A new report from consulting firm Protiviti takes a close look at several companies’ audit departments as they attempt to adopt new technologies or help the business through digital transformation.
The publication highlights the achievements of such companies as Accenture, Conservas La Costeña, Heineken, JP Morgan Chase, Juniper Network, Panera Bread, and others in either undergoing digital transformation themselves or assisting their companies as they navigate the risks of disruption. As companies pursue digital initiatives such as data analytics or robotic process automation, boards and senior executives are relying on their internal audit team to assess associated risks and keep pace with competitors and potential disruptors, the report finds.
“Companies understand that they need to take up digital transformation initiatives to remain competitive, but their three major obstacles are lack of momentum, fear of change, and absence of focus,” says Brian Christensen, executive vice president of global internal audit at Protiviti. “The processes and business models that traditionally helped companies excel are now actually holding them back in the face of disruption. Competitors who were ‘born digital’ are simply faster and more agile.”
Drivers of Digital Disruption
Protiviti found there are four key areas to driving digital disruption: (1) improving quality of customer engagement; (2) digitizing a product or service to disrupt an existing business model; (3) incorporating real-time data to make better decisions; and (4) improving operational performance. Organizations will often take up multiple initiatives to cut across some, or all, of these areas concurrently.
“By nature of the role, internal auditors have an enterprise-wide perspective that makes them uniquely suited to help management and the board review and assess digital initiatives and their associated risks and opportunities,” says Christensen. “Digital transformation is presenting the internal audit function with a golden opportunity to become a true strategic partner to the business.”