What is the role of the finance function in a VUCA environment?
The finance function provides a wider range of services beyond traditional accounting and reporting, contributing to value creation and preservation.
List the basic activities of the finance function.
- Assemble information
- Analyse for insights
- Advise to influence
- Apply for impact
What does the finance function do when it ‘assembles information’?
It collects, cleans, and connects data into assembled information for management reporting.
True or False: The finance function’s analysis only focuses on financial information.
False
What is the significance of the finance function’s advising role?
It communicates insights and contributes an objective perspective to influence decision making.
Fill in the blank: The finance function guides actions by enabling control systems such as _______.
[strategic planning, budgeting, performance measures, performance reviews]
What broader roles does the finance function fulfill?
- Reporting
- Questioning
- Developing solutions
- Deploying solutions
Why is the finance function considered a trusted source?
It ensures data integrity and provides objective information less subject to bias.
What does the questioning role of the finance function entail?
It involves commercial curiosity and analysis to identify opportunities and risks.
How does the finance function contribute to developing solutions?
It provides subject matter expertise to guide strategic decision-making and facilitate conversations for innovative solutions.
What is the purpose of deploying solutions in the finance function?
It partners with others to focus on local-level planning, decision making, and performance management.
What constitutes the ‘value matrix’ in finance?
- Stewardship
- Value analysis
- Value enabling
- Data integrity
What is the evolving definition of business value?
It now encompasses organizational value offered to every stakeholder group, moving beyond just profit or shareholder value.
Differentiate between value and price.
Value can be financial or non-financial, while price is the monetary amount paid for a good or service.
What is the significance of intangible value in modern organizations?
Intangible value often exceeds the value of tangible assets and is crucial for overall organizational value.
True or False: The majority of corporate value in the S&P 500 was once derived from intangible assets.
False
What challenge do finance professionals face regarding intangible value?
Intangible value is time-consuming to create and difficult to measure.
What new measures are needed to create long-term value?
Advanced performance management measures beyond traditional financial metrics.
What did Jack Welch suggest about shareholder value in 2009?
He stated that shareholder value is a result, not a strategy, and emphasized the importance of employees, customers, and products.
Fill in the blank: The finance function can help resolve conflicts between short-term and long-term value by providing _______.
[salient information and rational appraisal techniques]
What are the main value drivers in business today?
- Customer satisfaction
- Quality of business processes
- Customer relationships
- Quality of people (human capital)
- Reputation of brands
Which intangible assets are crucial for companies creating value?
- Intellectual property (software, patents, copyrights)
- Customer capital (buyer data and insights)
- Human capital (talent and co-creation networks)
What is the importance of measuring intangible assets?
Businesses need to measure intangible assets in nonfinancial terms to manage performance in the digital age.
What is corporate governance?
Corporate governance is the way in which an organisation is administered, controlled, and directed, focusing on protecting stakeholders.
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Role and activities of the finance function36
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Finance function role in value creation38
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Key Technologies driving business and finance64
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Leveraging technology in the finance function46
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The changing structure and shape of the finance function40
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Digital age finance function34
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Business organisations57
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Key performance indicators45
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Product Development and Management69
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Sales and marketing61
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Supply Chain Management and Production68
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Human Resources (HR)39
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Information Technology (IT)45
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Getting started with Data and Analytics23
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Meaning of data54
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Data collection and storage38
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Data and ethics41
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Business intelligence44
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Data analysis62
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Data in business44
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Data analytics projects33
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Data presentation27
