In the UK, 88% of data breaches reported to the Information Commissioner’s Office (ICO) are caused by human error. The most common mistake is sending information to the wrong person. The number one culprit? Email. So what do you do? Peter Matthews, CEO of Metro Communications, knows what to do.

CFOs should not ignore the potential impact of such breaches on a company’s finances and reputation. Research for IBM suggests that the average cost of a data breach in the UK rose to £2.7m in 2018, with health, financial and service sectors most likely to experience breaches.

Few FDs would claim to be immune to accidental data transfer via email. So, what can you do if you inadvertently send a confidential message to the wrong person?

1. Recall or ‘unsend’ it

Email services offer different ways to cancel sent messages. In Outlook it is possible to recall and then delete an email providing it hasn’t been opened by the recipient. Gmail allows you to delay messages from leaving your outbox. If a sensitive email has been sent to a fellow employee then your IT department should be able to delete it, if they are informed fast enough.

2. Contact the recipient

Get in touch with the recipient as soon as you notice the mistake and ask them to delete the email without reading or sharing it. Request that they email you to confirm they’ve done so. Log the incident in an ‘cyber accident book’.

3. Report and act quickly

Report the incident internally and ensure it’s followed through to its conclusion. An employee of SSE Energy who sent a sensitive email in error promptly reported it in accordance with the company’s policies and procedures. However, SSE’s failure to notify the commissioner in a timely manner led to a £1,000 fine and negative publicity. The regulations have since been amended so that directors, managers and company secretaries can be fined up to £500,000.

4. Inform and advise customers

Good customer service goes a long way. Boeing was mocked for failing to use its own data protection software to prevent an accidental breach which compromised the personal data of 36,000 customers. But it was applauded for informing customers about the nature of the incident, taking action to ensure files were deleted, and giving detailed advice about how customers could check their personal data wasn’t being misused.

5. Notify the regulator, if necessary

Inform the regulator within 72 hours if you believe there’s a risk to customers. Even where you don’t feel an incident is notifiable, it is still worth recording, internally. This will help you review incidents as part of a health check and if you ever have to demonstrate regulatory compliance it could prove invaluable.

Once you’ve contained the incident, revisit your strategy and consider the need for other forms of action such as staff training, policy reviews, access rights, restrictive covenants and encryption. Data classification that ‘weights’ the sensitivity of each file and document on your company’s drive and then links highly confidential information to a closed group of authorised recipients, with blocks on copying such information onto memory sticks, can be helpful. Preventative tools like this make it difficult to email the wrong data to the wrong person and they also log user behaviour, flagging up employees who try to reclassify data so they can send it out of the business.

The law doesn’t distinguish between deliberate and accidental breaches, so don’t expect a discount on fines for damaging disclosures caused by an honest mistake, and don’t be surprised to find lawyers queuing up to help those whose financial, personal or health data has been incorrectly transferred.

But let’s look at it positively. Employee error is a significant contributor to data loss, but it is easier to prevent and generally takes less time to control than a malicious hack. Indeed, many accidental incidents can be contained or even prevented by steps so simple that everyone should be taking them. However, if you’ve decided you want to take a ‘belt and breaches’ approach then it’s time to trust yourself less. Preventative measures such as data classification will ensure you send that sinking feeling to your deleted folder once and for all.

There is no denying that the traditional role of FDs and CFOs is changing. As a finance professional, you will appreciate that the finance function is becoming an increasingly multi-faceted profession with responsibilities expanding into ever more varied aspects of the business – and this is particularly true for those working within the UK’s SMEs.

On the 15^th-16^th May 2019 at the prestigious London Montcalm Marble Arch, the Finance Leaders’ Summit offers a unique conference dedicated to finance professionals with an SME-focused agenda. The speakers will delve into the challenges and issues facing finance leaders and their increasing role diversity with a focus on ‘Leading the Finance Function through Change and Innovation’.

Hosting FDs and CFOs from across the UK, join them as they come together to discuss the most pertinent topics and challenges facing your industry right now, including:

• Tech innovation and funding options
• How to excel as a Private Equity-backed CFO/FD
• Keeping up with digital marketing and CRM software innovation
• Managing M&A – finding the best option for your business
• Lessons learned from expanding into new markets
• Understanding contracts – mitigating the risks

Head over to our website or email fls@realdealsmedia.com to register for your delegate pass today.

