Building a culture of innovation through automation

Transcription

1 Building a culture of innovation through automation Niek Claassen Architect Standard Bank Intelligent Automation COE 5 March 2018

2 Overcoming the obstacles holding you back from installing smart automation technology solutions Business buy in The initial sceptics, in terms of real value Is it viable? ROI? What is the cost? How does this effect our current operations? Architectural positioning How will this align to our strategic initiatives, Where will this be utilised, What will this impact the performance of existing system Which RPA product to use? Environments What is the infrastructure requirements for this? How to achieve high availability, resilience How to scale the solution Business Continuity and Disaster Recovery Security How is the bot or automation secured? What if the bot is penetrated? How does the bot handle segregation of duties? Culture Do we have the skills in the organization to do this? What will my role be going forward? How is my role as manager affected? How do I manage virtual employees? What soft skills? Risk & Compliance Skills What new risks will the bot introduce? Is there regulatory and compliance that we need to adhere in the financial industry? Can someone learn the bot to conduct fraudulent or malicious activities Skills shortage, Common Language Data Establish a common Language Data quality can affect automation rates

3 Making others follow By not delaying, start the journey Other can not follow if you are not taking the initiative to lead, Start small, Take a viable portion of a business process where the process is stable and highly repetitive or take portion of the process where there is a key man dependency and there is risk There is several RPA / Intelligent Platform that offer free entry level capabilities which offer enough functionality to show the value to get the buy in Do not build sky scrapers on shifting sand dunes Get it to production and run it as a pilot, record the results and the metrics By Select the right platform Understand what capability exist in the organization already, do not duplicate if possible when selecting a platform, Look at reference material in terms of where different RPA / IA platforms are positioned and decide where your enterprise need is. Pure RPA, AI, OCR, Workflow, Exception Management, Chatbots Understand the licensing model of the different vendors upfront, Understand the product and support network Use case candidate POC RFI, RFP Architecture Security SIT Environment Risk & Compliance Pilot Development, Build Testing Production Maintain & Monitor Frame works & Methods Standards Guard Rails Centre Of Excellence

4 IA & RPA Capabilities

5 IA & RPA Capabilities

6 IA & RPA Capabilities

7 IA & RPA Capabilities

8 Making others follow By Establish a Centre of Excellence Define or adopt a framework or methodology, How to identify automation candidates, Leverage existing material which highlights where potential sweet spots for industry are. How to document the requirements Epics, Features, Story Key stroke documents Define the Architecture, Conceptual & Physical Principles and Guard Rails, Define the Patterns, Security, Integration, Reporting and Metrics, Machine Learning, Monitoring Scaling and Resilience Define the Key Enablers Define the Design templates Define the standards, Adopt an Agile or SAFe approach, Define Metrics and reporting Define a costing model, Incubation Model to accelerate adoption

9 Making others follow By thinking of Security upfront Work with the security architects and security officers, Define the right security controls and policies upfront such that other can follow, Think of credential management up front, Think of potential threats and virus lists By engaging with Risk and Compliance early Engage with the Risk Officers to highlight the processes and system on which RPA / Intelligent Automation is planned. Explain or define what controls has been added, removed or enhanced due to the fact that an automation is applied in the space External pressures More digital companies and Fin-techs is moving into the financial industry Large Enterprises under more pressure to compete with the likes of Google, Amazon, which offers exponential growth to shareholders, Large pressure to contain cost and improve profit margins Customer is starting to expect a seamless digital experience Customer is frustrated with anything less than a digital 24 by 7 experience Newer generation will expect digital and social platform interaction as the norm

10 Making others follow By having an effective Communication plan Be transparent and communicate effectively By offering Low cost entry into capability, a shared core team to provide support, Defined architecture Implementation partners Reusable capabilities or assets, a framework to adopt, a predefined model to support in operational are a roadmap and strategy a maturity model, Operational and maintenance model By Training, upskilling re-focusing

11 Creating a culture for innovation RPA / Automation Momentum After a few small automations all of a sudden new opportunities appear up or down stream from the automation, the upfront costs is starting to pay itself off the cadence of delivery through an agile and SAFe approach becomes more frequent and predictable rhythm is achieved and entry threshold drops The technology matures and power users within business start to adapt by reskilling and refocusing themselves Machine learning candidates are identified to improve Straight Through Processing rates, The combination of existing integration services in conjunction with RPA scenarios appear,

12 Creating a culture for innovation Channel Different channels (Web, Branch, Mobile) consume existing RPA automations via services (REST / SOAP), Chatbots creates a new channel of interaction, Chatbot starts consuming RPA automations, providing near real time digital experience Process Bots start consuming existing BPM or workflow process to help with manual tasks. BPM process start consuming RPA / automation processes New technical orchestrations becomes possible as automations to third party web application and cloud systems with legacy backend systems, By utilising analytics and machine learning certain insights can now be actioned on legacy systems Business After automation business re-focus on more value adding processes, As business users gets more exposure they start upskilling themselves in RPA and power users start to emerge, The business users start creating their own automation through recorder, New partnerships are created third party providers which previously was not possible, The third party ranges from fintech companies or new cloud start-up companies Line of Business The technical skills shortage in legacy applications can now be overcome, Legacy systems can now be automated, these can be BPM process start consuming RPA / automation processes New technical orchestrations becomes possible, Data New options start appearing for data remediation, Data migration from legacy systems, does not have to be big bang or large systems integrations.

