SALT: Intelligent automation

Transcription

1 SALT: Intelligent automation

2 Agenda Overview of RPA/digital labor Evolution and business implications of modern digital labor Digital labor automation spectrum Indirect tax examples Benefits and themes of RPA Solution market demands Alteryx overview and indirect tax business cases Excel applications for automation Summary and questions 2

3 Machine intelligence + human intelligence + robotics Call it what you want Digital labor is no longer a consideration, it s a mandate It is no longer a question of IF, but when, and where, and how, and how fast? 3

4 Part of a new industrial revolution? 1800s 1900s 1960s Today Steam, water, mechanical production equipment Division of labor, electricity, mass production The Information Age Electronics, IT, Mass Communication, Internet AI, nanotech, biotech, cyber-physical systems, digital labor The 4 th industrial revolution (cyber-physical systems) is beginning and its impact is profound according to the World Economic Forum founder, Klaus Schwab 4

5 Business implications of digital labor Cost efficiency Estimates suggest that a software robot is approximately 1/3 of the cost of an offshore FTE. Digital labor savings are estimated to be between three and ten times the cost of implementing the automation Productivity/performance Software robots work 24/7, and 365 days a year; do not take vacations; and perform tasks at digital speeds Consistency/predictability Expected reduction in mistakes, accidents, regulatory violations and fraud Quality/reliability Software do what you tell them to do when properly configured they do not make mistakes and thereby eliminate human error Employee satisfaction and innovation Eliminating mundane and repetitive tasks frees up human talent to innovate and create Scalability Software robots scale instantaneously at digital speeds to respond to fluctuating workloads. There is also no overtime, no hiring challenges and no training. 5

6 Digital labor is a spectrum of automation Digital Labor Robotic Process Automation (RPA) Cognitive automation Rules Learning Reasoning Automation based on documented process rules Recognize patterns from unstructured data; automation based on accuracy ratings Hypothesis based reasoning; automation based on confidence ratings Macro Based Rules Engine Unstructured Data Natural Language Processing Knowledge Base Adaptive Alteration Macro Based Rules Engine Unstructured Data Natural Language Processing Knowledge Base Adaptive Alteration Macro Based Rules Engine Unstructured Data Natural Language Processing Knowledge Base Adaptive Alteration Workflow Predictive Analytics Machine Learning Reasoning Large Processing Big Data Analytics Workflow Predictive Analytics Machine Learning Reasoning Large Processing Big Data Analytics Workflow Predictive Analytics Machine Learning Reasoning Large Processing Big Data Analytics 6

7 Process automation (Bots) Enables employees to devote more of their time to creative, high-value work that increases company agility. Enables organization to eliminate mundane manual tasks Leverage more data in more ways [ Class 3 ] [ Class 2 ] [ Class 1 ] Cognitive automation 03 Enhanced process automation 01 Basic process automation 02 Processing of unstructured data and base knowledge Large-scale Processing Adaptive Alteration Machine Learning Natural Language Processing Artificial Intelligence Big Data Analytics Rules Engine Screen Scraping Work Flow 7

8 More than bots! Robotics Generate s for info requests Pull raw apportionment data from ERP systems Import into tax software Data Reconcile between ledger totals and raw apportionment data Format property, payroll, sales raw data for load into tax workpapers or tax software State apportionment Visualizations Significant apportionment factor changes year over year New state filings State ETR analysis Humans Review for reconciling differences and large swings State planning Ongoing process improvements 8

9 Robotics indirect tax examples Data extraction automation Facilitate the data manipulation scripts to generate output files for review, archive them and send for approval. Import processes into compliance software Automate any manual processes Facilitate the data manipulation scripts to generate audit ready files and archived Manage exemption certificate processes Many more 9

10 Robotic process automation RPA benefits: Provides significant cost savings Results in higher quality of data Increases efficiency, speed, responsiveness and productivity Rules based Increases control over processes and data Improved employee morale reduce mundane and repetitive tasks freeing up employees to contribute in more innovative way High volume RPA criteria Transactional Repeatable Structured data 10

