Artificial Intelligence in the Pharma Industry: What’s Next The case solution
If I had to bet on what big data will do for decision-making, I would say that it will make people take wrong decisions much more quickly than before, with even less room for the exercise of wisdom beyond the increasing compliance that affects various realms of decision-making, from finance to risk management.
Finally, Arnaboldi et al. (2017) discuss an agenda for researching the relationship between technology-enabled networks – such as social media and Big Data and the accounting function. Specifically, they identify new performance indicators based on social media and Big Data. An important point made by the authors is that accounting practitioners tend not to see Big Data as a resource. However, there is a significant interest in new indicators based on user/customer engagement, which encompasses communication, marketing, customer care and even innovation (e.g. the balanced scorecard). This use goes beyond social media data, as it is elaborated and triangulated with other data, often stimulating the exploration of further external sources. The authors also mention this element as a promising research path, leveraging on the accounting tradition of visualization. The authors also point to the interest in indicators originated in practitioner literature, mostly outside accounting journals that address this issue.
Therefore, new group of professionals are ready to take over. A future scenario for different types of management accounting/accountants’ analytics professionals will probably appear depending on the level (i.e. descriptive, predictive or predictive) on which the accountant wants to work. To be able to make decisions in the BA environment the MA must be able to explain in detail what techniques are used, their assumptions, and what it means for the organization and the people involved. Or as LaValle et al. (2010, p. 1) express it:
Knowing what happened and why it happened is no longer adequate. Organizations need to know what is happening now, what is likely to happen next and what actions should be taken to get the optimal results.
Changing Role of Management Accounts.
Are today’s managerial accounting skills appropriate for this new role in the rapidly evolving digital age? The answer is no, which is, the skills that accountants do need to make a difference and restore the balance. Some current skills will become less important, while others will become increasingly important and require the acquisition of new skills, especially in the areas of IT and analysis. In this article, we discussed the changes needed. This study will help industry to analyze the changing trends, and how companies handle these changes. How artificial intelligence can help to gather data, transform information. Artificial intelligence will help us to make future decisions and strategic initiatives. Moving with trend for companies is very important, otherwise company cannot survive long in the market.
As such it can be taken in to account that management accountants will have to focus on the whole business when identifying new issues and solutions because decisions must be made through integrated thinking - cutting through silos to connect the relevant people and information from across the organization. In an analytics culture, decision making norms, behaviors, values and outcomes are aligned to assure that analytical insights generate value, not merely promise the possibility.
Theoretical Framework
A search of google scholar for key words such as business analytics and management accounting/accountants was done in order to get more insight and understanding what has been published in the academic world with respect to the changing environment of management accountants with respect to business analytics and its influence on the management accountant. This gave many hits, but only few relevant reviewed articles. Kaplan was one of the first to mention a new environment for management accounting. In an interview with Paul Sharman in Strategic Finance, March 2008, Kaplan also pointed to the importance of BA by saying:
Management accounting analytics is no longer constrained by limited or complex access to companies’ databases. But to excel at analytics, management accountants will require extensive training in modelling, multivariate statistics, and econometrics.
Problem Description
The pilot of the new ERP system Oracle cloud in the USA and Canada has enhanced its work efficiency and quality. According to the internal and external auditors, IQVIA is with the current processes, procedures, and control systems in control (low risks are identified). The other territories of IQVIA will follow and the implementation project is to be finalized by Q2 2021. Given the fact of the new ERP implementation, some controls in certain countries might be outdated and new controls should be in place and documented. Currently, an external consulting firm is involved with the management accountants to align as well as to meet the management demands, local GAAP requirements, internal controls, and the practical user requirements for internal reporting with the new ERP system. Furthermore, the current role of the management accountant needs to be revised due to the changes in the ERP system and the changing reporting demands from the management.
In this new data-driven environment, the management is interested in clear insights into current events, the coming events which impact the company, and what actions should be taken to optimize the company’s results. For the management, next to the strategy; the execution (measuring at the operational level) creates value for companies. From traditional accounting and forecasting to predictive accounting and forecasts.
However, within the company; there is no consensus on whether the role of the management accountant should be affected by Big Data, Business Analytics, and Artificial intelligence shortly.
As a result, a thorough study is a necessity to develop an insight into the effects of Big Data on a company’s management accountants. The optimization of the accounting processes and maximizing the facilities of the accounting outsourcing teams have an impact on new management control systems as on the management accountant. As such the goal is to provide comfort concerning the influence of Big Data and analytics on management control systems and the new role of the management accountants. The company is also working on the path of implementing artificial intelligence for the business, which will also affect the accounting, financial planning, and analysis processes.
We can see similar developments in other companies in the biotech and pharmaceutical industry and beyond. As mentioned earlier, much is written and will be written on the changing role of management accounts. Many changes and many perspectives on these developments and changing roles have led to discussions within the finance community.
Furthermore, there is no consensus within the controllers/management accounting community on how to deal with Big Data and Data analytics within the organization. For many, this belongs in the scope of the IT Data analytics professional, not within the scope of the accounting community. Also, not every organization is organized as such to automate the standard accounting and reporting processes. The main reason is the information need of the management.
Company is going towards change, and this is a full process where before installing the new software company need to train employees and access the needs of resources so that they arrange these changes. Along with that the change new software will bring to the company. AI is considered as very important in pharma industry because of its efficiency.
A study has been done on how Artificial intelligence reduce the time span which normally it take to make drug, and AI also reduce the cost of the company, whereas management Accountants can generate the financial reports AI increase the company efficiency.(Arvapalli & Sharma, 2019)
Artificial intelligence processing is faster than other software because it can process more data and can process information more accurate and faster than other software (Sector, 2010). Another study stated that DNN gives more accurate classification of drugs in different categories and it also revealed that DNN can be used to determine pharmacological properties of drugs (Aliper et al., 2016). AI has given opportunity to pharmacists to utilize their expertise and analyze the reports of patient (Aliper et al., 2016)
Problem Statement
Current and future technologies such as data analysis, artificial intelligence, machine learning, block chain, and robotic automation are playing an increasingly important role in finance. A comprehensive understanding of the business is required
- To take advantage of the digital transformation of the business,
- To manage, analyze and extract the value of data,
- To apply analytical and critical thinking skills to solve strategic problems and
- To identify key issues data may respond
Like many areas, management accounting is hampered by several new technologies, including big data, predictive analysis, artificial intelligence (AI), block chain, cognitive computing, machine learning, and robotic process automation (RPA). Although they lead to the elimination of many accounting management positions, they can also create new ones.
The key to the latter will be to continually improve the role of senior accountants, from traditional financial reporting and administrative work to a more comprehensive business partner, to improve the performance of the organization.
Research Question
The research question to address the problem statement is devised as follows
“What is the impact of Artificial Intelligence in steering the IQVIA Company’s information and what effects Artificial Intelligence create over the jobs of management accountants?”
Sub Questions:
- What is the impact of big data and analytics on management control systems?
- How the artificial intelligence change management accountants job?
- How AI will help company to move along the new technological changes..............................
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