The AI Journey: 3 Foundations for Finance and Supply Chain
Artificial intelligence (AI) might be riding the peak of a hype wave – precariously poised to crash into the so-called trough of disillusionment – but that doesn’t mean it can be ignored (no matter how tempting it might be to do so, given all the noise).
Even if the complete spectrum of value-based use cases for finance and supply chain remain unclear or untested, there will be use cases. And while you don’t need to be investing heavily in AI research and development this year, now is the time to start your journey (if you haven’t already done so).
For many of us, that means undertaking the foundational work that will put you in the best position to extract value from AI (and other emerging technologies) in the years to come.
We’ve broken the foundational work into three steps, which should be achievable for most organisations in 2024. Without any further hype (because we’ve all had enough of that), let’s dive into it.
AI Foundation 1: Get very clear on what AI is – and isn’t
While not a technical explainer, it’s helpful to have an understanding of the different terms and what they mean.
Some of these terms are frequently used interchangeably in casual conversation, which can muddy the waters somewhat. Clearly defining what AI is will pay dividends as you start to have more serious conversations related to use cases and investment.
Here are some of the key terms you should know:
AI Foundation 2: Revisit your strategy, realign if necessary.
No technology exists in isolation – and AI (and all its iterations and subsets) is no different.
However you end up harnessing it, at the end of the day AI is going to be another tool; one that is there to serve your business. With that in mind, now is the time to revisit the overarching strategy, and identify possible opportunities where AI can contribute to the greater good and forward momentum.
Consider the following questions, which will help to develop possible use cases for your organisation:
Considering the current environment of decreased purchasing power we’re seeing across most industries, only the most robust use cases should be progressed to a business case with the associated request for investment.
AI Foundation 3: Clean your data, slay your Franken-Systems
Let’s face it: Data cleansing projects are not sexy and they’re not exciting. However, they’re a necessary evil if you’re looking to explore the possible applications of AI in the future. It’s a data-fuelled technology, so your own data needs to have integrity and it needs to be easy to access for everything to work.
However, the ability to experiment with AI down the track is but one benefit of having a high level of data integrity. Your stakeholders will also have greater trust in your data, and that means better and more effective decision-making. From a financial perspective, you’ll benefit from vastly improved reporting – and hence, a better run organisation.
Now is also the time to slay your Franken-System (if you haven’t done so already). If there’s a so-called “messy middle” concealed within your organisational planning systems, your AI journey is going to be spectacularly derailed, most likely before it really begins.
Where to next with AI?
The AI foundational work will be enough to keep many of us occupied for the balance of 2024. However, if you’re already reasonably advanced with your preparations, it’s time to turn your attention to the second part of the AI journey. That means thinking about how you can really start to add value in the finance and supply chain departments by harnessing insights from external data sets.
Cornerstone Performance Management delivers enhanced, data-driven business performance through collaboration between our passionate experts and clients.
We are enablers of change and transformation in Supply Chain, Information Management, Financial Planning & Analytics, Management Consulting, Project Management, and Managed Application Services. Meet our team or reach out to have a discussion today.
