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Financial statements audits
Financial statements audits
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Financial statement reviews
Financial statement reviews
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Financial statements compilations
Financial statements compilations
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IFRS
IFRS
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Audit quality monitoring
Audit quality monitoring
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Global audit technology
Global audit technology
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Systems and risk assurance
Systems and risk assurance
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Programmes
Grant Thornton is authorised and regulated by the Government of Malta to handle and submit applications for both citizenship applications as well as residence permits under the various residence programmes available in terms of Maltese law.
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Ordinary residency in Malta
Any EU, EEA or third country national who resides in Malta for more than 3 months is obliged to apply for a Residence Permit. There are various grounds upon which an applicant may apply to require a residence permit, including: Self-Sufficiency, Employment or Self-Employment, Family Members, Permanent Residence, Study Purposes.
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Qualifying Employment in Aviation Rule
Malta provides qualified persons employed in the field of aviation with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta. For a candidate to qualify, their annual income must exceed €45,000. This does not include the value of fringe benefits and applies to the derived income received from an eligible office.
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Qualifying Employment in Innovation and Creativity (Personal Tax) (Amendment) Rules, 2019
These Rules allows persons employed in a role directly engaged in carrying out, or management of research, development, design, analytical or innovation activities, to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Qualifying Employment in Maritime and Offshore Oil & Gas Industry Rule
Malta provides qualified persons employed in the field of aviation, with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Nomad Residence Permit
The nomad residence permit, which was launched in June 2021, allows third-country nationals who would normally require a Visa to travel to Malta, to retain their current employment based in another country whilst legally residing on the island.
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Citizenship by naturalisation
The Maltese Citizenship Act (Cap 188) establishes who may become a citizen of Malta by naturalisation, provided that the applicant satisfies the relative provisions.
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Citizenship for Exceptional Services by Direct Investment
With the continuously changing global dynamics and evolving geopolitics, there is an ever-growing number of highly-talented high-net-worth individuals who are willing to invest and relocate to give themselves and their family members the chance to broaden their horizons and become part of a welcoming community.
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Grant of Citizenship for Exceptional Services
Malta has enacted legislation which extends to individuals providing excellent or manifestly superior contributions in the fields of science, research, sports, arts and culture as well as people of exceptional interest to the Republic of Malta, the right to become Maltese citizens.
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Acquisition of citizenship by registration
The Maltese Citizenship Act (Cap 188) establishes who can register as a citizens of Malta. The Act was amended on 1st August 2007, this making it possible for second and subsequent generations born abroad to acquire Maltese citizenship by registration.
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Internal audit
Internal audit
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Risk management and internal controls consulting
Risk management and internal controls consulting
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Governance and risk management
Governance and risk management
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Regulatory services
Regulatory services
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Risk modelling services
Risk modelling services
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Forensic and investigation
Forensic and investigation
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Compliance audit
A compliance audit is a detailed review which focuses on whether an organisation is in conformity with statutory laws as well as internal rules and decisions. This type of audit also assesses the effectiveness of an organization’s internal controls by identifying weaknesses in compliance processes whilst finding measures to enhance such processes.
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General business consulting
General business consulting
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Business planning and performance improvement
Business planning and performance improvement
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Change and program management
Change and program management
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Business intelligence and analytics
Business intelligence and analytics
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Business valuation and litigation support
Business valuation and litigation support
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Business process outsourcing and consulting
Business process outsourcing and consulting
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Family business consulting
Our business solutions for family businesses center on alignment of all aspects of the family and business, including culture, vision, mission, values, governance, ownership, leadership, communication and policy development.
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Quantitative small caps
Quantitative small caps
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Data analytics
Data analytics is the process through which businesses leverage data to gain actionable insights and enhance their performance. This is based on a solid foundation of well-organised and accurate data. Many businesses have a large amount of data at their disposal however, most of them do not have the expertise to analyse the available data.
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Maltese Family Businesses Resource Centre
For over 30 years Grant Thornton’s advisory teams have assisted family businesses in navigating the challenges of leadership and succession across generations
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Grooming
Preparing the next generation for leadership and ownership is an integral part of any succession process. Grant Thornton can help formulate the necessary grooming plan for all the potential successors.
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Tax services
Using a combination of reason and instinct, we can work with clients to develop a strategy that helps them understand and manage their tax liability in a transparent and ethical way.
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Access to finance
Like all companies, family businesses need finance. As an ongoing business concern looking at expanding, when it comes to raising capital, it’s important that this is done wisely to minimise the risk of collateral damage.
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Governance
Having a proper governance structure is essential to ensure that the family and business strategies are achieved. Grant Thornton can advise on this, and facilitate the implementation of the ideal governance structure based on the exact scenario.
