INTERVIEW OF THE MONTH
INTERVIEW WITH MRS. SANCHALA,
Head of Finance Shared Services,
TACO
How has COVID-19 impacted the shared services operating model? What kind of changes have you seen?
The typical understanding of the shared services model is that it is typically a face-to-face model. However, post COVID-19 the general thought process has changed, and it is being more widely believed that the shared services can be operated in a virtual or even a hybrid model. This has allowed options such as work from home to be explored. Additionally, people have aggressively started implementing the digital transformation projects including implementation of RPA, remote working servers, etc. which has helped transform the face-to-face shared services model to a virtual or a hybrid model and enabled the disruption-free continuation of shared services operations.
How will digital technologies have an impact on the finance functions of the future? In what ways can the finance function leverage these technologies to drive business performance?
Finance as a function is basically a service function and it is more of a transactional and operational support function. Post the popularity of the shared services model, all the transactional operations are now being taken care of by shared services with the help of emerging technologies. All the repetitive and mundane tasks are automated, and the shared services have developed the vertical for analyzing or developing the skillset for these particular activities which was never a part of shared services earlier. SSCs are increasingly harnessing these technologies to help them move even faster with greater precision improve decision-making and to create more beneficial customer and stakeholder experiences. These digital technologies are also helping shared services transform into a paperless office.
How do you believe digital has enabled shared service organizations to deliver improved business impact? Could you please detail with some examples?
With increasing automation, usage of AI as well as ML, tasks that would previously have been completed manually and taken up significant periods of time during the working day, are being automated now. Not only are these tasks completed faster, but are also more cost-efficient, with automation platforms completing high-volume, repeatable tasks. As administrative, labor-intensive tasks are automated within the shared services, employees can spend more time on activities that will bring additional value to the organization.
For example, every year there are new amendments to direct and indirect taxation. So whenever there is a change, as you know, even ERPs like SAP takes time to give us the support in sync with these changes as per the government mandate. So, therefore, in order to adhere to compliance, resources ended up doing these tasks manually, exploring various macros or excel etc. This is where automation can come in taking care of day-to-day manual, repetitive tasks such as debit/credit, vendor management, customer management, bank reconciliation, etc. The resources can be reserved for other value-added activities and there will be no need of hiring new people.
Also, if you see verticals like Accounts Payable with respect to shared services, usage of automation technologies can help provide transparency to internal stakeholders such as your procurement team as well as the external stakeholders such as suppliers. This helps in improving the supplier satisfaction index significantly having a positive business impact.
Several organizations take a POC route before making RPA decisions. What is your view about taking this route? Is this a good practice?
Shared Services efficiency is always analyzed having agreed metrics in the mind, for example, when I say I have to deliver in a certain amount of time, there cannot be any deviation from the agreed metrics that have been agreed as per the SLA. Therefore, the introduction of any new technology which will hamper the deliverables will be looked at pessimistically by any shared services provider. This is why, according to me, POC is a must to make sure that end to end process is working fine and then the processes can be taken live. For example, if you automate certain processes via RPA and if it is not performing up to the expectations, it will have a negative impact on your deliverables. This is why I think POC is important to achieve the desired results.
What are some of the good practices that enterprises can adopt to drive cultural change for technology adoption, given that this is an indispensable factor for driving returns?
Age band is a very crucial factor in the adoption of new technology. If for example, the team’s average age is less than 35, new technology implementation and adoption is comparatively easier than say when the average age of the team is on the higher side. Also, the main reason for resistance to new technology implementation is the fear of job losses. With more technologies and automation, the general fear is of job losses which should be eliminated. This is where the management plays a crucial role in circulating the right messaging saying that automation will help existing employees engage in other value-added tasks. The culture which promotes new technology adoption should be promoted which of course will have a huge impact on driving returns.