AI and the information gap: A C-suite checklist for business confidence

As UK leaders lean towards expansion, Ham Patel at Oracle NetSuite argues that their challenge is to seize the opportunity and embrace AI, without overlooking the risks that can undermine growth

 

For the first time in a year, risk appetite is increasing. According to Deloitte’s latest UK CFO Survey, finance leaders are easing away from defensive strategies and beginning to re-embrace growth ambitions. 17 percent now believe it’s a good time to take greater risk, up from 12 percent in the first quarter; and nearly a third are prioritising introducing new products and services or expanding into new markets, up from a fifth last quarter.

 

But with opportunity comes potential risk. As expansion accelerates, organisations often find themselves at a crossroads, not because of a lack of ambition, but because oversight, systems, and operational visibility need to keep up. Those that expand without strengthening governance, technology and resilience often encounter avoidable setbacks, whether through cash flow crunches, supply chain fragility, or data gaps.

 

At the same time, AI is becoming an essential tool in helping to close these gaps and play an advisory role as organisations grow. To build a business that is ready to weather ups and downs, C-suite leaders need a framework to weigh up risk versus reward.

 

 

Assess system reliability and the potential to harness AI

If a business doesn’t run on reliable technology with the latest capabilities, business leaders could be on the wrong side of an uneven playing field. AI has the potential to widen the gap between the technology ‘haves’ and ‘have-nots’, as AI capabilities increasingly get built into the modern infrastructure and software used to run key processes.

 

Maybe a 15-year-old procurement system is showing its age, or desktop-based accounting system can no longer manage increasingly complex financials. Or maybe an organisation is running some highly capable but disconnected cloud systems, leading to time wasted debating over conflicting data sources.

 

Any of these scenarios can increase risk, particularly when it comes to harnessing AI, which can improve insights or increase productivity when it has access to unified data. For example, AI now could be used to more efficiently process incoming bills, helping business leaders add customers and volume efficiently.

 

There are similarly promising AI use cases that could help save time and money through automation and faster, easier access to analytics, and business leaders need a technology platform that can incorporate these capabilities.

 

 

Close information gaps before they widen

But that doesn’t mean business leaders should invest in technology or standalone applications just because they are new – they must ensure that systems deliver the functions and unified data the organisation needs both now and in the future.

 

For example, if business leaders don’t have a clear view into each corner of the business, risk management becomes an exercise based on incomplete information, instinct, and guesswork. Today, the most effective companies can access comprehensive and granular data across departments to close those information gaps.

 

By centralising real-time data from finance, operations, HR, and supply chain on a single system, leaders can zoom in and out on points of concern to make decisions based on data, rather than instinct. This unified data serves as a powerful base for analytics and AI that can help shed light on emerging risks.

 

 

Reimagine the supply chain as a strategic asset

Approach the supply chain as more than a cost centre, because a resilient supply chain can set an organisation apart from its competitors.

 

Beyond scenario modelling, the right system can provide the tools necessary for agile supply chain management and vendor oversight. Auditing the supply chain can reveal creative ways to help reduce costs, such as optimising warehousing, streamlining fulfilment, or switching to more cost-effective shipping methods. Procurement teams can evaluate supplier performance, helping to identify vendors that may be more susceptible to disruption or fluctuations. These insights make it easier to prioritise which relationships to revisit or which contracts to renew.

 

Inventory planning also benefits. When costs shift, so does the logic of how much stock to hold, where to store it, and when to reorder. Advanced systems can also leverage AI to simulate inventory supply and demand across the supply chain. These forecasting simulations, or snapshots, can be used to analyse whether inventory levels are in line with demand or planned levels. The power of AI helps businesses match customer requests with supply availability.

 

 

Keep cash flow front and centre

Cash shortfalls can happen just as easily when business is booming as in downturns. They could be a result of a late payment from a usually reliable key account; or due to a mismatch between the number of suppliers on 30-day terms with the number of customers on 60-day terms.

 

Avoiding cash flow shortages starts with a consistently updated view of various cash flow measures, such as free cash flow and operating cash flow, as well as related metrics including days payables outstanding, days sales outstanding, cash flow coverage ratio, and current liability coverage ratio.

 

Data on payables and receivables, funding, planned expenditures, and historical revenue and expenses must also be centralised and readily accessible for better cash flow forecasts that can be run on a weekly or even daily basis. More advanced cash forecasting solutions can incorporate different forecasting methods and AI to further improve the accuracy of projections.

 

Scenario planning is another valuable tool to have in a leader’s toolkit because it illustrates how various potential events or investments, be it a drop in sales of a core service or opening a new warehouse, would impact cash flow. Then business leaders can plan a response to these possible outcomes.

 

 

Controlled courage ahead

As business leaders move tentatively towards a more risk-taking, growth-focused mindset, it’s crucial they don’t lose grip of the fundamentals. By closing information gaps, upgrading legacy technology and keeping an eagle eye on supply chain opportunities, leaders can embrace opportunity without creating additional risks.

 

A strong and interconnected foundation not only steadies organisations in a downturn but also provides the confidence to seize opportunities when the growth wave arrives. In other words, it’s never the wrong time to get your house in order. 

 

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Ham Patel is the COO of Oracle NetSuite EMEA

 

Main image courtesy of iStockPhoto.com and Techa Tungateja