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1、MEANINGFUL WORK FOR THE DIGITAL PROFESSIONALROADMAP BEYOND THE PANDEMIC 2020 Association of Chartered Certified Accountants and EY Global Services Limited July 2020About ACCA ACCA is the Association of Chartered Certified Accountants.Were a thriving global community of 227,000 members and 544,000 fu
2、ture members based in 176 countries that upholds the highest professional and ethical values.We believe that accountancy is a cornerstone profession of society that supports both public and private sectors.Thats why were committed to the development of a strong global accountancy profession and the
3、many benefits that this brings to society and individuals.Since 1904 being a force for public good has been embedded in our purpose.And because were a not-for-profit organisation,we build a sustainable global profession by re-investing our surplus to deliver member value and develop the profession f
4、or the next generation.Through our world leading ACCA Qualification,we offer everyone everywhere the opportunity to experience a rewarding career in accountancy,finance and management.And using our respected research,we lead the profession by answering todays questions and preparing us for tomorrow.
5、Find out more about us at About EY EY is a global leader in assurance,tax,transaction and advisory services.The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over.We develop outstanding leaders who team to deliver on our pr
6、omises to all of our stakeholders.In so doing,we play a critical role in building a better working world for our people,for our clients and for our communities.EY refers to the global organization,and may refer to one or more,of the member firms of Ernst&Young Global Limited,each of which is a separ
7、ate legal entity.Ernst&Young Global Limited,a UK company limited by guarantee,does not provide services to clients.Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via more information about our
8、organization,please visit MEANINGFUL WORK FOR THE DIGITAL PROFESSIONALROADMAP BEYOND THE PANDEMICThis report,collaboratively produced by EY Global Services Limited and Association of Chartered Certified Accountants(ACCA),shines a light on how accountancy and finance professionals can embrace the dig
9、ital age to achieve work experiences that are truly meaningful and rewarding.A deep and resilient connection to work is always critical but it matters even more with the economic uncertainty arising from the COVID-19 global pandemic.The report is anchored in a practical roadmap for accountancy and f
10、inance professionals who wish to pivot their work towards greater engagement with digital tools.It also features examples of jobs with input from practitioners,that could be of interest to the digital professional.The views are informed by a global survey of 4,281 respondents and 55 interviews condu
11、cted during AprilMay 2020.22 of these were with EY leaders globally(primarily in audit and assurance)and 33 were leaders across small,medium and large organisations.ForewordSatisfaction in work is a fundamental building block of a happy and successful life.For accountancy and finance professionals,d
12、igital tools offer new possibilities for meaningful work that will outlast the economic challenges posed by the global pandemic.ACCAs vision is to develop the accountancy profession the world needs.In a fast-changing world with unexpected challenges of which COVID-19 is a prime example this requires
13、 an agile and forward-thinking mindset.By embracing the potential of technology,the digital professional will create new types of work and be driven by a sense of purpose in that endeavour.This report highlights several implications of the COVID-19 pandemic,but also looks beyond that to a practical
14、roadmap for exciting work that awaits those willing to grasp the opportunities.As a joint publication,the report benefits from a complementary mix of views that will support practitioners to deliver cutting-edge services while bearing in mind public interest considerations.Helen Brand Chief executiv
15、e,ACCARuchi Bhowmik EY Global Vice Chair Public PolicyFor every generation,new tools allow people to do some things more efficiently as well as to do entirely new things and solve entirely new problems.Todays accountancy and finance professionals face increasingly complex issues as well as broader s
16、ocietal expectations around what their public interest role entails.Whats more,they want their jobs to provide them with a sense of purpose.Embracing new technology will accelerate their progress on both fronts.At EY,professionals are already leveraging technology to handle routine tasks,analysing d
17、ata to illuminate hidden patterns,and staying curious enough to ask better questions that lead to new insights.This approach will help to elevate their daily work,build essential skills of judgment and professional scepticism,and lead to rich and meaningful careers.We are grateful to ACCA for the op
18、portunity to collaborate on this valuable project.4Survey demographicsBy employment type,breakdown of employed*Pursuing ACCA qualificationBy world region,size of organisation*SMEs(small and medium-sized enterprises)are those with fewer than 250 employees,Large organisations are those with 250 or mor
19、e.The report benchmarks against a Leader group of 827 employed respondents(c.20%of sample)who scored 4 or 5,ie high performance on a 5-point scale,for each of eight criteria indicating their organisations approach:nkeen to adopt emerging technologies nuses technology to create new products and servi
20、ces for clients nuses technology to enable flexible working,such as from remote locations and for non-standard hours of work nhas conducted employee skills-mapping to identify gaps nallows staff to experiment with new ideas nsupports initiatives for employees well-being and happiness ntries to under
21、stand whether employees find their work fulfilling nprovides a fulfilling work experience for me.Data on Leaders refers to respondents who worked in organisations that satisfied the above criteria.n Full-time accounting or finance role,77%n Part-time accounting or finance role(including part-time st
22、udents in accounting or finance role),5%n Non-accounting or finance role(full-time or part-time),11%n Self-employed,6%n Career break(including parental leave),1%EmployedFull-time student*Retired/Not currently working3,454538538n North America,3%n Middle East,5%n Asia Pacific,16%n Central&Eastern Eur
23、ope,6%n South Asia,17%n Western Europe,23%n Africa,26%n Caribbean,Central and South America(CCSA),4%Large organisations49%51%SMEsCorporate sector largen Total n LeadersCorporate sector SMEPublic sectorLarge accounting firmSmall or medium-sized practice(SMP)Financial services largeFinancial services
24、small/medium sizedNot-for-profitMid-tier accounting firm16%19%15%15%9%9%9%11%7%8%7%13%7%6%6%5%4%4%56ContentsExecutive summary 8Introduction 121.Scanning the digital landscape 15 1.1 Technology 16 1.2 Delivery model 20 1.3 Business model 25 1.4 Standards and regulation 28 1.5 Society and public inter
25、est 302.Digital and the global pandemic 33 2.1 Ways of working 33 2.2 Digital as part of the solution 373.Roadmap for the digital professional 41 3.1 Being purpose-led 42 3.2 Assessing strategic fit 42 3.3 Delivering outcomes 46Conclusion 59References 60Acknowledgements 617MEANINGFUL WORK FOR THE DI
26、GITAL PROFESSIONAL|EXECUTIVE SUMMARYThere are many philosophical interpretations of what meaningful signifies in the work context.In simple terms,it refers to a deeper connection with ones work that goes beyond just getting the job done.Executive summaryTo identify what constitutes meaningful work f
27、or the digital professional,we need to examine how professionals engage with technology,rather than just focusing on what it does.And to ask ourselves:to what end is the technology being used?This is essential for creating purpose-led work that makes a difference.To facilitate this,the report starts
28、 by scanning the digital landscape,the headline findings from which are as follows.nThe digital landscape isnt just about technology:Accountancy and finance professionals must consider the technology in relation to delivery models for their services,evolving consumer preferences,and regulation,as we
29、ll as ethics and the public interest.A technology might seem attractive from a product development point of view,ie it solves a problem,but may be unsuitable in light of one or more of the above.nTheres a lot of room for driving up digital adoption:Globally,adoption among our sample is highest for c
30、ommunity technologies(55%)such as social media,messaging;the next highest being Next-generation computing(eg Cloud,Serverless,Edge)at 36%and data technologies at 30%.Over the coming decade,the expectation is for engagement across technologies to approach 90%.nLeaders work at organisations that embra
31、ce data:On current adoption across 10 technology clusters,the biggest difference between leaders in our sample and the rest is in use of data technologies,eg big data,analytics,visualisation 10%more leaders are adopting these than in the overall sample.This was followed by reflecting on the impact o
32、f COVID-19 on this digital landscape,leading to the following conclusions.nDigitisation remains a key priority for the profession:Periodic disruption by technology has been navigated by the accountancy profession through business cycles over the long term and this will continue.The pandemic has,in f
33、act,accelerated digital adoption in areas such as e-commerce(for reaching clients)and remote working(for reaching staff)that relate directly to maintaining operations.nLeaders work at organisations that outperformed in adjusting their delivery model:95%of leaders say their organisations are well pre
34、pared for using technology for working during the pandemic.This is against a global average of 74%;with a 62%82%spread across world regions.nFlexible working has been more difficult for those at earlier career stages:On their organisation being well prepared for using technology during the pandemic,
35、scores are nine points higher for those with 10+years of post-qualification experience than for those with less(83%versus 74%).nDigital adoption projects focus on immediate needsfor now:A significant minority(44%)are scaling back on digital adoption projects with a focus on tactical digitisation to
36、keep the lights on as mentioned above.But looking ahead over the next five years,only 17%continue to predict scaling back among their top three challenges,which suggests this may not be an enduring structural adjustment.8MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|EXECUTIVE SUMMARYThe above factors
37、 have a number of implications for the digital professional seeking meaningful work.nBeware of diving straight into technology and product details,without paying enough attention to surrounding factors(such as delivery models or regulatory implications);in a fast-moving world with risks of technolog
38、y obsolescence,it could turn to a wasted effort.nThere will be a need for professionals who can lead the digital engagement in their organisations as adoption increases over the coming years.Also,COVID-19 seems unlikely to affect the strategic investment in digital projects over the longer term.Exam
39、ples of job roles relevant to accountancy and finance professionals are included in this report.nOrganisations that are serious about their data strategy are more likely to offer meaningful work,regardless of the specific technology one may be working with.nEvaluate an organisations offer on flexibl
40、e working,because emerging examples of a permanent move to full or substantially remote working,beyond the pandemic response,suggest that this could become an important influencer in shaping ones work experience.nActively reflect on factors relevant to working flexibly,for example,level of face-to-f
41、ace contact that is needed for delivery and progression in a job role,autonomy in planning ones work,the need for guidance on day-to-day basis,or issues such as motivation and engagement.nSeek out organisations that value learning and development.Leaders are 49%more likely to work at organisations t
42、hat conducted an employee skills mapping exercise to identify gaps;this was the highest differential between leaders and the sample for control criteria used to pick Leader group.nA sense of purpose is critical for achieving meaningful work with an enduring long-term connection and commitment,and th
43、is often goes beyond financial factors alone.Leaders were 38%more likely to work at organisations that try and understand whether employees find work fulfilling.This was the second-highest measure of differential between leaders and the sample for the criteria used to pick Leader group.nRecognise th
44、e multidisciplinary nature of the digital professional,and the need for a balanced approach that builds digital capabilities alongside technical and ethical skills,commercial acumen,and inherently human competencies such as emotional intelligence,vision and creativity.nPartner effectively with exper
45、ts across multiple domains,for instance data engineers or cybersecurity specialists.Given the specialised nature of technology and the rapidity of technological change,this will be critical as it is not possible to acquire deep expertise in everything.As part of this,consider whether the organisatio
46、n model allows for access to multidisciplinary capabilities in a quick,seamless way.ACCOUNTANCY AND FINANCE PROFESSIONALS MUST CONSIDER THE TECHNOLOGY IN RELATION TO DELIVERY MODELS FOR THEIR SERVICES,EVOLVING CONSUMER PREFERENCES,AND REGULATION,AS WELL AS ETHICS AND THE PUBLIC INTEREST.9MEANINGFUL
47、WORK FOR THE DIGITAL PROFESSIONAL|EXECUTIVE SUMMARYThe roadmap for the digital professional starts with continual scanning of the digital landscape that goes beyond understanding how an individual technology works.This provides a basis for understanding ones purpose,and for reflecting deeply on why
48、one wants to work in roles with a high component of digital skills:why working with technology reflects ones interests and values.Once there is clarity on this,the next step is to assess strategic fit with the organisation and to plot a direction of travel that supports learning and development.This
49、 involves looking beyond immediate deliverables and understanding how the work fits into the overall picture,for example,the value created for stakeholders and career paths that map to the agenda of those stakeholders.The preceding steps provide the appropriate context for achieving optimum outcomes
50、 in the role itself,ie with a proper understanding of the key responsibilities and ways of working for that role.Focusing directly on this step,ie just getting the job done may produce results in the short term but is unlikely to provide an enriching and meaningful work experience in the long term.F
51、urthermore,digital professionals must also consider factors in their peripheral vision,beyond digital aspects.The roadmap should be able to withstand unexpected shocks to the system,such as COVID-19,or more well-established trends that are playing out over time,such as a move towards non-linear care
52、er paths.FIGURE ES1:Roadmap for the digital professionalDelivery modelBusiness modelStandards and regulationSociety and public interestTechnologyRECOGNISE FACTORS OUTSIDE DIGITALShort-medium term,eg COVID-19|Long term,eg non-linear career pathsBE PURPOSE LEDASSESS STRATEGIC FITDELIVER OUTCOMESSCAN T
53、HE DIGITALLANDSCAPE10THE ROADMAP SHOULD BE ABLE TO WITHSTAND UNEXPECTED SHOCKS TO THE SYSTEM,SUCH AS COVID-19,OR MORE WELL-ESTABLISHED TRENDS THAT ARE PLAYING OUT OVER TIME,SUCH AS A MOVE TOWARDS NON-LINEAR CAREER PATHS.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|EXECUTIVE SUMMARY11This report expl
