ROBOTICS PROCESS AUTOMATION Threat or Opportunity?

Transcription

1 ROBOTICS PROCESS AUTOMATION Threat or Opportunity? SEP, September 19, ExlService Holdings, Inc.

2 Robonomics and Trend Overview 2 Robots made cars, unloaded ships and assembled products but in today s enterprise digital age, software robots are augmenting/replacing physical labor Cost of Manual Operations ~ 30 % reduction due to outsourcing ~ % efficiency from BPA Breakthrough outcomes from RPA + Onshore operations + Cost Arbitrage + Labor Arbitrage + Business Process Automation + Robotics Process automation + New business-models AA & RPA as a disruptive trend could displace ~40% of knowledge workers by 2018 More hype than real capabilities and depth with providers as of Q1, % (CAGR) of Robotics between 2014 to 2020 to reach US $ 4.98 Bn Clients are now actively exploring Robotics as a sourcing strategy lever and seeking pilots 2 September 19, ExlService Holdings, Inc. Source: TMR Analysis - March 2015

3 Automation, Robotics & AI emerging as disrupting trend in marketplace Automation and Robotics is growing rapidly 1/3 rd jobs will be replaced by software, robots, and smart machines by 2025 Gartner 45 % of work activities could be automated using already demonstrated technology McKinsey RPA* adoption in BPM growing at CAGR of 100+% Everest and transform the value proposition of the BPM industry RPA* could save companies 20 to 40 % in labor costs IRPA The potential business benefits of artificial intelligence technologies are much broader than the cost Savings Deloitte Automation radically transforms operations, delivering much lower costs while improving service quality, increasing compliance and decreasing delivery times HBR investment recovery period as short as 6-9 months; and, a generally noninvasive, easy-to-manage nature NASSCOM-Everest 3 September 19, ExlService Holdings, Inc. * known as Advanced Automation & Robotics in EXL

4 We recognize the impact for Clients and BPM Providers, our PoV is > Exploring alternatives in the market place + Evaluating Advanced Automation, Robotics and Artificial Intelligence for onshore processes + Seeding Advanced Automation in outsourced operations leveraging Robotics and Cognition + Advanced Automation as an interim approach to Legacy Platform modernization > Seeking Advanced Automation Consulting from their BPM and other providers Clients > Attracted to a risk-sharing and outcome based engagement > Reimagined Digital Operations to achieve accelerated time-to-value, enhanced customer experience and drive intelligent Business processes > Increasing share of Automation led Revenue (10-20% to 40-60%) > Accelerated solution delivery for faster value realization BPM Providers > Transformational lever for business operations + Adjacent Human and BOT queues + BOT: Repetitive, High-scale, Cognition + Human: Exceptions, Hyper-specialization; driving up Offshore Value Chain 4 September 19, ExlService Holdings, Inc.

5 to enable Breakthrough Outcomes for our Clients > Bottom-line impact through new commercial engagement models (Outcome Based Pricing, Transaction Based Pricing, Gain Share) > Top-line impact driven by reduced business process cycle time, enabling Clients to handle increased transaction volumes > Enhanced Customer centricity through Advanced Technologies (Mobility, AI, Machine Learning, NLP, NLG) and Customer experience through unattended automation > Reduce risk of failure in adopting new technology by seeding in outsourced operations and transferring risk to BPM providers > Rapid process transformation without prohibitive upfront investment in legacy Technology modernization > Breakthrough outcomes in traditional process performance matrices : operating cost, accuracy, quality and compliance adherence 5 September 19, ExlService Holdings, Inc.

6 Key Drivers for Advanced Automation 6 Strategic: Competitive Business Performance Advantage Enabling Accelerated Growth Improved Customer Loyalty Economic: Reduced Cost of Operations Outcomes based Pricing Model Re-assign Experienced Resources to Higher Value Activities Operational: Efficient and Effective Operations Reduced Risk of Skill and Knowledge Loss Improved Accuracy and Reduced Risks of Errors 6 September 19, ExlService Holdings, Inc.