Want an exclusive preview of our speaker line-up? Download our complimentary ebook to hear what our headline speakers are saying about ‘Transformative Times for the Finance Function and its Leaders.’

FDs and CFOs may be eligible for one of our discounted delegate passes. Email fls@realdealsmedia.com for more details and to apply.

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One sector at the forefront of this disruption is FinTech, in which firms enjoy cost bases lower than those of traditional banks and freedom from the restraints of branch networks and legacy IT systems. As such, they can provide faster services and more innovative products, thereby revolutionising systems and processes, says Rosanna Woods, Managing Director of Drooms UK.

Digitisation will be a priority for firms

FinTech trends have disrupted the industry for over a decade now, and I believe this is the year challenger banks will become prime targets for investors. Large FinTech firms – and traditional financial companies – will also be more likely to get involved in the M&A space as digitisation remains a major driver for deal-making.

In terms of funding, 2018 marked the best-performing year for UK FinTech M&A (US$457.8 billion), which shows that investors are still hunting for the next big FinTech investment. And although Brexit has brought a lot of uncertainty, it could also mean that investors have a lot of dry powder.

Prime examples of challenger banks gaining momentum include Monzo’s crowdfunding exercise and Revolut’s increasing user signups to its finance app that facilitates both worldwide currency and cryptocurrency.

In the digital payments space, we have already seen the roll-out of digital payment methods, particularly via mobile, allowing consumers to make payments at a single tap of a card or mobile device. As banks continue to seek technologies to speed up customer service, they will look to FinTech companies to integrate with their own systems and enhance customers’ experiences.

In terms of funding, 2018 marked the best-performing year for UK FinTech M&A (US$457.8 billion).

Core drivers for M&A

In many ways, growth in FinTech innovation and M&A transactions each contribute to their own success. Businesses and investors are both attracted to opportunities that technology could bring in the industry, and its potential to automate services. This leads to several M&A transactions taking place for geographical expansion and technological innovation.

But will Brexit impact or slow down the developments of financial technologies in the sector? In my opinion, only moderately, if at all. In fact, Blackstone’s acquisition of Thomson Reuters (US$17 billion) last year shows that transaction values increased due to businesses continuously embracing innovation in digital banking, payments, and financial data services.

Although Brexit may have some impact on investors’ confidence in the UK, it is possible that they are simply biding their time. It is common for investors to practice caution when investing in foreign markets. But despite the transactional and regulatory uncertainty we currently face in the UK, I suspect that investors will see the growth in the FinTech space as opportunities to invest in emerging technologies.

Technology’s broader influence

Technology is not just the focus for investment, it is also helping the investment process too. In particular, it has paved the way to making the due diligence process for M&A more efficient and secure. The creation and utilisation of virtual data rooms to help solve the problems faced by dealmakers and investors has been embraced by the industry as good investments.

From a technology provider point of view, artificial intelligence, machine learning, and analytics have digitised the screening process of deals and greatly reduced the time undertaken for due diligence, as well as improving workflow. This is also true for many other sectors such as real estate, legal, life sciences, and energy.

As such, it makes sense to predict more investment in technology that will help the digital transformation of businesses, as demonstrated by Siemens’ investment in software companies in 2007, which generated US$4.6 billion in 2016.

Although Brexit may have some impact on investors’ confidence in the UK, it is possible that they are simply biding their time.

The heightened desire of investors to acquire businesses for digital transformation remains – as previously mentioned - one of the core drivers for M&A. Although Brexit may eventually present unexpected challenges to the FinTech sector, it will continue to thrive. This belief is supported by a report by Reed Smith that stated 31% of financial organisations plan to invest over US$500 million in the FinTech sector this year.

Opportunities amid uncertainties

Taking stock of the aftermath left by the EU referendum, Brexit has undoubtedly created lingering uncertainties and ever-present threats to deal making. But the overall value of UK M&A activities between 2017 and 2018 shows that Brexit did not prevent UK M&A from performing. In fact, over 140 M&A transactions in Q1 2018 were FinTech deals.

This was due to many factors, such as the strong relationship between UK and US investors, as well as the pound’s devaluation after the EU referendum, which made cross-border deals more attractive for global investors and particularly those deals involving businesses specialising in RegTech and digital payments.

Although the on-going Brexit negotiations are not going well and that a no-deal Brexit, despite not being ideal, is still a real possibility, recent history suggests that the FinTech M&A sector will not be as heavily affected as it might seem. The signs indicate that investors will continue to pursue new technologies that can help make business operations more efficient.

