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9 critical trends influencing strategic priorities – New Leadership

Business trends 2014

Download/ Read the full article

New global giants now compete aggressively in many sectors, and senior executives might find their individual and collective leadership roles evolving fast.

Business Trends 2014: Navigating the next wave of globalization features nine trends all directly related to a major question for many organizations: What is going on with the global economy? These trends – firmly rooted in longer term and probably irreversible shifts – will increasingly influence strategic priorities. This is the final blog post in our series, but please download and read the full piece.

New Leadership

  1. Giants, old and new: Many firms from emerging markets have strengths that have served them well at home, and also position them for expansion into new markets. More established global corporations have important, hard-won, and long-standing advantages of their own. The field is set for a new, highly competitive game.
  2. CFO as Chief frontier Officer: Global companies understand that their senior executives must be attuned to risk in its many forms and able to navigate new markets with integrity and confidence. CFOs are particularly well positioned to lead such growth efforts, given their abilities to manage risk, provide objective counsel, and bring analytical rigor to strategic choices.
  3. The C-Suite – Time for version 3.0?: The next wave of globalization is bringing unfamiliar opportunities and challenges, along with increased diversity and complexity. The next generation C-suite must transcend functional boundaries to secure enhanced alignment and coherence through multi-faceted changes, without defaulting back to the command and control arrangements of a bygone era.

For more information on how these trends may affect your business, please contact Thomas Jankovich, Abrie Olivier or Valter Adão from Strategy & Innovation | Deloitte Consulting Africa.

Download/ Read the full article

Key contacts

Abrie Olivier Thomas Jankovich
Abrie Olivier

Director: Strategy and Innovation

+27 (0)11 806 5000

aolivier@deloitte.co.za

View my LinkedIn profileView my profile

Thomas Jankovich

Director: Deloitte Digital

Cell: +27 (0)82 494 3120

tjankovich@deloitte.co.za

View my LinkedIn profileView my profile

Valter Adão

Director: Monitor Deloitte

Tel: +27 (0)11 209 6117

vadao@deloitte.co.za

View my LinkedIn profileView my profile

9 critical trends influencing strategic priorities – New Collaborations

Business trends 2014

Download/ Read the full article

Fast-paced change puts a premium on innovation — and therefore on enhanced collaboration capabilities, more global deployment of “social business” technologies, and optimization of supply chains.

Business Trends 2014: Navigating the next wave of globalization features nine trends all directly related to a major question for many organizations: What is going on with the global economy? These trends – firmly rooted in longer term and probably irreversible shifts – will increasingly influence strategic priorities. We will be fleshing out the 3 trends in more detail over the next few weeks here…

New Collaborations

  1. Innovations from everywhere: Innovation is now, truly, a global game. After centuries of near unidirectional innovation — from the West to the rest — we are today in the early days of a massive rebalancing. The nature and means of innovation is also shifting, with a bigger role for those at the fringes of organizations.
  2. Social business, global business: As social media, technologies, and data become more broadly used within global companies, maturity is growing. Companies are building the processes and the organizational structure to grow globally as social businesses.
  3. Anticipatory supply chains: As established supply chains evolve into rich supply networks, those who see these networks as core to their strategies may be best positioned for growth. Their supply chains will not only perform efficiently and recover quickly from disruptions, but may also be able to spot and avert risks.

For more information on how these trends may affect your business, please contact Thomas Jankovich, Abrie Olivier or Valter Adão from Strategy & Innovation | Deloitte Consulting Africa.

Download/ Read the full article

Key contacts

Abrie Olivier Thomas Jankovich
Abrie Olivier
Director: Strategy and Innovation
+27 (0)11 806 5000
aolivier@deloitte.co.za
View my LinkedIn profileView my profile
Thomas Jankovich
Director: Deloitte Digital
Cell: +27 (0)82 494 3120
tjankovich@deloitte.co.za
View my LinkedIn profileView my profile
Valter Adão
Director: Monitor Deloitte

Tel: +27 (0)11 209 6117
vadao@deloitte.co.za
View my LinkedIn profileView my profile

9 critical trends influencing strategic priorities – New Consumers

Business trends 2014

Download/ Read the full article

With a billion new consumers poised to join the global middle class, businesses are finding new ways to reach them — including through city-level strategies and greater focus on social impact issues.

