverage a COE to support analytics, integrate information across the enterprise and invest in talent…
and rely more heavily on analytics to drive organic and acquisitive growth
Areas of effectiveness in organization Areas where predictive analytics applied
Other finance teamsPerformance Accelerators
88%
25%
Pricing and promotionoptimization
Mergers and acquisitionsIdentification of new products/services
93%
32%
89%
32%
more178%
more252%
more191%
80%
41%
100%
54%
more85%
Develop talent in the finance organization
89%
19%
more368%
Implemented a Center of Excellence for analytics
77%
42%
more83%
Drive integration of informationacross the enterprise
©2015 IBM Corporation23
We invite you to continue the conversation
ibm.com/csuitestudy
©2016 IBM Corporation23
Redefining Boundaries
Insights from IBM’s Global C-suite Study
MODERATOR
Eric Lesser, IBM
PANELISTS
Roger Blanken, International Flavors & Fragrances John Hugo, Workday JoAnne Kruse, American Express Global Business TravelCarl Nordman, IBM John Sigmon, AARP
"Redefining Boundaries & Prospering in the Age of Disruption"
CFO/HR Webinar: Redefining Boundaries & Prospering in the Age of Disruption
Audience Q&A will begin shortly. Please submit your questions.
CFO/HR Webinar: Redefining Boundaries & Prospering in the Age of Disruption
CFO/HR Webinar: Redefining Boundaries & Prospering in the Age of Disruption