54、ores the impact of digital on the work of accountancy and finance professionals.It shines a light on critical factors relevant to a future of work that is meaningful and rewarding.In doing so,it sets out a roadmap for preparing to work in a digital age.IntroductionPeriodic disruption by technology i
55、s a fact of life that has been navigated by the accountancy profession through business cycles and over the long term.In previous instances of disruption linked to technological innovation,the profession has shown itself to be adaptable and to recognise the role of technology in enabling and improvi
56、ng what the profession can offer.The arrival of desktop computers in the 1980s,for example,did not remove the need for professional accountants.In fact,a scan of ACCAs own membership(Figure I1)shows that,over the years,membership has steadily increased as a range of technologies have arrived.When sp
57、readsheets were invented in the 1980s,they revolutionised the accounting industry(NPR 2015).About 400,000 bookkeeping jobs in the US were made redundant as a result,but 600,000 accounting jobs were created to work the software,perform more complex calculations,and facilitate the greater number of qu
58、eries that companies now requested as a result of spreadsheet software.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|INTRODUCTIONFIGURE I1:ACCA membership growth and technological innovationRED NUMBERS=#of ACCA members27NOT TO SCALE81,00025,00050,000100,000200,000FOUNDING OF ACC
59、A12MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|INTRODUCTIONTwo large-scale shifts will also have an effect.The first is that the worlds labour force peaked in 2012,and is now is decline,as population growth rates slow down(World Bank Group 2016).Some commentators,with a focus on asset allocation im
60、pact,have suggested that we are at the start of a demographic transition that will increase the bargaining power of labour(eg Nangle 2015).The second is the growth in the services sector as a share of the whole economy.In the UK,the US and France,this sector now represents 80%of economic activity(po
61、ssibly a peak level),and 70%in Germany.Even in emerging markets,China and India have started transitioning towards services while their share of manufacturing is below the peaks seen in the richer economies.The services sector is harder to automate,precisely because they involve service.The quality
62、of labour,and its social construction,becomes part of the delivery to the customers;done well,this typically involves soft skills,even emotional labour.There is merit to the assertion that cognitive technologies such as artificial intelligence(AI)and machine learning are fundamentally different but
63、experience so far suggests they also have limitations.Some AI researchers suggest that the gains in AI to date have been rapid because of the specificity of the problems they have been set,and because rapid gains are typically seen in the earlier stages of software development before the costs of co
64、mplexity kick in.This has led to speculation about whether machine learning can be as autonomously smart as some might believe(Strickland 2019).Framing the discussionTaking all this into account,there is a case for thinking about how jobs will evolve,rather than retaining simplistic all-or-nothing n
65、otions of things staying the way they are or of existing practices vanishing altogether.Things will certainly change.Technologies can carry out work previously done by people,they can change how work is organised,and they can change what is involved in doing work(Pettinger 2019).They also create new
66、 types of work.Jobs are clusters of tasks,rather than a single one.Technological change makes some tasks redundant,amplifies the importance of other tasks,and adds completely new tasks to a job.Though there are some tasks within jobs that are easy to automate,the bundle of tasks that make up a job i
67、s often much more difficult to unpick.It has been said that tasks are a high-dimensional bundle of activities,the elements of which must be performed jointly to produce output.For example,flight attendants engage in both interpersonal and physical tasksand managers perform both analytical and interp
68、ersonal tasks(Autor and Handel 2009).Both jobs and tasks require complementary skills,including human flexibility and judgement.For example,during the 1990s,in business process re-engineering,one of the biggest challenges was capturing within formal job descriptions the informal roles that moved tac
69、it knowledge around a business.In general,repeated studies show that,across both cognitive and manual work,demand for jobs that involve non-routine tasks has been increasing,while demand for those involving routine tasks has been falling.The Pearson/NESTA study validated this hypothesis via a comple
70、x model of skills;it used multiple research methods to produce its conclusions(Bakhsh et al.2017).It found that the jobs which showed future growth were likely to involve high levels of interpersonal skills and social skills,and/or higher-order cognitive skills.Broad-based educational knowledge also
71、 seemed to be an asset,perhaps because it would probably underpin the other two.Jobs that required psychomotor skills or specific physical abilities were likely to decline.Overall,therefore,this is a more complex area than screaming headlines might suggest.The current wave of technologies such as AI
72、,robotics and blockchain do represent significant shifts,but also the potential for these to significantly augment the effectiveness of professional accountants.The profession can continue to play a critical role if,as before,it engages proactively with these developments and adapts to an evolving e
73、nvironment.SERVICES SECTORS ARE HARDER TO AUTOMATE,PRECISELY BECAUSE THEY INVOLVE SERVICE.THE QUALITY OF LABOUR,AND ITS SOCIAL CONSTRUCTION,BECOMES PART OF THE DELIVERY TO THE CUSTOMERS;DONE WELL,THIS TYPICALLY INVOLVES SOFT SKILLS,EVEN EMOTIONAL LABOUR.13digitalMEANINGFUL WORK FOR THE DIGITAL PROFE
74、SSIONAL|INTRODUCTION141.Scanning the digital landscapeThe point of the above comments is to emphasise that simplistic ideas of a technology as either the permanent answer to all problems or a complete waste of time must be avoided.And it is necessary to mitigate against the risk of blind spots,becau
75、se it is not useful or indeed possible to understand everything in detail.Scanning the digital landscape for the latest developments will,over time,improve the ability to identify what is most relevant.And,as highlighted in Figure 1.1,even though technology is at the heart of it,scanning is not just
76、 a matter of monitoring development of technological products.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEFIGURE 1.1:Scanning the digital landscapeOn the one hand,blockchain is a genuine contender for redesigning the world.But it awaits a killer app,as email was for
77、the internet.Again,on the one hand,quantum computing could break the public key cryptography on which blockchain is based.On the other hand,quantum-resistant encryption could evolve to address this eventually.For meaningful work relevant to accountancy and finance professionals,the most effective sc
78、anning additionally informs how business and delivery models,and regulatory direction,are evolving,and the implications for the public interest.TODAYS AUDIT PROFESSIONAL REQUIRES A DEEP UNDERSTANDING OF THE TECHNOLOGY BEING USED IN THE DELIVERY OF THE AUDIT.AUDITORS MUST ALSO UNDERSTAND EMERGING TEC
79、HNOLOGY TRENDS,AS WELL AS THE IMPACT OF OUR CLIENTS INVESTMENTS IN TECHNOLOGY.AS ORGANISATIONS EMBRACE TECHNOLOGIES,INCLUDING AUTOMATION AND MACHINE LEARNING:HOW DOES THIS IMPACT THE PROCEDURES THAT THE AUDITOR NEEDS TO PERFORM?Paul Goodhew,EY Digital Markets Leader,Global AssuranceDelivery modelBus
80、iness modelStandards and regulationSociety and public interestTechnology151.1 TechnologyA good place to start is with a broad look at the technology landscape.This sets context and gives a sense of some of the changes that are approaching(Tables 1.1 and 1.2).As the tables show,the innovation landsca
81、pe is diverse,busy and fast-moving.Inevitably,it also comes with risks.These emerging technologies have implications that exceed the sphere of accountancy and finance,or even business operations.They can change the way society operates and how,or whether,power within society is regulated and harness
82、ed in a fair,equitable manner.TABLE 1.1:The digital landscape over the next three yearsTIMELINE*EMERGING TECHNOLOGY*DESCRIPTIONRELEVANCE(EXAMPLES)Current (01 year)Robotic Process Automation(RPA)Automation of rules-based processes using botsProcesses such as order-to-cash,purchase-to-pay and record-t
83、o-reportAI Machine learning;Natural Language Processing(NLP)Statistical analyses for advanced pattern recognition in data;analysis of unstructured(text)dataTransaction fraud/anomaly detection;Analysis of contracts at scale to extract relevant key words and clauses of interest to an auditInternet of
84、Things(IOT)Devices with sensors that can connect to the internet(and to each other)Inventory management with sensors sending data about the state of an item eg temperature,location to Cloud for analysis and optimisation BlockchainDecentralised and immutable trusted record(ledger)of eventsSecure logg
85、ing of details about goods across supply chain to confirm their authenticity,origins and real-time location(relates to IOT example above)AI SupercomputingHigh performance computing(HPC)for distributed machine learning on massive sets of big data Indirect systemic benefits from scalable processing ca
86、pability for algorithms to be ready for the volume of data that is increasing exponentiallyWiFi6Next-gen wireless connectivityImproved network speed and connectivity,particularly if multiple devices connected to it or heavy use through home working13 yearsEdge Inference ChipRunning AI models and hig
87、h levels of computation at the Edge rather than sending data back to Cloud for processingPerform AI tasks eg linked to advanced data analysis on mobile device without needing to be connected to the internet5GNext-gen cellular networksFaster downloads and ability to connect multiple devices to the ne
88、tworkExtended Reality(XR)Full sensory experience combining real and virtual;human and machineMore realistic corporate training and simulation-based learningBiometric Identification(ID)Facial and voice recognition;digital fingerprintingID verification using biological or personal data characteristics
89、*Fast-moving space and timelines are approximations*Not exhaustiveSource:SenseTime Intelligent Industry Research InstituteMEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEDelivery modelBusiness modelStandards and regulationSociety and public interestTechnology16MEANINGFUL
90、 WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPETABLE 1.2:Digital landscape beyond the next three yearsTIMELINE*EMERGING TECHNOLOGY*DESCRIPTIONRELEVANCE(EXAMPLES)35 yearsVIoT(Visual Internet of Things)Based on vision recognition,Augmented Reality(AR),big data and 5G,VIoT enables s
91、mart things to capture visual data,and combine with advanced analysis across structured/unstructured data typesPhotos of car number plates captured in real-time combined with near instantaneous analysis to establish ownership/usage rights with data processing at the EdgeArtificial Human AssistantIts
92、 appearance and behaviour are like a human,with the ability to learn expressions,skills,reactions and express emotionMachine can communicate with people in natural language,complete tasks assigned by users,or assist in complex services with human-like responsesAutonomous drivingIndependent machine c
93、ontrol for cars and other vehiclesSelf-driving taxis and transportation applications embedded in smart city infrastructure 5 yearsQuantum computingOrder-of-magnitude higher levels of processing beyond current supercomputersProcessing AI algorithms at a scale and speed greater than supercomputers and
94、 in a more energy efficient manner;quantum resistant encryption for cybersecurity as quantum can break existing cryptographic protocols used for securing data6GHigher capacity cellular networksIndustrial use cases for IOT devicesSatellite internetInternet access via transfer of information using sat
95、ellite dishFull global coverage to enable internet access in areas where it is difficult to set up physical cablesBrain-Computer interfaceCommunication between neural electrical signals and external processing unitsAbility for those with diseases such as Alzheimers that impair verbal communication t
96、o communicate thoughts through nerve signals COMPUTING DRIVES THE NETWORK,THE NETWORK DISRUPTS THE MEDIA,AND THE MEDIA BREEDS A NEW SOCIETAL AND BUSINESS CULTURE.THEREFORE,THE COMMERCIAL REVOLUTION IN THE COMING 50 YEARS WILL ORIGINATE FROM INNOVATIONS OF THE BASIC TECHNOLOGY SET(COMPUTING+NETWORK+H
97、UMAN-COMPUTER INTERACTION)OVER 10 YEARS FROM NOW.Feng Tian(Ben),Dean of SenseTime Intelligent Industry Research InstituteAs technologies evolve,the profession therefore must consider their implications in the fullest sense,far beyond what they offer from a product-development point of view.Risk of e
98、thical compromise can come from a range of areas like lack of understanding(professional competence and due care)or confidentiality breaches in a world where keeping track of who is accessing which data is important.In addition to ethics,there are business model risks,where emerging technologies can
99、 change the structure of entire industries.As well as legal and regulatory risks of operating in an environment where the existing frameworks may not have considered new situations created by these digital tools.*Fast-moving space and timelines are approximations*Not exhaustiveSource:SenseTime Intel
100、ligent Industry Research Institute17Technology adoption for accountancy and finance professionalsAn innovation may be relevant to work done by accountancy and finance professionals for a variety of reasons.For instance,it may enable new products and services or deliver existing products and services
101、 better,quicker,or cheaper.Equally important is recognising when it may not be relevant.A common pitfall here is the solution in search of a problem.This may happen,for example,because the problem facing the digital professional does not need such a complicated solution;or the stakes are not high en
102、ough,or perhaps,the problem has additional characteristics when deployed in a real-world business scenario for which the technology is not quite right.As a result,there is a time lag between the emergence of the innovations shown in Tables 1.1 and 1.2 above,and adoption more broadly.The remainder of
103、 this report focuses on digital issues pertaining to use in more mature environments at scale the typical arena of work for accountancy and finance professionals.Adoption timelineI WAS INVOLVED IN SETTING UP TENTHREE LABS IN CANADA WHERE WE WORKED ON DATA EXTRACTION,ANALYTICS,AND VISUALISATION,ALONG
104、 WITH RPA,AND AI THEREAFTER.AND WEVE BEEN FORTUNATE TO WORK WITH CLIENTS AS PILOTS IN SOME CASES TO TEST THE TOOLS.IM CONNECTED AS THE EXECUTIVE SPONSOR FOR THE LAB WHICH HAS GONE FROM 2 PEOPLE IN CANADA TO 900 ACROSS THE AMERICAS.ITS FAST MOVING AND WE RESET GOALS EVERY 3 MONTHS.Daniela Carcasole,P
105、artner,Ernst&Young LLP,CanadaOn current adoption(Figure 1.2),leaders outperform the overall sample by between 3%and 10%,with an average leader premium of 6%.The greatest difference is in data management,where the proportion of leaders that are already engaged is 10%higher than the overall sample lea
106、ders are forging ahead with better use of data.Adoption is a function of the extent to which real problems are addressed.For example,the enterprise resource planning(ERP)system may hold useful information but extracting it in a useable form can be the issue,with time wasted getting in and out of it.