Business Trends 2014 is the 2nd edition in an annual piece written by professionals from Deloitte Consulting’s Strategy & Innovation practice.

Business Trends 2014: Navigating the next wave of globalization features nine trends all directly related to a major question for many organizations: What is going on with the global economy? These trends – firmly rooted in longer term and probably irreversible shifts – will increasingly influence strategic priorities. We will be fleshing out the 3 trends in more detail over the next few weeks here…

New Customer

  1. Another Billion: Thanks to economic and demographic growth, global consumer demand is shifting dramatically toward emerging markets. But reaching and serving “another billion” consumers may require companies to reach beyond their existing strategies.
  2. Business & Social Impact: Growth in the next wave of globalization will involve engaging with the social needs and complexities of emerging and frontier markets. These issues are no longer simply the government’s responsibility, or purely philanthropic efforts.
  3. City Planet: Companies are learning to approach cities as more than simply reliable sources of market expansion, also thinking of them as vital talent centers, innovation hubs, learning laboratories and “proving grounds” for solutions to some of the world’s toughest problems.

For more information on how these trends may affect your business, please contact Thomas Jankovich, Abrie Olivier or Valter Adão from Strategy & Innovation | Deloitte Consulting Africa.

Download/ Read the full article

Key contacts

Abrie Olivier Thomas Jankovich
Abrie Olivier

Director: Strategy and Innovation

+27 (0)11 806 5000

aolivier@deloitte.co.za

View my LinkedIn profileView my profile

Thomas Jankovich

Director: Deloitte Digital

Cell: +27 (0)82 494 3120

tjankovich@deloitte.co.za

View my LinkedIn profileView my profile

Valter Adão

Director: Monitor Deloitte

Tel: +27 (0)11 209 6117

vadao@deloitte.co.za

View my LinkedIn profileView my profile

Digital Engagement: Technology Trends 2014

digital engagement

This take on the Trend: Digital Engagement was written by Peter du Plooy, CIO of Engen Petroleum

This decade has always promised to be interesting, if not exciting for those of us following technology trends and building scenarios that could develop based on their integration, specifically enabled by digitalisation.

Digital innovation seems to be presented in an intuitive simplified way making acceptance and use high. We see adoption across the spectrum of consumers whether young or old.

Engaging with digital data on mobile devices that mesh audio, video, and text-based content have profoundly impacted society. Questions related to privacy, security, information ownership, and information expiry have all been debated. Now there is a realisation that cloud-based software and services providers own the data. With their in-memory analytical processing capabilities, these providers are able to dissect and correlate data in a way that was unthinkable a few years ago.

Analytics and up-selling are interwoven into digital engagement and influence purchase behaviour. It has become the norm to ‘like’ something online, indicating a preference and adding to the societal pool of information or product acceptance, enabling automated content suggestion to influence the purchase decision.

This not only opens opportunities and increases expectations of individuals, as product marketing can be done to the individual market segment, but also impacts how individuals see themselves and their roles in contributing to society. It is said that, in general, the online persona is more than 50 percent aspiration and therefore largely fabricated, susceptible to influence and to creating a society that loses sight of true individuality.

Potentially disruptive digital technology meshing could come from embedded sensors, loosely termed the ‘internet of things’. For example, this could create opportunities for up-selling to connect more ‘things’ with sensors providing predictive analytics to identify failures before they occur. Here we see artificial intelligence, sensors, and big data analytics being combined into a new business model.

Unfortunately the digital experience in South Africa lags more developed countries mainly due to inconsistent network service provision with the cellular providers seeming to focus on voice at the expense of high access data provision. The lack of the latter influences the desire to engage with the medium.

Public Wi-Fi seems to be on the increase but still offers inconsistent performance for content consumption. The world of information can be accessed from a mobile device, with adoption and use enabling a myriad of services, but is being stymied by our poorly performing infrastructures and the lack of urgency to get it more generally accessible.

