Sourcing RPA. Making the next generation of automation work for you. Copyright 2015 Aecus Ltd. All rights reserved.
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1 Sourcing RPA Making the next generation of automation work for you Copyright 2015 Aecus Ltd. All rights reserved. Copyright 2015 Aecus Ltd. All rights reserved. 1
2 Service / Lifecycle Expertise and data How we work with you Aecus advises across the sourcing spectrum - including new challenges Sourcing Strategy Benchmarking By process: IT Applications Finance End-to-end support Outsource RFP / Deal Advice Shared Services Design / Build HR / Payroll Procurement Clinical Targeted projects Transition / Operations Support Vendor Management Industry-specific Digital/Customer By sourcing model: QA and governance Programme Management Interim Management By topic: Outsourcing Shared services Workshops / briefings Dispute Resolution/Expert Witness e.g. Robotics e.g. Innovation Access to data Location Assessments e.g. Cloud e.g. Analytics Copyright 2015 Aecus Ltd. All rights reserved. 2
3 The Aecus RPA team Paul Morrison Paul is a Partner at Aecus and the head of the BPO and Shared Services Practice. Paul is an expert in sourcing strategy, benchmarking and innovation in outsourcing. Paul runs the Aecus Innovation Programme, including the Innovation Awards, paul.morrison@aecus.com Kulpreet Singh Kulpreet is an expert in business process sourcing, analytics and automation. He is supporting a FTSE 100 General Insurer in adopting RPA across its back office processes. Kulpreet has over a decade of experience in outsourcing & analytics. kulpreet.singh@aecus.com Piyush Sodhi Piyush has over 15 years of experience in advising on sourcing and technology. He specialises in shaping global sourcing deals, and tackling the challenges of overcoming the challenges of legacy systems. He recently advised a number of organisations on where to pilot RPA in their back office operations. piyush.sodhi@aecus.com Copyright 2015 Aecus Ltd. All rights reserved. 3
4 Robotic and Cognitive Automation: The appetite is strong and growing A recent Aecus survey of technology decision-makers show RPA as the tool that they are most likely to use to adopt in the next 3 years Source: Aecus Survey Copyright 2015 Aecus Ltd. All rights reserved. 4
5 Potential Value The spectrum of smart automation RPA is the latest wave of automation software reaching maturity Cognitive Automation Robotic Process Automation Software that acts as a virtual person, operating existing applications and systems. Rapid but scalable task automation. Software that uses pattern recognition and machine learning, potentially combined with natural language / human interface Desktop Automation Simple tools to record and repeat tasks. Macros. Note: Illustrative automation vendors Evolution Copyright 2015 Aecus Ltd. All rights reserved. 5
6 RPA: What the users say The result has been impressive and a complete success. We have significantly improved our ability to respond to customers and achieved flexibility and scalability whilst reducing costs Cognitive is now a fundamental part of our process and we are already planning to expand its use to deal with other unstructured processes Rather than employ temporary staff, we can cope with sudden demands following large scale delays or disruption 50% reduction in operational costs Faster, more personal response to passengers It has allowed us to utilise the skills and passion of our permanent staff more effectively which has enabled us to create, implement and drive a sustainable long term strategy. Without deploying this technology we could not have managed the increased managed services business without significantly increasing the size of our operations workforce. Even then it is unlikely we could drive the same consistent, high quality of delivery with increased profitability 32 man hours of process per day reduced to 4 Copyright 2015 Aecus Ltd. All rights reserved. 6
7 RPA: Key benefits The result has been impressive and a complete success. We have significantly 24/7 availability improved our ability to respond to customers and achieved flexibility and scalability whilst reducing costs Cognitive is now a fundamental part of our process and we are already planning to expand its use to deal with other unstructured processes Rather than employ temporary staff, we can cope with sudden demands following large scale delays or disruption 50% reduction in operational costs Faster, more personal response to passengers Major operational benefits for each in scope task / process: Flexibility to handle peaks and troughs 40-80% reduction in FTE costs 80% reduction in cycle time / TAT 90% reduction in error rates It has allowed us to utilise the skills and passion of our permanent staff more effectively which has enabled us to create, implement and drive a sustainable long term strategy. Non-linear benefits to the business Refocusing the business away from high scale, low value work Compliance and auditability Analytics and insights from previously analogue / ad hoc work Without deploying this technology we could not have managed the increased managed services business without significantly increasing the size of our operations workforce. Even then it is unlikely we could drive the same consistent, high quality of delivery with increased profitability Much shorter implementation time than typical IT builds 8-12 weeks for initial go-lives 32 man hours of process per day reduced to 4 Copyright 2015 Aecus Ltd. All rights reserved. 7