13 Getting operations, developers, customers and every one in between to align It requires an holistic top down and bottom up approach, Requires multi disciplinary teams with the right stakeholder representation, It requires active socialization and collaboration with larger partners or business areas within the enterprise or group It requires an understanding the boundaries or mandate within which RPA / IA operate, It requires continuous alignment with strategic IT programmes and architectures, It requires operational managers embrace and adjust to manage, monitor and report on metrics of normal staff working in conjunction automation or bots It requires managers and staff to continuously refocus on more value adding work It require existing workers to get over the fear of the unknown and embrace the new opportunities

14 Eliminating the pain of business and to put the customer front of mind Difficult to digitise core business processes if large portion of the process in the back remains manual By automating existing manual processes the customer receives faster service, and the cost of the service becomes less or is contained, By automating the process is more standardised, which in many cases today varies based on humans adopting standard operating procedures, By automating there is potential to expose this service to more channels and to extend the service to 24 / 7 depending on the underlying application, By automating there is a potential to reduce risk, by picking up suspicious activities quicker across multiple systems, By automating regulatory reporting, this can potentially help to reduce fines, By introducing Chatbots one can provide a more interactive engagement, reduce existing Call Centre volumes, provide quicker response times, reduce drop offs in the processes due to complex websites and handoffs from call agents to different business areas.

15 Eliminating the pain of business and to put the customer front of mind Banking Automation Origination Servicing the Customer Fraud Compliance Verifications of information Automated Document Classification and Ingestion Statement Requests, Banking Confirmation, Debit or Credit transaction queries Credits Outstanding Investigation, Information gathering Sanctions, Anti Money Laundering Collections Cash Payments Data Remediation Sett offs, Refunds Reporting Reconciliations Finance Processing, Exception, HR Data Clean up, Data enrichment, Information gathering Information gathering and retrieval, Report generation and distribution Reconciliations, Suspense Accounts Employment Confirmation, Staff onboarding

16 Eliminating the pain of business and to put the customer front of mind Insurance Claims Servicing the Customer Policy Reinsurance Registration, Claim investigations, Verify cover, Verify policy active, Settlement processing, Recoveries, Salvage Policy Maintenance requests, Proof of insurance letter requests, Policy Renewals, Retrieving Claims history, Gathering information Premium Collection Premium Arrears, Reconciliations Reporting Cash Settlements Data Remediation Finance Small claim processing, Exception, HR Data Clean up, Data enrichment, Information gathering Information gathering and retrieval, Report generation and distribution Reconciliations Employment Confirmation, Staff onboarding

17 Lets look at a scenarios Company Unknown if is looking to digitise their existing business, they have identified key strategic programmes or initiatives to achieve this. They are a large financial company which has been in the industry for many years, and build up a lot of legacy systems over time. There is an existing initiative that is underway replacing some of the existing line of business systems and product systems. The company has already invested in multiple channels but currently has currently has inconsistent enablement of self service capability across the channels and products due to the age of the different underlying systems and the lack of automation and integration across the different systems. The key strategic themes or drivers that company has indicated it will be looking into: Improving Customer experience, Digitization, Adopt Cloud, API economy, Innovation through Machine Learning, Robotic Process Automation, Block Chain and Fintech start-ups, Drive resilience, Reduce cost Currently there is still a significant amount of service request volumes that is currently still received at physical branches,call centres, s. The service requests currently require consultants and operational shared service areas to claim items from various existing Workflow or BPM system as well queues and incoming calls received within the call centre. The business has decided to partner with a cloud vendor for a trial period, this would allow a new revenue stream for them, somewhere within origination process of one of legacy their products, some of the information needs to be integrated between the two systems, the underlying legacy system has limited integration capability and the current plan from the business was to have their consultants swivel chair between the two solutions and recapture some of the data onto their existing legacy system X. The process has not yet been well defined, the business has requested IT to assist but there currently is no capacity within one of the existing teams to build a tactical integration for this. The business also indicated that it is facing regulatory fines as it has different versions of customer information across two systems, System Y is the master of the customer information and System Z is currently manually updated by a back office team. The team receives a report on a weekly basis that indicates key fields which is out of date on Z, the team then updates the information on Z, there is a limited set of 12 fields that is remediated, the process is well defined, the user reads the updated values on the report, searches for the customer profile on system Z and updates the values. System Z is one of the systems that has been identified for containment or decommissioning over a 2 year period.

18 Lets look at a scenarios The business had identified a key bottleneck in the verification part of an payment or settlement process. A large portion of the total amount of settlements is small amounts. A portion of this process is send to the back office, which receives these request in different ways, s, reports and on existing workflow system, the consultant actions each item on the report and needs to verify the beneficiary details on System Y, and has to look if there has been prior payments for the same settlement previously. Once this is completed the capturing and processing of the payment is standard. The volumes is high and it is an extremely time sensitive process, the business wants to improve its customer experience and this as a key opportunity to do so. There has been some suspicious activity in this process in the past, a well defined process has been defined with the necessary segregation and control points put in place to ensure compliance.