7 Case Studies 7 September 19, ExlService Holdings, Inc.

8 View of Robotics and Automation in Healthcare 8 The healthcare industry has a tremendous need for automation and the success of customers in the industry has been the driving force for innovation. Healthcare is process intensive it is challenged by consolidation and needs to adjust quickly to demand for healthcare services As it s constantly growing and expanding, extremely dependent on technology, they are highly regulated, demanding privacy and data security issues where information sharing and transmitting is critical Consolidations have created a need for merging, sharing, and storing medical data among facilities that was originally created using incompatible systems Health insurance plans are continuously seeking ways to grow revenue by becoming more consumer focused and rapidly bringing new products to market, while at the same time driving down costs and improving service through improved IT and process efficiencies Source: Network Automation Inc. August 25, EXL Confidential 8 September 19, ExlService Holdings, Inc.

9 Benefits of RPA in Healthcare 9 In healthcare, claims processing consumes a significant amount of time, effort and manpower across markets worldwide. With a centralized, enterprise-wide rule-based process oriented system already established, RPA can: Help significantly drive down operational costs Improve accuracy and turnaround time Enhance end customer experience Significantly lower the possibility of claim frauds and litigation Areas where RPA can offer benefit going forward in Healthcare industry and specific functional areas Enrolling and billing services 20% 37% 50% Claims coding and processing 28% 34% 41% Overpayment recovery services 11% 22% 39% Fraud and abuse services 11% 28% 39% Medical management 20% 29% 40% Member / provider customer support 17% 30% 47% From 1 year ago Expected 1-2 years Expected in 5-7 years Source: Mindfields - Robotic Process Automation August 25, EXL Confidential 9 September 19, ExlService Holdings, Inc.

10 Case Study Healthcare GROUP HEALTHCARE INSURANCE ELIGIBILITY SERVICES ENROLLMENT, BENEFIT AND COVERAGES Background EXL processes Group insurance enrollments along with amendment requests. Depending on benefits and coverage, premium is decided for each member to be enrolled. Challenges Each enrollment takes approx. 20 mins Each benefits / coverage change takes 8-10 mins Peak season volume variation becomes bottleneck for on-time clearance Solution Functionalities Auto extraction and data update in Client system Automated rules based decision making State wise exceptional applied automatically Flagging for any special instructions Benefits 30% faster turnaround of member requests Increases productivity by 1.5 times* Enhanced customer satisfaction Faster turnaround of Member requests 30% Productivity increase 1.5 x Solution: BenEligibilityBOT extracts data from member s service request, checks for the eligibility in client s mainframe and updates member account for eligible benefits EXL Solution EXL s BenEligibility ADVANCED AUTOMATION Partner Solution * Restricted by client s systems availability, productivity could be enhanced further 10 September 19, ExlService Holdings, Inc.

11 EXL s AA and RPA: Nomenclature and Definition 11 EXL s Advanced Automation (AA) combination of BPA and RPA, providing break-through outcomes Business Process Automation BPA Human FTEs, working on optimized processes and automated systems, targeting efficiency > work productivity focus > improve efficiency by identifying/diagnosing process inefficiencies and fixing them by restructuring processes and by automating process-steps > emphasis on aiding FTEs in their decision making through business-rules and packaged analytics > focus is on creating relevant tools and wrappers wherever possible > time-to-implement and time-to-value is higher because it requires complex development/integration > still results in human FTEs with improved processes and systems and doesn t solve for 24 X 7 operations Robotic Process Automation RPA Virtual FTEs, working round the clock on highly standard and repetitive processes > worker elimination focus > Break-through outcomes by identifying routine and repetitive human activities within a process or processstep that is replaced with virtual FTE > emphasis on automated decision making by deriving common (progressively complex) decision making patterns > focus is on technology agnostic RPA implementations are, works on broad tool-kits, menus, parameters > time-to-value is faster because RPA works mostly nonintrusively, doesn t require complex integration > Cost of operations are lower due to manual work elimination,, 24 X 7 and tireless operations by robots 11 September 19, ExlService Holdings, Inc.

12 EXL s Advanced Automation & Robotics provides Transformational outcomes in Outsourced Operations Management and beyond Reimagining business processes and customer journey through design-thinking approach Transforming business processes embedding Advanced Automation and Cognitive solutions Transformational Solutions 12 September 19, ExlService Holdings, Inc.