107、Analytics tools can help to manage process flows and build reusable workflows.WE CAN NOW LOOK AT MUCH MORE DATA IN THE AUDIT AND INTERROGATE IT INTELLIGENTLY.TAX PLATFORMS CAN HELP WITH PREPARING RETURNS OR DOING CALCULATIONS FOR INTERNATIONAL AND WITHHOLDING TAXES;IN THE PAST WED HAVE BIG SPREADSHE
108、ETS WITH COUNTRIES FILLING DETAILS AS PER THEIR TAX LAWS,NOW ITS ALL AUTOMATED.AND FOR TRANSACTION SUPPORT,WE USE LOTS OF TOOLS THAT IN THE PAST WOULDVE BEEN IN DATA ROOMS AND ARE NOW SHARED ON SECURE PLATFORMS BETWEEN CLIENTS AND TEAMS.Eoin MacManus,Partner,Ernst&Young Chartered Accountants,Ireland
109、 For most technologies surveyed,the largest proportion of respondents expected adoption in the next one to three years(Figure 1.3).Among those already using digital technology,theres a skew towards community technologies(55%),with Cloud(36%)and data management(30%)being the next most common.There is
110、 a successively smaller proportion of respondents anticipating adoption in next year,or 3 to 5 and 5 to 10 years.THERES A STEADY SHIFT HAPPENING FROM ON-PREMISES SYSTEMS TO CLOUD.WE HAD FIVE DIFFERENT ERP SYSTEMS,WHICH WE INTEGRATED AS PART OF MOVING TO CLOUD.WITH GDPR,PCI COMPLIANCE ETC.DATA SECURI
111、TY IS CRITICAL.THE USER HAS FRONT-END RESPONSIBILITY,BUT THE CLOUD PROVIDER CAN BUILD SECURITY INTO THE INFRASTRUCTURE LAYER UNDERNEATH.Andrew Burdall,CFO,Network Innovations,CanadaOn average,87%of respondents reported current or anticipated engagement over the coming decade with technology.Data,com
112、munity and Cloud-related tasks show the highest levels of engagement.For these,over 9 in 10 respondents are either already engaged,or expected to do so over the coming decade.Engagement is relatively low for immersive technologies such as augmented and virtual reality,though still high in absolute t
113、erms(Figure 1.4).MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPE18MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEFIGURE 1.2:Current adoption,Leaders versus overall sampleFIGURE 1.3:Adoption timelineFIGURE 1.4:Engagement with technology curr
114、ent or expected within next 10 years10%20%30%40%50%60%70%LeadersTotalNext gen computing(eg cloud,serverless and edge)Data management(eg big data,data analytics,data science and data visualisation)Community technologies(eg social media,messaging,mobile)Learning/cognition(eg AI such as machine learnin
115、g,natural language processing)Immersive technologies(eg augmented,virtual and mixed reality)Rules based software(eg Robotic Process Automation(RPA)Fintech(eg credit payments,insurtech,regtech)Smart devices(eg Internet of Things(IOT),wearables,drones)Platform intermediaries(eg e-commerce marketplace,
116、service platform for rooms/taxi)Decentralised technologies(eg distributed ledgers,cryptocurrencies)10%20%30%40%50%60%70%Already doing this0 1 yearNext gen computing(eg cloud,serverless and edge)Data management(eg big data,data analytics,data science and data visualisation)Community technologies(eg s
117、ocial media,messaging,mobile)Learning/cognition(eg AI such as machine learning,natural language processing)Immersive technologies(eg augmented,virtual and mixed reality)Rules based software(eg Robotic Process Automation(RPA)Fintech(eg credit payments,insurtech,regtech)Smart devices(eg Internet of Th
118、ings(IOT),wearables,drones)Platform intermediaries(eg e-commerce marketplace,service platform for rooms/taxi)Decentralised technologies(eg distributed ledgers,cryptocurrencies)1 3 years3 5 years5 10 yearsCommunity technologiesData managementNext gen computingFintechSmart devicesLearning/cognitionRul
119、es based softwareDecentralised technologiesPlatform intermediariesImmersive technologiesAverage=87%94%92%92%88%88%86%84%84%84%81%19The observations in this section are explained using the context of audit and assurance to make it more specific.But the ideas discussed below are applicable more genera
120、lly.This is first and foremost about mindset.The standards have not fundamentally changed in their intent,in that the auditor is still needed to satisfy certain tests and to assess the risks.The question is:how can one perform the procedure better with data?A lot of the change is in the scoping,stra
121、tegy and planning.The starting point is a structured approach to data collection that reflects a deep understanding of the flow of information through the entity.Data can be collected for the entire population,not just a sample.Sampling may struggle to pick up systematically fraudulent behaviours or
122、 low signals,for example where each instance is small and below the materiality threshold,but that in aggregate present a risk.The data is cleaned,structured and mapped to specific processes,such as sales,by considering all interactions in the end-to-end process,documents accessed,automated elements
123、,and so on.Data analytics can then be used to uncover patterns or unusual correlations to reveal which accounts need to be checked and to what extent.This gives a granular view on where to look or what to look for in specific transactions.In doing so,it moves the audit towards being driven by data,r
124、ather than just using it.TRADITIONALLY THE AUDITORS CHALLENGE IS A BIT LIKE BEING IN A DARK ROOM,TOUCHING A SAMPLE OF ITEMS AND SEEKING TO HIT UPON KEY MATTERS.WITH ANALYTICS,ONE CAN TURN ON THE LIGHTS.FOR RELEVANT ACCOUNTS PROCEDURES THERE ARE TOOLS BASED ON A DATASET RELEVANT TO WHAT THE STANDARD
125、IS TESTING.Herton Teles,Associate Partner,Ernst&Young Auditores Independentes S/S,Brazil1.2 Delivery modelThe way the resources of an organisation are optimised determines whether its digital journey will be successful getting this right is highly relevant to the work of the digital professional.Ult
126、imately this is about how technology can assist to deliver existing services better,faster,cheaper and/or with added value.In scanning the digital landscape,we see several aspects relevant to the delivery model.These include both process considerations such as how digital technology is embedded into
127、 the core processes of the organisation,and people factors,particularly the need for building digital skills.The skills aspect is also discussed more broadly,beyond digital skills,in section 3.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEEmbedding into core processesE
128、mbracing innovation is good but this can tip over to become unbalanced if adoption is driven by a fear of missing out.Consider the use of analytics in audit as an example when looking at embedding innovative approaches into core processes.Here,the general ledger provides a large pool of structured t
129、ransactional data that can be linked to semi-structured marketing data in a customer relationship management(CRM)system or to unstructured big data from customer reviews on the firms website.These activities are rightly valued for the insight they generate,and the goal is to leverage them within the
130、 delivery model in an optimised way.Otherwise,there is a risk of creating unproductive additional workstreams in which all the work of a traditional audit is carried out as before,and some extra analysis is simply added on top for additional confidence in the data.WE DONT SEE ANALYTICS AS BEING JUST
131、 ABOUT COOL VISUALIZATIONS AND FANCY ANALYSIS.IT NEEDS TO BE BUILT INTO THE AUDIT METHODOLOGY.ONCE I GET THE GL AND SUB LEDGER DATA,HOW DOES THE AUDIT CHANGE?WE WORK WITH TECHNOLOGY TEAMS TO DEVELOP AND ACTIVATE ASSETS FOR ADOPTION AT SCALE.IF I SEE 50 TEAMS ACROSS THE GLOBE DEVELOPING VERSIONS OF A
132、 SIMILAR PIECE OF AUTOMATION INDEPENDENTLY,THEN ITS CLEARLY A SIGNAL FOR A STANDARDISED SOLUTION.Hermann Sidhu,EY Global Assurance Digital LeaderDelivery modelBusiness modelStandards and regulationSociety and public interestTechnology20TODAY,TECHNOLOGY CHANGES FASTER THAN ACCOUNTING PRACTICES AND AU
133、DIT OBJECTIVES.TO REFLECT THE DIFFERENT SPEED,THE AUDITING STANDARDS WILL REMAIN TO BE TECHNOLOGY NEUTRAL.THIS ALLOWS THE TECHNOLOGY BACKBONE OF OUR CORE AUDIT PROCESS TO ADOPT TO PROGRESS FAST AND FLEXIBLY.AT THE SAME TIME WE NEED TO ENSURE THAT EMERGING TECHNIQUES SUCH AS DATA ANALYTICS AND ARTIFI
134、CIAL INTELLIGENCE CAN BE“PLUGGED”INTO THE AUDIT RISK MODEL.MOST EMERGING TECHNIQUES NEED A REDESIGN BEFORE WE CAN MAKE THEM AVAILABLE TO THE AUDIT PRACTICE.WHENEVER WE WERE SUCCESSFUL WITH THAT,NEW TECHNIQUES PROVIDED BENEFITS FOR OUR CLIENTS AND OUR AUDIT PROFESSIONALS.Karen Leah Somes,Partner,Erns
135、t&Young GmbH,GermanyMEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPERole of the professionalThe approach depends on being able to validate the data to confirm it has not been manipulated or contains errors this needs human involvement.Judgement is also needed because man
136、ual checks of transactions occur by exception.The individual decides where to put the emphasis,which needs experience and contextual understanding.Higher levels of judgement are now needed earlier in a career.While judgement is needed even in the traditional model,the amount of time junior staff spe
137、nd on just gathering the evidence is dramatically reduced or removed.SAY A COMPANY IS DIVIDING A PORTFOLIO OF COMMERCIAL PROPERTY INTO DIGITAL TOKENS THAT PEOPLE ALL OVER THE WORLD CAN BUY.A DETAILED EVALUATION OF THE EXISTENCE OF THE PROPERTY,AND THE RIGHTS AND OBLIGATIONS THAT THE TOKENS CONFER,IS
138、 NECESSARY TO ESTABLISH TRUST IN THE LINK BETWEEN THE PHYSICAL ASSET AND THE TOKEN.Adam Gerrard,EY Asia-Pacific Assurance Blockchain LeaderOVERALL,MORE TIME IS SPENT ON UNDERSTANDING WHAT THE IMPACT OF THE BUSINESS ENVIRONMENT IS ON THE ACCOUNTS AND WHAT SHOULD BE INCLUDED IN FINANCIAL STATEMENTS.IN
139、TERPRETATION,JUDGEMENT AND THE DOCUMENTATION OF THESE IS VITAL.ukasz Piotrowski,Associate Partner,Ernst&Young Audyt Polska splka z ograniczona odpowiedzialnoscia sp.k.,PolandTransforming the deliveryCHANGE MANAGEMENT IS A CRITICAL PART OF ONBOARDING TECHNOLOGY.A COMPLEX MULTI-LOCATION MODULE MAY HAV
140、E A 12 MONTH OVERLAP BEFORE TURNING OFF THE OLD SYSTEM.AND ONCE ALL STAFF HAVE BEEN ONBOARDED,THERES SAY,TWO UPDATES PER YEAR AND SHORT SWEET YOUTUBE VIDEOS TO EXPLAIN THE UPDATES.Hermann Sidhu,EY Global Assurance Digital LeaderThe idea is for the data-driven way to be the sole basis on which the wo
141、rk is done,rather than also conducting sampling in parallel.And over time,particularly as newer staff are exposed only to a digital-first approach,it is embedded into the core processes.The service delivery model is then less squeezed around the busy season,with a lot of the work being done initiall
142、y,which spreads the mountain of effort through the year more evenly.This improves the quality of the discussion and reduces the number of back-and-forth interactions requesting information or clarification;a lot can be uncovered directly from the source data.If the general ledger data is received qu
143、arterly,80%of the audit file may be complete by December,with January and February being used to look at consolidation,tax,impairment etc;and to test the data or the tagging of journal entries.21One of the big challenges when transforming the delivery model is the availability of good-quality,clean
