Digital transformation, disruptive technology and sector convergence is now abundant in business and everyday life. But as technology continues to develop at pace, how do organizations move from data to insight, and from insight to value? Join KPMG’s workshop at Celosphere 2019 for our perspective, experience, and opinion, shared through the lenses of: § Future of finance – how can finance lead the charge on innovation and value generation? § Supply chain for a digital world – a digital roadmap that starts with performance before technology. § Risk and internal control – AI can be the key to competitive advantage, but what can go wrong and how do risk and internal control need to adjust to cope? Presenters: Mark Wallington, Analytics Director, KPMG Jorge Castano, Finance Transformation Director, KPMG

1. 1© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 1© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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2. Digitaltransformation
PoweredbyProcessmining
Mark Wallington
KPMG in the UK
April 2019

3. 3© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
DigitalTransformation-Opportunityornecessity?
Source: https://home.kpmg/xx/en/home/insights/2018/06/top-of-mind-2018-digital-transformation.html
Global Consumer Executive Top of Mind Survey - June 2018
of high-growth companies
have a culture that fosters
innovation77%
of digital laggards say that
digital transformation is
held back by ROI
uncertainty
60%
of high-growth companies say
industry disruption gives
them a competitive edge68%
of all companies are
rethinking their current
business models58%

4. 4© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
DefiningdigitalleadersFor the Top of Mind Survey, companies that say they are at a maturing or advanced stage of digital transformation across the
majority of 12 dimensions are defined as digital leaders:
Customer
centricity
Product
innovation
Demand-driven
supply chain
Business model
transformation
An innovation
culture
Process
management
Digital strategy Talent and
expertise
End-to-end
integration
Use of smart
technology
Advanced data
analytics
Digital-enabled
physical stores

5. 5© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Helping unlock the future
of your business
Disruptionor
reinvention
Analytics
Emerging
technologies Intelligent
Automation
Turning data
into insights
into value
Artificial
Intelligence
Data

6. 6© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
We understand that algorithms and models have
little or no value unless they are anchored in a
strong understanding of the business context.
into
insights
into
value
Turning
data
A model is only
as successful as
the data that
underpins it.
Real value often only
comes with scalability,
repeatability and
effective deployment.

7. 7© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Establishing a digital roadmap Driving innovation through finance What happens when the robot
goes wrong?
Supplychains
foradigitalworld Futureoffinance AIincontrol

8. 8© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 8© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Supplychainsforadigitalworld
8© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Establishing a digital roadmap

9. 9© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Thekeystogettingstarted
Frictionless
Processes
Performance
Effortless
decisions

10. 10© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
GovernanceandfocusonROI
Only 25% of supply chain
practitioners state their
digital projects are aligned
under a single governance
process

11. 11© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 11© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Yourdigitaljourney
1. Define digital:
Aim to make
processes
frictionless and
decisions effortless
2. Start with
performance:
Focus on intended
results not with
data or technology
3. Focus on ROI
and payback:
smart sequence
your initiatives
4. Develop your
people: nurture
and develop new
capabilities
5. Partner for
success:
build an
ecosystem

12. 12© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
SmartSequencing
Those truly breakthrough
digital innovations,
created to deliberately
differentiate you from
your competitors.
Breakthrough
Those that stabilize the
core processes and
decisions required by the
business (such as
reporting, data
management, visualization
and traditional analytics
capabilities).
Stabilize
Those best-of-breed
digital technologies with
a track record of
improving the
performance of key
processes (such
as process mining or
intelligent automation).
Improve
Blended digital portfolio, running in parallel

13. 13© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Wherecanprocessminingmakethebiggestdifference?
Source: https://home.kpmg/content/dam/kpmg/uk/pdf/2019/03/supply-chains-for-a-digital-world.PDF
Process management and perfomance
management are already well understood,
but decision management is not.
Yet this is where the true potential of digital
technology lies.
Peter Liddell, Partner, Operations Advisory, KPMG Australia
78% of CIOs believe their
digital strategy is only
moderately effective, or
worse.
Harvey Nash, KPMG CIO Survey

14. 14© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 14© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
FutureofFinanceDriving innovation through finance
14© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

15. 15© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
START
NAVIGATOR

16. 16© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost of
finance %
of revenue
EFFICIENCYLow High
EFFECTIVENESSLowHigh
1.28
QUARTILE 2
0.86
QUARTILE 1
0.6
NEXT
GENERATION
1.68
QUARTILE 3
Intelligent Automation

17. 17© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost of
finance %
of revenue
EFFICIENCYLow High
EFFECTIVENESSLowHigh
1.28
QUARTILE 2
0.86
QUARTILE 1
0.6
NEXT
GENERATION
1.68
QUARTILE 3
Intelligent Automation
Analytics CoE
Process
standardisation
RPA
Offshoring
Guardian and
Co-Pilot

