The Data Revolution – ACCA IMA

32 Pages·2015·2.51 MB·English

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The Data Revolution
The Future Today
Abstract
The purpose of this report is to draw attention to the radical change in the
role of data in relation to the accountancy profession. It touches upon issues
of data management, data governance and data lifecycle, and describes key
current and future trends for a broad range of data-related activities.
Demand for new data-related skills is already high and is likely to increase
even further. Acknowledging the revolutionary nature of changes related
to data and understanding the concepts and challenges that working with
data presents are likely to be among the key requirements for finance
professionals in the near future.
About ACCA About IMA
ACCA (Association of Chartered Certified Accountants) is the IMA® (Institute of Management Accountants), the association
global body for professional accountants. We aim to offer of accountants and financial professionals in business, is
business-relevant, first-choice qualifications to people of one of the largest and most respected associations focused
application, ability and ambition around the world who seek exclusively on advancing the management accounting
a rewarding career in accountancy, finance and management. profession. Globally, IMA supports the profession through
research, the CMA® (Certified Management Accountant)
Founded in 1904, ACCA has consistently held unique core credential, continuing education, networking and advocacy
values: opportunity, diversity, innovation, integrity and of the highest ethical business practices. IMA has a global
accountability. We believe that accountants bring value to network of more than 75,000 members in 140 countries and
economies in all stages of development. We aim to develop 300 professional and student chapters. Headquartered in
capacity in the profession and encourage the adoption of Montvale, N.J., USA, IMA provides localized services through
consistent global standards. Our values are aligned to the its four global regions: The Americas, Asia Pacific, Europe,
needs of employers in all sectors and we ensure that, through and Middle East/Africa.
our qualifications, we prepare accountants for business. We
work to open up the profession to people of all backgrounds www.imanet.org
and remove artificial barriers to entry, ensuring that our
qualifications and their delivery meet the diverse needs For further information, please contact:
of trainee professionals and their employers.
Faye Chua
We support our 170,000 members and 436,000 students Head of Business Insights, ACCA
in 180 countries, helping them to develop successful [phone]
careers in accounting and business with the skills needed [email protected]
by employers. We work through a network of 92 offices and
centres and more than 8,500 Approved Employers worldwide, Dr Raef Lawson
who provide high standards of employee learning and Vice President of Research and Policy
development. Institute of Management Accountants
[phone]
www.accaglobal.com [email protected]
© The Association of Chartered Certified Accountants and Institute of Management Accountants November 2015
Table of contents
Acknowledgements 2
Foreword 7
Executive summary 8
1. Introduction 10
2. Data management, data governance and data lifecycle 12
3. Data Revolution – current and future trends 18
4. Data management and the future of accountancy
– what is required and what does it mean for you? 22
5. Conclusion 26
6. References 28
The Data Revolution 1
Acknowledgements
Ian Betts FCCA Simon Cole FCCA
Data Manager, Upstream, Group Financial Controller at WS Atkins PLC
Projects and Technology at Shell
Currently Simon Cole is group financial controller and
Ian Betts leads Shell’s Upstream data management reporting director for Atkins plc, the FTSE 250 design
drive with a team located across business operation and engineering consultancy that designs everything
centres in Chennai, Manila, Kuala Lumpur and Glasgow. from roads to railways, hospitals to airports, not to
Previously he supported the transformation of Shell’s mention the odd experimental nuclear fusion reactor.
downstream business as finance manager and, before
joining Shell in 2007, held multiple finance roles with Simon has held a number of roles since joining the
Kraft Foods in Europe, Asia Pacific and North America. group and has previously been divisional FD for large
parts of the group, both in the UK and in the Far East.
His roles have taken him to numerous countries as the
company has grown from fewer than 2,000 to 20,000
people, located in five regions and over 30 countries.
Faris Dean FCCA Mike Greene
Head of Business Services at Bowden Jones Solicitors Chairman of the Board at insightaction Inc.
Faris Dean heads the Business Services Department Mike Greene is a chartered accountant who has wide-
of Bowden Jones Solicitors. He advises and acts for ranging experience in a number of different financial
clients on a range of matters including business sales and operating management areas, including mergers
and purchases, investment agreements, anti-bribery and acquisitions; he is executive vice-president of an
and data protection. Before joining Bowden Jones, international trading organisation, and chief financial
Faris worked in law firms dealing with national and officer of a large ($2 billion+ revenue) Toronto Stock
international commercial and corporate transactions. Exchange-listed conglomerate. From 1996, he provided
As well as practising as a solicitor for over 10 years, strategic, business and financial planning consultancy
he is a qualified chartered certified accountant services to companies doing business in a number of
having trained with two of the ‘Big Four’ international different market segments and was one of the founders
accountancy firms. His understanding of financial of InsightAction Inc. in 2012.
issues affecting business helps provide another
perspective when advising clients on corporate
and commercial transactions.
