EY TMT CFO Forum 14 March 2018 EY Momentum, London
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EY TMT CFO Forum 14 March 2018 EY Momentum, London
EY TMT CFO Forum Immersion As attendees arrived, they were given the opportunity to explore material relating to the session and answer the question: “What are your top strategic priorities at the moment?”
EY TMT CFO Forum Introduction and keynote address Rahul Gautam, EY, welcomed participants and presented the morning’s agenda. Coram Williams, Chief Financial Officer at Pearson, delivered the keynote address on Pearson’s finance function transformation and the part EY has played in making it happen. Rahul Gautam Coram Williams EY UK TMT Market Chief Financial Officer, Segment Leader and Pearson TMT Advisory Lead
EY TMT CFO Forum
Panel
Accelerating growth through acquisitions
Facilitator
EY’s Will Fisher facilitated a
panel discussion exploring the
following themes:
• Assessing and responding
to the competition for
acquisitions and the
continued return/rise of PEs Will Fisher Christian Jennings Kate Lyndon Jamie O’Sullivan Guillaume de
EY Global Media Group Finance Financial Controller, Chief Operating Pommereau
• Closing the deal: strong deal & Entertainment Director, ZPG Broadcast and and Chief Financial Chief Financial
narratives and advanced Transaction Advisory Online, ITV plc Officer, Reed Officer, Hitachi
integration analysis Services Leader Business Information Europe Ltd.
• Active portfolio management
EY TMT CFO Forum Panel Accelerating growth through acquisitions • TMT is a hot sector and M&A is on the up • This has increased valuations • Deal discipline is needed to control what you pay and make sure you get the value after the deal • With “creative” companies, talent lock-in is key • With so many potential targets/technologies it is vital to have a clear acquisition strategy — keep to it and communicate it • Integration of the acquisition — don’t just go for the “quick win,” look at how integration can give you more • But be careful on incentives — if these pay out on the ongoing performance of the acquired company, this may create resistance to integration
EY TMT CFO Forum Hot topics Participants were given the opportunity to visit two “hot topic” presentations of their choice. Digitally integrated customer experience Martyn Whistler & Philip Goad, EY Improving customer experience is the number one strategic priority for TMT leaders, but rising expectations, rapidly changing technologies and market disruption make it difficult to achieve. Our approach enables TMT companies to meet this challenge head on by rethinking, redesigning and then delivering new levels of customer experience. We call it a digitally integrated customer experience (DICE). DICE takes TMT companies from “doing digital” to “being digital,” enabling you to deliver continuous, compelling experiences for customers. Decoding the digital home How can you adapt to your customers’ changing digital needs? Adrian Baschnonga, EY The EY UK&I TMT sector team recently commissioned a research piece of 2,500 UK households into their purchase habits, perceptions and attitudes towards tech, media and telecoms products and services within the home. Building upon our Bundle Jungle research studies from previous years, this has enabled a year-on-year comparison of the changing state of the digital home. During this session, Adrian Baschnonga, Lead Analyst, Global Telecommunications at EY, provided a deep-dive into some of the most significant findings and the implications for TMT companies. Blockchain — Advanced Tech Group (ATG) Stuart Barrass, EY EY Advanced Technology Group works with clients to help solve their biggest problems by utilizing the latest emerging technologies including blockchain, AR, AI and the cloud. At the TMT CFO Forum, the ATG covered blockchain and how it relates to the finance function with a look at payments and information across the supply chain.
EY TMT CFO Forum US tax reform The session, presented by EY’s Ian Beer, Craig Hillier and Marc Middleton, explored the broader consequences and implications of US tax reform in the sector, focusing on the impact on business trends, markets and competitors.
