With technology innovation continuing at a dizzying pace, is your organization investing its technology budget wisely? Are you concerned you might be buying yesterday's technology with little or no hope for return on investment? How do you determine what technologies will have the most beneficial impact for your organization? This session provides perspective on how to develop a technology strategy that looks at how the latest technologies can be utilized to streamline processing and improve control—and have positive impact on the organization. Ensure your organization is properly poised to fully leverage technology in the years ahead by attending this session.

1. Technology Strategy
for Impact
North Carolina Association of CPAs
Emerging Leaders Conference
October 23, 2013
Donny C. Shimamoto, CPA, CITP, CGMA

2. Speaker Biography
Donny C. Shimamoto, CPA.CITP, CGMA


Donny Shimamoto, CPA.CITP, CGMA, is the founder and managing director of
IntrapriseTechKnowlogies LLC, a CPA consultancy focused on organizational
development and advisory services for the middle market and nonprofits.
Donny is a recognized national expert in IT management and international
author/speaker on business intelligence initiatives. Donny helps many
nonprofits by bridging accounting and IT to strengthen organizational
governance and risk management, improve business processes through
technology, and increase the effectiveness of decision through business
intelligence and evidence-based management.
Donny is a member of the AICPA Governing Council and is the chairman of its
Information Management & Technology Assurance Executive Committee.
Donny was recognized as one of 2013’s Top 100 Most Influential People in
Accounting by Accounting Today, Top Thought Leaders in Public Accounting
by CPA Practice Advisor in 2012 and 2013, received the 2009-2010
President’s Award from the Hawaii Society of CPAs, was named to CPA
Technology Advisor’s 40 Under 40 list in 2007 & 2009, and was also a Hawaii
Top High Tech Leader in 2004.

3. Audience Polls – Demographics

Organization Type/Size
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–
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–

Small Org
Medium Org
Large Org
CPA Firm

Role in Organization
–
–
–
–
Lead Executive
Executive Leadership
Dept Director/Manager
Dept Staff
Part of Organization
–
–
–
–
–
Accounting/Finance
IT
Programs
Audit
Consulting
Choose one from each set of
options that best matches how
you view your organization
and your role at work.
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

4. Technology Strategy for Impact

Technology and the Role of Accountant

Technology in Perspective
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–

Top Technology Initiatives Survey Results
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–

4
Developing the IT Strategy
Developing Your IT Plan
Top 10 Technology Initiatives
Analysis of Confidence Levels
Segment Comparison and Analysis
Finalizing Your IT Plan & IT Strategy
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

5. Technology and the
Role of the Accountant
•
•
•
5
Spectrum of Accountants’ Roles
Accounting Organization Evolution
Accountants’ Role in Achieving Impact

6. Spectrum of Accountants’ Role
Source: CIMA
6

7. [Accounting] Organization Evolution
Source: McKinsey & Company
Expectations have increased for
[Accounting] organizations
• Focused on process
and risk minimization
• Focused on decision
support
• Provides sound
financial analysis to
management for
making financial and
operating decisions
• Integral part of management
team to support value/wealth
creation
• Identifies opportunities and
provides critical information
and analysis to make superior
operating and strategic
decisions
• Dominated by
reporting and
compliance
functions
Stage
Role
Key Capabilities
Challenge
Transaction
1 Management
Bean Counters
• Financial
accounting
Number of
transactions
2 Controlling the
Business
3 Planning &
Analysis
Integrated Functional
4 Excellence
Process Managers
Business Partners
Value Managers
• Management reporting
• Tax
• Audit
• Treasury
• Performance
management
• Analysis
• Superior decision support to
invest wisely
• Business Development
• Enterprise risk management
Consistent process
excellence
Talent and insight
into valuable drivers
Leadership and
performance
management

8. Accountants’ Roles in Achieving Impact
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.


8
Accountants often stop at the Analysis stage
(which is where technology will also take you).
We need to go all the way through to IMPACT!

9. Technology
in Perspective
•
•
•
9
Alignment between the mission, business
strategy and the IT strategy is critical.
Analyze the ecosystem, drivers, and
business strategy—the combination of all
of these drive the IT strategy.
Use the IT strategy to drive the IT plan
and associated initiatives
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

10. Developing the IT Strategy
Business
Drivers
Economic
Uncertainty
Customer
Price
Pressure
Increased
Oversight
Technology
Drivers
Cloud
Computing
Mobile
Big Data
IT Strategy
•
•
•
•
Evolution of Service Offerings
Workflow & Process Efficiencies
Staff Enablement & Work-Life Fitness
Local to Global Opportunities
Mission
Enhancement
Strategies
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

11. Developing the IT Strategy
Impact of the IT Strategy
to Firm’s Major Service Lines
Audit
• Efficiencies
• Effectiveness
• Innovation
Tax
• Efficiencies
• Collaboration
• Innovation
Client
Accounting
• Efficiencies
• Transformation
• Revenue Growth
Key Outcomes:
• Automated & efficient processes  Improved execution/profitability
• Improved work processes  Increased employee satisfaction
• Better workflow and project management  Reduced risk
• Higher quality of service  Increased client satisfaction / impact
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