144、data.The entire edifice of data-driven insight is built on the assumption of such data.Yet in practice,the data needed is often in different locations,in various premises or in multiple clouds,and in various formats.As a result,embedding into core processes will frequently require specialist experti
145、se to bring the data into acceptable,usable forms.WE SELL 35-40 TYPES OF SERVICES FOR EG WITHOUT LOCK-IN CONTRACTS THAT INVOLVE ONLY VARIABLE COSTS;OR 3-YEAR CONTRACTS WITH FIXED COSTS.WE USE ANALYTICS TO MAP OUT TRENDS ACROSS FIXED AND VARIABLE COSTS,REVENUES,AND CUSTOMER LOYALTY METRICS;AND TO USE
146、 HISTORICAL DATA FOR PREDICTIONS ON INCOME AND CHURN.WE HAVE MILLIONS OF TRANSACTIONS EVERY MONTH SO THERES LOTS OF DATA,ACROSS DIFFERENT SYSTEMS.THE ERP HOLDS THE P&L,BILLING SYSTEM;CRM FOR CLIENT DATA,LEGACY DATA FROM OLDER ERPS ETC.WERE AWASH WITH DATA AND WE USE IT TO DO VALUABLE ANALYSIS.BUT A
147、LOT OF THE WORK IS TO COLLATE AND CLEAN THE DATA BEFORE WE CAN READ ANY OF IT.Andrew Burdall,CFO,Network Innovations,CanadaIf there is a structural problem,such as the existence of only small amounts of relevant data,it could be necessary to explore techniques such as transfer learning,wherein machi
148、ne learning models from one environment can be applied to a different data set to drive insights.IVE GOT POSITIONS ON MY TEAM THAT DIDNT EXIST 2 YEARS AGO LIKE THE RPA MANAGER.WE EXPECT CONTINUED GROWTH FROM A REVENUE AND HEADCOUNT STANDPOINT.AND WE HAVENT SEEN THE DIGITAL IMPACT IN TERMS OF REDUCIN
149、G OUR NEED FOR TALENT,ITS BEEN ABOUT INTEGRATING DIGITAL INTO OUR OPERATING MODEL.Scott Sanders,Chief Information Officer,SikichUltimately,regardless of the hurdles faced in transformation,leaders bring a value-focused mindset to the way they approach change.As Figure 1.5 shows,they tend to see digi
150、tal developments as an opportunity rather than a challenge.This is often the difference between a successful transformation and one that fails.INTELLIGENT(AUTONOMOUS)PROCESS AUTOMATION COMBINES RPA AND AI,PROCESSES UNSTRUCTURED DATA AND USES PREDICTIVE ANALYTICS FOR DYNAMIC,INTELLIGENT,AND AUTOMATED
151、 ACCOUNTING AND FINANCE PROCESSES.THIS CAN:ACCELERATE THE FINANCE TRANSACTION CYCLE/PERIOD-END CLOSE TIMELINE,INCREASE TRANSACTION PROCESSING ACCURACY,OPTIMISE WORKING CAPITAL(PAYMENTS ON TIME,REVENUE LEAKAGE,REDUCE INVENTORY SURPLUS AND OUTAGES THROUGH JUST-IN-TIME),PROVIDE NEAR REAL-TIME DATA INSI
152、GHTS TO SUPPORT BUSINESS DECISION MAKING,AND EXPEDITE RESPONSE TIMES TO QUERIES(EG FROM AUDITORS,REGULATORS,CUSTOMERS,BUSINESS).Lutamyo Mtawali,Finance Transformation,IBM,UKMEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEFIGURE 1.5:Opportunities and challenges over the n
153、ext five years as a result of technologyn Total n LeadersSmart automation for fewer routine tasks(eg combining AI,bots,microservices,APIs)Implementation costs42%45%48%51%22Interaction with the ecosystemNext-generation ERP systems with deep analytics and cognitive capabilities can make it possible to
154、 run analytics directly on the clients systems.On the one hand,this can offer step-changes in insight and real-time updating of the same.On the other,there are questions to consider,such as how to ensure independence and oversight if running the analysis on client systems.ANALYTICS NEEDS TO BE FLEXI
155、BLE SO THAT WE CAN HARNESS DATA SETS ON LAPTOP,MEDIUM SIZE ONES ON SQL SERVERS,AND VERY LARGE ONES ON CLOUD.CLIENTS ARE MAKING SIGNIFICANT INVESTMENTS IN UPGRADING THEIR ERP INFRASTRUCTURE AND EMERGING TECHNOLOGIES SUCH AS SMART AUTOMATION AND AI,SO PART OF WHAT WE NEED TO CONSIDER IS HOW WE MAXIMIS
156、E OUR CLIENTS INVESTMENTS.Hermann Sidhu,EY Global Assurance Digital LeaderMODERN ERP SYSTEMS UTILIZE A SINGLE SOURCE OF TRUTH ARCHITECTURE,ADDRESSING THE BURDEN OF SUB-LEDGERS RECONCILIATIONS HENCE 100%OF THE TRANSACTIONS ARE IN ONE PLACE.AN INCREASE IN IMPLEMENTATION OF SUCH SINGLE LEDGER ARCHITECT
157、URES WILL CERTAINLY EASE THE AUDIT INDUSTRYS DATA ACCESS CHALLENGES.ULTIMATELY THIS WILL DRIVE CONSISTENCY AND THEREFORE QUALITY OF THE AUDIT.Jeanne Boillet,EY Global Assurance Innovation LeaderThe interaction is not just within the digital ecosystem,it overlaps with the physical world as well.For i
158、nstance,if expenses were tracked via blockchain it might be possible to check for segregation of duties,so one cannot approve ones own expenses.But two individuals could collude and falsely approve each others and,as the blockchain is immutable,it would legitimise a fraudulent entry.In this instance
159、,understanding interactions off-chain in the physical world matters.Machine-learning-based approaches can help here by identifying unusual patterns in the data.So,interactions in the physical domain may create a problem that is reinforced by one technology but resolved by another.MEANINGFUL WORK FOR
160、 THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEThe aim is to avoid forcing technology onto a bad process amplifying something bad makes it worse.And equally,to avoid forcing a process onto badly functioning technology,as where multiple ERP systems are band-aided together.WELL SIT DOWN WIT
161、H THE CLIENT AND GO ACROSS THE APP LANDSCAPE TO LOCATE THE BEST IN BREED FOR WHAT THEY NEED.THE GOAL IS OFTEN TO EXTRACT EFFICIENCIES FROM BEING ON THE CLOUD BECAUSE JUST PUTTING INFORMATION ON THERE DOESNT AUTOMATICALLY CHANGE ANYTHING IF ITS STILL PAPER INVOICE,PRINTING,AND SCANNING.WE HELP CLIENT
162、S NAVIGATE A LARGE VOLUME OF SOLUTIONS/APPS.OFTEN,THIS INVOLVES MICROSLICES,IE SOLUTIONS THAT WORK IN SPECIFIC PARTS OF THE PROCESS ALONG WITH INTEGRATING AND COMBINING SOLUTIONS WITH APIS.FOR A LOT OF WHAT WE DO,WE NEED PEOPLE WHO CAN KNIT THINGS TOGETHER.Ulrich Britting,Founder,ba Tax gmbhBuilding
163、 digital skillsAccountancy and finance professionals can add additional value if they have skills beyond core accountancy technical skills.The emphasis in this section is on digital skills,but its worth noting that these must be accompanied by a balanced mix including human competencies like emotion
164、al intelligence,and this wider multi-disciplinary skillset is examined in section 3.An often-mentioned aspect on digital skills is coding.It is helpful to have an appreciation of the principles of coding,ie logical constructs and ways of thinking that underlie the code,even if one doesnt create code
165、 oneself.Perhaps a rough comparison is with understanding the principles of accounting standards and how the impact of accounting treatments flow between the various financial statements without a detailed knowledge of the underpinning double entry bookkeeping.23WE HIRED PEOPLE WITH IT PROGRAMMING A
166、ND SOFTWARE ENGINEERING SKILLS FROM BANKS,STATUTORY BODIES AND MULTINATIONAL CORPORATIONS;AND PAIRED THEM WITH AUDIT ENGAGEMENT TEAMS TO DEVELOP AUDIT AUTOMATION TOOLS.THE SOFTWARE ENGINEERS WERE HELPFUL IN HELPING ACCOUNTANTS UNDERSTAND THE POSSIBILITIES.WE LEARNT THAT WITHOUT SUCH COLLABORATION,TH
167、E SOFTWARE PERSON MAY NOT BE ABLE TO DEVELOP A TOOL THAT IS EASY TO DEPLOY IN AUDIT SITUATIONS.WE ALSO TRAIN OUR YOUNGER PEOPLE WHO ARE ABLE TO PICK UP SOFTWARE SKILLS FAST;SO IN OUR EXPERIENCE,IT IS NOT DIFFICULT FOR AN ACCOUNTANT TO LEARN SOFTWARE AND COLLABORATION WITH IT ENGINEERS WOULD ACCELERA
168、TE THE LEARNING PROCESS.Yew Kiang Chan,Partner,Ernst&Young LLP,SingaporeIt is worth noting,though,that technology also offers options for those who do not have coding skills.So-called low-code and no-code software allows non-technical users to build software in an intuitive environment.Gartner estim
169、ated(in 2019)that by 2024,low-code application development would be responsible for more than 65%of application development activity.EY TEAMS ARE DIVERSE,WE HAVE CAS/CPAS,BUSINESS DEGREE,DATA-PROFESSIONAL,AI MAJOR,MATHEMATICIAN,LAWYER AND SCIENTIST.THEY HAVE ONE THING IN COMMON AN UNDERSTANDING OF H
170、OW A PROCESS HANGS TOGETHER AND THE WILLINGNESS TO LEARN THE TECH.WE DONT ALWAYS SEE THE VALUE IN HIRING SOMEONE WITH VERY SPECIFIC TECH SKILLS AS IT CAN GO OUT OF DATE IN 6 MONTHS AS TECHNOLOGY EVOLVES.THE PREFERENCE IS FOR SOMEONE WHOS A GO GETTER,CAN LEARN AND THRIVES ON CHANGE.Fiona Habermehl,EY
171、 Asia-Pacific Assurance Technology LeaderAs a result,it can become possible without programming knowledge to create a range of business process applications,eg for advanced and customised visualisations or dashboards;extracting specific feeds of data;or performing bespoke analytics.And one could do
172、this as a citizen developer without the lead times involved in going back and forth with a technology specialist.This self-service approach enables individuals to play to their strengths.An accountancy and finance professional can use their knowledge of the intended outcome,and end-to-end components
173、 of the business process,without having to master the coding in full detail.And the technologist can hand over responsibility for relatively simple coding tasks to citizen developers and focus on more challenging and rewarding problems.CODING KNOWLEDGE IS GOOD,THOUGH IT IS ALSO INCREASINGLY GETTING
174、PACKAGED AS A SERVICE FROM AWS ETC.GS Jayendran,Co-founder Vyakya Technologies,IndiaThe delivery model benefits from additional skills that should not be lost in process inefficiencies.If not handled correctly,there could be a proliferation of poorly coded applications with sub-optimal outcomes resu
175、lting in a shadow IT that prevents the standardised processes needed for quality control and efficiency.IF YOURE NOT AN EXPERT,ITS IMPORTANT TO PICK THE RIGHT PEOPLE WHO UNDERSTAND THE TECHNOLOGY.LEGAL TECH WAS SOMEWHAT OVERSOLD TO GENERAL COUNCILS.THEY WERE MADE TO BELIEVE IT WAS PLUG-AND-PLAY;BUT
176、THE ADOPTION PROCESS CAN BE MORE COMPLICATED WITH DATA SECURITY AND OTHER ISSUES.Cornelius Grossmann,EY Global Law LeaderI RAN AN ACCOUNTANCY PRACTICE FOR 17 YEARS DURING WHICH I MOVED FROM COMPLIANCE TO FINANCIAL MANAGEMENT AND ADVISORY TO GROW THE CLIENTS BUSINESS;TO HOW TO BRING THEIR BUSINESS ON
177、LINE.PICKING UP TECHNOLOGY SKILLS HAS BEEN NEW TO ME,BUT THE UNDERLYING BUSINESS QUESTIONS ARE FAMILIAR.THIS IS WHY IM PASSIONATE ABOUT SUPPORTING PRACTITIONERS TO TRANSFORM THEIR FIRMS WITH THE POWER OF DIGITAL.Dato Vimmy Yap,Founder 6Biz Sdn Bhd,AI Practice Management Platform,MalaysiaMEANINGFUL W
178、ORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPE241.3 Business modelDigital business models can allow us to reimagine the way value is created for consumers,and consequently for the organisation itself.Leaders in our survey are relatively bold in their imagination and ambitions(Figu
179、re 1.6),with more of them seeing the big opportunity in a fundamental reimagining of their business model and strategy.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEScenarioAn SME in the local community has long-standing loyal customers,an established local presence an
180、d distribution capabilities(in-person home delivery)in its area of operations.Its accountant works for a small-to-medium-sized practice(SMP).With increasingly online purchases,rather than building its own website,the SME chooses to get absorbed as a participating retailer on a large e-commerce platf