Going forward

What concerns businesses and investors in the UK is the fear that London may lose its crown as a FinTech hub. They will be looking for a Brexit deal that replicates the passporting rights the City currently enjoys and would also allow the UK economy to grow by about 1.75% by 2023 (as firms continue to trade in the City).

Moving forward, the difficulties Brexit presents are not insurmountable for the FinTech sector. It will continue to grow and disrupt the industry – whether the UK leaves the EU with a deal or not – and although it is wise to make contingency plans, businesses should avoid making drastic decisions. The FinTech sector is here to stay and it is well-equipped to withstand the many challenges ahead.

More than a quarter (27%) of organisations surveyed by Gartner expect to adopt some form of artificial intelligence or machine learning in their finance department by 2020. With so much data, from so many sources, machine learning is often the only real way financial professionals can successfully sift through the noise in a world of information chaos. Jonathan Barrett, Managing Director of Dataminr tells us more about it.

Before delving into the details of exactly how machine learning can benefit financial professionals, it’s important to have a clear understanding of exactly what artificial intelligence (AI) is, what machine learning is, and how the two fit together. As stated by Oxford University, AI is concerned with getting computers to perform tasks that currently are only feasible for humans. Simply, it is human intelligence manifested by a machine. Within AI exists machine learning. This is when a computer is programmed to make decisions, learn from outcomes and adjust, in a way of self-improving, according to their environment.

As an industry that needs to remain at the forefront of adopting new, and better, methods of working, financial professionals, in particular, are seeing a huge surge in the use of this technology. By bringing together multiple data sets, machine learning can take on the process of sifting through vast amounts of data and provide people working in the financial sector with greater insight to inform critical decisions. In doing so, machine learning is proving to be invaluable.

Embracing the new

A recent report from McKinsey revealed that up to 50% of tasks we tackle at work today could be automated by 2055. But this is not a reason for worry. Machine learning on its own, with no human supervision or influence, is not where the future of finance is heading. And rightly so. Rather, this new technology opens up previously untapped opportunities for a wide range of finance professionals to prepare for and excel in roles of the future -- roles that we have not yet even imagined.

More than a quarter (27%) of organisations surveyed by Gartner expect to adopt some form of artificial intelligence or machine learning in their finance department by 2020.

Machine learning is already making its mark on industries that for decades have depended on technology to automate tasks and drive efficiency.  Furthermore, we are beginning to understand the true value of how this technology can be used to reduce workloads, particularly in relation to the necessary but repetitive types of work we face in many roles. When used in this way, machine learning has the real power to free up time for strategic thinking and research. It can empower better decision-making by allowing financial professionals to focus on more valuable tasks, such as business growth and retaining vital talent. In this way, machine learning technologies can prove to be the crucial advantage against competitors.

As with most technologies, there still remains limitations with machine learning, especially within finance. The financial markets -- and the data they produce -- are complex and can change within a split second. They form a web of moving parts, influenced by factors both inside and outside of the financial sectors. Anything from changes in regulation to unpredictable world events, such as political risks or natural disasters, can cause a shift in market mechanisms.

Machine learning models are perfectly capable of predicting and taking certain risk elements into account but can fall short when it comes to these kinds of uncertainties. This makes it difficult to rely solely on machine learning to provide accurate or wholly reliable information when making financial decisions, especially within the context of investment strategies. In this instance, if there is no human input, machine learning could create unwanted and unseen risks.

When used in the right way, machine learning can complement human expertise. We need the creativity, emotions and the ability to form a point of view that only humans possess. But machine learning can mitigate the more repetitive and time-consuming elements of work, enabling people to be more productive, innovative and add new value. So we shouldn’t fret that machines will take over the role of humans in the financial workplace. We instead need to look at the opportunities to enhance the power of both.

Evolving skills, evolving opportunities

For example, hedge funds are hotbeds of new methods and platforms. Traders in this area are often turning to the quantamental approach, blending algorithmic-based and human-based decision-making to generate better results. Artificial intelligence is increasingly being used to reduce unnecessary information while at the same time draw relevant data together, with alternative and unstructured data playing a prominent role.

Machine learning models are perfectly capable of predicting and taking certain risk elements into account but can fall short when it comes to these kinds of uncertainties.

In turn, financial professionals are in a stronger position to give an insightful and accurate analysis. This means they can better understand the investments they are making and the strategies they are employing.

