Connect with us

Technology

WHY ARE MEDIUM-SIZED ORGANISATIONS STILL LACKING CHOICE WITH CLOUD NATIVE ACCOUNTING SOFTWARE?

Source: Finance Derivative

By Paul Sparkes, commercial director for iplicit

Wind the clock back 20 years and there would be tens of pre-cloud solutions available from a multitude of vendors, serving small to medium-sized organisations across the UK. Each of these systems would continually evolve with increasing functionality to meet customer demand and outpace competition including Sage, Pegasus, Access, and Exchequer.

These vendors dominated the market and enjoyed decade-long growth and more, with extremely loyal users backing their every move. However, the emergence of cloud computing and the idea that software didn’t need to reside on-premise meant that many of the incumbent vendors had a mammoth challenge on their hands.

Understandably, strategies were devised to continue harvesting the base while attempting to cover new opportunities presented by cloud. This was a cliched path to tread though as dominant incumbents were obsessed with existing business models and struggled to step away – think Nokia, Kodak and Blockbuster, to name a few.

As these giants fell, nimble newcomers appeared with no customers to appease, zero revenues to fear losing and a visceral passion, belief, and clarity in how the new technology would disrupt the status quo.

In the accounting software world, this has been evidenced by the dominance of entry-level systems, such as Xero, with NetSuite for the corporate entities at the other end of the scale. These cloud-first solutions were therefore not burdened by legacy customer bases, historic contracts, migration challenges and cost challenges.

However, as these innovations took flight, organisations with 30-300 staff – who were too serious and demanding for entry-level packages nor wanted complex tools at the other end of the spectrum – were left with a lack of choice. In response, a vast majority of on-premise software users had to cope with unsophisticated upgrades that weren’t fit for purpose nor were true cloud solutions that met their growing needs.

That’s because the harsh reality of creating highly functional cloud Software-as-a-Service (SaaS) solutions requires a huge amount of investment in time, budget, and resources. And when presented with the idea that a tool may be four-years-in-the-making without revenue, that’s a courageous first step many vendors simply aren’t willing to take. And when others in the market have tried, and failed, to succeed when bringing accounting SaaS systems to life, the risk profile is often too high a bar to overcome.

Why ‘fake cloud’ needs to be eradicated from the market

In response, several organisations have opted for quick fixes – creating tools that use both their old and new system and are effectively ‘fake cloud’. In other words, their product looks like true cloud software on the surface, but the lack of performance and integration struggles are instant giveaways.

That’s why, at present, there are only a handful of high-calibre, cloud native finance and accounting SaaS solutions available within the UK’s mid-market – compared to 20 years ago when there would’ve been at least 50 tools on offer.

What are the next steps for the accounting SaaS mid-market?

Challenger brands will typically build what their target audience values, and therefore uses. And so, they’re disrupting a marketplace armed with the capability to look at the best ways to design intuitive software that provides maximum productivity savings, ultimate flexibility, and simple usability for high-growth companies.

As they continue to challenge the status quo too, listening to what customers and prospects are telling them, and responding as swiftly as possible, will be imperative. This shouldn’t always centre on functionality either, as service is just as important. For example, evaluating contract length and flexibility is a must for challenger brands to succeed in this arena. Typically, the mid-market has been accustomed to integrating a solution that comes with a three-to-five-year agreement – meaning they’re unable to switch swiftly to and from providers and are effectively being held hostage by their software.

Disruptive brands recognise the resentment among clients who feel ‘trapped’ and, ultimately, the winners will be those who offer all benefits without the handcuffs. As customers get wiser, more flexible alternatives will continue to emerge. And, the multi-year contract ‘lock-ins’ will seem prehistoric to up-and-coming millennial finance directors who have been more accustomed to monthly commitments and the option of cancelling at any time.

Although cloud software has been around for more than a decade, it’s only now that mid-market organisations are starting to see the disruption. Offering a greater level of freedom and agility with their solutions will prove to be more valuable than ever before.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Recognising the value of protecting intellectual property early builds strong foundation for innovators

Innovation Manager at InnoScot Health, Fiona Schaefer analyses an essential facet of developing ideas into innovations

Helping the NHS to innovate remains a key priority during this period of recovery and reform. Even within the current cash-strapped climate, there is the opportunity to maximise the first-hand experience of the healthcare workforce and its knowledge of where new ideas are needed most.

