Bindu Sharma is a seasoned finance professional with prior experience across multiple roles in industries including manufacturing and trading. She has been a part of multiple firms like BILT, Carnation Auto India, LG Life Sciences, Hapag Lloyd AG, and DP World during her journey.
Women Entrepreneurs Review magazine had an in-depth conversation with Bindu regarding AI, Automation & Digitalization, and how rapidly it overtakes business along with its risks.
As a business leader in the fintech space, how do you leverage emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to optimize financial operations within an organization?
Assimilation of AI and digitization in the working culture is challenging, especially for multinational companies that integrate their systems with AI. However, many things can be done by leveraging emerging technologies. AI tools such as GPT are helpful for organizations in contemporary business, such as logistics. The supply chain is a labor-intensive industry, and digitization and automation are essential for efficient operations. An example of this is using a lighting mechanism to pick up products from warehouses, which increases productivity and efficiency.
In the finance department, the company recently implemented SAP, which allows financial transparency and accountability. There are quite a lot of other tools like Purchase requisition to Payment cycle are also there, that can be integrated with SAP, allowing for easy access to invoices and payments.
However, there are risks associated with implementing AI and digitization, such as hacking and phishing attacks. To mitigate these risks, companies need strong IT systems to track phishing attacks and protect their systems. For example, a shipping company experienced a hacked system that caused a week of business standstill some years back and we saw a Microsoft outage recently, which resulted in havoc including delayed and canceled air flights.
In addition to SAP, the implementation of HRMS (Human Resource Management System) is also necessary for labor-intensive industries with large numbers of employees. This system helps keep track of data and personnel, making it easier to manage data and improve efficiency. In today's environment, nobody can work without AI or optimization, and organizations must adapt to the changing landscape to ensure success.
In your opinion how can leaders strategically integrate digital tools and automation to enhance both efficiency and sustainability within their respective organization’s financial operations?
Before implementing or optimizing a tool, it is crucial to understand the requirements, efficiency, and tools required. This can be done through proper planning, understanding the benefits of automation or digitization, and choosing a partner who can help in implementation. It is essential to choose a partner who can understand the business and provide the necessary support.
Strategic optimization and digitization are essential for any company, as it is not sustainable to have everything handled by people. In today's world, no tool can replace human decision-making, and other softer aspects must also be considered. To ensure success, organizations should carefully consider the requirements, efficiency, and tools required before implementing or optimizing them.
Change management is extremely crucial, and if the people working on the systems are not convinced, the system might fail.
In conclusion, understanding the requirements, efficiency, and tools required before implementing or optimizing a tool and taking care of change management is crucial for ensuring its long-term success.
With the increasing availability of big data, how can companies ensure that data is leveraged effectively to drive strategic decisions? Which tools or methodologies have you found most effective in turning data into actionable insights?
Data is readily available, but it is of no use unless it is critically analyzed to make correct and informed decisions. Digitization and AI help in leveraging this data, and it's up to the individual to determine what type of analysis they need. For example, banks can analyze millions of daily transactions to determine big-ticket items and small good items. This data is crucial for strategic decisions, such as project planning, business expansion, and growth strategies. However, it's essential to have a proper reporting structure and analysis before making any decisions. The system can provide the necessary data, but the specific type of analysis required must be explicitly communicated to it.
How do leaders address the growing concerns around cybersecurity in the context of digitized financial operations? What steps should they take to safeguard sensitive financial data in an automated environment?
The RBI is stricter now for financial transactions, and businesses take cyber security seriously. Companies usually have mandatory IT security training for employees, and refresher training is also provided. Many IT organizations lock their drives to ensure security. However, there is liberty in optimizing financial transactions and approving transactions on mobile devices. Mobile transactions also have separate OTPs and tokens. Security features are more important than optimization, and companies must be strong in their security to navigate digitization. Companies must be aware of potential threats and implement robust security measures to protect their data and systems.
How can business leaders navigate workforce displacement challenges to ensure that their automation strategies align with an organization's ethical standards?
Major workforce displacement happens at the transactional level, where any kind of decision-making, even at the lowest level, is not required. It is helpful to increase productivity and efficiency because it is reliable and dependency on manpower is reduced to a large extent.
With the help of AI tools, now even decision-making has become much easier, but we have not reached the level yet where machines/systems can completely replace humans.
Ethical businesses are helpful in the balanced growth of the economy of the country as well as society. Businesses should define a clear path for automation strategies where workforce displacement can be catered very carefully and empathically through organic attrition and accommodating the workforce in other jobs.
Innovation often comes with inherent risks. How do you balance the need for innovative financial solutions with the necessity of maintaining risk controls and regulatory compliance?
When introducing innovation, it is crucial to consider regulatory controls, compliances, and IT security. To ensure compliance and security, it is essential to hire a domain expert to guide the project, provide domain expertise, and ensure transparency, documentation, and information with the identification of risks and mitigation plans. This approach ensures that the company's long-term success is not compromised.
Message to Readers
In today's rapidly evolving market, everyone must stay updated and adapt to new challenges. As AI, digitization, and automation continue to evolve, it's essential to be mindful of risks and develop risk mitigation plans before implementation. Being prepared to embrace new tools and investments is essential for a successful transition to a new, ever-evolving world.