181、orm.Now the customers are attracted to,and owned by,the platform.And the nature of the goods it sells is decided by the analytics insight of the platform,which cross-references information against its vast database to determine which items are likely to sell best.Related to this,the customer for the
182、 SME shifts from the local resident,to the platform that pays it a proportion of sales income.So for the SME,its business model has shifted to one where the choice of products is determined by the analytics,the channel is the sophisticated website front-end of the platform;the brand promise gets lin
183、ked to the well-known brand of the platform;and the payment is done online.The SME is now involved only in fulfilment,ie packaging and home delivery.This change can represent both benefits and risks for the SME,depending on the specifics that are negotiated.But whats clear is that for the SMP accoun
184、tant this is a very different kind of business to be working with.FIGURE 1.6:Opportunities over the next five yearsOrganisations reach out to consumers in a different wayMore than ever before,this is a consumer-driven age,with consumer-to-consumer(C2C)and consumer-to-business(C2B)models shaping the
185、structure of the marketplace.One of the big disruptors has been the huge growth in the market power of platform-based business models.Online marketplaces have shifted their value extraction from product/service delivery for the end-user;to mining data assets obtained as an intermediary.The same logi
186、c drives other types of platform,such as search engines that connect those seeking information with those providing it.These platforms are in the middle of massive data flows,and this truly is big data.While numbers will vary,the large platforms could have hundreds of millions of consumers,and each
187、with tens of thousands of granular data points describing them(who they are,what they like,etc).So being able to extract connections and patterns within a consumers behaviour,and across consumers,quickly enough to act upon the insight is a complex task.Delivery modelBusiness modelStandards and regul
188、ationSociety and public interestTechnologyn Total n LeadersValue creation through fundamental change to business model and strategy51%56%ORGANISATIONSCONSUMERS25Consumers reach out to organisations in a different wayThere is a dynamic nature to the interaction between organisations and consumers in
189、a digital age,driven by the power of the crowd.Consumers are no longer content to be passive recipients of the outcomes of organisational strategy.They wish to be part of shaping that strategy.Historically,such outside influence would have been restricted to activist investors or shareholders seekin
190、g to make their views known.Often this may have been on matters linked to management salaries or big contentious decisions such as a project deemed to be socially or environmentally harmful.But the power of the crowd represents a very different kind of feedback.It often speaks to the day-to-day acti
191、vities of the organisation:what it sells and how it sells it.This feedback could be via social media or other online channels where the views can be aggregated and fed quickly back to managers.And it happens in real time.No one is waiting for an annual general meeting(AGM)to make their views known.A
192、nd perhaps most significantly,organisations are acting upon this feedback almost as soon as it is available online.Huge live-stream sales events aimed at a global audience provide real-time data on consumer preferences based on who bought what,click through rates,etc.For some items,such as fashion a
193、ccessories,where preferences change each season,this information can be quickly processed to reveal current consumer preferences in a fast-moving market,and the product range can be quickly adapted to incorporate preferred features.This is crowd-sourced ideation,where the consumers not only pay for
194、the product,but design what the organisation is going to sell to them.When looking at responses to the control questions,it becomes clear that leaders think ahead(Figure 1.7).They enjoy over a 30-point premium for doing so when looking at percentage of respondents who agree with the statements provi
195、ded.They are more likely to try new things,whether internally via staff,or externally with clients.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEFIGURE 1.7:Leader premium for thinking aheadOverall:Allows staff to experiment with new ideasLeadersLeader premium6610034Ove
196、rall:Uses technology to create new products and services for clientsLeadersLeader premium681003226Swarm AILooking ahead at the technology landscape,Swarm AI1 could add a critical variation to the already much discussed impact of AI.This is a form of intelligence that derives its approach from the na
197、tural world,such as a colony of ants.These aggregations achieve learning at scale,which far exceeds by many orders of magnitude the sum of the learning capacities of the individuals therein.An individual ant could search for days and still not find any food,though in searching it learns lots of diff
198、erent ways of doing this task that fail.But in a colony,all the ants are sharing their learning with each other very rapidly,which exponentially increases their capability of learning many more ways both those that work and those that do not.Consequently,as a group,they have much greater success in
199、locating food.Typically,these aggregations work when there is a clearly defined goal shared by all the individuals in the group.In the context of business models,this can be useful for organisations in more effectively making use of crowd intelligence.For example,if an organisation wants a view on a
200、 product or service,Swarm AI could distil information from a large pool of consumers to uncover insights in real-time that might be virtually impossible to see otherwise.Its also worth noting that the individuals dont always have to be human.Swarm AI can be used for aggregating intelligence across l
201、arge groups of bots or indeed a mixed group of humans and bots.These developments are being helped by other technological changes,such as improvements in the IOT for better data capture by an individual sensor,5G networks with superior capacity,and advancements in Edge computing,which mean that more
202、 processing can be done at the IOT node,reducing the latency associated with data going back and forth to the Cloud server.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEAdvances in blockchain2 that allow reliable data sharing within a public network could radically res
203、hape business models.Historically,the concern has been the ability to ensure data security and confidentiality on a network open to all.Now,Zero Knowledge Proofs3 enable validation without revealing the details of the transactions themselves.This may eventually allow for a single public blockchain,l
204、ike a single World Wide Web:in other words,one would transact on top of a base infrastructure layer without realising it is a blockchain.This would be similar to the way that TCP/IP provides infrastructure for the internet,though one would not think about that when sending an email.1 ACCAs report on
205、 machine learning(ACCA 2019)provides an introduction for accountancy and finance professionals.2 See ACCA 2017a for an introduction to blockchain for accountancy and finance professionals.3 EY Nightfall is a cutting-edge technology application that achieves this.271.4 Standards and regulationRegulat
206、ors must balance supporting innovation with protecting the consumer,which limits the speed of approval.This is a fast-moving process,however,and both innovators and regulators are continually engaged in educating and updating each other.WE PARTNER WITH TEAMS LIKE PRODUCT MANAGEMENT AND ENGINEERING T
207、O ENSURE PRODUCTS AND FEATURES LAUNCH SAFELY AND SUCCESSFULLY.THIS INCLUDES COMPLIANCE AND CONTROL MEASURES TO SUPPORT PAYMENTS ON THE PLATFORM.THE WORK CAN REQUIRE USE OF MYSQL TO QUERY DATABASES,UNDERSTANDING DATA POINTS AND BEHAVIOUR TO INFORM THE BUSINESS PROBLEM,AND ANALYSIS WITH PYTHON FOR EG
208、CLUSTERING TECHNIQUES.COMPLIANCE AND RISK MANAGEMENT FOR A 21ST CENTURY FINANCE PROFESSIONAL DEPEND HEAVILY ON TECHNOLOGY BECAUSE OF THE MILLIONS OF TRANSACTIONS.Risk Product Strategy,Global technology platform,USMEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEAnother fa
209、ctor is the need for alignment across countries and jurisdictions.In the European Union(EU),the GDPR creates strict requirements for data privacy,with penalties of up to 4%of global turnover.There is a thriving industry of data intermediaries with vast lists of data about the general public that the
210、y monetise,so there is a need to know the origin of data obtained from third parties.A business,even if its outside the EU but using a Cloud server based in the EU,may find itself subject to regulations it wasnt aware of.It also remains to be seen how any impact of protectionist policies may affect
211、creation of consistent global standards technology is global by design,but regulatory jurisdictions are not.TO ENSURE COMPLIANCE WITH REGULATIONS AND CLARITY WITH RESPECT TO DATA PROTECTION,WEVE LEANED TOWARDS A PREFERENCE FOR THE DATA CENTRES TO BE HOUSED IN CANADA WITH DATA PARTLY IN CLOUD,PARTLY
212、IN DATA CENTRE.INITIALLY,WED PUT NON SENSITIVE DATA TO CLOUD,WITH MORE SENSITIVE DATA KEPT LOCALLY.Gary Kent,CFO at City of Mississauga,CanadaCompliance is not the only issue and digital issues also inform the future direction of regulation.In a complex technology landscape,multidisciplinary firms p
213、rovide Delivery modelBusiness modelStandards and regulationSociety and public interestTechnologyquick,seamless access to a wide range of capabilities from cybersecurity experts to data analytics specialists.So future models will need to consider whether similar levels of access to cross-functional c
214、apabilities can be made available when auditing,say,a large multinational.AS AUDIT IS INCREASINGLY EMBEDDED WITH TECHNOLOGY,THERE MAY BE A NEED FOR THE STANDARDS SETTERS TO CLARIFY AND DEFINE WHATS NEEDED FOR APPROPRIATE CONFIDENCE AND DOCUMENTATION.FOR EG HOW THE PROCESS SHOULD BE DESIGNED,DIRECT/T
215、HIRD PARTY ASSURANCE ON DATA QUALITY ETC.OR IF INFORMATION IS PASSED VIA A WIRELESS NETWORK,WHAT CONTROLS IT OR WHAT EVIDENCE WOULD SATISFY ONE THAT DATA IS PROPERLY PROCESSED THROUGH IT?ukasz Piotrowski,Associate Partner,Ernst&Young Audyt Polska splka z ograniczona odpowiedzialnoscia sp.k.,PolandTh
216、e standards of the International Auditing and Assurance Standards Board(IAASB)have started to modernise and incorporate the use of technology by auditors.For example,ISA 315(Revised)Identifying and Assessing Risks of Material Misstatements,recognises the changes in the way that automated tools and t
217、echniques(ATT)are being used to undertake risk assessments.28Fraud4 and regulatory breaches are an ever-present issue.As Figure 1.8 demonstrates,no one is immune from these challenges,with leaders in our sample rating challenges here as a risk as well,reflecting their keen awareness of these issues.
