CLIENT PROJECT BUSINESS ANALYSIS

The implication of Brexit has brought considerable changes in the overall business scenario of the UK. Previously, there was a strong relationship between the UK and the EU countries, due to which the general business in this region is very fruitful for all companies. But with the application of Brexit, diverse kinds of restrictions have been applied to the firms, which increased the issues and challenges for the companies (Henökl, 2018; Nishimura and Sun, 2018; Wilson, 2019).

The Brexit referendum directly impacts the international drivers, especially the drivers for heavy goods. As a result of this scenario, the main issue was raised when the demand and supply of goods changed. At the same time, the difference in the fuel prices and the change in the tariffs for the companies has changed the overall scenario (Samitas, Polyzos and Siriopoulos, 2017).

It is a fact that as the issues in the business world increase, it also leads to bringing innovative solutions. As the automated end-to-end payment solution has been developed, it also increases the security capabilities for different financial areas. Fueling is one of the significant activities for drivers at all stages, which is why it is essential to determine whether the new fuel card system is beneficial or not.

This blog is developed to focus on the investigation of the Brexit referendum's impact on the international drivers which facilitates determining more information for the stakeholders of the AI corporations and its stakeholders so that they can make valuable, informed decisions in all aspects and the customer satisfaction level is high.

source: DASCHER logistic

CURRENT STATE ANALYSIS

Brexit, the choice of the UK to leave the European Union (EU), has, in a general sense, changed the law of the UK. There have been several studies about the established ramifications of choice and how the public authority looks to work with the exit. Legal and political critique has likewise centred around the job movement and the control of the United Kingdom's borders. However, it is important to investigate the impact of Brexit on international drivers.

As mentioned earlier, the Brexit referendum's implication has changed the overall scenario of business among the European countries. Many issues have emerged, among which fraudulent activities are critical points (Aristeidis and Elias, 2018). In the recent investigation, the implementation of the Brexit decision leads to several issues in which economic disturbance is very common. It is observed that the recent outbreak of the COVID-19 pandemic also has similar economic problems for businesses. For example, after Brexit, the international trade in the UK has decreased as the tariffs and trade restrictions are applied to the UK-based companies in the EU. Similarly, soon after COVID-19, due to severe lockdown in UK and EU regions, it is very difficult for the companies to conduct frequent trade. That is why the AI corporation must consider that the fraudulent activities are at their peak.

Changes After the Brexit

Several changes emerged after the Brexit for the HGV drivers. These changes have a direct impact on Heavy goods vehicles (HGV)/International Drivers.

• Brexit has led to a change in the fuel prices and taxes in the region, which increases the cost of the trip for heavy goods vehicles. Due to these issues, international drivers need to bear a superior cost level.

• Brexit also created the visa issue as the free travelling of the international drivers from the UK to the EU and from the EU to the UK has been restricted after the Brexit referendum.

• Fraudulent activities in financial institutions and hacker issues have increased, due to which international drivers need to be more focused on applying the restriction for the use of their fuel cards.

• The increase in the restrictions for international drivers directly impacts the business performance of these international drivers.

Table 1: Changes in Economic Indicators of the UK from 2006 to 2017

source: Office of National Statistic, UK

The Table above provides detailed information about the economic situation of the UK from 2006 to 2017. The data in this table were collected from the national statistics office in the UK to understand the economic situation that developed after Brexit. While investigating the GDP of the UK, it has increased from 1.92 trillion GBP to 1.95 trillion GBP. A slight change in the GDP led to an increase in the inflation rate up to 2.7% in 2017 after Brexit. The exchange rate of the UK currency also increased to 1.14 in 2017.

After Brexit, EU workers faced visa issues, leading to a slight unemployment drop in 2017. The most important indicator of imports and exports for international drivers has increased. The data highlights that import from Europe have grown to 341 million GBP, and exports to Europe were 274 GBP, which might bring new opportunities for international drivers. But here, it is essential to consider that the fraudulent activities also increased with the use of fuel which is why the AI corporation digitalizing fuel cards will be very effective.

An international passenger survey released according to the office of national statistics, UK (Office for National Statistics, 2022), shows that immigration into the UK by the EU citizen reduced drastically in 2016 after the Brexit referendum, and Emigration increased. The main reason for migration is work-related. The shortage of Heavy goods Vehicle drivers has been caused by a range of factors including a reliance on overseas labour with a lack of long-term investment in the UK domestic workforce (UK government, 2022). The chart below shows more statistical figures for EU citizens about the study:

Fig 1. Chart of estimate of Long-term international migration into and out of the UK June 2010 - March 2020.

source: Office of National Statistics,UK

Fuel Card Fraud in Europe

It is evident from the recent research that after Brexit, fuel card fraud has been increasing in Europe and all over the world. The results of Allied Market Research highlight that the size of the global fuel card market is 627 billion USD which is increasing at a rapid pace (Allied, 2020). Although the use of fuel cards is for more reliable transactions and easy transactions, the fraudulent actions have raised lots of questions.

