Telling the truth about SME life today

Could CFOs soon be embracing robots as part of the finance function

Share on facebook
Share on twitter
Share on linkedin
Share on email

In May 2015, the Wall Street Journal published an article which depicted a robot stepping into the finance department, while fired employees filed out the door. In his opening paragraph, senior editor Vipal Monga wrote about 80 clerks and salespeople who used to spend 3,200 hours a week tracking and paying for orders for thousands of goods at US firm Pilot Travel Centers.

Today, there are only ten employees working 400 hours a week. This, he claimed, was due to a computer robot automating most of the processes.

Robotics is evocative, it’s high-tech and most importantly, it is emblematic of what many see as the next natural step in the evolution of business process delivery,”saidJamie Lyon, co-author of a recent report by ACCA. “But by talking to finance leaders during our research, we found they are clearly not sure about the benefits of wholesale automation. Many still can’t understand what it really means for finance.

However, CFOs are becoming increasingly curious about robots, Lyon said. The report’s aim was to find out what leaders thoughtAbout robots.

It suggested that as with any technology, theres a threshold that has to be crossed before robotscanbecome mainstream in the finance department. It takes brave finance leaders to take the lead, said Kimberly-Clark’s Liz Ditchburn. Its about wanting someone else to cut their teeth on it before we embrace it. We like to go second, not first.

According to Deloittes Peter Moller,scepticism about robotics is evident. The fact that robots have been overlooked thus far, he said, meant that either finance functions thought it wouldnt work or they just didnt know enough about it.

Taking the prior reason into account,Unisys Chris Gunning is of the belief thattheres more trimming that can be done at the edges. “I think it’s difficult at this juncture to really see what that next quantum leap is, but I dont think we can ignore that digitalisation is upon us,” he said. “Over the last 15 years, shared service centres have leveraged automation, technology, and straight-through processing, so is robotics just more of the same with a different coat on, or is it something really more revolutionary I think we dont know what we dont know.

Read more about robots:

Others see robotics as an aide, not necessarily a new approach to finance delivery. John Campbell of Shell claimed that he often wondered how robotics could help during tough reporting periods, where time pressures are high, people get tired, and as a result the quality of work drops.

“Robotics may help at specific times, but it would not be embedded in the day to day operations,” Campell said. “I see a way to leverage it, but I suspect nobodys going to want to bring it in as a main solution.

Some finance leaders also call into question the cost of robots. Ditchburn suggested the current business case is still challenging. I think a ninth of the cost is too expensive, Ditchburn said. “Lets be honest about this; it’s just a computer program, so for the stuff that you dont need robotics, you’re just running a computer program, so why is it being priced on a per robot per annum basis

Yet Moller believes that misconceptions about the cost versus benefit abound. Robots work twice as fast as a person and dont stop, he explained.

Genfours James Hall also cautioned finance leaders to look beyond cost. When we talk about shared services, it’s not just transaction processing, it’s dealing with exceptions. We are also dealing with interfaces that havent yet, for whatever reason, been automated, and thats where I think the benefit of robotics comes in.

Despite her concerns about pricing, Ditchburn is becoming a convert: I think theres a huge opportunity, and my challenge for my delivery team is if anybody has got two screens on their desk in order to read data off that screen and copy data onto that screen, then there is an opportunity for robotics.

Hall claimed robotics was an opportunity to make change in the way finance transactions are performed today.

“We often debate whats the right process to start with,” he said. “My view is that it doesnt really matter; it just needs to have a meaningful impact in the organisation, and then robotics is taken up virally and really fast. One criterion I use is the avoidance of effort. If you can eliminate the need for the team to work evenings and weekends, you then develop a mind-set or a set of skills to understand where you can apply it, how you can apply it, and the controls to put it in and apply it safely.”

Trending

Topic

Share on facebook
Share on twitter
Share on linkedin
Share on email

Related Stories

Trending

If you enjoyed this article,
why not join our newsletter?

We promise only quality content, tailored to suit what our readers like to see!