218、MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEBLOCKCHAIN HAS UNIQUE RISKS,BUT THE EXISTING APPROACH DOES MAP ACROSS AS WELL.FOR EG IT GENERAL CONTROLS AROUND ISSUES OF ACCESS ARE EQUALLY VALID WHEN EXPLORING THESE TYPES OF SYSTEMS.SO,ITS IMPORTANT NOT TO FORGET THE BAS
219、ICS.Amarjit Singh,Partner,Ernst&Young LLP United Kingdom,EMEIA Assurance Blockchain Leader,Financial ServicesREGULATION IS NOT A BARRIER FOR USING DATA ANALYTICS AS ITS A TOOL.IT CAN BE ACCOMMODATED IN A WAY THATS COMPLIANT WITH THE AUDIT STANDARDS AS THE FOCUS IS ON OUTCOMES NEEDED RATHER THAN THE
220、TOOLS USED TO GET THERE.Igor Buyan,Partner,Ernst&Young LLC,Russia4 ACCA and EY explored these issues in Economic Crime in a Digital Age(ACCA and EY 2020).FIGURE 1.8:Challenges for my organisation over the next five years as a result of emerging technologiesRegulatory and cybersecurity issues53%56%n
221、Total n Leaders291.5 Society and public interestTechnology shapes the way society operates,and accountancy and finance professionals have an obligation to work with it in a way that supports the public interest.Thinking about sustainable ways of operating is needed in a world where resources are not
222、 infinite.Being a responsible steward that tracks,manages and uses these resources in the best possible way is paramount.DATACENTRES CONSUME A LOT OF POWER FROM THE GRID,ITS A HEAT BALL ABSORBING ELECTRICITY.A BIG PRIORITY FOR CLOUD PROVIDERS THEREFORE IS REDUCING,TRACKING AND REPORTING A COMPANYS P
223、ROGRESS AND GREEN FOOTPRINT.HAS LEADERSHIP BUY IN BEEN SECURED?ARE BEST EFFORTS DIRECTED TO MINIMIZE THE CARBON FOOTPRINT?ARE CALCULATIONS AND ASSUMPTIONS CORRECT?HAVE WE FACTORED IN THE CARBON TAX AMOUNT AND TAX REGULATIONS ON CARBON CREDITS?FOR CLOUD PROVIDERS A DIFFERENTIATING FACTOR MOVING FORWA
224、RD WILL BE HOW GREEN THEIR OFFERING IS.Head of Business Development,Data centre providerIn addition to sustainability,an area where the views of society are important is the audit expectations gap.This is a way of measuring the public concern about audit.ACCAs report5 expresses the overall gap as be
225、ing the result of gaps in knowledge(between what auditors do and what the public thinks they do),performance(between what auditors do and what they are supposed to do)and evolution(between what auditors do now and what the public wants them to do in future).Technology could help with mitigating some
226、 of the effects here for example,machine learning solutions can help with detecting anomalies in transactions.This provides a leading indicator to increase the ability to identify fraudulent transactions at scale.In turn that can help to reduce the evolution gap where the public is looking for audit
227、ors to play a bigger role in identifying fraud.On another note,digital is a double-edged sword that can both improve and worsen inequalities in society,depending on how it is used.A badly designed algorithm in the criminal justice system can inadvertently penalise innocent MEANINGFUL WORK FOR THE DI
228、GITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPEpeople whose demographics match a large proportion of prior offenders.On the other hand,a well-designed credit platform can provide fair anonymous-data-based criteria for determining who is eligible for a loan,which might allow an ethnic minority fe
229、male entrepreneur to secure financing even if she does not have the contacts to directly approach the venture capital community.To make technology work for society,it needs to have principles like trust embedded into it by design.EY Trusted AI Platform is one such initiative to create tools and meth
230、odologies to build trust in AI6.It is also going to be important to remember that society is made up of human beings,no matter how much technology we have all around us.In fact,work in areas such as the care sector is set to become even more important in the future.There can be value in work that do
231、esnt have a business model associated with it.Teaching a child to play or taking care of an elderly person are all integral to the human experience and for shaping the kind of society we wish to have.WERE A NOT FOR PROFIT,PREDOMINANTLY FUNDED BY THE GOVERNMENT,THAT PROVIDES SUPPORT TO START-UPS SEEK
232、ING TO OVERCOME BARRIERS TO COMMERCIALIZATION AND SCALING.SO,IF THEY WANT TO CREATE AND TEST AN APP:WE HAVE A DATA CENTRE,SUPPORT INFRASTRUCTURE,DEBUGGING SKILLS OR JUST PHYSICAL SPACE FOR THEM FOR TESTING.WE ALSO HAVE A MEMBERSHIP MODEL WITH LARGE TECH COMPANIES THAT ARE HELPING TO CLOSE THE GAP TO
233、 COMMERCIALIZATION FOR START-UPS.Robin Ramrup,Director of Finance,Centre of Excellence in Next Generation Networks5 Closing the expectation gap in audit, https:/ modelBusiness modelStandards and regulationSociety and public interestTechnology30Ethics and trust TECHNOLOGY IS CRITICAL TO THE WAY WE WO
234、RK,BUT IVE HAVENT SEEN ANYTHING SO FAR THAT RELIABLY AND FULLY REPLICATES HUMAN EXPERIENCE,GUT FEEL,AND PERCEPTION.Eoin MacManus,Partner,Ernst&Young Chartered Accountants,Ireland A key element,running through all aspects of achieving meaningful work,is ethics.There are a range of ethical issues that
235、 can result from working in a digital age.Some,such as the role of bias in the data used for AI algorithms,are prominently in the spotlight.Others,such as dealing with corruption when procuring technology,are less glamorous but equally dangerous.A key finding from a report conducted with support fro
236、m the International Ethics Standards Board for Accountants7 was that the five fundamental principles remain as valid in a digital age but need to be applied effectively to new situations.ETHICS IS NOT JUST ONE PERSONS JOB,ITS EVERYONES RESPONSIBILITY.IF ITS MADE A SEPARATE ROLE DISCONNECTED FROM THE
237、 BUSINESS,THERES A RISK THAT ITS SEEN AS CONFRONTATIONAL AND STOPPING DELIVERY.YOU NEED TO AVOID A CHECK BOX APPROACH;AND TO ENGAGE WITH LOTS OF SMALL DECISIONS THAT NEED TO BE MADE ON AN ONGOING BASIS.Ansgar Koene,EY Global AI Ethics and Regulatory Leader MEANINGFUL WORK FOR THE DIGITAL PROFESSIONA
238、L|1.SCANNING THE DIGITAL LANDSCAPEThe principles of professional competence and due care emerged as critical because when dealing with emerging technologies,the big risk can be that of simply not understanding the questions involved.All principles are,of course,important.But as an example,the risk t
239、o integrity from dishonest behaviour cannot be properly assessed if there is a hesitation about probing because the investigator does not understand how the technology works.WHEN INFORMATION IS RECORDED IN DIFFERENT WAYS,IT REQUIRES PEOPLE TO ADAPT THEIR SYSTEMS AND PROCESSES.BUT IT DOESNT REDUCE TH
240、E NEED FOR PEOPLE TO EXERCISE THEIR JUDGEMENT,OR TO BE ACCOUNTABLE.Adam Gerrard,EY Asia-Pacific Assurance Blockchain LeaderIndependence considerations are also important.This could relate to areas such as data privacy or where an individual selling or delivering products and services is connected to
241、 a related technology(eg by owning shares in its creator company)without appropriate disclosure.Looking ahead(Figure 1.9),leaders are more aware,both of the risks and of the consequently increased role for ethics.FIGURE 1.9:Impact of technology over the next five years7 ACCAs report Ethics and Trust
242、 in a Digital Age explores these issues in more detail(ACCA 2017b).n Total n LeadersNew types of ethical challengesIncrease in need for ethics and scepticism33%36%77%72%31LOOKING AHEAD,LEADERS ARE MORE AWARE,BOTH OF THE RISKS AND OF THE CONSEQUENTLY INCREASED ROLE FOR ETHICS.MEANINGFUL WORK FOR THE
243、DIGITAL PROFESSIONAL|1.SCANNING THE DIGITAL LANDSCAPE322.Digital and the global pandemicCOVID-19 has represented a significant disruption with tragic consequences for society.The impact of this pandemic is still unfolding and will be felt for years to come.Yet even as the world adjusts to this,it is
244、 also simultaneously throwing up a new understanding of the way people could live and work.For business operations and finance there has been a level of digitisation,and at a speed,which was simply not thought possible.There have been regular commentaries on how changes that would normally have take
245、n two years,were completed in two weeks.For accountancy and finance departments,these could very well represent a long-term shift towards more flexible and remote ways of working that go beyond responding to the pandemic.And on a more strategic level,the longer-term trend on the impact of digitisati
246、on on the profession seems as relevant as ever.2.1 Ways of workingThere has been a huge shift in working patterns forcibly induced by social distancing measures.The most immediate and visible aspect of this is the rise of remote working.Overall 74%of respondents claimed that they were well prepared
247、for using technology for efficient working during the COVID-19 outbreak,with a spread from 62%to 82%across world regions(Figure 2.1).MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMICFIGURE 2.1:Well prepared for using technology for efficient working during the COVID-19 p
248、andemicCentral&Eastern EuropeWestern EuropeNorth AmericaAsia PacificMiddle EastAfricaSouth AsiaCaribbean,Central and South America(CCSA)Average=74%82%81%73%73%72%71%68%62%33Leaders did significantly better at 95%,demonstrating that remote and flexible working is embedded into their practices.SMEs at
249、 72%were slightly below the 76%reported by those at large organisations(Figure 2.2).There is also some evidence to suggest that SMEs are thinking about better ways of managing data and documents remotely.For instance,their anticipated timelines for Cloud adoption are in line with the overall sample(
250、Figure 2.3).COVID IS ACCELERATING CLOUD ADOPTION,EFFICIENCY THROUGH AUTOMATION AND INSIGHT FROM DATA ANALYTICS.IN A FEW MONTHS,FIRMS HAVE MADE CHANGES THAT WOULDVE TAKEN TWO YEARS ORDINARILY IN AREAS LIKE REMOTE WORKING.THEYRE ALSO LOOKING HARD AT WHAT THEY ALREADY OWN TO EXTRACT FULL VALUE,FOR EXAM
251、PLE BILLING REMOTELY AND REAL TIME REPORTING.I WELCOME THIS TIMELY REPORT AS COLLABORATION IS REQUIRED ACROSS THE PROFESSION TO RAISE DIGITAL ADOPTION.Stephen Heathcote,CEO Prime GlobalThe pandemic is,however,causing a reassessment of digital adoption plans more generally,with 44%reporting a scaling
252、 back of projects.That said,looking ahead at expectations for the next five years,far fewer(17%)expect this to remain among their top three challenges,so it seems unlikely to be a structural shift(Figure 2.4).Overall,the fact that more than 7 in 10 are well prepared suggests fairly high levels of co
253、mfort for finance professionals in adapting to these changed circumstances,though there are variations,depending on levels of experience.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMICFIGURE 2.2:Percentages of firms that were well prepared for using technology for effi
254、cient working during the COVID-19 pandemicFIGURE 2.3:Cloud adoption timelineFIGURES 2.4:Scaling back of technology adoption projects owing to COVID-19 pandemicLarge organisationsSMEsLeadersOverall sample74%95%72%76%n Total n SMEsAlready doing this0 1 years1 3 years3 5 years5 10 yearsDont know/Not ap
255、plicable36%37%18%19%21%21%11%10%6%5%8%8%Now Among top 3 challenges in 5 years44%17%34Those with more experience(Figure 2.5)are finding it easier to work flexibly.Scores are nine points higher for those with 10 or more years of post-qualification experience than for those with less(83%versus 74%).Thi
256、s appears to challenge a notion that younger workers are more comfortable with digital ways of working.The working environment at home could be a factor driving responses.Those with more experience may have access to their own space to work,whereas younger professionals may be in environments where