Entrepreneurial-minded, creative staff from any discipline or activity are often best placed to recognise areas for improvement – the reason why a significant number of solutions come from, and are best developed with, health and social care staff.

NHS Scotland is a powerful driver of innovation, but to truly harness the opportunities which new ideas offer for development and commercialisation, the knowledge and intellectual property (IP) underpinning them needs to be protected. That vital know-how and other intangible assets – holding appropriate contracts for example – are key from an early stage.

Medical devices can take years to develop and gain regulatory approval, so from the outset of an idea’s development – and before revenue is generated – filing for IP protection and having confidentiality agreements in place are ways to start creating valuable assets. This is especially important when applying for patent protection because that option is only available when ideas have not been discussed or presented to external parties prior to application.

Without taking that critical initial step to protect IP, anyone – without your permission – could copy the idea, so anything of worth should be protected as soon as possible, making for a clear competitive advantage and ownership in the same sense as possessing physical property.

The common theme is that to be successful – and ultimately support the commercialisation of ideas that will improve patient care and outcomes – the idea must be novel, better, quicker, or more efficient than existing options. Furthermore, to turn it into a sound proposition worth investing in, it must also be technically and financially feasible. It isn’t enough to just be new and novel – the best innovations offer tangible benefits to patient outcomes and staff working practices.

Of course, even more so in the current climate of financial constraints, the key question of ‘Who will pay for your new product or service?’ needs to be considered up front as well.

Whilst development of a strong IP portfolio requires investment and dedicated expertise, when done well and at the appropriate time, then it is resource well spent, offering a level of security whilst developing an asset which can be built upon and traded. There are various ways commercialisation can progress and whilst not all efforts will be successful, intellectual property is an asset which can be licensed or sold to others offering a range of opportunities to secure a good return.

In my experience, however, many organisations including the NHS are still missing the opportunity to recognise and protect their knowledge assets and intellectual property early in the innovation pathway. This is partly due to lack of understanding – sometimes one aspect is carefully protected, whilst another is entirely neglected. In other cases, the desire to accelerate to the next stage of product development means such important foundational steps are not given the attention required for long-term success.

Good IP management goes beyond formally protecting the knowledge assets associated with a project, e.g. by patenting or design registration, however. When considered with other intangible assets such as access to datasets, clinical trial results, standard operating procedures, quality management systems, and regulatory approvals, it is the combination which will be key to success.

Early securing of IP protection or recognition of IP rights in a collaboration agreement, demonstrates foresight and business acumen. Later on, it can significantly boost negotiating power with a licensing partner or build investor confidence.

Conversely, omissions in IP protection or suitable contracts can be damaging, potentially derailing years of product development and exposing organisations to legal challenges and other risks. Failing to protect a promising idea can also mean commercial opportunities are missed, thus leading to your IP being undervalued.

Ideas are evaluated by formal NHS Scotland partner InnoScot Health in the same way whether they are big or small, a product, service, or new, innovative approach to a care pathway.

We encourage and enable all 160,000 NHS Scotland staff, regardless of role or location, to come forward with their ideas, giving them the advice and support they need to maximise their potential benefits.

Protecting the IP rights of the health service is one of the cornerstones of InnoScot Health’s service offering. In fact, to date we have protected over 255 NHS Scotland innovations. Recently these have included design registration and trademarks for the SARUS® hood and trademarks for SCRAM®, building and protecting a recognised range of bags with innovative, intuitive layouts. Spin outs such as Aurum Biosciences meanwhile have patents underpinning their novel therapeutics and diagnostics.

We assist in managing this IP to ensure a return on investment for the health service. Any revenue generated from commercialising ideas and innovations from healthcare professionals is shared with the innovators and the health board through our agreements with them and the revenue sharing scheme detailed in health board IP and innovation policies.

Fundamentally, we believe that it is vital to harness the value of expertise and creativity of staff with a well-considered approach to protecting IP and knowledge input to projects from the start.

Continue Reading

Business

Time is running out: NHS and their digital evolution journey

By Nej Gakenyi, CEO and Founder of GRM Digital

Many businesses have embarked on their digital evolution journey, transforming their technology offerings to upgrade their digital services in an effective and user-friendly way. Whilst this might be very successful for smaller and newer businesses, but for large corporations with long-standing legacy infrastructure, what does this mean? Recently the UK government pledged £6bn of new funding for the NHS, and the impact this funding and investment could have if executed properly, could revolutionise the UK public healthcare sector.

