CFO focus
Another good example of the way Kone uses data can be seen in its worldwide army of 200,000 lifts and escalators. Thanks to the wizardry of automated data collection, each of these machines beams back operational and maintenance information in real time. The finance team, for its part, can use this data in its forecasting. “We now understand how the elevators are working, how much they’re being used and what type of use they’re having,” Hara says. “That actually correlates well with our expected revenue generation and business costs linked to it. Most importantly, we see how much value the customer receives from having good people flow in their business.” That information, in turn, can then be used to educate investors – and explain to customers when their devices are likely to need servicing.
Going to the people
The benefits of digitisation, automation and data gathering are therefore clear. But digital transformation can’t be done alone – or even simply within the hallowed halls of the finance department. Hara, for his part, is clear here, stressing that this new world requires fundamentally revamped relationships with every aspect of Kone’s business.
“As a finance team,” he says, “we’re changing both in how we partner with our business colleagues, but more importantly in how we can
continue to drive efficiencies, speed and automation to be able to direct more of our time to those business partnerships.” This, he warns, is crucial – not least given digitisation could risk making those partnerships becoming less important. Rather, if Hara says that digitisation is important, personal competences are at least equally vital.
There are broader challenges too. With all this information, it’s tempting for the ambitious CFO to just digitise for the sake of it. But, as Hara stresses, focusing on outcomes is the key – as is remembering that digitisation is an ongoing process. “The more you do, the more opportunities you can actually find to do better,” he says. “Honestly, I think even though results are actually quite good at Kone, there’s still a lot of opportunity to be better.”
Get things right, indeed, and the possibilities are endless. From making processes more efficient to unearthing new investment opportunities, Hara believes that enterprise-wide data transformation has revolutionary potential. As he puts it: “Really focusing on where the value is and looking at the opportunities in an end-to-end manner is the best way to really progress.”
All the same, if data is fast becoming the vehicle that drives business forward, there still needs to be a person – or people – behind the wheel. It’s a point Hara is again keen to emphasise. In his words: “Having an impact is about connecting with people, building capable, diverse teams that can contribute value.” While data and automation can free up time, Hara adds, that time should be used to interact with others around you, from your colleagues to customers in the field. As good as data is at changing a business, in short, humans still need to work together to have a real, meaningful impact – clear enough, as Kone’s fortunes rise even as its lifts carry millions. ●
Finance Director Europe /
www.financedirectoreurope.com
Above: Kone’s thousands of technicians install and maintain its elevators, all while transmitting data back to its Helsinki headquarters.
Below left: Kone’s Finnish headquarters in the capital of Helsinki.
50% UN
The percentage of people currently living in urbanised areas around the world, set to rise to 70% by 2050.
>60%
The percentage of land projected to become urban by the end of this decade – and which is yet to be developed.
UN 15
KONE
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