leveraging ai to streamline accounting/finance departments ... · 350,000 fraud 2010- 2015....
Post on 22-Jul-2020
1 Views
Preview:
TRANSCRIPT
October 30, 2019
Leveraging AI to Streamline
Accounting/Finance Departments and
Add Greater Value to Your Organization
Kirstie TiernanBDO Digital Transformation Services
BDO Survey Videohttps://www.bdo.com/thought-leadership/digital-transformation-survey
2
71% of companies have seen increases in revenue from digital initiatives.
79% of executives anticipate increases in profitability over the next 3 years due to digital transformation initiatives.
79% of companies plan to increase spending on digital transformation over the next year.
67% of companies say reducing operational inefficiency is one of their top 3 business goals in the next 12-18 months.
Developing a digital transformation strategy is the #1 priority for c-suite
executives.
3
Imagine – Real-time diagnostic alerts on plant issues with remote expert resolution.
Digital platform enables better communication, prediction, and resolution.
Digital transformation in energy
4
T A P T O E D U C A T E M E
Imagine - Holding a device up to an object to discover, experience and purchase things you want, using a mobile device(s).
Better customer experiences, higher revenue conversion and more measured outcomes
Digital transformation in retail
5
Imagine – Creating better transfer of information, higher retention, quick recall, and measured outcomes
Better knowledge, better medical professionals
Digital transformation in healthcare
6
Digital 3+1 approach
DIGITAL BUSINESS. Creating new value, market differentiation, and revenue in the digital economy.
DIGITAL PROCESS. Reinventing operational processes by optimizing end-to-end performance and improving efficiency.
DIGITAL BACKBONE. Addressing or removing the IT complexities, risks, and barriers to innovation, to meet evolving market demands.
DIGITAL ADOPTION. Change management that informs and enables the business’ strategic direction, while streamlining user adoption for employees, suppliers, and customers.
Digital Transformation is all about reimagining your business and operations in today’s digital economy, securing your future starting today. We set you on your pathway with our Digital 3+1 approach:
7
DIGITAL PROCESS: Automation & Analytics
8
InvestigationCFO Start Date
CFO Termination Date
6,000 Vendors Limited by:• Location of interest• Vendor spend over $50,000 • 160 Vendors to Review
InvestigationCFO Start Date
CFO Termination Date
Limited by:• Specific user time of employment• Round dollar amounts• 11 Vendors to Review
10
$350,000 Fraud 2010-2015
Investigation
11
Fraud review
Vendor geographic regionQuality Health - $38K St. Pete’s Hospital - $29K
AutoMak Body Repair - $40K Gen Chiropractor - $12K
13
Most common iPhone passcodes
People wounded by terrorism (1970-2013)
People killed by terrorism (1970-2013)
Distance of starts from Earth in light years
Loan amounts on kiva.org
Total number of print materials in US libraries
Population of Spanish cities
File sizes in the Linux 2.6.39.2 source tree
Population of Mexico’s Counties (Municipios)
Stack Overflow User Reputation
Line count of the Rails 3.0.9 core source code
UK government spending May-Sept 2010
2011 Russian Parliamentary Elections Results
Population of Turkish boroughs
Google books unique 1-grams
2007 population per district in Peru
First 652066 Fibonacci Numbers
14
Beford’s Law
The principle that in any large, randomly produced set of natural numbers, around 30 percent will begin with the digit 1, 18 percent with 2, and so on, with the smallest percentage beginning with 9.
15
Benford’s Law
16
Good
Bad
Payments begin with $40*($400, $4,000, $40,000)
$500K of payments areto Heavy Equipment
Training Company
17
University clientRevenue testing (tuition/financial aid, meals, housing)
18
Expenses analysis
AIRFARE
HOTEL
RENTAL CAR
FUEL
TRIP
MISC
UNKNOWN
AIRPORT
What is Misc for $1,500?
Why are there airfare expenses with no airport
expenses? Meals?
Why so many gas reimbursements?
Base analyticsEmployees
Vendor/employee similar name, address, phone or tax ID
Payroll trend analysis by function Duplicate employees Employees without payroll deductions Employees with a PO box address
Invoices Invoices created on weekends, holidays, or in off
hours Round dollar invoices Keyword analysis on description Zero amount invoices System created invoices Invoices from vendors not in vendor master Invoices with no description
Vendors One time vendors Blocked/deleted/do not use vendors Vendors without an address Vendors with similar names or addresses Vendors with non-standard payment terms Inactive vendors with activity in last year Keywords analysis of vendor name Duplicate vendor IDs
Disbursements Payments created on weekends, holidays, or in off
hours Round dollar payments Duplicate payments (same amount, payee, date) Keyword analysis on payment description Benford’s Law on payment amounts Payments just below approval limit Summary of payments by users Payments to vendors not in vendor master
20
Predictive analyticsHistorical dataExternal dataStatistical algorithmsMachine learningBeyond forecasting…predicting the future
21
Internet of thingsThe inter-networking of physical devices, vehicles, buildings, and other items embedded with electronics, software, sensors, actuators, and network connectivity which enable these objects to collect and exchange data.
