The 21st century CFO is no longer involved in pure financial strategy and, in many companies, they can be found contributing heavily towards strategic leadership. How important is technology and social media within the CFO role? Can social media applications add value to a CFO’s direction? Brian Armstrong will share, from experience, how these two areas can add or detract from a CFO’s everyday routine. http://www.charteredaccountants.com.au

1. W16 Technology and social media in a CFOs world
Brian Armstrong
Finance Director
Microsoft Australia

3. Agenda
> Technology
– What we hear from Customers
– Technology Trends
> Social Media: Are you social media savvy?
> Online Industry Dynamics
> Social Media from a CFO Perspective
– The good
– The bad
– And the ugly
> What does it all mean to the bottom line?
> Wrap / Q&A.

4. What We Hear from Our
Customers

5. Technology Trends
> Virtualisation
> Unified communications and virtual collaboration
> Optimised, standardised infrastructure
> Energy efficiency
> The Cloud: Software + Services.

7. Are you Social Media Savvy?
Do you (or does your organization):
– E-mail newsletter broadcasts?
– Post or blog?
– Solicit customer review or feedback?
– Have a Facebook or Linked In page?
– Produce podcasts, videos or webinars?
– Tweet or re-tweet?

8. So, why am I here?
> Do I Blog?
> Do I Tweet?
> As a MSFTee?
> As a CFO?

10. Online Service Division (OSD)
Investment Thesis
WHY INVEST?
The online services industry offers a combination of financial
benefits and strategic value to other Microsoft businesses
FINANCIAL
OSD INVESTMENT THESIS
STRATEGIC

11. Online Industry Dynamics
Source: Internal estimates
TIME SPENT ONLINE IS ONLINE AD SPEND: LONG
SHIFTING TERM TREND
8 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08
SHARE OF MINUTES $7.1 $6.0 $7.3 $9.6 $12.5 $16.9 $21.2 $23.4
Apr07 Apr09 6
$ in Billions
SNS 2% 9% 4
Search 2% 2% 2
Portals 33% 26%
Comms 23% 21%
1Q01
1Q02
1Q03
1Q04
1Q05
1Q06
1Q07
1Q08
1Q09
Source: ComScore Source: IAB, PriceWaterhouseCoopers
ONLINE PROFIT IS IN SEARCH NEW WAYS TO USE THE WEB
FY12 Online Services: $70B+ Total Rev. ARE CONSTANTLY EMERGING
Search Info Comms
Content
Ad Platform
Revenue Profitability

12. Social Media – the good:
new growth, lower costs
> Marketing is going digital, but it takes people, technology
& time
> It will result in cost savings, business intelligence and
market research
> It will generate more revenue.
The bottom line: Social Media drives growth with effectiveness and efficiency.

13. Social Media – the bad:
what return?
Return on…
> Engagement?
> Participation?
> Attention?
> Trust?
> Competitive Intel?
The bottom line: we need to see measurable results from social media.

14. The dark side of social media

15. Social Media – the ugly:
impact and control
> Employee productivity?
> Negative ROI?
> Nothing in social media protects you from being publicly
stupid
> Your brand and reputation
> Analysis paralysis – vendor reporting.
The bottom line: marketing decisions around social media are based on gut-level
instincts.

16. What is a CFO to do?
> Step 1: Establish a baseline
> Step 2: Establish an activity timeline
> Step 3: Review sales revenue
– # Transactions (Frequency)
– Net New Customers (Reach)
– $ per transaction (Yield)
> Step 4: Map activities to sales
> Step 5: Look for patterns and prove relationships.
The bottom line: keep it simple, educate marketing on how to measure ROI.

17. In short...
> Technology trends and social media drive increased
efficiency and effectiveness
> With Social Media, the CFO should:
– Expect cost savings and increased revenue
– Understand and question short-term vs. long term activities
– Facilitate making tradeoffs (zero based)
– Bring business insight to marketing
– Mitigate risk.

18. Thankyou

19. Disclaimer:
This paper represents the opinion of the author(s) and not necessarily those of the Institute of Chartered Accountants in Australia
(the Institute) or its members.
The contents are for general information only. They are not intended as professional advice - for that you should consult a Chartered
Accountant or other suitably qualified professional.
The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers.