170 likes | 294 Vues
In this insightful discussion, Richard Paik, Financial Controller at Microsoft New Zealand, shares his perspective on the current economic landscape and the critical role of technology investments in enhancing productivity and profitability. He evaluates cost optimization strategies while comparing present conditions to historical economic downturns, such as the Great Depression. Paik emphasizes adopting a long-term approach to innovation and cash management in the "New Normal," highlighting how businesses can streamline operations and capture market share amidst challenges.
E N D
The CFO Perspective Richard Paik Financial Controller Microsoft New Zealand
Part 1 - The Microsoft CFO View Where is the economy going The role of technology investments Optimising costs, productivity, profitability
Comparison to Previous Bears 0% -10% -20% -30% Tech Crash -40% -50% Current Bear -60% Crash of 1929 -70% -80% -90% 1 33 Months after crash
Realities of the “New Normal” HISTORIC GROWTH RATE “NEW NORMAL” RESET Economicgrowth 1 2 3 Adjusted Growth Rate time
New Normal and Our Industry GDP Growth Innovation Productivity Software
Driving Growth in the New Normal Focus on Cash 5 4 1 2 3 Streamline the Cost Structure Drive Operational Excellence Compete and Grow Market Share Invest in Innovation
Driving Growth in the New Normal Focus on Cash 1 2 5 3 4 Streamline the Cost Structure Drive Operational Excellence Compete and Grow Market Share Invest in Innovation
Driving Growth in the New Normal Focus on Cash 1 2 5 3 4 Streamline the Cost Structure Drive Operational Excellence Compete and Grow Market Share Invest in Innovation
Driving Growth in the New Normal Focus on Cash 1 2 5 3 4 Streamline the Cost Structure Drive Operational Excellence Compete and Grow Market Share Invest in Innovation
Leaders Take Market Share Market Share in a New Normal Leaders Smaller Pie, Higher Share, Bigger Growth
Driving Growth in the New Normal Focus on Cash 1 2 5 3 4 Streamline the Cost Structure Drive Operational Excellence Compete and Grow Market Share Invest in Innovation
Long-Term Approach to Innovation FY10: $9.5B TOTAL FY09 R&D INVESTMENT FY09: $9.1B $6.3B $5.2B $4.9B $2.8B $2.8B $1.1B $.7B $.4B Microsoft Nintendo RIM Apple Google Oracle Sony Cisco IBM SOURCE: 10K & 20K SEC Filings 12/31/08 Except Oracle 5/31/09, RIM, Sony and Nintendo 3/31/09
Why Partner with Microsoft? Microsoft is a Great Partner in the Short Term Microsoft is a Great Partner in the Long Term
Part 2 – The CFO IT Investments within the company Planning Governance Results
My guidelines to IT • Business and IT aligned • Priorities • Direction • Fundamentals • Investment to realise gains across the business • Cost savings on the bottom-line always good • Predictable, budget-able • Deliver the IT Strategy/Vision • Total Picture – financial, costs, cashflow, tax, capabilities • Balance short term & longer term