Other financial professionals, such as traders and investors, are increasingly relying on real-time information from alternative data sources to gain new insights, assess situations quicker and enhance their decision-making. The sheer amount of data that traders are faced with is vast and overwhelming. Utilising machine learning systems that can make sense of the information chaos and at a rate simply unachievable by humans allows traders and investors to stay ahead of the game.

Machine Learning and humans: a coexistence

Machine learning is revolutionising the finance industry. On its own, it is not enough to provide an entirely accurate and reliable picture upon which pivotal financial decisions can be made. But, used in tandem with human oversight, insight, and expertise, machine learning empowers businesses and individuals across the financial sector to make faster, smarter decisions that can generate new business value or drive revenue.

About Jonathan Barrett:

Jonathan Barrett is European Managing Director at Dataminr, an AI-enabled platform that discovers, distills and alerts on activity across publicly available data sources, enabling professionals to know and act on high impact events earlier. Jonathan has over 25 years of experience in the tech industry and is passionate about transforming businesses that have the potential to change the world.

Founder, Chairman and Co-Chief Investment Officer of Bridgewater Associates Ray Dalio talks to Julia La Roche in 2018 of Yahoo Finance about the value of savings and investing.

Following on from the success of our pilot festival in New York last December, DATAx is proud to present the next instalment of our global series of data-driven festivals, DATAx Singapore, offering 4 stages, 50 speakers & 450 Innovators. As one of the leading players in smart city technology, with autonomous vehicles, smart sensor platforms and applications of artificial intelligence (AI), it’s a rarity that the city-estate doesn’t make headlines in technology news regularly.

Global consulting group McKinsey estimates that 70% of businesses are expected to rely on AI to automate functions by 2030, adding $13 trillion growth to the global economy. Contrary to popular belief, the World Economic Forum has stated that the shifting dynamics between machines and humans will add an estimated 133 million new roles to the workforce.

The total impact of AI for business remains a looming question for many companies; DATAx aims to remedy this uncertainty by preparing business leaders to address topics like machine learning, analytics, data talent and big data.

With a worldwide community feeding into the series, DATAx remains dedicated to connecting delegates with the latest research, cutting-edge technology and the hottest startups to share highlights and breakthroughs in artificial intelligence (AI) and data science reshaping the world.

Luke Bilton, Managing Director of Innovation Enterprise, commented: “While AI has now become a real opportunity, it also brings real 'survival of the fittest' challenges – only fast-moving businesses are most likely to succeed.

“DATAx is a new style of event, designed to arm early adopters with the tools they need to move fast. We are excited to welcome the world's most innovative brands and partners to build something unique.”

In less than 2 weeks’ time, over 500 data leaders, from tech giants, financial innovators, emerging startups, government bodies and many more will gather at DATAx Singapore. Confirmed speakers from leading brands include American Express, Citi Bank, Visa, Boston Consultant Group, IBM, Netflix, Oracle, AIA, Axiata, Dyson, Singapore Exchange Limited, Google and many more.

The agenda features 50+ speakers covering Asia's critical data solutions in business practice. Grasp the chance to access to the unparalleled learning opportunities and get the latest AI and Machine Learning applications in Technology, Finance, Marketing, Smart Cities, across 5 stages.

SESSION HIGHLIGHTS INCLUDE

• ‘Omnichannel Personalisation Like You've Never Seen’, Client Team and Global E-commerce/Data Lead, WPP
• 'Leveraging analytics for more efficient media attribution and allocation', Group VP, Head of Analytics, Axiata
• 'Combining human and artificial intelligence: how creatives and data scientists work in concert at Netflix to craft a personalized experience.' Senior Data Scientist, Netflix
• 'Creating a data-driving go-to-market strategy', Head of Applied Data Science, Dyson
• 'Deep learning and computational grapy techniques for derivatives pricing and analytics', Head of Data Science and Visualisation at Singapore Exchanged Limited
• 'Ready or not: does your organization have a sound data strategy to run successful AI projects?', Big Data & Analytics, ASEAN, Oracle
• 'Organizational cultural changes required for success in Artificial Intelligence', CDO, Head of Science, Visa
• 'Machine learning and AI in American Express risk management', VP, Fraud Risk Decision Science, American Express

Don't miss out: Click here to register

Business telecommunications provider, 4Com has looked into Britons’ attitudes towards their co-workers to reveal just how willing the nation is to create meaningful relationships with those they spend so much time with day-to-day.

According to the research, our willingness to be social in the workplace differs from industry to industry. Finance comes in as the friendliest occupation with a huge four in five (81%) of workers saying they have made lifelong friendships with colleagues, refuting the idea that work is merely a place to get a job done, then go home.

Based on the percentage of people (per industry) who said they have made meaningful friendships at work, 4Com can reveal that the top five friendliest industries in the UK, are:

1. Financial services (81.1%)
2. Business to business (80.8%)
3. Health/healthcare (79.5%)
4. Education (77.9%)
5. Retail (77.9%)

But is having close friendships at work a help or a hindrance?

According to Consultant Psychologist and Clinic Director Dr. Elena Touroni from The Chelsea Psychology Clinic, close relationships at work can actually be good for productivity. She says: “When people get on well and develop friendships, there is a greater supportive and positive energy, which ultimately makes the experience of going to work more pleasant. Although it can be more complex in some instances, being in an environment that you enjoy generally has a positive effect on your overall productivity. Long story short: happier people work harder.”

This tallies with the experiences of financial services workers as the majority of those with close friendships agree that the relationship makes them more productive. Their top reasons for this are:

1. Because they make me enjoy my job more (72%)
2. Because I know I can ask them questions about things I’m not certain on (51%)
3. Because I can turn to them for advice  (40%)

Speaking about her best friend, Rachel from Leeds says: “I met my best friend two years ago at work. A few weeks after starting at the company, I went to the Christmas party where I met the other newbie, Charly. We clicked straight away, couldn’t stop talking and literally cried with laughter. We quickly became inseparable in and outside of the office.

“As we were both new to working in the industry, we helped each other tremendously. We had talents in different areas of the job and felt comfortable asking each other for help without the fear of judgment on things we weren’t yet confident in. This helped to ease any anxieties or worries about our own abilities and learn new skills. We stood side by side throughout the (many) ups and downs, in and outside of work, and although she’s moved to a different country, I know we’ll be friends for life.”

On the other hand, almost one in five (19%) of finance workers say they have never established a relationship with colleagues that go beyond the normal small talk. For them, the most common reason is simply that they are at work to do a job, not for friendship (40%), while a further two in five (40%) admitted having nothing in common with their workmates. This is most true however, for those in the public sector, of which one in four (25%) have never made meaningful relationships at work.

Consultant psychologist Dr. Touroni provides some insight: “Some people can find vulnerability in a work environment threatening, so preserving a boundary between personal and professional life helps them feel more secure. This self-protective mechanism is especially relevant when one is in a position of authority. Close friendships become a lot more complicated when a power dynamic is introduced, so it is often easier to maintain a level of distance with lower-level colleagues if you are in a position of seniority over them.”

Commenting on the research, Mark Pearcy, Head of Marketing at 4Com, said: “We spend a lot of time with our colleagues, more so than with our other friends and family, so it’s nice to see we’re building strong and meaningful relationships with these people. To help you make the most of your work relationships, we have put together a blog post with more findings from the study and some helpful tips.”

(Source: 4Com)

Here, we will look at 3 challenges not for profit organisations are facing and how they can be overcome.

1. Property challenges

Charities are allowed to own property, but it is important to realise that any trustees listed on the registry understand they cannot benefit personally from the property. There are challenges relating to buying and disposing of a charitable property. For example, when purchasing a premise, trustees need to be aware of any restrictions which might impact the non-profits use of the property.

To avoid falling into difficulties while acquiring property, it is recommended non profit organisations consult a professional real estate firm with experience in the sector, such as Avison Young. They will be able to advise you throughout every step of the process, as well as help the organisation to find the perfect premises.

2. Lack of resources

Resources are another major challenge not for profit organisations face; particularly in today’s economic climate. However, many charities have discovered the benefits of connecting with similar organisations to pool their resources.

Finding key partnerships is key to running a successful not for profit business. Charities should ask themselves which types of partnerships they can make. Find similar organisations which share the same values and beliefs. The more not for profit organisations you can partner with, the more resources you will be able to pool.

Not for profit organisations can also reach out to local businesses. Today, businesses are focused on becoming greener and doing their part for the community. Therefore, they may be more open to partnering and contributing to local not for profit organisations.