12. Developing the IT Strategy
Impact of the IT Strategy
to your Business’ Divisions
Back Office
• Efficiencies
• Effectiveness
• Innovation
Lines of
Business
• Efficiencies
• Collaboration
• Transformation
Sales &
Marketing
• Efficiencies
• Revenue Growth
• New Markets
Key Outcomes:
• Automated & efficient processes  Improved execution/profitability
• Improved work processes  Increased employee satisfaction
• Better workflow and project management  Reduced risk
• Higher quality product/service  Increased customer satisfaction
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

13. Developing the IT Strategy
Impact of the IT Strategy
to your Nonprofit’s Mission
Back Office
• Efficiencies
• Effectiveness
• Innovation
Programs
Fundraising
• Efficiencies
• Collaboration
• Transformation
• Efficiencies
• Revenue Growth
• Innovation
Key Outcomes:
• Automated & efficient processes  Improved execution/”profitability”
• Improved work processes  Increased employee satisfaction
• Better workflow and program management  Reduced risk
• Higher quality of service  Increased constituent satisfaction / impact
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

14. Developing the IT Strategy


Once you know your IT Strategy then you
can determine your IT Plan (tactical)
Identify technology initiatives that will
provide the expected outcomes
–
–
Identify the initiative and expected impact first
Then determine the technology


–
14
Sometimes selection of the technology will be
determined by the current infrastructure
Sometimes you purposely want to consider a new
infrastructure, especially the cloud
Once you have all your initiatives, budget and
prioritize them
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

15. AICPA Top Technology
Initiatives Survey Results
Highlights of the AICPA’s 2013 Top
Technology Initiatives Survey results
• Survey Methodology & Changes
• Respondent Profile
• Top 10 Technology Initiatives
15

16. Survey Methodology & Changes

Developed by the AICPA’s Information Management &
Technology Assurance Division
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–

Continued new survey methodology from 2012
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–

CPAs with an interest in Information Technology
Certified Information Technology Professionals (CITPs)
Continued focus on top priorities and increased focus on
understanding sub-elements driving priorities
Exploration of respondents’ confidence in ability to fulfill
priorities
Surveyed AICPA and CPA Canada members with
interest in Information Technology
–
*NEW* Corroboration with CPA Canada for 2013

17. U.S. Respondent Profile
U.S. Industry Profile
Public
Accounting Consulting & Nonprofit
6%
Law
6%
Firm Support
12%
U.S. Job Responsibility
Other
5%
Audit
Government
Committee
& Military
0%
6%
public
Education
Service Line
12%
Staff
8%
Accounting -
5%
Other
Manager
24%
20%
Business &
Industry
36%
Director/ VP
Executive/
Partner
38%
22%

18. Top 10 Technology Initiatives
U.S. Priorities
1
Managing and retaining data
2
Securing the IT environment
3
Managing IT risks and compliance
4
Ensuring privacy
5
Managing system implementation
6
Preventing and responding to computer fraud
7
Enabling decision support and analytics
8
Governing and managing IT investment and spending
9
Leveraging emerging technologies
10
Managing vendors and service providers

19. Confidence Level of the Top Initiatives
U.S. Confidence Levels
Confidence
Survey
Rank
Managing and retaining data
55%
1
Securing the IT environment
51%
2
Managing vendors and service providers
47%
10
Managing IT risks and compliance
47%
3
Ensuring privacy
45%
4
Managing system implementation
44%
5
Preventing and responding to computer fraud
44%
6
Governing and managing IT investment and spending
38%
8
Enabling decision support and analytics
37%
7
Leveraging emerging technologies
27%
9
Goal (Initiative)

20. Comparison of 2012-2013 Results (US)
2013
Ranking
2012
Ranking
Managing and retaining data
1
2
Securing the IT environment
2
1
Managing IT risks and compliance
3
3
Ensuring privacy
4
4
Managing system implementations
5
6
Preventing and responding to computer fraud
6
9
Enabling decision support and analytics
7
7
Governing and managing IT investment and spending
8
8
Leveraging emerging technologies
9
5
10
10
Initiative
Managing vendors and service providers

21. 2013 U.S. General Assessment

#1 Priority: Managing and Retaining Data
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

CPAs ranked Data Management as the top priority,
unseating Information Security for the first time in years
There is a strong correlation between a CPA’s top
priority and high confidence of the initiative
Exception: Managing vendors and service providers


CPAs ranked managing vendors and service providers as one
of the lower priorities this year, but was more confident that
it was being done appropriately
May be contributed to the addition of the SSAE 16 reporting
standards and SOC1, SOC2, and SOC3 reports

22. 2013 Top Initiatives by Segment (U.S.)
Public Accounting
Business, Industry, and Gov’t
1
Managing and Retaining Data
1
Securing the IT Environment
2
Securing the IT environment
2
Managing and Retaining Data
3
Ensuring Privacy
3
4
5
6
7
8
9
10
Managing IT Risks and
Compliance
Preventing and Responding to
Computer Fraud
Managing System
Implementations
Leveraging Emerging
Technologies
Managing Vendors and Service
Providers
Governing and Managing IT
Investment and Spending
Enabling Decision Support and
Analysis
4
5
6
7
8
9
10
Managing IT Risks and
Compliance
Managing System
Implementations
Enabling Decision Support and
Analysis
Governing and Managing IT
Investment and Spending
Leveraging Emerging
Technologies
Ensuring Privacy
Preventing and Responding to
Computer Fraud
Managing Vendors and Service
Providers

