By Jeff Thomson, CMA, CAE, IMA President and CEO
Automation: we’re seeing it everywhere – from checkout lines at supermarkets to the way accounting departments file reports. These days, it seems that most organisations across a wide array of industries are employing some kind of digital service delivery. The goal: to increase efficiency, customer satisfaction, and market penetration.
While some new companies may be fully digital from the start, most organisations are at an intermediate stage, adopting tools such as self-service bots on retail websites, finding value in the analysis of large data sets, or using the eXtensible Business Reporting Language (XBRL) to file statutory returns electronically.
Exploiting such emerging technologies as web-based business processes, e-commerce, mobile commerce (m-commerce), and cloud-based software and services can enable an organisation to:
- automate repetitive and time-consuming tasks
- streamline complex business processes
- replace human interaction with machine-to-machine and person-to-machine interaction
- reshape business models to make the most of available resources
- access and provide public services more easily and cheaply, and
- monetise underused assets.
Take XBRL, for example. So far, most XBRL adoption has been driven by regulatory compliance. This has improved data access for investors and other stakeholders all over the world. But it could do even more to enhance the automated exchange of data internally and along supply chains. How? If businesses and professional bodies around the world can co-operate to produce the required taxonomies, if software developers strengthen their existing products and create new ones, and if businesses advocate for change – the positive impact of XBRL could be even greater. (Of course, it’s also possible that another technology could come along and make XBRL obsolete).
Further, as more and more accounting services are provided digitally, there may even be a dis-intermediation of the accountant’s role in regulatory compliance. The systems of businesses and those of regulators could eventually become so interconnected that they can exchange information automatically after it has been verified by smart software.
The fact is, if firms don’t embrace automation and enhance their services, they risk obsolescence. According to a report by ACCA and IMA, Digital Darwinism: Thriving in the Face of Technology Change, the majority of accountants intend to avoid this: 64% said they expect to embrace digital service delivery within the next two years and 31% said they’ll do so within two to five years.
While some firms and organisations are using digital technologies to provide real-time collaborative advice and services, others may need to do more. Those that miss the window of opportunity risk becoming casualties of ‘Digital Darwinism’. Fortunately, the evolutionary process brings both good news and bad: No entity is too big to fail or too small to succeed.
Read more about the technology trends that are impacting the accounting profession at www.roleofcfo.com.