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Matthew Harris FCA Babajide Ibironke FCCA, FCA, FCTI
Financial Director – Natural Resources, Costain Financial Director/CEO at Mantrac Nigeria Ltd
Matthew Harris was appointed finance director for Babajide Ibironke is currently the finance director
the Natural Resources Division of Costain Group in at Mantrac Nigeria Limited. Babajide is a seasoned
November 2012. He has responsibility for the financial chief financial officer with almost two decades of
reporting and strategic planning of the water, power, diverse experience in finance, strategy and general
and oil and gas sectors of Costain, as well as the management roles in global and market positions
integration of the recently acquired Rhead Group. across the world. He has an excellent reputation as a
Prior to joining Costain, Matthew was a director of business partner, founded on broad expertise in all
Hanson Cement, and has previously held senior finance aspects of finance including: budgeting, strategy and
roles with American Water, Thames Water and BMW. planning, reporting, operations finance and marketing
Matthew qualified as a chartered accountant with finance. His highly rewarding career has taken him
Price Waterhouse, and became a fellow of the through three reputable listed companies: Nigerian
Institute of Chartered Accountants of England banks, Nestlé Nigeria Plc and Guinness Nigeria Plc.
and Wales (ICAEW) in 2014.
Shariq Khwaja Anne Kimari FCCA, CPA
Information Technology and Services Consultant Chief Operating Officer at the African
Academy of Sciences
Shariq Khwaja is a freelance business consultant
specialising in FinTech project management, who has Anne Kimari is chief operating officer, with a concurrent
successfully carried out initiatives for several high- role of chief finance officer, at the African Academy of
profile partners, including the London Stock Exchange, Sciences, a pan-African organisation with affiliation
Credit Suisse, Old Mutual, RBS and Lloyds Bank. with NEPAD and the African Union, championing
He remains true to his software engineering roots science, technology and innovation. She has been
and keeps his technical skills honed, continuing the a member of the ACCA SME Global Forum, as
development and testing of a set of algorithmic she has personal interest in promoting SMEs’
trading tools that he built as part of his MSc thesis. performance and big data management.
The Data Revolution 3
Acknowledgements
Kevin Long FCA Dilesh Magdani FCCA
Business Development Director at Teradata Director of Finance Operations at Specsavers
Kevin Long is the business development director at Dilesh Magdani is the Director of Finance Operations
Teradata. Kevin, who trained as an accountant with at Specsavers. He is an experienced senior professional
Ernst & Young, has a combination of business, financial and an award-winning leader. He has worked in
and IT skills. He specialised as an information systems multinational blue chip, private and VC-backed
auditor, followed by financial and operational system organisations and has experience across a variety
integration projects. With over 15 years’ consulting of industries, including retail, utilities, manufacturing,
experience (Deloitte, HP and Teradata), Kevin has been distribution, food and beverage.
involved in data projects for over 20 years, working
on a wide range of analytical projects across diverse Dilesh is responsible for designing and implementing
geographies and industries. a global back-office footprint, and prior to this led
the shared-service operations for Specsavers. He has
previously created and led operations for Stella Travel
Group and Premier Foods plc, and held various finance
roles within National Grid plc, RS Components and
T&N plc.
Brad Monterio Rob Mutchell ACCA
Global Board Member on the Board of Directors Chief Financial Officer at BP Ventures and
at the IMA Head of Finance at BP Alternative Energy
Brad Monterio is a marketing and technology expert Rob Mutchell holds two roles in BP as the chief financial
who advises companies on increasing their market share, officer for the Venture Capital unit and head of finance
opening new markets, developing new revenue streams, for the Biofuels division. As part of his remit, he serves
driving market adoption and sourcing strategic partners. as a non-executive director of two UK-based portfolio
Brad specialises in reporting frameworks/standards as companies. Rob qualified as an accountant with ACCA
well as in XBRL, integrated reporting and sustainability. in 1998, studying part-time while enjoying his first
He is a global board member of the IMA as well as career as a professional footballer with Oxford United,
the Casualty Actuarial Society. As chair of the IMA’s Barnet FC and Stevenage Borough.
Technology Solutions and Practices Committee, he helps
CFOs integrate technology with accounting/finance.