23. 2013 Confidence by Segments (U.S.)
Public Accounting
Business, Industry, and Gov’t
43%
Managing and Retaining Data
70%
Securing the IT Environment
34%
Managing Vendors and Service
Providers
70%
Managing and Retaining Data
65%
Managing IT Risks and
Compliance
64%
Ensuring Privacy
31%
Securing the IT environment
30%
Managing IT Risks and
Compliance
Managing System
Implementations
27%
Ensuring Privacy
31%
27%
26%
23%
18%
Preventing and Responding to
Computer Fraud
Governing and Managing IT
Investment and Spending
Enabling Decision Support and
Analysis
Leveraging Emerging
Technologies
62%
61%
57%
53%
51%
37%
Preventing and Responding to
Computer Fraud
Managing Vendors and Service
Providers
Managing System
Implementations
Enabling Decision Support and
Analysis
Governing and Managing IT
Investment and Spending
Leveraging Emerging
Technologies

24. 2013 AICPA Top 10 Technology Initiatives
for Public Accounting (PA)
Top Technology Initiatives
2013
Confidence
2012
Confidence
Change in
Confidence
1
Managing and Retaining Data
43%
66%
-23%
2
Securing the IT environment
31%
67%
-36%
3
Ensuring Privacy
27%
60%
-33%
31%
56%
-25%
27%
39%
-12%
30%
35%
-5%
18%
46%
-28%
34%
47%
-13%
26%
36%
-10%
23%
31%
-8%
Managing IT Risks and
Compliance
Preventing and Responding to
5
Computer Fraud
Managing System
6
Implementations
Leveraging Emerging
7
Technologies
Managing Vendors and Service
8
Providers
Governing and Managing IT
9
Investment and Spending
Enabling Decision Support and
10
Analysis
4

25. 2013 AICPA Top 10 Technology Priorities
for Business & Industry (B&I)
Top Technology Initiatives
2013
Confidence
2012
Confidence
Change in
Confidence
1
Securing the IT Environment
70%
64%
+6%
2
Managing and Retaining Data
70%
55%
+15%
Managing IT Risks and
Compliance
Managing System
Implementations
Enabling Decision Support and
Analytics
Governing and Managing IT
Investment/Spending
Leveraging Emerging
Technologies
65%
59%
+6%
57%
50%
+7%
53%
50%
+3%
51%
45%
+6%
37%
48%
-11%
Ensuring Privacy
64%
31%
+33%
62%
30%
+32%
61%
35%
+26%
3
4
5
6
7
8
Preventing & Responding to
Computer Fraud
Managing Vendors & Service
10
Providers
9

26. Summary Analysis of Top Tech Initiatives


Strong correlation between top priorities and high
confidence of the initiative
Exception: Leveraging Emerging Technologies
–

#1 Top Priority: Managing & Retaining Data
–

CPAs expressed considerably low confidence in the
ability to leverage emerging technologies, such as
mobile devices, cloud computing, and big data
Data Management is increasingly a concern for CPAs
CPAs in Public Accounting are losing confidence
in their ability to address technology priorities
while CPAs in Business & Industry are gaining
confidence

27. What to do with the Top Tech Initiatives

Validate your organization’s list and
prioritization of technology initiatives
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–
–
–

27
Have you considered all of the initiatives on the
top 10 list?
How do your priorities compare to those of the
others in your segment?
Why might others have a higher or lower
prioritization of an initiative than you?
Should you reevaluate anything on your list?
Remember that the survey results is just
another data point to help with evaluation
of your initiatives list

28. Finalizing Your
IT Plan & IT Strategy
After identifying and validating your
initiatives (i.e. developing your IT Plan):
• Revisit Alignment with the IT Strategy and
Business Strategy
• Ask: Is Your IT Strategy Achieving Impact?
28

29. Revisit Alignment w/ Business Strategy
Does the IT Plan still align with the IT Strategy (and
desired outcomes) and the overall Business Strategy?
Back Office
• Efficiencies
• Effectiveness
• Innovation
Lines of
Business
• Efficiencies
• Collaboration
• Transformation
Sales &
Marketing
• Efficiencies
• Revenue Growth
• New Markets
Key Outcomes:
• Automated & efficient processes  Improved execution/profitability
• Improved work processes  Increased employee satisfaction
• Better workflow and project management  Reduced risk
• Higher quality product/service  Increased customer satisfaction
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

30. Is Your IT Strategy Achieving Impact?
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.


30
Technology will take you to Analysis.
Are you ensuring that your initiatives go all the
way through to IMPACT?

31. Thank you for your
attention and participation!
Any Questions?
Donny C. Shimamoto, CPA, CITP, CGMA
Email = donny808@cpa.com
Voice = (808) 735-8324
Twitter = @donnyitk