Enabling Digital Transformation using Smart Process Automation

Transcription

1 Enabling Digital Transformation using Smart Process Automation Webinar on Top of Mind Topics May 23, 2017 John Petronzi

2 Enabling Digital Transformation using Smart Process Automation Introduction John Petronzi joined Silver Tree in 2016 to develop and lead their Smart Process Automation practice. He is an executive with extensive experience in successfully managing technology businesses, developing business value propositions for global fortune 1000 corporations and leading teams of diverse business technology professionals to achieving challenging goals. John assists clients in executing their digital transformation strategies and automating their business processes and technology services operations. Monty Morée joined Silver Tree in late 2016 to drive business engagement and help guide the development of Silver Tree s consulting practice capabilities. He brings over 30 years of impactful organizational leadership and major program implementation experience at Fortune 500 companies, including Exxon Chemical, Nortel, and NetApp. He has ideated and driven technology solutions across most business functions and is passionate about driving business transformations. Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 2

3 Disrupt or be Disrupted!

4 40% of Top 10 Incumbents in Each Industry Will Be Displaced Existential Crisis 1 Digital Transformation is the main driver of business disruption 2 Companies often fail to recognize disruptive threats until it s too late and, even if they do, fail to act boldly enough The right actions to take depend on whether disruption is detectable, clear, inevitable, or the new normal 1 Global Center for Digital Business Transformation, McKinsey Quarterly article An Incumbents Guide to Digital Disruption May 2016 Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 4

5 The Case for Digital Transformation is Compelling Companies that are Digital Masters Banks who invest heavily in advanced analytics Companies with effective end to end process management Companies with stronger transformation management intensity 9% more revenue growth 23% more profit 1 Outperform the S&P 500 by an average of 64% 2 Grow 42 % faster 28% more efficient 3 26% more profitable 12% higher market valuations 4 1 Leading Digital ; Harvard Business Review Press Accenture Enterprise Analytics for Banks CEB Operations Council Process Ownership Survey The Digital Advantage: How digital leaders outperform their peers in every industry, Cap Gemini MIT Sloan 2011 Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 5

6 And The Paradigm is Shifting Digital disruption is driving significant change The status quo is not safe 40% of traditional businesses will be disrupted by the arrival of new competitors with lower cost or revolutionary operating models - Uber, ABnB, Amazon, Changing / evolving your operating model to survive is an imperative Customer Journey Design/ Execution is the new battleground Operating models are being redesigned/re-imagined Analytics is driving operational effectiveness Skilled labor (experts) are becoming increasingly scarce Process automation lowers operating costs & improves quality Smart Process Automation is maturing Customers are more demanding, better informed and expect a full omni-channel experience - redesigning your processes for the client experience is critical to surviving and out-competing Artificial intelligence, robots, cognitive computing & decision-making, and digital technology are fundamentally changing the way work is done Data analytics about operational effectiveness with timely insight is now used by many organizations to improve their business Applying digital labor to operational functions mitigates this risk and frees the best and brightest to bring more value to the enterprise Digital labor reduces the cost of a traditional employee by 40% to 60%, and can work longer with fewer errors Not just Hype - but a critical success factor to enhance and ensure Digital Transformation Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 6

7 Look at All Four Dimensions to Successfully Transform People Technology Governance Processes Information Pools A successful Digital Transformation relies on: Technology solutions Analyzing enormous data pools Enablement of businessenhancing process re-designs A fundamental workforce re-orchestration Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 7

8 What is Smart Process Automation? Intelligent Automation Autonomics Robotic Process Automation Artificial Intelligence Automated Process Discovery Cognition (Deep) Machine Learning Digital Labor Smart Process Automation (SPA) is the use of technology & software bots to automate work traditionally done by humans SPA describes the continuum of technologies used to automate business processes & operations Paradigm is shifting... People following processes supported by technology Technology following processes supported by people Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 8

9 The Technology Landscape Automation tools available today are not all equal Use-Case Suitability for General-Purpose Automation Tools... RPA to Cognitive IT Operations Management DevOps Back Office Front Office Agent Assist or Replacement Specific-Purpose Automation Tools P&C Insurance Claims Management Healthcare Administration Banking Functions Data Extraction Social Media Data Aggregation Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 9

10 Some examples... SwissRe 1 Telefonica Global Retail Bank Tech. Svcs. Everyday Bank 2 Situation Consumers want to access insurance products in a fast and straightforward manner Low-performing back offices w/ high costs, poor service levels and flexibility, and risk of non-compliance High operational cost for IT infrastructure ($130M/yr.) Hypothetical model of US banks in the future Approach Automated underwriting to guide the consumer through the underwriting process Automated 15 core processes w/ Blue Prism, implementing >160 robots & K transactions/mo. Automated processes w/ Arago s Hiro cognitive computing software Automate Back, Front & Middle offices; intimate customer engagement Results Reduced the number of referrals to an underwriter & provided strategic competitive information Lowered costs w/ % 3-yr. ROI, achieved service excellence & reached high compliance Reduced annual operating costs by 46% to $69M/yr. Potential to increase operating income up to 30% & reduce back-office effort 80%, time to market 70% 1 Top 10 Latest Insurtech Trends By Angela Scott-Briggs 2 Digital Banking: Stretch the boundaries to the Everyday Bank, Accenture (July 2015) Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 10

