...Key differentiation at each stage
A closer look at the EY Virtual-powered solution reveals several breakthrough attributes. At the front end, in connecting to Microsoft’s key data sources, EY has removed all manual inputs and automated the entire data ingestion process based on Microsoft’s own IT standards – including addressing all the related data privacy and security issues.
Combining advanced technology in the Microsoft stack and human insight
A further differentiating factor is that EY Virtual’s screening applies not just statistical rules-based analytics, but also advanced AI and machine learning algorithms developed over 15 years of experience and enabled by Azure. The machine learning enables the monitoring to constantly improve and stay ahead.
EY Virtual’s Azure AI-enabled testing reviews 100% of invoices across the enterprise and identifies high-risk anomalies for human review. These are passed directly into an EY workflow solution, EY Controls, which is built on Microsoft Dynamics 365 and utilizes Power Automate, and other Power Platform technology to enable EY’s processing to enable EY’s processing teams worldwide. The results are reported back to Microsoft using Microsoft’s Power BI data visualization tool.
A smart solution that’s getting even smarter
Finally, the outputs are fed back to EY Virtual, which uses them to refine and improve the compliance screening.
An example? Imagine the average spend with “vendor A” is US$50,000 per month, with specific spikes at the end of each quarter. All of these expenses are booked to the Marketing GL Code. If a new transaction for $200,000 happens to be booked to the Miscellaneous GL Code, the algorithm will pull out this transaction and put it into the high-risk bucket. If the transaction proves to be non-complaint, the system will remember those characteristics next time they occur.
The benefits for Microsoft are set to rise...
This, in a nutshell, is what EY Virtual does for Microsoft – globally, continually and in real time. And the outcomes? Today, Microsoft can risk-rate its global spending in a fraction of the time previously achievable, enabling it to dramatically expand its risk management coverage. All while consolidating its existing siloed compliance programs into a single integrated process, taking out more than 10,000 hours of work annually across its business.
And the benefits to date are just the start. The Spend Analytics app that powers the SRMM program is only one of a catalog of apps across various compliance risks and work flows in the EY Virtual library that showcases the power of the Microsoft stack.
...and EY Virtual’s capabilities are continuing to advance
The benefits that EY Virtual delivers to Microsoft will keep expanding. And the solution is also progressing in other ways. For many years, EY and Microsoft have been partnering to create new digital solutions and platforms – an alliance that was recently expanded to drive a US$15billion growth opportunity, as highlighted by the two firms’ CEOs.
As part of this alliance, teams across the EY Microsoft Services Group are now collaborating to further develop and enhance EY Virtual. The goal? To increase EY Virtual’s ability to meet both Microsoft’s needs and also those of the two firms’ joint clients worldwide. The possibilities are immense – and hugely exciting.
Leading the way
In the time since EY Virtual and Spend Analytics went live in Microsoft in late 2020, the impact on Microsoft’s spend risk management has been dramatic. Put simply, Microsoft can now zero in with laser-accuracy on its riskiest transactions globally, faster and with less effort than its old approach.
It’s a capability that many other businesses across the world would love to have, since most are still managing spend risk by reviewing a small sample of transactions.
The message is clear. In a world of fast-moving risks, it’s time for every enterprise to apply leading-edge technology to modernize and expand its risk management. Together, EY and Microsoft are leading the way. “What we're doing with EY really is a success story. The program’s objectives are to raise awareness around spend management policies and see where we can tighten our controls. We've definitely met those goals, and we're very pleased with the relationship from a tooling, collaboration and partnership perspective. Microsoft always has super-high expectations – and EY is absolutely meeting them, and in some cases even exceeding them.” says Holly Younggren, Group Global Process Manager, Micosoft.