11 Bot themes Automatic uploads Reporting Extensions System updates PDF functionality Store files for Audit Schedules Federal no tax due extensions Extraction Write from Excel to PDF Organize legacy data Downtime State extensions Verification Rename PDF s Reduce inaccuracies Multiple systems Printing form/create XML PDF Password Protect Modify document char. Central control efiling extensions PDF Portfolio Simple or Complex 11

12 Process automation solution market demands Minimize risk Eliminate repetitive tasks Enable tax team to work on more strategic value adding activities Minimize time spent on manipulating data Speed up compliance processing cycles 12

13 Alteryx What is it? A software platform developed to handle a large number of data and analytical needs. Many tax uses include data extraction, transformation and preparation, and loading. Where to use it? On any process(es) that could benefit from: Scalable and repeatable data processes (repetitive calculations or functions in Excel quarter after quarter/each year/ multiple versions) Auditability (unlike Excel, you know exactly what has been done with the data at every step and you never actually modify the original data file) Efficiency (significant data manipulation of data such as combining many or extremely large files especially if teams are experiencing frequent Excel crashes) Example tax use cases: Trial balances K1 comparison Depreciation schedules Advanced modeling FX conversion Sales and use tax Individual FBAR reports Example general use cases: Merging and comparing datasets Transforming data formats Combining multiple files Advanced analytic applications 13

14 Tools to automate data processes Alteryx Cleanse and join data from different sources More tools to build and publish analytic models Build data analysis logic Compare/Reconcile data sources #1 VBFA_INPUT_FILE.CSV #2 NEW VBFA FILE 2 #3 VBFA_INPUT_FILE.CSV NEW VBFA FILE 2 #4 NEW VBFA FILE 3 14

15 Alteryx indirect data scripts examples Reconciling data from two different systems Merge and transform data from multiple systems for compliance purposes Merge and transform data from multiple systems to build a robust data structure for analysis Building logic and formulas to complete data analysis and provide exception reporting VAT netting process Complete do it yourself analytics on robust data Use tax analysis and reversal process 15

16 Excel-based applications Overview Indirect tax calculation systems Interaction with OneSource Indirect Tax Determination (Sabrix) and Vertex O Series. Capability to interchange XML tax request and response Can act as the primary integration mechanism between the ERP and tax engine Ability to perform address validation RPA Fully capable digital labor platform Solid interim approach Often a preferred alternative under certain business conditions Data conversion and reporting platform Functions as the data conversion/report generation engine Ability to operate transparently and fully automated Can connect directly to relational databases Option to run on a scheduled process basis 16

17 Sample screenshots KPMG Transaction Toolkit (OneSource) Easy to operate graphical user interface Configurable data interchange options Settings that permit scalability and personalization 17

18 Sample screenshots KPMG Transaction Toolkit (OneSource) Comprehensive tax calculation results Consolidated tax rates option Address validation module 18

19 Simple remote automation KPMG Developed Excel Application Remote Automation Example Outside Systems/Processes Excel Application Network Folders/Communications User Groups Source System Process Trigger Event Settings Start Processing Output Data Files Tax Input Data Files Import Data Processing Engine SMS Distribute and Notify Update Process Log SMS Admin Save and Close 19

20 Thank you

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22 Changing Financial Systems Landscape Opportunities for Tax

23 The speed of Digital Transformation depends on the underlying forces driving the change in each sector: operational improvements, competitive differentiation, or survival. Oil and Gas Chemicals Logistics Automotive& Large industrial Consumer packaged goods Media Technology Health Care Telecom Insurance & Banking Retail Tesla Uber Google Don t get stuck here BEING Amazon Airbnb BECOMING EXPLORING DOING Over the last 18 months we have seen dramatic acceleration of investments in Digital Transformation Copyright 2017 Deloitte Development LLC. All rights reserved. This is a simplified view of the market. In every sector, we will find outliers. 2

24 Companies are taking different paths to Digital Transformation but the most successful organizations display similar traits. An organization s digital initiatives are multiple times more likely to be successful when the organization: Customer/user end-to-end experience, platforms and data are the building blocks for value creation CO MMITS Sufficient time, energy, & resources P RO V IDES Employees opportunities to develop L E A D E RS Have vision 2x More likely to be successful 3x More likely to be successful 3x More likely to be successful Unique source of truth available anytime anywhere Platform Customer User Data Superior end-to-end experience Quality and structured data / information MIT Sloan / Deloitte survey The world is changing at a very fast pace, speed, flexibility and ownership are critical when driving transformation initiatives Copyright 2017 Deloitte Development LLC. All rights reserved. 3