Competition between the mobile operators will significantly influence what happens next in the local digital landscape. Just look at the recent debates around mobile termination rates to appreciate the importance these operators play in all our digital experiences.

This decade is going to be one of disruption, by the end of which significant changes would have taken place. It is going to be one of the most exciting times to be in technology and to be a CIO leading the digital strategy. Opportunities are only limited by our own creativity. A good start will be in the digital business strategy.

9 critical trends influencing strategic priorities

Business trends 2014

Download/ Read the full article

Today’s business leaders need clear, concise and well-informed perspectives on important dynamics that are currently reshaping the business environment. Business Trends 2014: Navigating the next wave of globalization features nine trends all directly related to a major question for many organizations: What is going on with the global economy? These trends – firmly rooted in longer term and probably irreversible shifts – will increasingly influence strategic priorities. We will be fleshing out the 3 trends in more detail over the next few weeks here…

  1. New Consumers: With a billion new consumers poised to join the global middle class, businesses are finding new ways to reach them — including through city-level strategies and greater focus on social impact issues.
  2. New Collaborations: Fast-paced change puts a premium on innovation — and therefore on enhanced collaboration capabilities, more global deployment of “social business” technologies, and optimization of supply chains.
  3. New Leadership: New global giants now compete aggressively in many sectors, and senior executives might find their individual and collective leadership roles evolving fast.Contact Abrie Olivier or Thomas Jankovich for more information.

For more information on how these trends may affect your business, please contact Thomas Jankovich, Abrie Olivier or Valter Adão from Strategy & Innovation | Deloitte Consulting Africa.

Download/ Read the full article

Key contacts

Abrie Olivier Thomas Jankovich
Abrie Olivier
Director: Strategy and Innovation
+27 (0)11 806 5000
aolivier@deloitte.co.za
View my LinkedIn profileView my profile
Thomas Jankovich
Director: Deloitte Digital
Cell: +27 (0)82 494 3120
tjankovich@deloitte.co.za
View my LinkedIn profileView my profile
Valter Adão
Director: Monitor Deloitte

Tel: +27 (0)11 209 6117
vadao@deloitte.co.za
View my LinkedIn profileView my profile

Industrialised Crowdsourcing: Technology Trends 2014

industrialised crowdsourcing

This take on the Trend: Industrialised Crowdsourcing was written by Jaydev Chiba, CIO of Vodacom

 South African companies generally follow trends from the United States and Europe but are quite conservative with some of the more radical ones. Industrialised crowdsourcing would definitely fall in this category.

Crowdsourcing in itself is not new. It has been successfully used for many years through customer surveys and the sourcing of input for product development. In the digital world of today, people are more tech-savvy and have access to a range of devices. So when it comes time to access the intellectual property of the masses it has become easier thanks to the popularity of the internet and social media.

Industrialised crowdsourcing is the enterprise adoption of the power of the crowd that allows specialised skills to be sourced from anywhere and at any time when it is needed. In the context of an organisation, a CIO could look at it from the perspective of what you can do with it to address the challenges that are applicable to not only a department but the organisation in general.

This creates the potential to move product development from the traditional lifecycle into something that can tap into crowdsourcing as an additional mechanism. However, companies are still very cautious about this approach as it comes with many implications. Not only do company policies need to carefully reflect the requirements of this industrialised crowdsourcing but many staff could see it as a potential threat to their jobs.

It is important to differentiate this from outsourcing. Crowdsourcing is simply using more people to get things done. As a CIO, it depends on where you are in the maturity of IT in the organisation to see the level that this could be adopted. It is also important to note that this becomes another capability that can be used for the organisation just as elements such as cloud computing, outsourcing, and offshoring have become.

The potential for industrialised crowdsourcing is limitless. Just think of the impact it could have on product development, funding, and customer satisfaction surveys. But it will probably only become mainstream in South Africa in a few years from now with only a small percentage of early adopters experimenting with this.

This remains an interesting concept but it needs careful evaluation on how it delivers business value and reduces cost. So a certain level of education has to happen first. CIOs have the opportunity to lead the charge in this regard but it depends on whether they are constrained by the financial departments or have more freedom by reporting directly into a CEO.