8 However RPA presents 10 major new challenges Orientation What is RPA? How does it differ from other automation? Is it relevant for us? What could the benefits be? What risks? Robot Readiness Analysis What does it mean for our existing outsourcing relationships / shared services? Do our current activities need to be changed to be robot-ready? Feasibility and scoping What are the best opportunities? What is the potential impact? Where should we start? Commercials What is the right pricing for RPA / Cognitive? What is the right price structure? License? Price per robot? How should it impact our existing deal? Sourcing Strategy How do we source RPA? Internally, via Specialist RPA provider, or via outsourcing partner? Solution Design What should the RPA solution look like? Integration with other systems? Specification / RFP Precisely what services do we need? What is the scope? What other specifications are important? Implementation How should we implement RPA / Cognitive? What is the right approach to transition, transformation and change? How do we manage the cultural change Supplier Selection Who are the leaders in RPA? Who is the right provider for us? Governance and Capability How should we run and evolve our RPA / Cognitive activities? What skills / organisation are required? How do we build on / reuse our experience? Copyright 2015 Aecus Ltd. All rights reserved. 8
9 Building an RPA approach Success with RPA requires many elements to be in place Process scope Complexity analysis Fit with current baseline Exceptions clarity Scope and spec Operating Model Managed Service Inhouse CoE Hybrid Implement Transition Transformation Change Risk Leadership Fit with existing forums RPA-specific roles Governance RPA Model Platform and technology Tool / platform selection Supporting technologies Digitisation / scanning Licence Pay as you go Transaction based Outcome based Commercials Supplier Specialist RPA provider ITO BPO Internal skills Copyright 2015 Aecus Ltd. All rights reserved. 9
10 Aecus supports RPA clients with a range of sourcing needs 1. Greenfield outsource Key issues How do you design outsourcing from the start with RPA built-in? Who is the right supplier? How do you make sure you get a fair, sustainable share of RPA savings? 2. Inflight outsource Key issues What needs to change in the current deal? Do we have the right supplier? How do we incentivise RPA, given that it will cannibalise incumbent FTE revenue? How do we avoid Supplier RPA by stealth? 3. Shared Services Key issues How to identify RPA opportunities and lead RPA change? What RPA skills and experience do we need to invest in now? How do we manage the RPA change journey in our organisation? Copyright 2015 Aecus Ltd. All rights reserved. 10
11 Aecus RPA Services From idea to implementation Intro Briefing Process Scan Market Scan Strategy / Business Case Impact Analysis Pilot RFP Process Contract Rollout Scale and Optimise Copyright 2015 Aecus Ltd. All rights reserved. 11
12 Aecus RPA Services From idea to implementation Intro briefing Process Scan Market Scan Strategy and business case Stage Aecus Activities Duration Impact analysis Demystify, define, educate; describe benefits, costs, timings, process Vision: What will happen to the RPA / outsourcing marketplace? Scenarios: What could the impact be on your existing arrangements? High level opportunity scan which processes are suited / what are outcomes? Identify and rank pilot opportunities Review long list of providers Meet 5-10 providers for 2 hour workshops Carry out RFI to assess vendor and service provider offerings Select shortlist of 3-4 providers. Rapid 1-2 week cook off between strong candidates. Outline business case and price benchmarking Draft engagement model role of suppliers / internal provision Assess impact on current outsourcing and shared services arrangements; worked examples Check change control and contractual mechanisms Assess scope for gainshare and other mechanisms to share automation gains Consider viability of early exit fees v. benefits ½ day 2 weeks 2 weeks 2 weeks 2 weeks Pilot Run task-level project to serve as proof of concept 1-2 months RFP process Support gathering of full requirements specification; Validate with SMEs and IT Run RFP selection process including supplier workshops, pricing analysis, response review and scoring, engagement with shortlisted suppliers 3 months Contracting Support negotiation and drafting of contract 1-2 months Rollout Implement automation rollout with selected provider Support development and implementation of transition plans Support change and comms Scale and optimise Set up / enhance RPA governance and organisation - - Copyright 2015 Aecus Ltd. All rights reserved. 12
13 Aecus RPA Team Experience Insurance Client: Robotic RFP Process and Implementation Private Bank Client: Robotic Feasibility Study and Analysis Manufacturing Client: Robotic Feasibility Review Retail Bank Client: Robotic Process Review / Q&A Orientation on art of the possible Strategy guidance RFI process Pilot design Provider shortlisting RFP development QA Intro briefing and orientation Development of feasibility plan / process selection Business case development Orientation training for 50 service managers Review of F&A process for RPA suitability Identification of high potential priorities Impact analysis for inflight deal Review of Bank s draft feasibility paper for RPA rollout Guidance on commercials Market scan / supplier shortlisting Aecus Innovation Awards on Robotics and Cognitive Awarded to: Copyright 2015 Aecus Ltd. All rights reserved. 13
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