The best things come in pairs. In part two of this week’s 5-part series – centered on the Sherlock Holmes stories of Sir Arthur Conan Doyle – Tom talks about the innovative use of the digital twin concept. This model enables compliance professionals to test and predict a wide array of issues in order to beef up prevention efforts and better understand critical risk points.
- Today’s episode is inspired by Alice Bonasio’s article entitled “Sherlock Holmes was the original technology disrupter” where she uses the story of The Blue Carbuncle to discuss how Holmes’ forensic approach has much in common with contemporary data analytics practices and use cases. Starting off, Tom gives us a quick recap of The Blue Carbuncle.
- Using Holmes analysis of Henry Baker’s hat, we can dive into a recently published article by Vincent M. Walden, a partner at Ernst & Young (EY), entitled “Profit & Loss-of-One”. In this article, Walden describes using the digital twin concept while working with GE’s compliance function.
- In short, a digital twin is a digital replica of a physical asset which can be used for many different functions such as operations and stress testing. This kind of digital testing can help predict breakdowns or malfunctions in advance.
- Vince’s team at Ernst & Young took the digital twin concept and implemented specifically within the compliance arena. They used data on a wide range of identified corruption risks and targeted employees to better model and predict risk, all the way down to an individual level. They then used this insight to tailor communications to specific individuals who were likely to encounter imminent or recurring risk.
- The Profit & Loss-of-One model provided 3 key compliance innovations for GE’s function.
- On-going communication and training: GE compliance was able to deliver to its customers “customized, timely and easily consumable information” and also developed a communications feedback loop in order to gain insight into the coms/training preferences of internal employees.
- Behavioral insights: Through this feedback loop, GE compliance could then gather data on the behaviors of employees when presented with different kinds of messages or confronting certain risks.
- AIR messaging: When delivering messages to targeted employees, GE ensures that these messages are Automated (to drive efficiency), Intriguing (to enhance engagement) and Relevant (to ensure accuracy).
- Vince Walden concludes his article by stating, “The compliance vision of the future seeks to further move compliance towards a more proactive, advocacy role, which helps organizations by providing needed communications, trainings and responses in an automated, intriguing and relevant fashion. This is the compliance vision of the future and what the authors call the P&L-of-One.”
Sherlock Holmes was the original technology disrupter by Alice Bonasio
Profit & Loss-of-One by Vince Walden
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