Some interesting insight into the changing role of the finance professional. From communication to influencing, a management accountant’s role is more than just crunching the numbers!
“The expansion of finance professionals’ roles in an increasingly complex business environment has created the need for more skills development.”
A friend asked me to summarise the key points on investment appraisal as he will be taking his exams in a couple of months’ time, so I built him a model to run through the logic.
- Only include relevant costs and revenues
- Make sure you correctly reflect the timing of future cash flows
- Deal with taxation (you’re gonna have to!)
A recent article in an issue of Financial Management from the Chartered Institute of Management Accountants struck a chord as it looked to answer the question about how we value data. Look at any CFO survey and this topic is at the forefront of today’s financial leaders.
Recently Unilever CFO Jean Marc Huet mentioned in an interview his company’s aspiration to be able to model profitability right down to a customer/consumer level incorporating different data from a plethora of sources, including social media. Think about that for a minute. A global multinational company with thousands of products, customers, routes to market where understanding customer profitability would be a challenge in itself! Throw in a hundred million consumers and thousands of social media sources and you’re quickly looking at a mountain of data to mine.
With CIMA quoting year-on-year increases of data within organisations as high as 59%, business will need to have a strategic vision as to how they plan to tackle big data, what business analytics tools they will invest in and how they use insights gleaned to drive decision making and competitive advantage.
Posted in Business, CGMA, CIMA, FMCG, Productivity
- Tagged big data, CFO, CIMA, data mining, finance, Unilever, value
Chief executives today must operate in a more intense, more intricate business environment, and new CEOs are particularly under pressure.
Click here for link to CGMA article