With CIOs evolving to become a bridge between technology and business makes for much richer opportunities for industrialised crowdsourcing. Unfortunately, the less tech-savvy industries will still be more resistant to this change. Some of the smaller organisations will definitely tend to consider this trend and using it to expand on their technical skills more effectively.

The dynamics of the South African market mean that these smaller companies will be able to exploit the available talent more sufficiently by using something like industrialised crowdsourcing to leverage any potential resource gaps they have internally.

Cognitive Analytics: Technology Trends 2014

Cognitive Analytics

This take on the Trend: Cognitive Analytics was written by Mesfin Belachew (PhD), technical adviser to the Minister at the Ministry of Communication and IT in Ethiopia

As a disruptive trend, cognitive analytics is that which enhances the human decision-making process as a result of using ‘heavy’ data such as that gained from cloud computing or the knowledge that is shared in a community or group of people. It assists us to make conclusions around a specific area and to provide support for a more improved decision-making process.

While there are some relationships with business intelligence, especially when it comes to using raw data, cognitive analysis deals with long-time historical and very big data. It is simply much broader in scope than what business intelligence has to offer.

This concept is new when compared to other ICT initiatives. But with more discussions happening around cloud computing and open data, especially in the public sector, cognitive analytics is starting to gain momentum. It is especially important as it can provide direct assistance on maximising the technology usage of the cloud and other innovations. Developing countries might still be a bit slow in adopting it as it is a new concept but it is definitely not too late to work in this area.

Governments should be using this as it relates to step-by-step prototyping. But it can only be effective when cognitive analytics professionals are involved in very specific areas. To this end, it will be useful for the public sector to partner with those companies in the private sector who have already developed solutions around this. This will result in government getting qualified people in the area so raw and fundamental data and processes can be organised accordingly to benefit from cognitive analytics.

The benefits of this are numerous. By being able to make considered decisions using historical data in a more precise and accurate way will provide significant assistance when it comes time to decide on specific concepts that require open data. When any data analysis takes place, it is more difficult if a single person is responsible for it. So a collective effort is required especially around natural language processing, structured and unstructured data, and in generating ideas that are more exact. Cognitive analytics means that it is all up to the person to use the information and start implementing it.

It is only a matter of time before cognitive analytics permeate every effort from business and government. People have specific demands and want real-time decisions to be made. For example, only a decade ago it could take up to a year to complete a government department roll-out. Today the expectations have changed and it needs to be done within a few weeks. So it is clear that in order to do this, you need to be in a position to make decisions fast hence the importance of cognitive analytics.

And as with any other technology, whoever started earlier when adopting cognitive analytics has got the first-mover advantage. This is also not a single component but requires historical data, big data, and other resources to teach the system accordingly. This year is definitely going to be one to watch when it comes to implementing cognitive analytics systems and those in the government and private sector best be ready to embrace it.

Is your internal audit model giving you value?

internal audit

The issue of out-sourcing, co-sourcing or in-house

As a CEO or Board member, do you ever ask yourself:

  • Are we getting valuable information and insights from our investment in Internal Audit?
  • Does our Internal Audit team have the skills and experience needed to address the risks in our business before they become a problem?
  • How can we better manage internal audit costs?
  • Is it possible to shift from a fixed to a more variable cost structure?

Today’s dynamic business environment requires internal auditors to have a strategic orientation and to provide value and insights beyond the traditional assurance and compliance perspective.  For internal auditors to deliver on their mandate and meet the expectations of CEO’s and Boards, they need broader skill sets and the ability to add  the most value and the flexibility to properly respond to changes caused by internal and external factors.

Questions to consider when you make your decision:

Factors to consider   in sourcing Internal Audit Your in-house   internal audit team Outsourced/Co-sourced   internal audit
Flexibility You are understaffed during “crunch time”. During peak periods, gain access to additional staff.
Multidisciplinary   knowledge The skills required to execute   speciality audits may not reside in-house. Access to depth and   breadth to resources to bring the right mix of skills for each audit.
Insight Staff may lack the   methodology and tools to readily identify and mitigate risk. Access to proven   methodologies, tools and leading practices to help you gain a broader risk   perspective.
Cost In-house costs are fixed and   may be difficult to retain. Pay only for the resources   you need and use.
Tools and   methodologies Staff may lack   access to leading practices and automated tools. Deloitte leverages   the latest benchmarking and analytical tools.