11 Let s discuss What happens to the humans? 2. Why do we need automation-centric Centers of Excellence and Governance? 3. Are we considering all the benefits when we build the business case? Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 11

12 What happens to the humans?

13 Automation Impact on Low-skilled Jobs Indian IT to shed half a million jobs by 2021; reskilling, automation only way forward. Phil Fersht, HfS (February 15, 2017) Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 13

14 Impact on the Human Workforce Anecdotes of jobs lost to automation Everest estimates that 80% of offshore IT jobs + 30%-40% of India F&A jobs will be lost over next 10 years Infosys releases 9,000 workers last year Wipro targets 4,500 by the end of 2017 Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 14

15 The Challenge for Leaders Workforce Orchestration As more and more robots and other cognitive technologies work side by side with a human labor force, leaders are increasingly challenged to integrate and make the most of both kinds of labor Robotic Automation Cognitive Automation Workforce evolution and orchestration becomes a critical success factor Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 15

16 Future Workforces 2017 Future workforce profiles The Leveraged Professional o Lower skilled, knowledge augmented (e.g. paralegal) The Connected Worker o Relevant, automatic knowledge access Working at the Speed of Thought o Scaling to meet peaks The Digital Worker o Replacing staff performing routine tasks Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 16

17 Why do we need automation-centric Centers of Excellence and Governance?

18 Automation Center of Excellence A KPMG Point of View Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 18

19 Automation Centric Center of Excellence A Simpler Silver Tree Point of View Automation Business Management Coordinates and oversees all business related aspects of process automation in the enterprise Oversight Ops Performance Data Integrity Knowledge Repository Risk & Compliance Automation Technical Architecture Automation Process Expertise Standards Tools Integration Tech Performance Oversees selection, deployment and performance of the automation tools portfolio Coordinates and oversees the configuration and deployment of automated processes to meet business objectives Configuration / Testing Documentation Workforce Orchestration Automation Opportunities Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 19

20 Process Automation Governance Stakeholder Communications Decision-making Policy Strategy Business Case Integrity Plan Program Management Deployment Roadmap Workforce Orchestration Capabilities Portfolio Improve Deploy COE Operational Reporting Metrics Assessment Issues Management Process & Data Quality Process Re-Engineering Innovation Operate Risk and Compliance Security Change Management Supplier Management Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 20

21 Are we considering all the benefits when we build the business case?

22 Expected Business Case Impacts Year 1: Immediate savings Year 2: Benefits stabilize and grow Years 3-5: Continuous improvement thru re-engineering & data quality initiatives Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 22

23 The Business Case for SPA Revenue Risk Cost Reduction Digital Labor typically reduces the cost of the cost of human labor 40% to 60% No cost associated with attrition, benefits, paid leave, facilities, technology systems and support Minimal training expense Automating and scaling quote, proposal, order and booking processes leads to faster access to revenue and cash, and fewer lost sales Quality Consistent quality and accuracy lead to faster cycle times with less re-work, and better, more timely compliance performance Insights Richer, consistent metrics and visibility to operational processes facilitate insights leading to continuous improvement and process redesign Reduction of human involvement in process execution removes some risk mitigation costs and makes risk associated with process execution more predictable Change Management is more reliable without human bias and cultural considerations Skilled Resources Using Digital Labor for 60% to 80% of process execution frees the most skilled operations experts for other functions Customer Journey Consistently performing, highly scalable operations can be designed to drive improvements in customer experience and eliminate or mitigate seams in unintegrated operational support systems Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 23

24 Concluding Remarks

25 Quality Research There is a lot of research and many opinions available from multiple credible sources we help our clients apply the knowledge these sources share to their unique business challenges and goals Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 25

26 Smart Process Automation at Silver Tree The path to value is surprisingly short! Consensus / Initial Focus Phase ~3-4 weeks Getting started with alignment and clarity of purpose Pilot / Learnings Phase ~3-4 months Demonstrating value, feasibility, and challenges Six months Realize sustainable benefits using early wins (from parallel, business-led deployments) to fund future waves of automation deployments Defining the Path Forward Phase ~2-3 months Deployment Wave 1 Process Areas A, B, C ~3-6 months Defining the enterprise roadmap and oversight plan Early wins fund future waves staggered and in parallel Wave 2 Wave 3 Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 26

27 Enabling SPA in your Enterprise Leveraging Silver Tree Services End-to-End Smart Process Automation Assessment & planning Process design Tool selection Establishing COE & governance Deployment roadmaps Knowledge transfer / competency center ramp People Training Change Management Process Center of Excellence Governance Technology Architecture Tools Information Analytics Enterprise Content Management Lean Project Mgt. Competency Center Performance Mgt. Sourcing/ Contracts CyberSecurity Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 27

28 Summary We talked about... Disruption is coming be prepared! Digital Transformation is the way most enterprises are preparing Smart Process Automation is a valuable tactic to use The path to value is surprisingly short No one tool does it all Don t forget to deal with the human factors or the governance or the business case Look at all aspects of change to be successful for the long-term Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 28

29 SPA in Context of Full Silver Tree Capabilities Silver Tree Services, LLC - Proprietary and Confidential 5/23/17 29

30 Questions?

31 Thank You