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George Staw Andrew Vorster
Enterprise Data Architect at Wincor Nixdorf Technology Foresight Consultant at AndrewVorster.com
For the past 20 years, George Staw has worked as a With more than 30 years’ technology experience across
freelance IT consultant in the fields of data architecture a broad range of industries, Andrew Vorster has spent
and governance; he has carried out a large number his entire professional career helping organisations
of projects with a wide range of European clients, understand and exploit the opportunities, and mitigate
developing strategies and methods that have improved the risks, presented by new and emerging technology.
levels of data quality and usability. At present, George He is a member of the World Future Society and
is carrying out an internal data quality assessment for recently left the position he had held for almost seven
a leading European transport company. years as vice-president of technology research for Visa
Europe, in order to develop his own business. He is an
acclaimed public speaker and is known for having an
opinion on virtually everything.
Emmanuel Walter ACCA Fergus Wong FCCA
Director at Winfos Capital Ltd Tax Director, National Tax Policy Services,
at PricewaterhouseCoopers
Emmanuel Walter is a highly accomplished and results-
driven executive with more than 20 years’ international Fergus Wong is a fellow of the ACCA, the Hong Kong
experience in Europe and Asia. He has previously held Institute of Certified Public Accountants and CPA
various senior financial and operational positions for Australia. He is also a Certified Tax Agent (Hong Kong).
large businesses (c. US$500m and 2,000 staff), with He has many years of experience in Hong Kong tax and
multinationals such as Dialog Semiconductor, GE international tax gained through working in the Hong
and ABB Power, specialising in the industrial sector Kong Inland Revenue Department, teaching taxation
(energy, manufacturing/engineering, automotive/ in local tertiary institutions and providing training
EV, semiconductor) as well as in the Chinese market, and in-house technical support within professional
where he has worked 10 years as CFO for a company accountancy firms. Currently he is the tax director
manufacturing power-related equipment. He is highly at PricewaterhouseCoopers Hong Kong. He is the
experienced in managing JVs. chairman of ACCA Hong Kong branch and has served
as a member of ACCA International Council since 2013.
The Data Revolution 5
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Foreword
Calling data ‘the new oil’ of the digital economy may
have become a cliché, but it still makes sense.
The catchy phrase has been in use since the mid-2000s
and is arguably not the best of metaphors, but its
key message is still valid. Oil facilitated the Industrial
Revolution in the 19th century, and, in a similar way,
data has become an essential resource of the digital
economy in the 21st century, bringing tremendous
benefits to businesses and to society at large. Like oil,
data is seldom used in its raw form: it needs to undergo
Imtiaz Ibne Sattar, a number of transformations in order to generate value.
ACCA Accountancy
If not stored and treated with due care and diligence,
Futures Academy
Global Forum Member data too can cause massive problems, as data leaks can
be highly toxic and very expensive to contain.
This report by ACCA and IMA suggests that, in order
to fully anticipate the future impact of data and its
role, the finance profession needs to look beyond
the ‘new oil’ metaphor; instead, it should support
the business in adopting a data-centric approach to
modern information technology. What this means,
in short, is that data should be seen not only as a
useful commodity (which it undoubtedly is) but also
as a factor that is critically important for business
strategy, as it directly affects issues such as costs,
efficiency and quality of service.
In the near future, data governance and managing
data through its full lifecycle should no longer be
considered among those boring tasks confined to
the depths of the back office. New data-orientated
business functions and roles will eventually emerge,
and this should present accountants with a very good
opportunity, as they are well placed to fulfil some of
these functions and roles. For instance, such issues as
calculating the true value of data and the monetary
impact of data management decisions, as well as
monitoring regulatory compliance of various data-
related processes, would be well within the remit
of finance professionals.
The Data Revolution 7
Executive summary
The role of data in the modern world is changing in a
most dramatic way. The changes, their speed and scale,
as well as their impact on almost every aspect of daily
life, are so significant that the term ‘Data Revolution’
is being used ever more frequently, and rightly so.
As was the case with the first two industrial revolutions, Accountants and finance professionals have always
the Data Revolution has been facilitated by technology, been right at the heart of data-related work. Now,
most importantly by rapid advancement of various as the Data Revolution causes huge shifts in the data
computer-related technologies and by the development landscape, the very nature of the finance profession
of internet and mobile data networks. Naturally, modern is being significantly affected, and new data-related
business has been very quick to take advantage of skills are being sought. This signifies an urgent need
the new opportunities, demanding electronic forms of to re-examine current and future trends of digital data
data and data-driven processes. As a result, working and data processing, as well as their imminent impact
with electronic data is now firmly established as one of on the future of accounting.
the key functions of modern business; this applies to
companies of all sizes, in all sectors of economy all over
the world.
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