3. Funding

Finally, funding is another key challenge faced in the not for profit sector. As governments continue to seek ways to cut costs, funding has been held back for numerous not for profit organisations. There has also been a substantial increase in the number of not for profit organisations set up. The increased competition for funding has also presented problems, particularly when it comes to attracting new donors.

The above are 3 of the most common challenges faced by not for profit organisations today. In order to ensure they are running a sustainable charity, these organisations need to be aware of the challenges, and come up with an action plan to overcome them. Pooling resources is a great way for charities to reduce costs and continue operating even during the toughest of climates.

China's economic growth is slowing down. But what's really going on in the world's second largest economy? In this video, Dharshini David takes a look at the figures behind the headlines for Reality Check.

This is why Dean McGlore from V1 believes that in 2019, we’ll see CFOs switch their focus from AI to automation.

In 2019, automation – also known as Robotic Process Automation (RPA) – will move from the shadow of Artificial Intelligence. And rightly so. Like AI, it can relieve teams from mundane and repetitive work to focus on higher-value and strategic activities. But, unlike AI, automation is easier to access, expand. It’s a forecast echoed by experts around the world. Forrester, for example, predicts that the RPA market will reach $1.7bn in 2019 while Advanced has found that 65% of people would be happy to work alongside robotic technology if it meant less manual processes.

Over the next year, we will especially see RPA climb in popularity within the finance function. Teams will use it to automate the data capture and processing of supplier invoices, sales orders and other accounting documents. By automating these manual and usually administrative heavy processes, finance teams can drive unprecedented productivity and efficiency levels as well as benefit from increased visibility into the entire organisation and better data for reporting to the board.

RPA will help with a host of other external factors too. With the General Data Protection Regulation (GDPR) now in place, it will help the finance department (and indeed other areas of the business) get their data in order. RPA is a good starting point for GDPR compliance, as businesses can store, manage and track electronic documents and electronic images of paper-based information in one place and in real-time. This ensures compliance requirements by providing traceability on all documents.

Automation technologies will only be effective if the people using them understand how they work, appreciate their true potential and recognise the value they bring.

And then there is Brexit. Because RPA helps free up time for the finance team, more resources can be devoted to planning for when Britain leaves the EU in March. RPA provides an opportunity for businesses to scale up or down volume to meet demand from outside of the EU, for instance, as well as to assist the development of new products and services for new markets – all of which is essential for business growth. Moreover, with the threat of other countries hiking up tariffs after Brexit, RPA has the potential to replace the need to hire more employees and it can also help keep production costs to a minimum.

Regardless of the reason behind RPA adoption, CFOs will need to make sure that there will be a change in culture among the workforce. Automation technologies will only be effective if the people using them understand how they work, appreciate their true potential and recognise the value they bring. Arguably, investing thousands on pounds on technologies such as RPA won’t be effective if users don’t believe in them. A robust upskilling and training programme is necessary to ensure future digital success.

However, saying that businesses will turn their backs on AI in 2019 was never my intention – Artificial Intelligence will still play a key part of many organisations’ digital transformation plans. What RPA does is allowing businesses to test the water. Planning and testing automation software to see the impact it has on your operations and staff is a great indicator of the benefits that large-scale AI deployment could bring in the future – minus the fear of large-scale failure.

Planning and testing automation software to see the impact it has on your operations and staff is a great indicator of the benefits that large-scale AI deployment could bring in the future – minus the fear of large-scale failure.

In the future, we will see RPA and AI working together to transform the finance function like never before. With a combination of the right technology with AI handling decisions and chatbots managing customer queries, completely unmanned Accounts Payable (AP) for example is perfectly achievable by 2020 as a result of invoice automation.

RPA will be the first step for many and businesses looking to realise the power of automation over the next 12 months should take the following steps:

• Audit your processes and identify which involve low-skills, manual and repetitive tasks, such as many of the core, yet daily finance functions of invoice processes;
• Determine the key technologies that your business needs to become more agile, competitive and productive. RPA and AI have different capabilities, so decisions must be made based on need, rather than hype;
• Understand which new technologies are best placed to modernise or integrate with your organisation’s existing legacy systems;
• Ask yourself what the potential benefits of RPA and AI are to your finance team. Understand employees’ pain points before deciding which digital tools will help;
• Appoint a digital pioneer – someone that will drive positive technology change and that has the backing of your CEO and the rest of the C-Suite;
• Engage with your younger workforce. Typically, they are more digitally savvy and open to change. Find out what technologies they think will make a real difference.

