1. FOR FINANCE PROFESSIONALS
VALUE INNOVATION ….
FOR FINANCE PROFESSIONALS
By RR Prasad ,
CEO, RRP Learning Tree Pvt. Ltd.
blog.rrprasad.com
Ph:

2. What is Value What is Innovation
“…the regard that something is held to deserve; the importance, worth, or usefulness of something”
What is Innovation
“A new method, idea, product, etc.”

3. WHY IS VALUE INNOVATION IMPORTANT FOR FINANCE PROFESSIONALS
Unique position to the front end and the back end of an organization.
With technology taking over routine work compliance and reporting will be passé.
Information is no longer just power, it is source of economic value.
Activities are no longer drivers of costs but are now drivers of profits.
Its time that finance & CMA professionals take an active role in value innovation.

4. In the US a business & economic survey conducted by AICPA amongst the accounting and finance professionals in 2013 say -
36% respondents said finance & accounts make a very modest contribution to innovation
Management and operations are the biggest contributors to innovation in organizations

7. WHAT WE ARE GOING TO SEE
WILL FLY IN THE FACE OF CONVENTIONAL LOGIC

8. CONVENTIONAL LOGIC OR STRATEGY IS ….

9. INDUSTRY/ PROFESSIONAL BOUNDARIES AND CONVENTIONS ARE A GIVEN

10. VALUE COST TRADE OFF

11. BEATING THE COMPETITION….

12. LEVERAGING ASSETS & CAPABILITIES – EG. BRAND EXTENSIONS

13. OR IMITATING…
…AND WE CALL IT BENCHMARKING

14. Costs of these existing strategies…
* Lower margins
* Incremental improvements
* Shrinking markets
* Higher costs
* Tending to lower differentiation
* Costs chasing competition instead of profits

15. WHY None of these is about making money (profits)
None of these about the buyer
WHY

16. Because for the organization Value is about getting more money for your offering than what you spend for producing it (Profits)
For the buyer, it is getting more from the product/ service than what he pays for it

17. VALUE INNOVATION

18. COSTS
DIFFERENTIATION

19. Value Innovators deliver exceptional value to the most important customer in the value chain

20. People EXCEPTIONAL VALUE CAN COME IN MANY FORMS Business Model
Delivery
Packaging
Service
Process
Product
Technology, etc.
People

21. 4 ACTION FRAMEWORK
A TOOL TO CREATE VALUE INNOVATION

22. 4 ACTION FRAMEWORK RAISE NEW VALUE CURVE CREATE REDUCE
WHICH FACTORS SHOULD BE RAISED ABOVE INDUSTRY STANDARDS
ELIMINATE
WHICH FACTORS THAT INDUSTRY LONG COMPETED ON THAT SHOULD BE ELIMINATED
NEW VALUE CURVE
CREATE
WHICH FACTORS SHOULD BE CREATED THAT INDUSTRY NEVER OFFERED
REDUCE
WHICH FACTORS SHOULD BE REDUCED WELL BELOW INDUSTRY STANDARDS

23. ALL FACTORS THAT DOES NOT ADD VALUE TO THE BUYER/TO THE PRODUCT OR SERVICE SHOULD BE EITHER ELIMINATED OR REDUCED
ALL FACTORS THAT DOES ADD VALUE TO THE BUYER/TO THE PRODUCT OR SERVICE SHOULD BE EITHER RAISED OR CREATED

24. VALUE INNOVATION FOR FINANCE & CMA PROFESSIONALS
ELIMINATE CENTRALIZATION OF INFORMATION
REDUCE DEPENDENCE ON PROFESSIONALS FOR COST REDUCTIONS

25. RAISE FINACIAL LITERARCY
CREATE OWNERSHIP

30. How can CMA Professionals embrace Value Innovation

31. 1) Be part of fostering a culture of Innovation
2) Leverage existing technology
3) Be an expert in a subject outside finance and accounting
4) Take time to analyse data and think innovatively
5) Re-examine processes when installing new systems

32. It is time to reorient & add a new dimension to finance
and CMA profession through value innovation
Create ownership by democratizing information