Automation in Finance- before taking the plunge

The year was 2020. The pandemic forced mankind to reimagine workplaces like never before. Lockdowns, social distancing and remote working paved way for new and emerging technologies and unlocked newer ways of working. Organizations across the world poured billions in technology transformation programs. It fueled the tide of automating processes across industries and functions and Finance was not an exception.

And then came Generative AI- it soon became the darling sweetheart of today’s technology modernization. Predictive Modelling and Machine Learning are compelling the finance professionals to leverage these tools to drive their Functions beyond spreadsheets and keynotes.

But are we really there yet? Do all automation programs achieve what they set out for? Well, that’s the question for another day… But for those who have already decided to take the plunge, what are some of the most important considerations to make while driving these programs?

Let’s find out-

(1) Answer the question ‘why’ before worrying about ‘how’- Before embarking on automation journey, it is crucial that we answer the question ‘why’. Are we automating our processes just because everyone expects us to or we see a real value add? Is it one of those ‘feel good’ factors driving us to make a decision or is it really going to help us in the long run, empower teams, save time and resources cutting down mundane tasks, reduce manual dependencies, enhance productivity and expedite delivery?

(2) Current workflows and their status- How its done today? Most of the mid / large organizations already have in place myriad of existing systems and workflows. They are evolved over the period of time to reach their current shape and form. It would be arrogant to assume nothing good came out of building those 'now-legacy' systems. Hence it is necessary to study the existing systems and processes from start to end of the transaction lifecycle and build on the past learnings. It is important to understand where we are now and where we want to be at the end of the automation journey.

(3) Budgets- Man, Money and ____? Conventional wisdom suggests that budgets mean ‘Money’ or ‘Manpower’. One of the critical factors to also consider is ‘Time’. Good things take Time. Major automation programs require significant allocation of time, money and human resources. Is the organization ready to make these commitments? Budget constraints is one the main factors for sizing down the program mid-way leading to half-baked ‘good for nothing’ solutions.

(4) Scope- Map the Roadmap! One of the foremost requirements for a successful automation program is setting the right prioritization of workflows to automate. Major automation programs should be driven in phases. Learnings from each phase enrich the implementation of the next. Blind automation hurts more than it helps. Critical first approach helps with focus and quality rather than clutter and confusion.

(5) Team- Connecting Expertise- Many organizations treat automation programs as an extra credits project. It is necessary to build a strong team with diverse set of expertise and experiences focused only on automation. A vibrant mix of technical and subject matter experts (SMEs) ensures nothing falls through the cracks. This helps in connecting the dots, setting responsibility, expectations and quality standards.

(6) The End Customer- It is important to keep an eye on the ball- i.e. the end user. End user is the ultimate customer. Many times automation decisions are enforced upon end users resulting in poor adoption rates. It is extremely important to involve end users in the automation process right from the planning phase to sign-off.

(7) Choose the right platform- (and choose it wisely)- It is a very noisy world! Every system is better than the one before. Technology salesmen hounding organizations add to the confusion. Security, scalability, adaptability, integration, peer coverage, post-implementation support and compliance can be few of the primary considerations. Clarity of thought would come from being assertive on knowing what serves our interests the most!

(8) External or in-house- One of the crucial decisions to make is whether we outsource the implementation to external technology partner or go with the in-house technical team. While each has its own pros and cons, the choice ultimately depends on various factors- size and scope of the project, technical feasibility, budgets, criticality, resource availability etc.

(9) Leadership- Like all major initiatives, this too starts from the Top! Enforcing a decision and then waiting for the results to be delivered, seldom help such programs to succeed. It is necessary for the leadership teams to be actively involved in the automation programs rather than just being the symbolic sponsors. It is crucial for the leaders to be hands-on, touch bases frequently and filter down the vision of the program right up to the end user.

In conclusion, driving automation is tough! It requires change management from the highest to the lowest levels of the organization. It also requires focus amidst lot of moving parts and significant commitment of time and resources. Teams need to carefully weigh their priorities and think through their ‘Ask’ before embarking on their automation journey. If properly executed, automation programs enrich capabilities, drive efficiencies, save costs and ultimately enables the finance function to be a key catalyst in achieving organization's strategic objectives.