Three A’s - Analytics, Automation and AI
Steve describes how the three As - Analytics, Automation and AI improve decision making, create efficiencies and even grow new revenue streams.
Profitability Analytics as a ‘West Side Story’
People think by comparisons. So let me give you an analogy. I am a big fan of movies – old black and white ones, new ones with special effects, and most types in between. I especially like musicals. One of my favorite musical films is West Side Story, released in 1961. A few years ago Stephen Spielberg directed an updated version of the movie.
Does Your CFO View You As An Asset Or An Expense?
The rate of change impacting many of our enterprises and industries continues to escalate. Of the many jobs within our organisations, one in particular has become much more demanding. It’s the role of the CFO. The person responsible for ensuring the organisation they serve is growing both sustainably and profitably.
So then, how do CFOs decide who to hire into their finance organisations to meet and overcome these challenges?
Time Driven Activity Based Costing (TDABC)
Time Driven Activity Based Costing is a costing method that uses the time required to complete each step in a process to produce a product or deliver a service. The cost of a product or service is determined by multiplying the total time required to complete a series of process steps by the capacity cost rate, whereas the capacity cost rate (expressed as a cost per unit of time) is determined by the total cost of capacity supplied (such costs include personnel; benefits; management; occupancy; utilities; equipment costs; and allocated indirect and overhead spending) divided by the practical capacity of resources (expressed using a unit of time) within a given time period.
The Changing Role Of A CFO – New Competences And Skills Are Necessary To Face New Challenges
The role of a CFO has been changing recently. A CFO can no longer be seen as someone who is responsible for cutting costs as a means of maintaining the profits. It is not a matter of dominating the financial principles; instead, CFOs must develop a strategic discipline to be effective financial leaders (Caglar, Mani & Peters 2015). Although a strong background in accounting and compliance is still important, there is a tendency for CFOs to improve their non-technical skills through financial planning and analysis, treasury and capital markets experience.