It is evident from the research that the risk for fraudulent activities related to the fuel cards is changed every year. It leads to more financial threats to the international drivers, and sometimes it leads to up to 30% of the overall fleet cost. This vast demand affects the international drivers adversely, affecting the companies' supply chain.

Understanding the Gap

The significant gap that has been identified is that the travel requirements for the international drivers cannot be restricted to keep the high-efficiency level of the supply chain but whether this segment is ready for the change that has been merged from the Brexit. Although the import and export have been increased after the Brexit referendum they also increase the fraudulent activities. As the fuel card market value has been increased to 672.84 billion USD in 2019 and projected to increase by 1,210 billion USD. That is why the role of AI Corporation is very effective to facilitate fuel card digitalization. It also facilitates the real-time detection of fraudulent activities which facilitates the international drivers who are frequent in fueling their heavy vehicles. It also raised several questions related to the strategic implications of Brexit or the timing of Brexit because many of the researchers have emphasized that soon after Brexit, COVID-19 has brought more adverse kinds of situations.

Plan of Action

Firstly, it is important to recognize the issue of fraudulent activities in this area at the government level. The government must make the task force identify the fraudulent activities and make sure that these activities are not governed again.

The role of the AI corporation is to conduct research and development activities to identify the requirements to bring innovation in the digitalization of the fuel card. To reduce the chances of the fraudulent, it is essential to bring changes frequently.

SWOT Analysis

SWOT analysis is very effective to understand the AI corporation's ability to tackle the issue related the fuel card fraudulent activities. That is why the SWOT analysis is added to this project.

source: Created by Author

To better understand the current state analysis, it is essential to identify some of the business risks posed by the weakness and threat factors in the SWOT analysis of AI corporations.

In the case of the AI corporations, some of the risks the firm is exposed to include Operational risk, Compliance risk, Financial risk, and Reputational risks but are not limited to this. However, some of these risks must be mitigated, tolerated or exploited and monitored or reported to meet all the business goals that AI corporations set. The Risk Assessment Matrix, consequences and risk description are highlighted below:

source: created by author

Table of Business Risks to AI corporation and its Consequences as a result of Brexit Referendum

source: created by author

REVIEW OF LITERATURE

The implication of Brexit has witnessed several significant challenges in the business world. Considering the monetary impact, it is observed that due to Brexit, the economic issue increased, leading to fraudulent activities. Here, it is evident from the research that the policies of Brexit have a direct impact on the international drivers (Mcgrattan and Waddle, 2017; Shaw, Smith, and Scully, 2017). For example, the trade restriction for the UK trade with the EU countries also restricts the working of international drivers. At the same time, the international drivers are also facing issues regarding the use of intelligent financial technologies, which lead to lots of problems. Here it is essential to consider that every industry in the UK has faced issues with the application of Brexit, due to which it is important to make specific policies that facilitate the overall functionality of business in Brexit.

According to Ubillos and Camino-Beldarrain, (2021), the level of uncertainty has increased after Brexit. Many trade barriers have been imposed between the UK and the EU, which increase the rate of risk, the restriction, and several professional changes. That is why some supply chain problems have also emerged. Kee and Nicita (2017) that the export of goods has changed and affects the international drivers after Brexit. It is exceedingly difficult for the companies to follow the same pattern for the export of the goods to the European countries, which can cause lots of problems in the business transactions.

Fraudulent activities also increased after Brexit, due to which the international drivers are facing lots of problems. Several innovative technologies are also imposed to facilitate financial transactions like digital currency, e-commerce and mobile commerce. According to Obstfeld, (2016), the initial economic impact of Brexit is extremely high, which leads to lots of problems. The increase in fraudulent activities is due to the decline in the economic condition.

Hence, it is evident from the investigation that Brexit has brought lots of issues for international drivers and caused fraudulent activities in financial transactions. There are several kinds of restrictions imposed on international drivers that affect the new fuel card system. Most importantly, the huge financial and business impact has brought considerable changes for business and international drivers. It is observed that it affects the supply chain of the companies Samitas, Polyzos and Siriopoulos, (2017); Hall and Wójcik, (2018).

COMPARABLE CASE STUDIES

The application of the EazyFuel solution brings AI to the fuel payment, which uplifts the overall billing system and brings security for the fraudulent activities that increased after Brexit due to the increase in economic issues. It is considered the next-generation fuel payment system that detects fraudulent capabilities and facilitates fleets.

Many other technologies like Pay 360, SIEM and AI company, and Multi-Channel Fraud detection have the same facilitation, but the scope of the EazyFuel includes the strong values for the international drivers. That is why it is observed that most international drivers adopt the EazyFuel technologies to secure their transactions effectively.