The NHS has always been a leader in terms of technology for medical purposes but where it has fallen down is in the streamlining of patient data, information and needs, which can lead to a breakdown in trust and the faith that the healthcare system is not a robust one. Therefore, the primary objective of additional funding must be to implement advanced data and digital technologies, to improve the digital health of the NHS and the overall health of the UK population, as well as revitalise both management efficiency and working practices.

Providing digital care

Digitalisation falls into two categories when it comes to the NHS – digitising traditionally ‘physical’ services like offering remote appointments and keeping electronic paper records, and a greater reliance on more innovative approaches driven by advances in technology. It is common knowledge that electronic services differ in GP practices across the country; and to have a drastically good or bad experience which is solely dependent on a geographical lottery contradicts the very purpose of offering an overarching healthcare provision to society at large.

By streamlining services and investing in proper infrastructure, a level playing field can be created which is vital when it comes to patients accessing both the care they need and their own personal history of appointments, GP interactions, diagnoses and medications. Through this approach, the NHS focus on creating world-leading care, provision of that care and potentially see waiting lists decrease due to the effective diagnosis and management enabled by slick and efficient technology.

This is especially important when looking at personalisedhealth support and developing a system that enables patients to receive care wherever they are and helps them monitor and manage long-term health conditions independently. This, alongside ensuring that technology and data collection supports improvements in both individual and population-level patient care, can only serve to streamline NHS efforts and create positive outcomes for both the patient and workforce.

Revolutionising patient experiences

A robust level of trust is critical to guaranteeing the success of any business or provision. If technology fails, so does the faith the customer or consumer has in the technology being designed to improve outcomes for them. An individual will always have some semblance of responsibility and ownership over their lives, well-being and health. Still, all of these key pillars can only stand strong when there is infrastructure in place to help drive positive results. Whilst there may be risks of excluding some groups of individuals with a digital-first approach, technology solutions can empower people to take control of their healthcare enabling the patient and NHS to work together. Tandem efforts between humans and technology

Technology must work in tandem with a workforce for it to be effective. This means the NHS workforce must be digitally savvy and have patient-centred care at the front and centre of all operations. Alongside any digital transformation the NHS adopts to improve patient outcomes, comes the need to assess current and future capability and capacity challenges, and build a workforce with the right skills to help shape an NHS that is fit for purpose.

This is just the beginning. With more invtesement and funding being allocated for the NHS this is the starting point, but for NHS decision-makers to ensure real benefits for patients, more still needs to be done. Effective digital evolution holds the key. Once the NHS has fully harnessed the poer of new and evolving technologies to change patient experiences throught the UK, with consistent communication and care, this will set the UK apart and will mark the NHS has a diriving example for accessible, digital healthcare.

Continue Reading

Technology

Ethical AI: Preparing Your Organisation for the Future of AI

Rosemary J Thomas, Senior Technical Researcher, AI Labs Version 1

Artificial intelligence is changing the world, generating countless new opportunities for organisations and individuals. Conversely, it also poses several known ethical and safety risks, such as bias, discrimination, privacy violations, alongside its potential to negatively impact society, well-being, and nature. It is therefore fundamental that this groundbreaking technology is approached with an ethical mindset, adapting practices to make sure it is used in a responsible, trustworthy, and beneficial way.

To achieve this, first we need to understand what an ethical AI mindset is, why it needs to be central, and how we can establish ethical principles and direct behavioural changes across an organisation. We must then develop a plan to steer ethical AI from within and be prepared to take liability for the outcomes of any AI system.

What is an ethical AI mindset

An ethical AI mindset is one that acknowledges the technology’s influence on people, society, and the world, and understands its potential consequences. It is based on the perception that AI is a dominant force that can sculpt the future of humankind. An ethical AI mindset ensures AI is allied with human principles and goals, and that it is used to support the common good and the ethical development of all.

It is not only about preventing or moderating the adverse effects of AI, but also about exploiting its immense capability and prospects. This includes developing and employing AI systems that are ethical, safe, fair, transparent, responsible, and inclusive, and that respect human values, autonomy, and diversity. It also means ensuring that AI is open, reasonably priced, and useful for everyone – especially the most susceptible and marginalised clusters in our society.