25 Cloud Tax footprints A variety of solutions and benefits in the Cloud

26 Tax Benefits of switching to a Cloud-based ERP Legacy ERP Stability Flexibility General ledger Totals & Indices Financial Accounting Processing Logistics document Sub-modules (AP, AR, Assets) Pre-Defined Aggregates Totals & Indices Management Account Analytics Cloud-based ERP Flexibility Stability Logistics document Universal Journal Entry Single repository across applications Aggregation on the fly via views Processing Analytics Tax opportunities of cloud-based ERP Ability to drill down to transactional data Less time spent gathering and validating data Reduced reconciliation effort Capture key attributes through extensions to the code block Gain efficiency through redesign of business processes Automation of intercompany processes, insightful analytics, and transfer pricing automation Higher flexibility in reporting and analysis Copyright 2017 Deloitte Development LLC. All rights reserved. 5

27 Understanding Cloud-based ERP and Tax Cloud-based ERPs offer a variety of solutions to fit your company s most stringent tax requirements. Partner Tax Integrations Tax Features of Cloudbased ERP ERP Tax Functionality Reporting Tools Reporting directly from the source Apps Dashboarding Analytical reporting Industry Considerations Intercompany Transfer Pricing Revenue Recognition Cloud-based ERP Copyright 2017 Deloitte Development LLC. All rights reserved. 6

28 SAP S/4 & Central Finance Role of Tax is shifting

29 Tax landscape with S/4HANA Financial systems Tax compliance and assurance workflow Reporting and filings Tax process management Main ERP S/4 HANA Extract SAP HANA reporting and analytics Tax Center of Excellence Analysis, calculation, adjustments Reporting and filings Indirect tax engine Transform SAP Fiori Apportionment Analysis for Office HANA Live BPC Tax Return Software Tax Provision Software Tax forms Audit reports ONESOURCE or Vertex Load Reporting and Analytics Models Ad hoc reports Source data Source data will be tax sensitized Reporting Real-time reporting down to the detailed level Enhanced user interfaces for reporting like SAP Fiori, Analysis for Office, HANA Live and BPC. Flexibility in reporting without pre-defined aggregates Tax software systems Tax rules/in-country engines Leverage third-party maintenance Reporting Global reports Standard reports by licensed software Ad hoc by user Copyright 2017 Deloitte Development LLC. All rights reserved. 8

30 As clients move to the Cloud, what are the expectations for tax? The role of the tax function is changing Traditional role Emerging additional expectations Reporting Comply with reporting obligations Planning Reduce global tax burden and enhance cash flow Tax & finance profile Managing Within an appropriate risk framework Optimizing the tax function for greater impact Strategic partnering across the organization Process, technology, and data Tax has insufficient knowledge of how to leverage process and technology to access data for efficiency and effectiveness Business partnering Build relationships across the organization to understand and gain alignment with the overall business strategy People Tax resources are viewed as overpriced and underdeployed; Tax has inadequate succession planning compared with the rest of the finance organization Clear communication Articulation of tax strategy and the value of tax concepts to a nontax audience is a key skill for the Tax Executive Sustainability and efficiency Constantly work to drive down the cost of the client s global tax function Leading strategic initiatives Lead projects across functions that align with the company s vision, while maintaining line of sight throughout the organization Derived from Deloitte stakeholder interviews, including over 50 CFOs, in preparation for Deloitte Tax Executive Transition Labs. Copyright 2017 Deloitte Development LLC. All rights reserved. 9

31 Driving tax value with S/4HANA Quantitative and qualitative benefits for tax Increase efficiency in tax compliance and reporting through automation and process standardization Cash tax savings achieved by identifying new opportunities or sustaining current tax positions Tax Strategy Mitigate financial statement and audit risk by increasing transparency, enhancing controls and supporting tax positions Copyright 2017 Deloitte Development LLC. All rights reserved. 10

32 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a detailed description of DTTL and its member firms. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2017 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited