5 Front Facing Scenarios Effected by Back Office

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Business processes are being upen e like the assembly lines in the automotive in ustry were in the 1970s. During this time, automobile manufacturing was fitte with robots performing functions in a continuous repeate pattern. The robots are ifferent in business process automation; however, the outcome is the same, which is technology performing tasks historically performe by humans in a continuous repeate pattern.

To ay, the ifference in the isruption is not limite to manufacturer’s assembly lines. The marching forwar of igital, such as business process application bots, known as robotic process automation (RPA), crosses all

in ustries, all back office, an all a ministrative functions.

Another reality of igital is artificial intelligence (AI) which has cognitive abilities such as learning an problem solving. The proliferation of AI, in epen ently, an embe e in RPA, known as smart RPA, is exasperating the

isruption that is occurring. This is because, to ay, business process technology performs tasks an makes choices previously han le by humans.

The use of these technologies in back office environments spans into front facing an regulatory scenarios. This is an important concept to un erstan when planning igitization. To avoi surprises, vet the ripple effects that occur from historically isparate functions. There are 5 focus areas to un erstan this effect.

• Organizational Development• Strategic Planning• Strategy Development

& Execution• Succession Planning• Talent Development &

Retention• Valuation Maximization

Compliance

Compliance professionals jumping aboar the streamlining tren s, experience re uction of time spent on complex internal processes. A less obvious outcome is the higher collaboration with regulators. The basis of the increase collaboration is much to o with the regulatory agencies embracing igital platforms inclu ing RPA an AI. Regulators are streamlining processes with technology, also. For many, an innovative approach provi es a means to improve compliance crossing over from the back office to front facing initiatives. An example is a “nu ge” email or text sent as a remin er to pay taxes or comply with regulations timely.

Technology also creates a means to expan regulations by shifting from a reactive to a proactive approach. For example, to combat tax frau , regulators use transaction monitoring applications. This means, regulators monitor payments an purchases transpiring on the Internet of Things (IoT) to i entify tax frau or abuse. For example, a business oes not report sales in a nonresi ent state. The nonresi ent state i entifies sales in its state with transaction monitoring an notifies the nonreporting entity with a tax bill inclu ing penalties an interest.

Lastly, companies must anticipate further requirements of online filings, an the finality of paper compliance. The streamlining of regulatory agencies’ back offices will push igital into its constituents’ compliance functions. The changing nature of compliance is so significant, regulatory technology (RegTech) applications are in existence for businesses an regulators. Solutions for businesses keep up with the increasing compliance eman s. While they provi e regulators means to expan compliance requirements.

The changing nature of compliance is so significant, regulatory technology (RegTech) applications are in existence for businesses an regulators. Solutions for businesses keep up with the increasing compliance eman s. While they provi e regulators means to expan compliance requirements.

Financial

Financial reporting changes with igital by bringing about real-time reporting capabilities. The financial operations changes are seen in people’s skillsets an efficiency of operations. People’ skillsets will lie in oversight of the automate processes, precision of en -point eliverables, an analysis; while igital improves the efficiency of the company’s operations.

The changes on’t en there. The isruption continues from the back office into revenue pro ucing with financial automation. Anticipate a justments to align financial activity an reporting to the actuality of revenue pro ucing functions.

If fact, it even goes beyon this. Financial automation will affect every aspect of the company. Consi er this, financial reporting is the conglomeration of all activity of the company. Thus, a financial igital environment will involve a company’s entire ecosystem.

A itionally, igital platforms provi e a means to combine real-time reporting an a company’s efine universe of ata for a competitive a vantage an to mitigate risks. Applications, that are affor able, exist which amass real-

time structure an unstructure ata to allow for imme iate changes to external an internal evelopments, as necessary.

The change occurring with igitizing financial operations an reporting brings the reality of real-time information. This foun ational a justment aligns financial reporting with the actuality of business operations. A itionally, it affor s the ability to operate in real-time scenarios creating the ability to a just quickly to changes an risks.

• Organizational Development• Strategic Planning• Strategy Development

& Execution• Succession Planning• Talent Development &

Retention• Valuation Maximization

Office

En -to-en process automation is currently possible throughout a company’s back office. Current technologies are esigne to integrate with legacy systems an atabases. A itionally, much of this technology is built as self-

service technology eliminating the nee for extensive IT professional involvement. This len s to back office professionals becoming customer experience revenue generating innovators. To manifest this phenomenon, a new way of thinking must be iscovere in pervasive igital connections.

This new way of thinking is embe e in problem solving, creative thinking, an continuous change with unambiguous goals groun e in the business mo el which focuses on experience; external an internal. Customer value an new profit pools are iscovere in the micro etails of a igital environment. In a back office, customer value may reveal itself as offering multiple payment platforms such as ACH, a irect payment metho such as Venmo, or crypto currency.

New profit pools in a back office are frequently iscovere in igital an physical chokepoints. Once correcte , the profit pools are culminate in more efficiency an higher pro uction. Other profit pools also exist within the a ministrative micro- etails. An example, igital tells the story of a contract life cycle within a company. Utilizing this information to support eliverables, covenants, an [customer] service throughout the organization provi es the framework for improve contract negotiations.

A itionally, epartment silos are ismantle as channels flow from intake to exhaust. Resulting in business a ministration being groun e in the igital business mo el. Employees are responsible for achieving company goals with extensive liberty within strictly efine igital processes.

Company’s a ministration functions will soon be automate . Hybri igital environments with isparate noncommunicating systems will no longer be acceptable to remain in the market. Fully igital environments provi e the framework for customer value an new revenue streams.

Strategy

Historically, strategy pinpointe future goals primarily resi ing in revenue pro ucing activities. A ministrative functions i their best to operate, accommo ate, an comply with a hin sight view. This type of strategy in a

igital environment is no more than substituting physical resources. When companies substitute, instea of oing business ifferently, customer value an revenue base in igital sources is left on the table.

Also, automation, alone, is not a strategy. A strategy in a igital environment concentrates on experience, external an internal; an innovation which is pioneere anywhere from intake to exhaust. Strategies are esigne to pinpoint future goals while incorporating imme iate value as i entifie .

The strategy is supporte by lea ership with clear an unambiguous goals. The Boar of Directors an Executives lea with a vision of change for the imme iate an the long term. Rewar systems highlighting specific tasks or in ivi ual’s results are eliminate .

The business mo el within a igital environment is completely ifferent than historically base mo els. Digitization changes strategies into all-encompassing ecosystems of real-time information allowing for better ecision making.

• Organizational Development• Strategic Planning• Strategy Development

& Execution• Succession Planning• Talent Development &

Retention• Valuation Maximization

Collaboration

Collaboration in a igital environment also changes significantly. Time is spent un erstan ing the ata as oppose to collecting, manipulating, or confirming its accuracy. This compels greater collaboration resulting in further transparency to all.

To successfully un erstan the ata, en -to-en channels require collaboration of people all along the thoroughfares. Collaboration is entrenche up, own, an at the intersections of the channels. This results in horizontal, vertical, an cross functional teamwork.

A itionally, innovation base in problem solving an creative thinking excels with empowere employees, collaboration, an the use of technology in new ways.

Greater transparency constructs higher trust for everyone. Customers an employees are provi e the visibility essential for confi ence in interactions an transactions. Ultimately, a vancing to fulfillment.

A igital environment fosters collaboration in all new ways. Results are seen in cross functional teamwork, innovation an greater transparency. The combination of these outcomes brings further fulfillment to customers, external an internal.

Conclusion

Companies’ back offices are changing rapi ly ue to technology. This phenomenon is not new. A similar transition materialize in manufacturing in the ‘70’s. The technology is ifferent, but the result is the same; which is technology performing functions historically performe by humans.

Business a ministration application technologies create straight through processes comprehensively influencing front facing functions. Successful eployment of a igital environment necessitates vetting 5 key areas in which this ripple effect is present.