RPA has the potential to change the face of finance for good. And, eventually, it will become ubiquitous among all key processes.

Reed Finance asked senior finance professionals what they thought and Rob Russell, Director of Reed Finance, shares some of the key findings with Finance Monthly.

The need to invest in the development of staff should be a top priority for any organisation. Employees who feel supported and have the opportunity to extend their skill sets are more likely to remain with a business, which in turn can benefit from a stable and committed workforce.

Skills development within the finance sector is a current hot topic with the acknowledgement of a growing skills gap, not helped by the uncertainty surrounding Brexit’s impact on the labour market. A skills gap that is not addressed will lead to a lack of competiveness as companies struggle to fill important roles with qualified staff.

We polled 600 senior finance professionals to gauge their opinions around staff development, what could be holding firms back from investing further, and the important areas requiring a skills development and training focus.

However, it is important to look at the type of skills needed for a successful career in finance. Our recently published interactive report ‘State of Skills’ analysed Google and O*NET data from the past 10 years for typical accountancy and finance roles. It found that written and verbal communication is prized by employers of finance professionals. This could be due to the future strategies of companies wishing to see finance executives take on leadership roles which entail not only technical soundness, but also an ability to inspire and work as a leader of teams – with ‘active listening’ and ‘oral comprehension’ some of the most important skills for a CFO to have.

We were also interested in where finance leaders thought skills gaps were, and how they were planning to tackle them. We polled 600 senior finance professionals to gauge their opinions around staff development, what could be holding firms back from investing further, and the important areas requiring a skills development and training focus.

1. Current status

When asked to describe their organisation’s current status when it comes to investment in skills and training, about two thirds believe that the level was adequate for their company needs.

However, 35% of those questioned said that the investment levels were not high enough, and when asked why this was, they answered that there were ‘other business priorities’ to take care of first. This could be a false economy for such organisations, as this direction of travel will inevitably lead to an under skilled and, perhaps, demotivated workforce and all the subsequent issues this would create.

2. The training barriers

Questioned on the potential barriers that mean training investment is not what it should be, a number of constraints were cited. Chief among them was the belief that budgets are tight and training resources under pressure within their organisation. This was followed by an admission that time pressures were too great to allow more focus on staff development.

Interestingly, a quarter said there is no guarantee that staff would remain with the organisation once they had been trained and the investment in time and resources would be effectively wasted. This is a pessimistic outlook when the converse could be argued. Employees could be more predisposed to stay with a business that is prepared to help support and develop them. Unenthusiastic employees and apprenticeship levy issues were also highlighted as barriers, but only by a few finance professionals.

Interestingly, a quarter said there is no guarantee that staff would remain with the organisation once they had been trained and the investment in time and resources would be effectively wasted.

3. Areas of focus

The current advancement in new technology and software across the sector was identified by respondents as a vital area for training. As more organisations invest in growing technological capabilities, the need for employee training to optimise their potential needs to increase. This area of employee development was, by some distance, the most strongly articulated in the research findings, outstripping the more traditional areas of skills training such as accounting information, auditing, financial accounting and tax accounting.

It would appear that a focus on supporting staff as new technology enters the sector should become a top business priority both to meet business need as well as employee demand.

4. The role of training

Asked what they believe the role of training to be within an organisation, three views dominated the answers. There was general consensus that the purpose of training is to improve overall company efficiency, as well as enhance individual skillsets for the general good of the organisation. These two opinions were closely followed by a need to retain staff and to have better career progression internally.

With the current uncertainty around Brexit and its potential threat to the availability of skilled migrant workers, there is a pressing need for British business to develop and nurture its own talent pool.

Some stated that a proactive training-centric business philosophy leads to the creation of a positive company culture. This not only retains staff, but can act as tangible attraction when it comes to the task of attracting new talent in the face of increasing competition.

With the current uncertainty around Brexit and its potential threat to the availability of skilled migrant workers, there is a pressing need for British business to develop and nurture its own talent pool. By valuing employees and supporting them to grow in their roles, businesses can enhance their reputation, become an employer of choice for those seeking new positions, and be rewarded with a lower employee turnover that creates a more stable platform for the rest of the company.

Finance Monthly hears from Colin Rowland from Apptio who asks the question: “Is this a trustworthy way to manage spend that is often billions of dollars across thousands of vendors and contracts, hundreds of employees, and more?”