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Ownership succession
Letting go of your family business is difficult for all owners and even more so for founders; however, in a family business the additional challenge presented by the family component increases the complexity of this process. Our team of family business advisors will ensure that such ownership issues are dealt with in an effective and structured approach.
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Exit strategies
There are many 'exit strategies' that need to be considered to minimise the risk of conflict. They can arise from the eventual exit of a family member from the ownership ranks and can have many causes. See how we can help.
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Management succession
By implementing our family business guidelines to family succession and a proper governance structure, the management succession process can be completed with minimal conflict and will result in the most competent successor being chosen.
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GDPR consultancy
The General Data Protection Regulation (GDPR) is the EU's data protection law which brings a lot of changes for your business to prepare. Grant Thornton can help your business make sure it complies to the new regulation.
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Cyber security consultancy
Cyber security consultancy
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IT business consultancy
IT business consultancy
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Technology implementation
Technology implementation
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ESEF Reporting
We are providing a service for listed companies that fall in scope to report in xHTML. Our service includes the mapping of the taxonomy, as well as the output of the audit/regulator ready xHTML report
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IT Audit and Assurance
Information systems strengthens an organisation’s financial and operational processes. Grant Thornton Malta strengthens your organisation’s need for IT and information assurance.
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Human resource consultancy
Human resource consultancy
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Brand development
Brand development
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Marketing and communications consultancy
Marketing and communications consultancy
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Market research
Market research
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EU funding
EU funding
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Bookkeeping & financial accounting
Bookkeeping & financial accounting
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Payroll and personnel administration
Payroll and personnel administration
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Direct and Indirect tax compliance
Tax compliance within outsourcing
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Compilation of financial statements
Compilation of financial statements
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Business process outsourcing
Business process outsourcing including back office and secretarial
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Family business consulting
Family business consulting
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Startups
Startups
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Company formation
Company formation
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BOR
Entities in Malta, including companies, partnerships, foundations, trusts and associations, have an obligation to disclose the ultimate beneficial owner/s (physical person) of the entities. A beneficial owner is defined as the individual (s) who ultimately owns or controls a legal entity or arrangement through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that entity.
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Operational and financial restructuring and reorganisation
Operational and financial restructuring and reorganisation
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Recovery
Recovery
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Direct international tax
Direct international tax
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Indirect international tax
Indirect international tax
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Global mobility services
Global mobility services
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Transfer pricing
Transfer pricing
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Estate planning
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Wealth advisory
Wealth advisory
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Regulatory and legal
Regulatory and legal
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Corporate tax services
Corporate services
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VAT
At its simplest, VAT is a tax on consumption and is a multi-stage tax (ie applied at every stage of the production process), which is applied to both goods (ie tangible property) and services. Additionally, although the tax is ultimately borne by the consumer (by getting included in the price paid), responsibility for charging, collecting and passing the tax on to the tax authorities, rests with the supplier.
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2018 Amendments of the Income Tax Act
The following is a brief overview of the new tax provisions introduced in 2018 by the Budget Implementation Act (Act VII of 2018) and other legislative enactments
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Mergers and acquisitions
Mergers and acquisitions
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Prospects MTF
As of 2016, small and medium-sized enterprises in Malta can access the capital markets through Prospects - a market of the Malta Stock Exchange (MSE) designed specifically for Small and Medium sized Enterprises (SME). Prospects offers a cost-effective opportunity for entities looking to raise up to €5 million per issue.
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Project financing
Project financing
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Due diligence
Due diligence
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Valuations
Valuations
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Foreign direct investment
Foreign direct investment (FDI) is the category of international investment that echoes the objective of obtaining a lasting interest by an investor in one economy in an enterprise resident in another economy.
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Wholesale Securities Market
WSM is a joint venture between the Malta Stock Exchange and the Irish Stock Exchange, combining the best of each partner’s processes and technical skills.
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Investment Support
The government of Malta has made available several incentive programmes, aimed at supporting Maltese SMEs and start-ups. These support schemes are targeted at different stages of a company’s lifecycle and cover from the start-up to the consolidation and expansion phases. Such incentives are usually promoted and managed by Malta Enterprise, while Trade Malta focuses on supporting businesses to penetrate foreign markets.
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Financial regulatory services
Financial regulatory services
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Ship and aircraft registration
Ship and aircraft registration
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Medical cannabis licensing in Malta
A study published in 2018 by market intelligence and strategic consultancy firm Prohibition Partners, has forecasted that the European cannabis market will be valued €115.7 billion by 2028. According to the same study, while patient numbers are currently below 100,000 across the region, their number is set to grow to over 30 million in the next decade. In 2018 Malta introduced a bill to legalise the use of medical marijuana and attract companies willing to produce high-grade medical cannabis for the European market.