18. 18© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost of
finance %
of revenue
EFFICIENCYLow High
EFFECTIVENESSLowHigh
1.28
QUARTILE 2
0.86
QUARTILE 1
0.6
NEXT
GENERATION
1.68
QUARTILE 3
Intelligent Automation
Robotics Control
Room
Lean Operating
Model
Cloud
Solutions
Dynamic
Revenue
Management
Agile Capital
Allocation
Integrated Business
Planning
Pyramid to
Diamond

19. 19© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost of
finance %
of revenue
EFFICIENCYLow High
EFFECTIVENESSLowHigh
1.28
QUARTILE 2
0.86
QUARTILE 1
0.6
NEXT
GENERATION
1.68
QUARTILE 3
Intelligent Automation
Innovate to
invest
End to end
Process
Enterprise
Machine Learning /
Cognitive AI
Data-driven
Predictive
analytics
Blockchain

20. 20© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost of
finance %
of revenue
EFFICIENCYLow High
EFFECTIVENESSLowHigh
1.28
QUARTILE 2
0.86
QUARTILE 1
0.6
NEXT
GENERATION
1.68
QUARTILE 3
Intelligent Automation
Prescriptive
analytics
CFO to Chief
Performance
Officer
Digitally enabled
finance function
Complete
automation

21. 21© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost of
finance %
of revenue
EFFICIENCYLow High
EFFECTIVENESSLowHigh
1.28
QUARTILE 2
0.86
QUARTILE 1
0.6
NEXT
GENERATION
1.68
QUARTILE 3
Intelligent Automation
Innovate to
invest
End to end
Process
Enterprise
Machine Learning /
Cognitive AI
Data-driven
Predictive
analytics
Blockchain
Robotics Control
Room
Lean Operating
Model
Cloud
Solutions
Dynamic
Revenue
Management
Agile Capital
Allocation
Integrated Business
Planning
Pyramid to
Diamond
Analytics CoE
Process
standardisation
RPA
Offshoring
Guardian and
Co-Pilot
+ circa
$100m
savings
+ circa
$150m
savings
+ circa
$100m
savings
Prescriptive
analytics
CFO to Chief
Performance
Officer
Digitally enabled
finance function
Complete
automation
We need freedom to shape our future;
We need profit to remain free

22. 22© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 22© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
AIincontrolWhat happens when the robot goes wrong?
22© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

23. 23© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
TheAIopportunityishuge
of companies believe AI is key
to competitive advantage. - IDC
94%
23KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

24. 24© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Source:https://www.technologyreview.com/s/604087/the-dark-secret-at-the-heart-of-ai/Source: https://www.theverge.com/2016/3/24/11297050/tay-microsoft-chatbot-
racist
Butwhatcangowrong?Source:https://www.bbc.co.uk/news/technology-
45809919
Source:https://www.technologyreview.com/s/612775/algorithms-criminal-justice-ai/
Source: https://news.sky.com/story/thousands-face-incorrect-
benefit-cuts-from-automated-fraud-detector-11651031

25. 25© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
http://moralmachine.mit.edu/
Andwhataboutethics?

26. 26© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
AIadoptionisaccelerating ...
butthereareauniquesetofchallenges
of companies believe
AI is key to competitive
advantage.
- IDC
94%
see regulatory
constraints as a barrier
to implementing AI.
- IBM IBV AI 2018
60%
only have a high level of trust
in their own organization's
analytics.
- KPMG's recent Guardians of Trust report
35%
question trustworthiness of
data, analytics …are worried
about the impact on reputation.
- KPMG's recent Guardians of Trust report
92%

27. 27© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
ImportanceofAIInControl
- KPMG client survey across 170 technology risk professionals
Based on a KPMG survey in November 2018 about ‘what could go wrong’, the key risks can be summarised in four categories:
1. AI getting it wrong 2. AI getting out of control
3. Not being able to explain
that the AI got it right
4. Inadequate governance to
prevent any of the points above

28. 28© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Establishing a digital roadmap Driving innovation through finance What happens when the robot
goes wrong?
Supplychains
foradigitalworld Futureoffinance AIincontrol

29. 29© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 29© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Whathasourexperiencetaughtus?
29© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

30. 30© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

It is hard.
But it is worth it.
It changes
relationships.
30firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

31. 31© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
It takes brainpower.
A lot. And this can not
be delegated.
© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independen

32. 32© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 32© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Look ahead, and
ask for what
you really want.
If you don’t, you
will get what
you don’t want.

33. 33© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

It works if it is
performance driven
and business led.
One team works
together, but the
business points the way.
33firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

34. 34© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
It takes time.
And it can not
guarantee immediate
efficiencies.
© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independen

35. 35© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
No data = no data analytics.
Work with technology
partners to accelerate.
35firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

36. 36© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 36© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Letdatadescribeyourprocess
We are happy to welcome you at our booth
36© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

37. © 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.