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Download the full research report “The Digital Finance Imperative: ... commissioned by Oracle investigates how 744 Fin
CIMA Thought Leadership

How to Measure & Manage Value from Digitization? Global research report from CIMA (Chartered Institute of Management Accountants) commissioned by Oracle investigates how 744 Finance Executives from across the globe evaluate the impact and role the CFO plays in creating value with digital technologies.

IMPACT ON FINANCE Market value has flipped from tangibles to intangibles

More companies than ever are creating high value with fewer fixed assets

COMPONENTS OF S&P 500 MARKET VALUE1

17%

32%

68%

80%

84%

83% 68% 32% 1975

1985

Tangible Assets

1995

31% 20% 2005

Intangible Assets

16% 2015*

*As of January 2015

McKinsey reports that these “asset-light, idea-intensive sectors” now generate 31 per cent of Western company profits, up from 17 per cent in 1999.2

As corporate structures and business models evolve, so too must the metrics finance uses to measure performance. Disrupt yourself or be disrupted…

WHAT ARE THE NEW KPIS TO STAY AHEAD OF THE COMPETITION AND DRIVE VALUE? Top KPIs

67%

Data Quality

66%

Return on Invested Capital (ROIC)

65%

Employee Productivity

65%

Employee Engagement & Retention

60%

Customer Experience & Satisfaction

57%

Competitor Activity

55%

Customer Pipeline and Retention

50%

Talent Sourcing and Pipeline

49%

Brand Awareness and Equity

Top Value Drivers

76%

Customer Satisfaction

64%

Quality of Business Process

63%

Customer Relationship

61%

Quality of People

58%

Reputation of Brand

HOW CAN FINANCE PLAY A LEADING ROLE IN ESTABLISHING THE NEW KPIS AND VALUE DRIVERS?

Enhance the value of information by ensuring its validity and filtering it for decision-makers to use.

Work with data scientists to explore data and develop new analytical insights.

Partner closely with business managers in collaborative conversations probe root causes; and identify potential leading performance indicators.

FIND OUT MORE Download the full research report “The Digital Finance Imperative: Measure What Matters Next”:

oracle.com/goto/cima-research Join our communities

[1] [2]

Ocean Tomo, as cited in The Wall Street Journal, 2014. McKinsey quoted on Ibid, pages 108 to 109. CIMA, 2015: The Digital Finance Imperative.

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