22
Sensors – subway doorsDATA POINTS CAPTURED
# of times open/closeForce used to closeTemperatureHumidityIndoors/OutdoorsWeatherTime of day
DATA USAGEReplace partsSchedule techniciansPurchase inventorySell data back to manufacturing engineering team for improvements
23
DIGITAL PROCESS: Automation
24
Basic, low-level tasks drain employees
Insight 01.Approximately 10% to 20% of human work hours are spent on dull, repetitive computer tasks.Researchers estimate that IT departments also spend 30% of their time on low-level basic tasks.50% of companies spend $5 to $25 per manually-processed invoice.
25
RPA opportunities are everywhere
Insight 02.Businesses are missing about 50% of all automation opportunities, while 13% of workers find these repetitive tasks to be a waste of time.
26
Lowers costs, increases accuracy
Insight 03.About 70% to 80% of rules-based processes can be automated, allowing companies to operate onshore at a lower cost than offshore.
27
Your competitors are doing it
Insight 04.Companies will experience with RPA by 2025 is between $5 trillion to $7 trillion
RPA software will be able to perform tasks equal to the output of 140 million FTEs by 2025.
28
Robotic process automation
More time can be spent consuming &
analyzing data
Increased employee satisfaction &
retention
Maintain data &document security
Improve quality ofwork product
Increaseprofits throughdata efficiencies
29
Typical process
Transformation Process
Transformation Process SYSTEM
30
Multi-location data extraction bot
John SmithFinancial Reporting Developer
Each morning I begin by collecting the franchisees’
sales data…
Now I can analyze the data and email to the other
departments
Original process: 5-10 min/store
New process: Runs overnight = NO MANUAL
EFFORT31
Address cleansing bot
Sales data is obtained from multiple
systems/clients/formats
City/State/Zip Code combinations are often incorrect or misspelled
The cleaned file with corrected address
combination is exported for review and processing
Software robot reviews the address combination and updates the misspelling
automatically
Chicago Hieghts, IL 60411should be
Chicago Heights, IL 60411
Original process: 3-5 hours
New process: 5 minutes
32
Contract review and analysis
33
Contract data extraction and analysis
34
REINVENTED BUSINESS
35
Computer Vision
36
Artificial intelligence
37
Facial recognition
38
Sponsorship exposure analysis
39
Mixed reality –inspection/maintenance
Plant maintenance video: https://youtu.be/QTuKcm8s4QQ
Remote assistance: https://youtu.be/UpmolMrf5HQ
40
AI for social goodVideo: https://www.youtube.com/watch?v=2wQQh5tbSPw
41
QUESTIONS
42
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
EXPERIENCE
Kirstie Tiernan is a Principal in BDO’s Technology and Business Transformation Services practice in the Chicago office with more than 16 years of experience providing data analytics, technology advisory, and risk management services. Kirstie assists clients with generating key insights and knowledge from data across the organization in multiple sources, locations, systems, languages, and functions.
Kirstie’s team of technology professionals provides clients with the necessary dashboards, statistical models, and predictive analytics to turn data into information upon which key business decisions are made. Applying her skills in artificial intelligence and machine learning, Kirstie regularly works with clients to increase operational efficiencies and to prevent and detect organizational fraud.
Kirstie approaches projects with a focus on process optimization and a passion for implementing technological advancements to improve and accelerate time-consuming client operations. She has a desire for helping clients make sense of the new world of Digital Transformation and in determining how it tangibly applies to each and every client’s business.
Kirstie also serves as the co-leader of the firm’s own Digital Transformation & Innovation strategy execution. She has been part of several key developments for the firm during her leadership in this role, including the BDO bot factory, the firm’s first Hackathon, and in leading brainstorming and ideation sessions throughout the organization.
PROFESSIONAL AFFILIATIONS
Association of Certified Fraud ExaminersIndiana Brown County Community Foundation Board of Directors
EDUCATION
M.B.A, Fraud Management and Economic Crime, Utica College B.S., Computer Information Systems, Indiana University
KIRSTIE TIERNAN, CFE, OCA
Data Analytics & AutomationManaging Director
ktiernan@bdo.comDirect: +1 312-616-4638Mobile: +1 773-208-1609
330 North Wabash Ave. 32nd FloorChicago, IL 60611
Tel: +1 312-856-9100Fax: +1 312-856-1379www.bdo.com
top related