The Rise of the Digital Workplace: The Next Phase Of Digital Business Automation

Transcription

1 The Rise of the Digital Workplace: The Next Phase Of Digital Business Automation September 18, 2018 J. P. Gownder Vice President and Principal Analyst Prepared for IBM

2 Agenda The Future of Work: Working Side-by-Side With Robots Automation Augments Employees Capabilities The New Division Of Labor Creates Value What It Means 2016 Forrester Research, Inc. Reproduction Prohibited 2

3 Agenda The Future of Work: Working Side-by-Side With Robots Automation Augments Employees Capabilities The New Division Of Labor Creates Value What It Means 2016 Forrester Research, Inc. Reproduction Prohibited 3

4 Katherine Johnson, Dorothy Vaughan, and Mary Jackson worked at NASA as Computers Forrester Research, Inc. Reproduction Prohibited 4

5 The transition from human-as-computer For the past hundred years: We ve asked humans to work more and more like computers Business processes are algorithms Following processes and logging activities is computational 2016 Forrester Research, Inc. Reproduction Prohibited 5

6 The transition from human-as-computer to computer-as-human In the next ten years: Almost any business process will be run, at its core, by software Automation and intelligence will become common Escalations will continue to rely upon humans 2016 Forrester Research, Inc. Reproduction Prohibited 6

7 Routine, deterministic, and physical processes will be disrupted first Routine production (e.g. customer service, administrative tasks) 86% Physical processes (e.g. automated fulfillment) 52% Manufacturing 31% Professional jobs (e.g. lawyers) 23% In person jobs (e.g. nurse) 13% 2016 Forrester Research, Inc. Reproduction Prohibited 7

8 But fears of job losses will create blowback among workers 67% of automation pros see fear of job losses creating negative attitudes towards automation Forrester Research, Inc. Reproduction Prohibited 8

9 Agenda (second and subsequent) First agenda item Second agenda item Third agenda item In reality, job losses while real are not the biggest part of this story Forrester Research, Inc. Reproduction Prohibited 9

10 Our model quantifies three key trends JOB LOSSES JOB GAINS JOB TRANSFORMATION Jobs displaced by physical robots, software, artificial intelligence, and customer-self service solutions. Jobs created to develop, support, or complement the automation economy The changes in responsibilities held by people in existing jobs tasks are automated 2016 Forrester Research, Inc. Reproduction Prohibited 10

11 The stakes are high. If you get this wrong, you re liable to: Over-automate. If your benchmark is 47%, you ll be inclined to automate too many roles at the expense of both customer and employee experience. Focus on cost-cutting. You ll also fall prey to the generally false thinking that you can cut your way to success, rather than innovating. Hire the wrong people. You won t hire the right mix of new roles or any new people at all Forrester Research, Inc. Reproduction Prohibited 11

12 17% of today s jobs will be lost to automation by % equivalent jobs will be created by the automation economy Forrester Research, Inc. Reproduction Prohibited 12

13 Automation will re-scale the job picture Job Losses Net Loss: 7% Job Gains A job loss of 7% is similar to the Great Recession in scale Forrester Research, Inc. Reproduction ProhibitedSource: Forrester report, The Future of Jobs 2027: Working Side-by-Side with Robots 13

14 THEY SAY: 47% of jobs will be automated FORRESTER PREDICTS: 7% net jobs will be automated and automation will build a new economy They say: Oxford University Study by Frey/Osborne 2017 Forrester Research, Inc. Reproduction Prohibited 14

15 The composition of jobs will change as automation reshapes what businesses are capable of We need fewer: Office and administrative roles Call center employee roles We need more: Next-generation management, business, and financial jobs Human-machine resources Operations specialists with automation expertise Creative and artistic roles 2016 Forrester Research, Inc. Reproduction Prohibited 15

16 Most jobs will be transformed Automation first augments human workers by taking repetitive actions off their plates Working side-by-side with robots implies improvements in training, HR, change management 2016 Forrester Research, Inc. Reproduction Prohibited 16

17 Upskilling is key to workforce transformation 75% of automation pros see humans shifting from lowerlevel work to higher-value tasks that require decisions Forrester Research, Inc. Reproduction Prohibited 17

18 RESULTS: In the automation economy, companies that embrace automation will thrive and win We will overcome the productivity gap Democratization of automation tools will drive higher rates of worker productivity, as we see at the micro level Competitors will rise (or fall) based on algorithms It will be too expensive not to automate but the real value will come in serving customers better, faster, with lower errors, and proactively 2016 Forrester Research, Inc. Reproduction Prohibited 18

19 Agenda The Future of Work: Working Side-by-Side With Robots Automation Augments Employees Capabilities The New Division Of Labor Creates Value What It Means 2016 Forrester Research, Inc. Reproduction Prohibited 19

20 Agenda (second and subsequent) First agenda item Second agenda item Third agenda item A new division of labor helps companies thrive with mixed human-digital workforces Forrester Research, Inc. Reproduction Prohibited 20

21 Traditionally, we have mapped people to jobs A Job, with multiple delineated responsibilities and hundreds if not thousands of tasks 2016 Forrester Research, Inc. Reproduction Prohibited Image Source: 21

22 In the automation era, we map tasks to skills and sometimes software possesses those skills Tasks, each of which can be conducted by FTEs, contingent workers, or by automation software 2016 Forrester Research, Inc. Reproduction Prohibited 22

23 In a world in which tasks are mapped to skills, machines and humans collaborate to create the best outcomes 2016 Forrester Research, Inc. Reproduction Prohibited 23

24 How? The power of automation software Source: Forrester Research 2016 Forrester Research, Inc. Reproduction Prohibited 24

25 How? The power of automation software Source: Forrester Research 2016 Forrester Research, Inc. Reproduction Prohibited 25