Why you need an ethical AI mindset

Functioning with an ethical AI mindset is essential[1].  Not only because it is the right thing to do, but also because it is expected, with research showing customers are far less likely to buy from unethical establishments. As AI evolves, the expectation for businesses to use it responsibly will continue to grow.

Adopting an ethical AI mindset can also help in adhering to current, and continuously developing, regulation and guidelines. Governing bodies around the world are establishing numerous frameworks and standards to make sure AI is used in an ethical and safe way and, by creating an ethical AI mindset, we can ensure AI systems meet these requirements, and prevent any prospective fines, penalties, or court cases.

Additionally, the right mindset will promote the development of AI systems that are more helpful, competent, and pioneering. By studying the ethical and social dimensions of AI, we can invent systems that are more aligned with the needs, choices, and principles of our customers and stakeholders, and can provide moral solutions and enhanced user experiences.

Ethical AI as the business differentiator

Fostering an ethical AI mindset is not a matter of singular choice or accountability, it is a united, organisational undertaking. To integrate an ethical culture and steer behavioural changes across the business, we need to take a universal and methodical approach.

It is important that the entire workforce, including executives and leadership, are educated on the need for AI ethics and its use as a business differentiator[2]. To achieve this, consider taking a mixed approach to increase awareness across the company, using mediums such as webinars, newsletters, podcasts, blogs, or social media. For example, your company website can be used to share significant examples, case studies, best practices, and lessons learned from around the globe where AI practices have effectively been implemented. In addition, guest sessions with researchers, consultants, or even collaborations with academic research institutions can help to communicate insights and guidance on AI ethics and showcase it as a business differentiator.

It is also essential to take responsibility for the consequences of any AI system that is developed for practical applications, despite where organisations or products sits in the value chain. This will help build credibility and transparency with stakeholders, customers, and the public.

Evaluating ethics in AI

We cannot monitor or manage what we cannot review, which is why we must establish a method of evaluating ethics in AI. There are a number of tools and systems than can be used to steer ethical AI, which can be supported by ethical AI frameworks, authority structures and the Ethics Canvas.

An ethical AI framework is a group of values and principles that acts as a handbook for your organisation’s use of AI. This can be adopted, adapted, or built to suit your organisation’s own goals and values, with the stakeholders involved in its creation. An example of this can be seen in the UK Government’s Ethical AI Framework[3], and the Information Commissioner’s Office’s AI and data protection risk toolkit[4] which covers all ethical risks in the lifecycle stages – from business requirements and design to deployment and monitoring for AI systems.

An ethical AI authority structure is a group of roles, obligations and methods that make sure your ethical AI framework is followed and reviewed. You can establish an ethical AI authority structure that covers several aspects and degrees of your organisation and delegates clear obligations to each stakeholder.

The Ethics Canvas can be used in AI engagements to help build AI systems with ethics integrated into development. It helps teams identify potential ethical issues that could arise from the use of AI and develop guidelines to avoid them. It also promotes transparency by providing clear explanations of how the technology works and how decisions are made and can further increase stakeholder engagement to gather input and feedback on the ethical aspects of the AI project. This canvas helps to structure risk assessment and can serve as a communication tool to convey the organisation’s commitment to ethical AI practices.

Ethical AI implications

Any innovation process, whether it involves AI or not, can be marred a fear of failure and the desire to be successful in the first attempt. But failures should be regarded as lessons and used to improve ethical experiences in AI.

To ensure AI is being used responsibly, we need to identify what ethics means in the context of our business operations. Once this has been established, we can personalise our message to the target stakeholders, staying within our own definition of ethics and including the use of AI within our organisation’s wider purpose, mission, and vision.

In doing so, we can draw more attention towards the need for responsible use policies and an ethical approach to AI, which will be increasingly important as the capabilities of AI evolve, and its prevalence within businesses continues to grow.


[1] https://www.mckinsey.com/featured-insights/in-the-balance/from-principles-to-practice-putting-ai-ethics-into-action

[2] https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2023.1258721/full

[3] https://www.gov.uk/guidance/understanding-artificial-intelligence-ethics-and-safety

[4] https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/artificial-intelligence/guidance-on-ai-and-data-protection/ai-and-data-protection-risk-toolkit/

Continue Reading

Copyright © 2021 Futures Parity.