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Trust and trustee services
As an entrepreneur, business owner, parent or guardian, you will want to ensure that whatever happens in the future, the rewards from your hard work can be protected as efficiently as possible. Grant Thornton Fiduciaire Limited (Grant Thornton) understands this and provides a professional and holistic trust management service.
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Family trusts
The law establishes the requirement of a license for one to be able to act as a trustee subject to certain limited exceptions. One such exception is found in the Rules for Trustees of Family Trusts which provide for an exception to this rule where a trust is set up to hold property settled by a settlor or settlors for the present and future needs of family members or of family dependants who are clearly identifiable.
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Aviation
The Maltese Government is constantly remaining to improve the position as the best place to do business within the aviation industry through exhaustive tax agreements, powerful legislation, and many aviation professionals. This is the best time for airlines, financiers and aircraft owners to be located in Malta.
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Maritime
For Maritime, Grant Thornton provide direction with regards to VAT guidelines for yacht leasing, as well as ship and aircraft registration.
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Automotive
We offer a broad range of services relating to automotive, ranging from Transaction advisory, access to finance, business advisory, process and inventory management, tax advisory, audit and advisory, outsourced support services.
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SME Growth
SME Growth
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Startup investment
Start-up investment
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SME Diversification and Innovation
SME Diversification and Innovation
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SME Internationalisation
SME Internationalisation
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SME Consultancy services
SME Consultancy services
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SME eCommerce
SME eCommerce
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Blockchain technology
Blockchain technology
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The Malta Virtual Financial Assets Act
The Virtual Financial Assets Act provides a sound legislative framework for Malta to regulate and responsibly promote the use of cryptocurrencies, crypto-exchanges and other crypto-related services, through which Malta aims to promote further technological innovations and growth, and continue building on its robust financial services industry.
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Our role as a VFA agent
Our role as a VFA agent consists to assist, monitor and provide guidance throughout the full licensing process, and beyond the licensing stage. The VFA agent will be required to apply for the VFA license on behalf of the issuer.
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Initial Coin Offerings
Initial Coin Offerings (ICOs) in Malta have risen to prominence as a method to raise capital from the public, institutions or venture capitalists by selling a percentage of cryptocurrency to investors in the form of tokens in exchange for legal tender (smart contracts).
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Gaming Regulations
Malta recently overhauled the framework regulating the iGaming sector. Going forward operators will still be required to obtain authorisation to carry out regulated activities.
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Licensing Process
Prior to submission all applicants are advised to go through a pre-application process with one of the MGA’s Licensing Officers. This will ensure that the application has been correctly compiled and all the key ingredients are present.
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Malta Real Estate Investment Trust (REIT)
As part of the 2019 budget, the government has pledged to introduce a Real Estate Investment Trust (REIT) framework in Malta.
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The Markets in Financial Instruments Directive (MiFID) II
MiFID II aims to protect investors and make sure that financial markets operate in the fairest and most transparent way possible. Building on stock and investment trading regulation introduced in 2007 it sets to ensure a more integrated financial market.
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Taxation of Malta Collective Investment Schemes
Malta-registered collective investment schemes (CISs) are generally not subject to Malta tax. Given that CIS are properly structured, such schemes generally can take advantage of a number of tax benefits. When it comes to taxation of investors in collective investment schemes, this will depend on what type of income is being received, whether the investor is a Malta resident or not, and if the shareholder is an individual or a body-corporate?
The quest for digitisation may be deemed elusive by some, however in switching from postal mail to fax and eventually to email, from paper-ledger to spreadsheet or even to fully fledged process automation, the road to digitisation has already been embarked upon by organisations. Staying ahead of the competition, however, is not about the technology itself, but a matter of strategy.
Strategy is the art of making use of time and space. I am less concerned about the latter than the former. Space we can recover, lost time never.” (Napoleon Bonaparte)
The strategy resorted to by US clearing houses over the past century places the “use of time and space” conundrum into perspective. In an age where mail is transmitted in milliseconds, a two-day settlement (T+2) delay for securities comes as a surprise when considering the possibility of live trading and automatic (T+0) clearing houses. Interestingly, the move from T+3 to T+2 in Europe, Australia, Hong Kong, Canada and the US over the past decade is reminiscent of trading on the New York Stock Exchange (NYSE) in the 1930s. Before 1933, next day settlement (T+1) was standard on the NYSE. Going slower was all a matter of strategy. As trades increased, and back-office operations struggled to cope, recruiting more people would have entailed more costs that would, in turn, have been recharged to investors. The solution was to slow down the settlement process, reaching T+5 in 1968. Today technology is a core component of settlements, and even though real-time settlement is possible, the strategy set by settlement houses and exchanges has settled for T+2, allowing a netting-out window for brokers to conserve on transaction costs.