26 Automated systems can augment human workers in three ways 1. Decision Context 2. Execution Support 3. Human-Managed Machines 2016 Forrester Research, Inc. Reproduction Prohibited 26

27 Decision Context: Automated systems sit behind the scenes and act as whisper agents to help human employees 2016 Forrester Research, Inc. Reproduction Prohibited 27

28 Execution Support: RPA takes over the process of employee onboarding Employee Onboarding initiated and managed by humans, with rote tasks delegated to the software bot Capturing and updating employee information, providing access to applications like Office 365 licenses, updating legal paperwork, and notifying their managers through . HR manager has a view of the onboarding process through the control tower - availability, number of processes being run, processing time against SLAs and other controls Forrester Research, Inc. Reproduction Prohibited 28

29 Human-Managed Machines: The rise of the bot manager The bot manager is a role that changes employees from the manual performer of the process to becoming a software-powered owner of the process. CIO of a Canadian bank 2016 Forrester Research, Inc. Reproduction Prohibited 29

30 RESULTS: Augmenting human workers with automation software drives numerous benefits Bring insights to the edge Optimize against constraints Tame complexity Automate rote tasks Lower the rate of errors Assist directly in customer interactions 2016 Forrester Research, Inc. Reproduction Prohibited 30

31 Agenda The Future of Work: Working Side-by-Side With Robots Automation Augments Employees Capabilities The New Division Of Labor Creates Value What It Means 2016 Forrester Research, Inc. Reproduction Prohibited 31

32 Agenda (second and subsequent) First agenda item Second agenda item Third agenda item A new division of labor helps companies thrive with mixed human-digital workforces Forrester Research, Inc. Reproduction Prohibited 32

33 The spectrum of machine-to-human workers Less Human More Human Machine-First: Use automation to largely free employees from deterministic, repetitive tasks Human-Machine Teaming: Humans collaborate with machines on probabilistic outcomes and escalations Human-First: Humans focus on creativity, innovation and cross-functional, complex reasoning, using AI- and other software tools Forrester Research, Inc. Reproduction Prohibited 33

34 MACHINE-FIRST: Goldman Sachs reduces human bias, increases real-time accuracy, & improves its economics Goldman Sachs Cash Equity Trading Floor 600 Today, nearly 45 percent of the revenue from cash equities trading comes from electronic trades but for Goldman Sachs, only 10% requires manual intervention Year 2000 Year 2017 Equity Traders Software Enginners Forrester Research, Inc. Reproduction Prohibited 34

35 MACHINE-FIRST: JPMorgan revolutionized commercial loan agreement time-to-customer Forrester Research, Inc. Reproduction Prohibited 35

36 HUMAN-MACHINE TEAMING: Attended RPA helps call center agents At a major telco: 12,000 of its 30,000 sales and customer service representatives have RPA support in real-time. Primarily dealt with data inefficiencies around Siebel. 33% increase in NPS, 20% increase in first-call resolution, $10 million annual savings in callhandling time FORRESTER. REPRODUCTION PROHIBITED. 36

37 HUMAN-MACHINE TEAMING: H&R Block is teaming experts with Watson for tax preparation Has ingested and learned the US Tax Code Augments human experts in complex client setting Leverages intermediaries to provide on-going feedback and teaching 2017 FORRESTER. REPRODUCTION PROHIBITED. 37

38 HUMAN-FIRST: Autodesk hired novelists to write realistic dialog for its chatbots 2016 Forrester Research, Inc. Reproduction Prohibited 38

39 Agenda The Future of Work: Working Side-by-Side With Robots Automation Augments Employees Capabilities The New Division Of Labor Creates Value What It Means 2016 Forrester Research, Inc. Reproduction Prohibited 39

40 1. It s not only about the quality of the intelligent software. Humans must bring something to the table, too Forrester Research, Inc. Reproduction Prohibited 40

41 Agenda (second and subsequent) First agenda item Second agenda item Third agenda item RQ the Robotics Quotient measures how well individuals and companies collaborate with automated systems Forrester Research, Inc. Reproduction Prohibited 41

42 People in your organization need to have baseline skills to succeed with automation Inclinations Skills Algorithmic IQ Managing automation software 2016 Forrester Research, Inc. Reproduction Prohibited 42

43 EXAMPLE The power of constructive ambition In the past, we recruited for people who were happy doing the mundane tasks, but some of them were not prepared to move up the chain. Going forward, we will be looking for people who are more ambitious and who want to grow. CIO of an Energy Company Source: Forrester Interview 2018 Forrester Research, Inc. Reproduction Prohibited 43

44 2. Automation can t be a bolt-on It must become a key competency at your organization 2017 Forrester Research, Inc. Reproduction Prohibited 44

45 A checklist for automation strategy ü ü ü ü Engineer buy-in at C-level and Board-level Create new roles and career paths Prove the value to your employees Invest in learning and development 2018 Forrester Research, Inc. Reproduction Prohibited 45

46 3. Business cases can t be a one-anddone exercise Selling the vision requires iteration 2017 Forrester Research, Inc. Reproduction Prohibited 46

47 3 Innovating: Vision and strategy, not metrics; Customer-Obsessed 4 2 Elevating: Metrics aligned; Customer-Committed Business Case Life Cycle Collecting Data Customer data (Cxi), financial data (costs, benefits) 1 Establishing: Total Economic Impact Analysis version 1.0; Customer-Aware Re-Establishing: Total Economic Impact Analysis version 2.0; now Customer-Obsessed 5

48 4. Integrate automation with both front and back end operations Customers only benefit when IT systems are working together in unison 2017 Forrester Research, Inc. Reproduction Prohibited 48

49 Thank you J. P. Gownder Vice President & Principal Analyst forrester.com