257、they are sharing working space with others.So as part of COVID-19 response strategies,it will be important for organisations to pay attention to the impact on less-experienced employees.They may have less autonomy in planning their work,or may need more guidance on a day-to-day basis,making remote w
258、orking more challenging.Differences may also be linked to new or underlying mental health or well-being challenges.A 2019 report on remote working highlighted a range of well-being-related areas,such as difficulty in mentally switching off,loneliness MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DI
259、GITAL AND THE GLOBAL PANDEMICand sustaining motivation(B et al.2019).Looking ahead,it may be important for organisations to offer on-the-job coaching specifically in areas such as well-being and communication when working remotely.COVID-19 IS AN EXAMPLE OF WHERE WE NEED TO SHIFT PRIORITIES UNEXPECTE
260、DLY.THIS NEEDS INDIVIDUALS TO FIND THE ENERGY TO PIVOT QUICKLY.AND YET TO TAKE THINGS ONE STEP AT A TIME,AND NOT GET OVERWHELMED.Fiona Habermehl,EY Asia-Pacific Assurance Technology LeaderCOVID-19 HAS ACCELERATED THE FOCUS ON HOW TO IMPLEMENT REMOTE WORKING.AND RELATED TO THIS,HOW TO STAY CONNECTED
261、WITH RESPECT TO EMOTIONAL AND SOCIAL INTERACTIONS.Denis Mugisha,Partner,Ernst&Young LLP,KenyaFIGURE 2.5:Relationship between years of experience and preparedness for using technology for efficient working during COVID-19 pandemicUnder 2 years2 5 years6 10 years11 15 years16 20 years21 25 yearsMore t
262、han 25 yearsAverage=83%Average=74%72%71%78%84%79%86%84%35Remote working:from convenience to compulsion to competitiveness?There is a broader question about the need for large swathes of the population to converge in high-density offices in the centre of town.This includes the lost productivity from
263、travel time,traffic stress and tiredness;as well as the environmental impact of so many people on the move.Pre COVID-19,remote working was largely seen as an added convenience,but during the pandemic it transformed into a compulsory requirement.In the process,organisations have realised that a lot o
264、f work can be done this way and,post COVID-19,it could become a more competitive and efficient way to operate.PREVIOUSLY IF AN AUDIT INVOLVED SEVERAL LOCATIONS/COUNTRIES,WE VISITED LOCATIONS OF COMPONENT TEAMS FOR REVIEW.POST COVID-19,WERE VIEWING AUDIT WORKING PAPERS OF COMPONENT TEAMS REMOTELY USI
265、NG TECHNOLOGY,WHILE ENSURING COMPLIANCE WITH RELEVANT LOCAL LAWS(FOR INSTANCE ON TAKING DOCUMENTS OUT OF COUNTRY).AND WITH ENCRYPTION,WE CAN DO SO IN A COMPLIANT AND SECURED WAY AND USE TECHNOLOGY TO FACILITATE INTERACTION WITH LOCAL AUDITORS TO IDENTIFY GAPS.Yew Kiang Chan,Partner,Ernst&Young LLP,S
266、ingaporeSome jobs need a face-to-face presence,of course a dentist cannot extract teeth remotely.And there are also intangible elements such as maintaining team spirit,the value of interpersonal interaction and maintaining client trust.But even so,there will be a serious re-evaluation of how much fa
267、ce-to-face presence is really needed.One multinational,for example,has announced its intention for 75%of its 450,000 staff to work permanently from home by 2025(Khetarpal 2020).Meanwhile,another intends a permanent hybrid model that will involve many staff working from home(Akala 2020).COVID-19 may
268、increase interest in flexible staffing models,ie the gig economy,for tasks that can be modularised(eg where one needs a resource for six months for coding).While this has been happening for some time,organisations may now become much more comfortable with hiring remote workers.LOOKING AHEAD,WE SEE A
269、 MORE COLLABORATIVE ENVIRONMENT WITH AGILE TEAMS.THIS REQUIRES MORE CREATIVITY IN THE ABILITY TO ANTICIPATE WHATS COMING AND TO WORK WITH FLEXIBLE AND CHANGING DEMANDS.IF CONSUMERS ARE DEMANDING REFUNDS IN A COVID ENVIRONMENT,THE FINANCE STAFF MEMBER NEEDS TO QUICKLY ADAPT,AND UNDERSTAND THE IMPACT
270、ON THE WHOLE BUSINESS;NOT JUST THE IMMEDIATE PAYMENT.Detmar Ordemann,Partner,Ernst&Young GmbH,Global Innovation Leader,Financial Accounting Advisory ServicesThe core activities,such as those in audit,are also adapting to new needs.Inventory testing,which may have previously been done physically,is r
271、elying on additional procedures for virtual observation,using soft copy information from a mobile device,webcam or with drones.COVID HAS BROUGHT THE VIRTUAL OFFICE TO THE FORE,WITH MORE COLLABORATION TOOLS/SHARING SCREENS AND SECURE INFORMATION EXCHANGE ONLINE.BUT THE MOST IMPORTANT IS THE SHIFT IN
272、MINDSET AND MANAGING THE CHANGE,AS NOT EVERYONE MAY WILLINGLY EMBRACE THIS.PRACTICAL PROBLEMS NEED TO BE CONSIDERED REVIEWING ON SOFT COPY CAN BE HARD FOR SOME,FLIPPING BACK AND FORTH TO CHECK THE INFORMATION TIES TOGETHER;DOES ONE NEED TWO SCREENS?Yoon Hoong Hoh,Partner,Ernst&Young PLT,MalaysiaMEAN
273、INGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMIC362.2 Digital as part of the solutionPublic healthCOVID-19 has the property of exponential rather than linear growth in transmissions.While physically delivered treatment cannot be scaled exponentially,the management of data s
274、urrounding it can.An example is mobile applications for contact tracing that use blue tooth technology for alerts if one has been near someone diagnosed as COVID-19-positive.There are outstanding questions about data privacy,and the need for global consistency in how such applications are built.Anot
275、her example,perhaps less visible in mainstream media,is the use of Graph databases or knowledge graphs to track connections between data points.These are used in Google searches to uncover what a search item may be referencing.COVID-19 is a new disease and scientific research is catching up with it.
276、Knowledge graphs can digest large volumes of unstructured data,such as research papers,and update in real-time as more research becomes available.Working with AI,they can enable the spotting of patterns between the types of symptom and a positive diagnosis.Remote learningThe social-distancing restri
277、ctions imposed affect 1.38bn primary,secondary and tertiary learners globally(United Nations Educational,Scientific and Cultural Organization(UNESCO)figures as at 23 March 2020),which together with the need to mitigate unemployment risk,are creating an increased demand for digital education,learning
278、 and assessment.Those engaging with digital education often benefit from the flexibility of being able to work at their own pace/location,engaging offerings(multilingual,gaming or adaptive for a personalised experience)and robust certification,as skills are assessed multidimensionally,often through
279、simulations using AI and psychometrics.Also,whether education is delivered digitally or not,digital applications still have a role.This role extends across the entire education process from content creation,through validation to result determination,and sometimes personalisation.MEANINGFUL WORK FOR
280、THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMIC nContent creation:AI can be used to generate multiple versions of content from a single humanly created base source,changing wording or numerical information,content reordering,and/or making thesaurus amendments.nValidation and results deter
281、mination:AI algorithms quality assure content,referencing the underpinning technical learning material and prior assessments of similar content.Validation extends to the actual assessment experience,to confirm the identity of the test taker,in the form of biometric scanning,as with border control.Du
282、ring assessments,AI can invigilate effectively,from room scanning to focusing on just one test taker for the whole duration,considering factors such as facial expression,physical movement,and,for digitally conducted assessments,keyboard stroke patterns.This,together with psychometrics(data analytics
283、),can assess the likelihood of cheating,which can also be used later in results determination,providing potential impact on performance.Psychometrics can be used to determine both the result and its reliability,linking factors such as invigilation data and actual performance against content difficul
284、ty and candidate profile,making for robust and legally defensible assessments,protecting both the educator and learner.ACCA is taking steps to ensure that its students will be able to take their exams at home or in another location in circumstances where centre-based exam sittings are disrupted(Hatf
285、ield 2020).nPersonalisation:AI is used to determine the learners preferences,from which it can identify suitable learning products or be embedded in the learning,thereby tailoring it.Learning can be tailored through adapting the pace,coaching through tutorials or adapting the next step of learning i
286、n line with an assessment of past performance:adaptive testing.This means test takers are only required to take the assessment to the point where a reliable result has been determined.Here,the question delivered is dependent on previous question performance,which helps hone the result to the one bes
287、t reflecting learner performance.While digital education can have a high initial investment,greater exposure to it during COVID-19 has reaffirmed how well it can work.Weve seen that it can meet the needs of learners and educators,be scalable,and importantly has the scope to place less pressure on th
288、e environment,as fewer buildings and less printing and transport to the education source are needed,potentially making for a good return,beyond profit.37Digital economyAny economic activity in the first quarter of 2020 has been almost exclusively the result of the digital economy;ie ways of producin
289、g and consuming that can be supported with minimal,if any,physical presence.One could say that digital has been sustaining the economy.There is no agreed definition of the digital economy.The US Bureau of Economic Analysis(BEA)includes in the digital economy the information and communication technol
290、ogy(ICT)sector as well as the digital-enabling infrastructure needed for a computer network to exist and operate,the digital transactions that take place using that system(e-commerce),and the content that digital economy users create and access(digital media).This definition includes the sharing eco
291、nomy,the main components of which are peer-to-peer services such as Airbnb and Uber,and collaborative finance(eg peer-to-peer lending).The International Monetary Fund(IMF)notes that the digital sector,defined as above,is still less than 10%of most economies if measured by value added,income or emplo
292、yment.A 2019 paper from the BEA provides updated information on the US digital economy,using a similar definition.The BEA conclusion is consistent with that of the IMF:in 2017 the digital economy accounted for around 8%of US GDP(Figure 2.6),which corresponded to 3.3%of total employment(5.1 million j
293、obs).But the digital economy is growing much faster than the rest of the economy(BEA 2018;2019).Real value added in the digital economy grew at an average annual rate of 9.9%per year from 1998 to 2017,compared with 2.3%growth in the overall economy.This means that it consistently makes a disproporti
294、onate contribution to overall GDP growth.For example,in 2017,8.3%of real growth in the digital economy accounted for fully one-quarter(0.55 percentage point)of the total 2.2%growth in real GDP.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMICFIGURE 2.6:US growth and the
295、share of the digital economySource:US Bureau of Economic Analysis%2520151050-51998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017US Real growth rate of Digital Economy and Whole Economy Annual%rate Total economy Digital economySource:US Bureau of Econo