Ultimately, when considering different sourcing options, you should consider which model best addresses your organisation’s needs. As with all strategies, there is no “one size fits all” solution, as these will need to be tailored depending on your requirements. The underlying principle guiding organisations to re-evaluate internal audit functions is the need to enhance the value that internal auditors provide, and the fact that the internal audit function is increasingly becoming an advisor to the business and an example of leading practices. These are the principles which CEOs and Board members must demand from their internal auditors.

Contacts

Pramesh Bhana

Director, Risk Advisory

Africa Leader – Governance, Risk and Oversight

Email: pbhana@deloitte.co.za

Tel: +27(0) 11 209 6337

Justine Mazzocco

Partner, Risk Advisory

Email: jmazzocco@deloitte.co.za

Tel: +27 (0)11 806 5395

How to derive value from regulation rather than just “ticking the box”

Ticking the box

Organisations are frustrated with the unprecedented amount of regulation that needs to be met in order to operate in local and global markets, while the direct business benefit is not always clear.

Over the last few years, numerous regulatory amendments have been introduced across industries, such as the Protection of Personal Information (PoPI), to protect individuals’ constitutional right to privacy. The Financial Services industry faces the greatest wave of regulation, such as Foreign Account Tax Compliance Act (FATCA), Solvency Assessment and Management (SAM), Basel III, Treating Customers Fairly (TCF) and PoPI are being introduced in fast succession to:

  • Provide appropriate protection for consumers
  • Protect and enhance the integrity of the financial market
  • Promote effective competition in the interests of consumers

With competing business priorities and scarce resources, several organisations are investing the bare minimum to meeting regulatory requirements. They are merely ”ticking the box”.

In our experience, this approach could be a missed opportunity – ”ticking the box” is not always enough!

Download the full article . . . . Regulatory change – Its not about ticking the box

To learn more about how the Deloitte team can help you to derive the business benefit from regulation, please contact Gill Hofmeyr at ghofmeyr@deloitte.co.za or Jissille Pillay at jpillay@deloitte.co.za or Skye Da Silva at sdasilva@deloitte.co.za

Broader Controls Transformation – Overhauling your business controls for maximum impact

internal controls

The internal control space is filled with people who have preconceived ideas of the controls they expect businesses to adopt. People who see control design about checklists, not about choice.

Often you hear people in business make comments that they understand the need for controls but they hamper the business. Well are these then the wrong controls! Controls are there to help a business meet its objectives. They are not just about compliance. Controls are there for business performance, protection from risk and to achieve desired conformance.

How often do audit recommendations come up year after year and are never implemented? Pause for a minute – perhaps the auditor has got it wrong? Is this really the right control for the business? Are there alternatives that could be implemented and meet the required objective?

Process controls transformation must start with looking back to the real objectives of the process being considered. This is not control objectives or sub-process objectives. It’s the overall outcomes from the process that we need to consider. This becomes ‘the What” and “the Why”. Following this we move to controls that meet those objectives – “the How.”

An understanding of how components of the process work together to meet objectives often leads to a simplified and more streamlined control structure. Too often organisations look at design adequacy at an individual level or look at manual and systems controls separately. Our approach looks at the totality of controls to meet the outcome-based objectives. This leads to control efficiency and effectiveness – controls that work for the business and its desired outcomes.

Control is a choice based on factors such as appetite, risk, environment, required speed of implementation, sustainability, achievability and acountability to name but a few. It is therefore up to organisations to consider these wider factors and for the internal auditor to lead this process.

If you have any questions or require a more detailed discussion, contact Pramesh Bhana (Director at Deloitte Risk Advisory and Africa Leader – Governance, Risk and Oversight) at pbhana@deloitte.co.za or +27(0) 11 209 6337

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