EY TMT CFO Forum
Panel
Accelerating growth through digital platforms
Facilitator
EY’s Michael Von der Geest facilitated a
panel discussion exploring the following
themes:
• How you decide when and how to deploy
capital into digital platforms
• How CFO’s support the creation of digital
Michael Von der Carl Barnes Stephanie Mills Chris Lowe
ecosystems of suppliers Geest Chief Financial Group Financial Founder of
Partner, EY UK&I Officer, Knowledge & Controller, Channel 4 NOTWICS, E.I.R @
• How do you change governance and Technology, Media & Networking Division, Boxarr
accountability frameworks to suit the Entertainment and Informa
world of digital and agile? Telecommunications,
Ernst & Young LLP
EY TMT CFO Forum Panel Accelerating growth through digital platforms • The trend is moving away from the monolithic providers, toward a model where services are provided through modular digital platforms • More flexible, easier to get to market • Better customer experience • No built-in obsolescence; easier to review and change • Supports PaaS-type delivery model, constant revenue stream, constant improvement • Started as B2C, but now very much B2B • Requires/benefits from latest tech and this means looking beyond in-house solutions — whether acquiring “widgets” by M&A or building an ecosystem of suppliers • Businesses are often biased toward spending money on content/product development not platforms — that needs to change • Keep talking throughout the development phase to reinforce what you are trying to do, make sure your KPI outcomes are being met and don’t let the process overtake the outcome
EY TMT CFO Forum
Panel
Accelerating growth through new channels and partners
Facilitator
EY’s Pippa Dussuyer facilitated a panel
discussion exploring the following themes:
• The importance of partnerships in driving
growth
• The evolving role of partners (content,
resellers, alliances) in platform business
Pippa Dussuyer Clare Barclay Andrew Hodgson Noel Hurley
models Director, EY UK&I Chief Operating Regional Head of Vice President of
Technology, Media & Officer, Microsoft UK Finance — Northern Strategy for the IP
• The convergence of customer, partner and Entertainment and Europe, Uber Products Group,
competitor relationships Telecommunications, Arm Holdings
Ernst & Young LLP
• The role of finance in establishing winning
commercial arrangements with partnersEY TMT CFO Forum Panel Accelerating growth through new channels and partners • A great example is Uber, which already has a very high level of penetration in London, and is looking at offering access to third-party partners via their platform (e.g., public transport) as a more viable route to growth • Partners can also be customers, especially B2B2C; this has always been a part of selling — working with your customers to produce something that is attractive to their customers • An example is Arm making chips for mobile phone makers, either to their specification or giving them the license to design their own • A partnership, in terms of creating an ecosystem, is a good way to respond to disruption, finding new ways to do things • Partnerships can be good for company culture • Challenges include: governance, conflicts of interest and ensuring partnerships are tied to strategic goals
EY TMT CFO Forum Closing speaker EY’s Rahul Gautam and Jacqueline de Rojas, President, techUK, closed the event with a fireside chat. Topics of conversation included automation, data, AI, pace and speed, and integration of technology and skills.
EY TMT CFO Forum Closing speaker • The best CFOs hire with the future in mind. Hire future talent, and focus on freak time data and leading indicators versus trailing indicators. • We are simply creating more jobs than we can fill and the competition for talent is fierce. Employers will have to do more to boost their internal pipeline of talent and retention strategies are critical for competitive advantage. • Data is the new currency. Importantly data privacy is both a company issue and also our personal responsibility. We must be more aware of the balance between tailored customer experience and how much personal data we choose to share. • AI and machine robotics are here. By 2020 Gartner predicts that more than 80% of consumer interactions will be with a machine. Of course we want AI to do the heavy-lifting but we must program it ethically to reflect the society it serves. • The cavalry is not coming and the government will not solve all problems around education, inequality and gender. So ask yourself what you can personally do to make a difference? Jacqueline is working with @girlguiding to inspire 400,000 young girls to be interested in science, technology, engineering and mathematics (STEM). • Diversity is key. The future of hiring tech must embrace inclusion and diversity in all its forms. • The role of the CFO? A good CFO can connect with their customers through great storytelling. A spreadsheet is a lazy way to transmit a story. #StorytellingMatters.
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content of the forum, please About EY
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EY UK TMT Market Segment © 2018 EYGM Limited.
All Rights Reserved.
Leader and TMT Advisory EYG no. 01884-184GBL
Lead ED None
rgautam@uk.ey.com
This material has been prepared for general informational purposes
Twitter: @RahulGautamEY only and is not intended to be relied upon as accounting, tax or other
professional advice. Please refer to your advisors for specific advice.
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