The ATM Manufactures, Diebold Inc and Wincor Nixdorf AG are working strongly on ATM crimes. As the ATM skimming attacks are increased, that is why the sophistication level has been increased for the ATM cash-out scam. It also leads to relation the fraud activities of the two companies. Many banks are struggling to cope with the increasing ATM fraud. The major aim of this group is to develop the industrywide, technical standards for the secure ATM terminals along with the use of all other ATM components. The primary focus is on ATM hardware and software-related issues that are very common nowadays.

KEY GAPS, PRESSURE AND PAIN POINTS

The major gap that emerged after the discussion about the fraud management technologies and their application after Brexit is that still this system is new, and it needs to take some time for the 100% application. The economic impact of Brexit on the companies and the international drivers are remarkably high. As mentioned in the data above, imports and exports have decreased after Brexit, due to which the fleet trips by the international drivers have also decreased.

The major pressure is related to economic pressure, which can lead to change in the business world. After the application of Brexit, it is observed that many restrictions have been imposed on the trade that reduces fleet trips. At the same time, the fuel prices have also been increased, which might lead to reducing the fleet trip. Here it is important to consider that fraudulent activities are also increased with the rapid pace that also emerges the pressure for the application of the fraud management techniques. In that case, EazyFuel has gained considerable importance for all the stakeholders.

The major pain point is whether the system developed by the AI corporation is reliable or not. All international drivers can get access to EazyFuel and can reduce the chances of fraudulent activities. Here it is essential to consider that the fraudulent activities have brought new opportunities to apply innovative technology and get more solutions. The AI corporation is a notable example of the facilitation of international drivers.

References

Aristeidis, S. and Elias, K. (2018) 'Empirical analysis of market reactions to the UK's referendum results – How strong will Brexit be?', Journal of International Financial Markets, Institutions and Money, 53, pp. 263–286. doi:10.1016/j.intfin.2017.12.003.

Bilbao-Ubillos, J. and Camino-Beldarrain, V. (2021) 'Reconfiguring global value chains in a post-Brexit world: A technological interpretation', Technology in Society, 67, p. 101716. doi:10.1016/j.techsoc.2021.101716.

Hall, S. and Wójcik, D. (2018) '"Ground Zero" of Brexit: London as an international financial centre', Geoforum, (December 2017), pp. 0–1. doi:10.1016/j.geoforum.2018.02.002.

Henökl, T. (2018) 'How Brexit affects EU external action: The UK's legacy in European international cooperation', Futures, 97(May 2017), pp. 63–72. doi:10.1016/j.futures.2017.07.002.

Kee, H.L. and Nicita, A. (2017) 'Short-Term Impact of Brexit on the United Kingdom's Export of Goods', Development Research Group Trade and International Integration Team [Preprint], (September).

Mcgrattan, E.R. and Waddle, A. (2017) 'The Impact of Brexit on Foreign Investment and Production', Centre for Economic Performance, pp. 1–12. doi:10.3386/w23217.

Nishimura, Y. and Sun, B. (2018) 'The intraday volatility spillover index approach and an application in the Brexit vote', Journal of International Financial Markets, Institutions and Money, 55, pp. 241–253. doi:10.1016/j.intfin.2018.01.004.

Obstfeld, M. (2016) 'The Initial Economic Impact of Brexit: An Update to Early December 2016', Brookings Papers on Economic Activity, Fall 2016(December), pp. 359–366. doi:10.1353/eca.2016.0030.

Office for Budget Responsibility. 2022. Brexit analysis - Office for Budget Responsibility. [online] Available at: <https://obr.uk/forecasts-in-depth/the-economy-forecast/brexit-analysis/#assumptions> [Accessed 7 June 2022].

Ons.gov.uk. 2022. Provisional long-term international migration estimates (Discontinued after August 2020) - Office for National Statistics. [online] Available at: <https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/internationalmigration/datasets/migrationstatisticsquarterlyreportprovisionallongterminternationalmigrationltimestimates> [Accessed 7 June 2022].

Samitas, A., Polyzos, S. and Siriopoulos, C. (2017) 'Brexit and financial stability: An agent-based simulation', Economic Modelling, 69(January 2017), pp. 181–192. doi:10.1016/j.econmod.2017.09.019.

Shaw, D., Smith, C.M. and Scully, J. (2017) 'Why did Brexit happen? Using causal mapping to analyse secondary, longitudinal data, European Journal of Operational Research, 263(3), pp. 1019–1032. doi:10.1016/j.ejor.2017.05.051.

The ai Corporation. 2022. EazyFuel | Fraud Management Solutions | Fraud Prevention Services. [online] Available at: <https://www.aicorporation.com/products-services/eazyfuel/> [Accessed 10 June 2022].

Wilson, T.J. (2019) 'The impact of Brexit on the future of UK forensic science and technology, Forensic Science International, 302, p. 109870. doi:10.1016/j.forsciint.2019.06.028.