296、mic Analysis%98765432101997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017US Digital Economy Share of real gross value added in real GDP38In recent years e-commerce and digital media have superseded hardware and software as the fastest growing ele
297、ments of the digital economy,according to the BEA analysis(Figure 2.7).The COVID-19 crisis may result in increased digitalisation of economies.E-commerce is one area where initial temporary behavioural changes may persist even when COVID-19 restrictions are removed.Many consumers will have been effe
298、ctively forced to adopt digital services when the physical alternative became unavailable during lockdown.A significant proportion of these consumers may continue to use digital services in normal circumstances,having appreciated their advantages and familiarised themselves with the technology.Anoth
299、er factor which may play a part is a digital currency issued by a central bank which would bring economic benefits by eliminating or greatly reducing the significant costs involved in transporting physical cash around a country.A central bank digital currency(CBDC)is fiat money,ie backed by governme
300、nt rather than by gold or another commodity and issued by a central bank in digital form.Unlike cryptocurrencies,CBDCs will be legal tender since they will be issued by government regulation or law.MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMICAdoption of a CBDC would
301、 give the digital economy a major boost by transferring transactions to a digital platform:particularly given concerns that handling physical cash is a transmission mechanism for COVID-19.A CBDC may also help central banks support an economy during a crisis such as the COVID-19 pandemic because it c
302、ould:npermit the implementation,theoretically to an unlimited extent,of negative interest rates;this is not possible in an economy with physical cash nfacilitate quantitative easing(QE)or so-called helicopter money,whereby funds could be transferred instantly by central banks to all domestic househo
303、lds,boosting spending power.In the current crisis transfers to households have tended to be made through the tax system,involving a considerable administrative burden,adding to delays in implementation.To conclude,the digital economy,narrowly defined,is growing faster than the rest of the economy bu
304、t accounts for less than 10%of GDP in advanced economies.A further widening of this gap between the growth rates of the digital and non-digital economy is likely in the aftermath of the COVID-19 crisis.The crisis may also accelerate discussions about the introduction of CBDCs.FIGURE 2.7:Components o
305、f the US digital economySource:US Bureau of Economic AnalysisTelecommsDigital-enabling infrastructureSoftwareHardwareSupport servicesE-commerce and digital mediaDigital economyTotal economy0 2 4 6 8 10 12 14%change39MEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|2.DIGITAL AND THE GLOBAL PANDEMIC40MEAN
306、INGFUL WORK FOR THE DIGITAL PROFESSIONAL|3.ROADMAP FOR THE DIGITAL PROFESSIONAL3.Roadmap for the digital professionalSecuring work that is meaningful is a process rather than a one-time event.There are many philosophical interpretations of what meaningful signifies.In simple terms it refers to a dee
307、per connection with ones work that goes beyond just getting the job done.This report is anchored in observations on digital but recognises the critical importance of all these factors.Figure 3.1 summarises these impacts as a roadmap for the digital professional.The key background activity,before eve
308、n thinking about jobs,work or careers,is inculcating an approach of staying current with an evolving digital landscape.This can then be built upon with a purpose-led approach that combines strategic thinking with delivery capabilities.FIGURE 3.1:Roadmap for the successful digital professional8 ACCAs
309、 report on the future of careers identifies a range of trends affecting work more broadly(ACCA 2020).There are several factors that affect the achieving of meaningful work for the digital professional,but that go beyond technology.These include,for example,a multi-generational and diverse workforce,
310、migration,urbanisation and globalisation(or its reversal),non-linear career paths in flatter organisations with less directive forms of management;and continuous learning for broader skills beyond the technical.8 Layered onto all this is the significant disruption over the short to medium term from
311、the COVID-19 global pandemic.Delivery modelBusiness modelStandards and regulationSociety and public interestTechnologyRECOGNISE FACTORS OUTSIDE DIGITALShort-medium term,eg COVID-19|Long term,eg non-linear career pathsBE PURPOSE LEDASSESS STRATEGIC FITDELIVER OUTCOMESSCAN THE DIGITALLANDSCAPE41The di
312、scipline and curiosity that underlie constant scanning feed into the pursuit of meaningful work.Thinking about society and the public interest more broadly is relevant to a sense of purpose that informs why one wants to do a certain kind of work.Delivery and business model perspectives inform how th
313、e organisation is going to interact with this technology.This helps to assess strategic fit and ensure that one is embarking on work with the potential for a longer-term fit.And all these aspects,alongside understanding the technology,standards and regulation,relate to the specifics of delivering ou
314、tcomes in the role itself.3.1 Being purpose-ledMeaningful work experiences are closely tied to ideas of fulfilment,well-being and happiness.Each person has their own definition of what this involves,but the deepest connection to work with long-term resilience and satisfaction requires asking questio
315、ns that go beyond financial parameters alone(Figure 3.2).FIGURE 3.2:Be purpose-led example considerationsA thought experiment to use to test oneself,is to consider how motivated and engaged one would be if financial considerations were excluded.As Figure 3.3 reveals,there is a significant leader pre
316、mium pertaining to fulfilment at work when looking at percentages of respondents agreeing with the statements.ULTIMATELY FOR INNOVATION TO REALLY HAVE IMPACT,IT MUST CHANGE THE LIFE OF COMMON PEOPLE AT THE GRASSROOTS LEVEL.SUSTAINABLE ADOPTION HAPPENS WHEN BENEFITS FROM DIGITAL SOLUTIONS FLOW THROUG
317、H THE ECO-SYSTEM,RATHER THAN BEING RESTRICTED IN THEIR RELEVANCE ONLY TO THE NEEDS OF A FEW.Subh Ghosh,Partner,Ernst&Young Associates LLP,India3.2 Assessing strategic fitThis is about taking a step back and critically analysing the direction of travel of ones career path(Figure 3.4).People who find
318、their work meaningful are typically those who can look beyond the immediate tasks that they have been set in their current role.They have a sense of how their work fits into the overall picture.FIGURE 3.4:Assess strategic fit example considerationsMEANINGFUL WORK FOR THE DIGITAL PROFESSIONAL|3.ROADM
319、AP FOR THE DIGITAL PROFESSIONALFIGURE 3.3:Purpose and the leader premiumOverall:Tries to understand if employees find their work fulfillingLeadersLeader premium6210038Overall:Provides a fulfilling work experience for meLeadersLeader premium7210028BE PURPOSE-LED nWhy do I want to do this type of work
320、?nHow does my attitude to technology reflect my values and beliefs?nHow am I(even if indirectly)contributing to a greater good?ASSESS STRATEGIC FIT nWhat is the value created for my stakeholders by the work I do?nWhat career paths map to the agenda of my stakeholders?nWhat are the opportunities for
321、my continuing learning and development?42Of the eight control criteria used for defining the leader group,the element with the highest leader premium(Figure 3.5)was where the organisation had conducted an employee skills-mapping exercise to identify gaps.This finding was echoed when looking ahead to
322、 the top three challenges over the next five years as a result of the impact of emerging technologies(Figure 3.6).To assess strategic fit with ones work,understanding career paths and learning opportunities in the organisation are crucial.It is not just a matter of the immediate job.MEANINGFUL WORK
323、FOR THE DIGITAL PROFESSIONAL|3.ROADMAP FOR THE DIGITAL PROFESSIONALEMBRACING TECHNOLOGY IS AN IMPORTANT SKILL THAT WE ENCOURAGE ALL ACCOUNTANCY AND FINANCE EY PROFESSIONALS TO ACTIVELY ENGAGE WITH.WHEN EXCEL FIRST CAME OUT,THERE WERE SPECIALISTS,NOW EVERYONE USES IT.WHEN I LOOK BACK 25 YEARS,THERE W
324、AS SIMILAR PUSH FROM THE MARKET TO FOCUS MORE ON AN ENTITYS BUSINESS AND OPERATIONAL PROCESSES.IT WASNT INCLUDED IN THE PROFESSIONAL ACCOUNTING CURRICULUMS BUT ACCA DID LEAD THE WAY TO INCORPORATE THIS.THERES A SIMILAR NEED TODAY TO PUSH FOR GREATER EDUCATION ON THE LATEST TECHNOLOGIES.Alan Young,EY
325、 Global Methodology and Data Analytics LeaderFIGURE 3.5:Leader premium across all control questionsFIGURE 3.6:Challenges over the next five yearsHas conducted employee skills mapping to identify gapsTries to understand if employees find their work fulfillingAllows staff to experiment with new ideasU
326、ses technology to create new products and services for clientsProvides a fulfilling work experience for meSupports initiatives for employee wellbeing and happinessKeen to adopt emerging technologiesUses technology for flexible working,such as remote locations and non-standard hours of workAverage le
327、ader premium=33%49%38%34%32%28%27%26%26%Skills gap to drive adoption and useRegulatory and cybersecurity issuesImplementation costsNew types of ethical challengesCompetition from technology vendorsScaling back of technology adoption projects due to Coronavirus55%53%51%33%24%17%43In addressing this s
328、kills gap it will be important to take a balanced view that recognises the role of a variety of competencies across a range of areas.ACCA captures this idea(Figure 3.7)with its professional quotients for success,which inform its qualification.FIGURE 3.7:ACCA professional quotients for successLooking
329、 ahead,there is(Figure 3.8)an expectation of an increasing need for technology skills,as well the ability to think critically,analyse and solve problems.Along with leadership capabilities,these skills are vital for problem solving in new types of digital scenarios that have not been seen before.AUDI
330、TORS WHO CANT DEAL WITH DATA WILL STRUGGLE TO ADD VALUE,AND THAT INCLUDES PARTNERS.WHEN I WORK WITH A TEAM,ONE NEEDS TO BE ABLE TO NAVIGATE DIGITAL TOOLS,PLATFORMS,MACROS OR PROGRAMMABLE INTERFACES,DYNAMIC SPREADSHEETS ETC.THE AUDIT TEAM OF THE FUTURE WILL BE MORE OF A PATCHWORK THAN A PYRAMID.WELL
331、NEED MORE SPECIALISTS AS A SINGLE AUDITOR CANT UNDERSTAND EVERYTHING,THE CLUB OF EXPERTS TO WORK WITH HAS GOT LARGER.THERES A NEED TO ALWAYS BE A STUDENT IN LEARNING MODE.Jeanne Boillet,EY Global Assurance Innovation LeaderCommercial and business skills are vital for scanning the digital landscape,t
332、o map the delivery and business model implications.DO WE NEED DATA ANALYTICS SPECIALIST IN THE AUDIT TEAM?THE ANSWER DEPENDS ON THE ASPECTS OF DATA ANALYTICS.WE HAVE SEPARATE SPECIALISTS TO DEAL WITH DATA CAPTURE AND PREPARATION THAT IS NOT A SKILL THAT PROFESSIONAL ACCOUNTANTS REQUIRE.HOWEVER,FOR A
333、NALYSING THE DATA,WE DONT HAVE A SEPARATE PERSON AS YOU REALLY NEED TO UNDERSTAND THE CLIENT AND INDUSTRY/DOMAIN TO TRANSLATE THE DATA PROPERLY TO THE BUSINESS CONTEXT.AND THATS A SKILL WE NEED EVERYONE IN THE TEAM TO HAVE RATHER THAN TRYING TO SEPARATE IT INTO ONE INDIVIDUAL.Alan Young,EY Global Methodology and Data Analytics LeaderFIGURE 3.8:Requirement for skill is expected to increase over nex