Since the spreadsheet was popularised in the 80s, it has become the tool of choice for CFOs managing data and tracking costs across businesses. But in today’s digital age, spreadsheets are too cumbersome, slow, complex and constantly changing, to provide truly comprehensive oversight of costs and data in business.

Nowhere is this more evident than in managing technology spend, and it is abundantly clear that the IT department needs to upgrade its approach in order to properly provide CFOs with the monetary direction necessary to make smart, informed and strategic budgeting and investment decisions.

CFOs are required to oversee budgets across the whole business, yet while sales and finance have a wealth of tools such as CRM and ERP to assist them, there has been no purpose-built system for the technology department. With Gartner predicting that by 2022 businesses will be spending more than $3.9 trillion on IT, there is a huge level of pressure on finance professionals who need to track and manage these outgoings.

CFOs are required to oversee budgets across the whole business, yet while sales and finance have a wealth of tools such as CRM and ERP to assist them, there has been no purpose-built system for the technology department.

Kickstarting the culture change

To kickstart a move away from managing spend in static spreadsheets, organisations need to implement a culture change when it comes to technology, tracking spend, and understanding value of investments. Once viewed as simply a running cost of the business, technology is now a key deliverer of business value and revenue generation. That means the way investments are tracked, managed and communicated needs to be clear, open and transparent between IT and the business in a way that was previously unnecessary.

One method some organisations are adopting is the discipline of Technology Business Management (TBM). It focuses on providing a practical framework for finance and IT leaders seeking to manage and communicate the value of technology spend. It encourages translating IT usage and cost data from a list of bills into a source of business intelligence that can drive digital innovation. This allows the CFO to make more informed decisions when it comes to IT spending.

However, legacy tools simply don’t provide the added value needed to enable the communication and discussion needed around technology costs. It’s effective for data input and manipulation, but that’s no longer enough when complex technology costs need to be given to finance leaders in a digestible manner. Where this budgeting data is stored in various spreadsheets that are all siloed from one another, it can be nearly impossible to settle upon a single source of truth for the overall figures.

Spreadsheets do not enable actionable insights and cost analysis needed in the modern technology landscape for several reasons: they’re clunky, they’re rigid, and they’re slow.

Managing technology costs using… technology

This is where custom tools come in. They can provide additional capabilities and processes that enable businesses to not only accurately track their IT costs, but analyse them quickly and effectively, providing insights which are intelligible for those not well-versed in technology. And the more advanced technology solutions will be able to leverage machine learning to make this automated and free up employee time and resources for more value-additive work.

IT and finance leaders can then work together to drive forward business strategy based upon this knowledge. Spreadsheets do not enable actionable insights and cost analysis needed in the modern technology landscape for several reasons: they’re clunky, they’re rigid, and they’re slow.

Take the complex nature of public cloud spend, for example. A pay-as-you-go costing structure generates masses of data in by-the-minute billings that need to be tracked; meaning there is no guaranteed regular monthly spend to budget against. Even the most finely-tuned spreadsheet would struggle to track the thousands of lines on a cloud bill from separate business units, especially when many businesses are now embracing cloud services from multiple vendors.

The agility that disciplines such as multi-cloud bring also means that businesses must be prepared to adapt their cloud strategy quickly to suit their needs. Approaches that work now may be obsolete in three months’ time, and it is necessary to have a solid framework and the right tools to allow such changes to progress smoothly. For example, using Apptio’s TBM solutions, Unilever was able to move away from legacy infrastructure to cloud and increase the company’s digital innovation budget by more than 20% to provide consumers with an ‘intelligent’ buying experience online and in-store.

When it comes to technology, using spreadsheets to track and manage spend is holding businesses back.

Another complicating factor is the staffing cost associated with manning spreadsheets. Consolidating various spreadsheets to get a transparent view of IT spend can be a painstaking task, taking many hours and potentially resulting in human error. Custom tools can work to streamline and speed up these processes, while ensuring that errors do not occur. This allows IT teams to spend their time more effectively elsewhere, improving the overall efficiency of the department.

When it comes to technology, using spreadsheets to track and manage spend is holding businesses back. While custom tools may necessitate an upfront investment, they are undoubtedly worthwhile as a flexible long-term solution, providing agility, speed and clarity where spreadsheets cannot. By using such tools in conjunction with the principles of TBM, CFOs and the IT department can move away from spreadsheets and work towards a partnership in which insights into technology spend form a key part of the business’s ongoing strategy.