Future State Backoffice

Introduction

While everyone is eager to transform their company’s core business using AI, we should not ignore the benefit of AI in transforming your Corporate Business Systems that power your Backoffice. Leveraging AI should be an important lever in your toolkit that you use for any enterprise transformation initiatives. Here’s how an AI powered Future State Backoffice would look like.

Priority # 1

Let’s first identify what you need to do any transformation in any area within an organization.

1. Process Codification: Document current processes if does not exist or needs update. Once you do that, you should codify and automate repeatable functions. Most likely, you will run into challenges with codification as you could encounter tribal knowledge and resistance to bring transparency to the same.
2. Increase Speed to Market: Build variations to processes to enable faster execution on smaller deliverables. Having the flexibility and agility to tweak current processes is key as there will be a tendency to introduce unnecessary tasks under the pretext of operationalizing the current process.
3. Enable Self Service: Enable self-service functions through robust Knowledge Base and functions. This could also run into challenges with the tendency of self-preservation and defending the past. You need to manage the change deliberately with appropriate empathy.
4. Create Persistent Teams: Build Persistence in execution by building persistent teams that gets more efficient as the team members work with each other on a daily basis and build the rapport among themselves.
5. Change Organizational Structure: Implement Org Realignment where appropriate. It will be highly unlikely that you will conclude that you don’t need to change the org structure. A general word of wisdom is to not miss the window of opportunity when it comes and make sure to do it right instead of looking for a popular vote.   

Priority #2

Now let’s focus on function specific items we need to assess in addition to the items reviewed above. 

Finance

1. Do you already have a mature ERP application like Oracle EBS, Concur Financials or WorkDay Financials? 
2. Instead, are you using a legacy or home-grown platform to manage your financials and other critical Backoffice functions?
3. Do you have a Datawarehouse or a Lakehouse solution based on the latest data best practices that helps you generate analytics and insights?
4. What do you use for other transactional functions like Accounts Payable, Purchase Orders, Cost Center Financials etc.?
5. How do you manage your critical accounting functions?

Procurement

1. Do you have a mature Vendor Contract and License Management software like ServiceNow? If so, how optimized is it and are you getting the most out of your investment in the same?
2. Instead, are you using a legacy or home-grown platform to manage your procurement and other critical Backoffice functions? 
3. Do you leverage 3rd party vendors like ClearEdge for effective Procurement Spend Management?

HR

1. Do you leverage mature Enterprise HRMS (Human Resource Management Software) like WorkDay? If so, how optimized is it and are you getting the most out of your investment in the same?
2. Instead, are you using a legacy or home-grown platform to manage your HRMS functions?
3. What other applications you use for other critical HR functions like Recruitment/ATS (Application Tracking System), Payroll Management, Performance and Development Tools and Employee Support Systems. 

Legal

1. Do you leverage mature Enterprise Legal Contract Management systems like Thomson Reuters Legal Tracker? If so, how optimized is it and are you getting the most out of your investment in the same?
2. Instead, are you using a legacy or home-grown platform to manage your Legal functions?
3. What other applications you use for other critical Legal functions like Compliance & Risk Tools, Matters Management and Spend/Operations/Support systems. 

PMO

1. Do you leverage mature Enterprise Portfolio Management systems like Clarity, ServiceNow etc.? If so, how optimized is it and are you getting the most out of your investment in the same?
2. Instead, are you using a legacy or home-grown platform to manage your EPMO functions?
3. What other applications you use for other critical EPMO functions like Resource & Capacity Planning, Financial & Investment Tracking and Intake/Approval workflows.  

Priority #3

AI Disruptions in Corporate Business Systems/Backoffice

Following are some of the recent examples of areas and use cases where AI has enabled disruptions in the Backoffice.

1. First of all, all the enterprise applications supporting Backoffice have enabled AI features that we should take full advantage of to improve, automate and speed up those functions.
2. Another big area where AI is making a huge impact is Knowledge Management and associated AI enabled search capabilities. With this, focus is shifting from investing in advanced and expensive document management systems to LLM based AI solutions that will search through all disparate knowledge sources and enable faster inquiry responses from appropriate users.
3. Finally, there is a lot of focus on AI driven insights and decision-making process leveraging the data powering the Backoffice functions.