The digital era is driven by the ability to innovate. Jumping onto a trend bandwagon just for the sake of it is unlikely to place an organisation in a position to experience the digital era at its full potential.
An organisation’s strategy should ensure a competitive edge in its identified marketplaces through information dominance, that is, employing superior automated data collection, analysis and processing techniques, enabling real-time, contextually relevant insights which can support data-driven decision making based on full situational awareness.
Process efficiency should be at the core of any strategy, and this is achievable through a bird’s eye view of one’s organisation such that synergies can be identified and exploited. Many businesses hold and view their available data in isolation, without reaping the benefits of what each data set represents in the context of another. Going forward, successful enterprises will thus focus on the big picture and plan for the adoption of interrelated technologies. Interconnecting brokers for automated netting-off of balances across NYSE transactions could lead to T+0 settlement. Similarly, organisations are to interconnect their static repositories of data as well as their software applications into a structured solution.
Digital democratisation via distributed ledger technology, robotics and artificial intelligence is transforming entire industries. Future technology adoption strategies are to be set now, tapping into the right skill set and employing technology to implement efficient processes which enable sustainable growth.
It is time to get on board and embark on the path towards the innovation horizon from manual to cognitive enterprise. Cognitive enterprise would entail the use of technologies that are adaptive and interactive, capable of understanding context and learning from their environment, freeing up human resources to perform high-value activities, automating the manual execution of high-volume repetitive and routine tasks, and curbing human error.
Those in the lead can collect and analyse data that competitors following suit will lack and possibly achieve at a later point in time. Resorting to the tools in the arsenal that drive digital transformation is therefore vital. Some technologies relevant to this are:
- Robotic Process Automation (RPA): A machine or software that manages, acts on or processes high-volume, repeatable tasks that previously required a human to perform.
- Internet of Things (IoT): Interactive software components that have their own function, or interface to interconnect devices to other enterprise systems for the creation of business orchestration across complex data, technology, processes and functions.
- Data Analytics: Data modelling focused on specific business problems or outcomes to identify patterns and anomalies. They provide actionable insight. Models improve over time based on feedback from actual results of prediction.
- Natural language processing (NLP): The advanced ability of a computer or program to understand human speech (speech recognition) or written text (unstructured text) and derive intelligence, take action or present results that normally require manual interpretation.
- Blockchain: A ledger where activities are recorded in ’blocks’ as a chronological ‘chain’ providing an immutable audit trail. A public type blockchain replaces central authority with a decentralised consensus-driven approval process. Blockchain offers trust, transparency and a consistent approach to supply chain integration, which constitutes a significant advantage for risk management.
- Chatbots: A computer program that conducts a conversation via auditory or text methods, designed to simulate human conversation and are typically used in dialogue systems, such as customer service or information acquisition.
- Artificial intelligence (AI): Systems and software able to perform tasks that typically require human intelligence, such as reconciliation, investigation, validation and repair within complex and multi-input processes.
- Augmented reality (AR): Interactive visualisation that superimposes computer-generated information into real life using glasses or projection to assist in real time activities, layering data sets into processing.
Cognitive enterprise would identify the resources available and adopt the best-suited technologies to implement its strategy. AI is likely to build upon RPA, data analytics, NLP and other technologies. Long term, the digital transformation will impact enterprise through data, cost efficiency and risk management.
This is exemplified in the AI processes built into today’s mobile phones. Data collected via AI is analysed, and improvements are pushed onto the phones via automated (RPA) updates, a three-way technology collaborative approach that enables such enterprise to stay ahead of the competition. Similarly, in a compliance environment, predictive modelling tools used in data analytics could monitor data collected via RPA and chatbots, possibly applying natural language processing techniques to decode the information. The process could be run entirely off an AI solution.
It all lies on the horizon. There is an opportunity cost to miss out on taking stock of the current state, setting a strategy, and implementing it at a manageable pace commensurate with available resources.
The strategy is to be set on precise data. It is likely that most businesses are not starting from scratch. Data collection and retention policies are typically in place, together with solid reporting foundations that are still maturing, possibly hosted on a scalable data centre with reliable cyber defence mechanisms. The data may, however, need to be restructured, possibly introducing automation solutions in operations coupled with machine learning data analytics.
Just like the shift from manual ledgers (analogue data) to bookkeeping software solutions (static digital data) facilitated the cross-mapping and reconciliation of various accounting entries, the technology arsenal is to be implemented as part of a cohesive holistic strategy, enabling precise cognitive data for the furtherance of the entrepreneurial spirit into a digital era based on live data analysis; a far cry from ex post facto management accounts or annual financial statements compiled after month- or year-end.
Staying sharp in the digital era is crucial. This is the information age; be it precise business data analytics or continued personal education, it is a quest for knowledge to maximise one’s potential in the digital era and stay ahead of the competition.