Beyond RPA: Revamping Operations with New Digital Process Models. NelsonHall John Willmott CEO. sig.org/summit

Transcription

1 Beyond RPA: Revamping Operations with New Digital Process Models NelsonHall John Willmott CEO sig.org/summit

2 Transforming Operations with New Digital Process Models Moving beyond RPA to fully digitalized operations

3 NelsonHall The Leading Source of BPO Information NelsonHall is the leading BPO and IT outsourcing research firm with analysts in the U.S., U.K., and Continental Europe. The company takes a global approach to analysis of vendors and outsourcing markets and is widely respected for the quality and depth of its research. In addition, with its Speed-to-Source initiatives, NelsonHall is taking the lead in making access to BPO and ITO research much easier than ever before. Independent & objective information All analysis by onshore analysts (U.S. & Europe) All research interviews carried out by analysts no online surveys, no vendor form-filling Process domain experts with global remit 16-years experience in BPO market and vendor analysis Independence & objectivity not amplifying the hype With analyst access to ask the difficult questions

4 Topics to be covered 1. Disruptors & impact on customer requirements 2. Why RPA is the Start of the Automation Journey 3. Moving to New Digital Process Models 4. Conclusions

5 Disruptors & Impact on Customer Requirements NelsonHall-Proprietary Not for distribution without permission 5

6 BPO Successes & Room for Improvement Convergence of maturing customer needs, new technologies, & new competitors What Worked Caliber of delivery team Ability to improve process execution Ability to standardize & consolidate processes Ability to implement process improvement initiatives Ability to deliver process cost changes promised Room for Improvement Ability to apply increased automation to business processes Ability to improve business outcomes Ability to provide future process vision & roadmap Ability to use analytics to incorporate process learning Ability to reduce process costs NelsonHall-Proprietary Not for distribution without permission 6

7 Digitalization No Longer Constrained to Customer-Facing Activity Removing detrimental impact of back-office on the customer Potential Initiative High Intent in 2016 (%) Digitalizing & automating back-office operations 84 Reducing cost of doing business 79 Freeing up expenditure for new initiatives 60 Digitalizing customer-facing operations 52 Impact of digital: 65% of U.S. organizations have initiatives in support of developing new ways of doing business to compete with new market entrants 71% developing their positioning as digital enterprises NelsonHall-Proprietary Not for distribution without permission 7

8 Developments in Q1 2014: Global and Landscape Journey from RPA to Digital Operations RPA Combined with SoE/NLP/Machine Learning/NLG RPA with Improved Document Classification & Data Extraction RPA with Minor Process Reengineering Standard RPA NelsonHall-Proprietary Not for distribution without permission 8

9 BPO Market Developments in Q1 2014: Global and Landscape New Digital Business Models Typically Combinations of Disruptive Thinking and Disruptive Technologies Design Thinking 2. Digital Channels 1. Internet of Things 3. Cognitive 4. Analytics 5. Robotics/RPA 6. SaaS/BPaaS 7. BPM NelsonHall-Proprietary Not for distribution without permission 9

10 Why RPA is the Start of the Automation Journey NelsonHall-Proprietary Not for distribution without permission 10

11 Definitions RPA is a technology which: Accesses the user interface of third party applications Is configured to execute steps identically to a human user (workflow plus execution) Currently solely used for rule-based activity and incorporates zero cognitive capability Deterministic in nature Example products: UIPath, Blue Prism, automation anywhere AI is cognitive in nature and encompasses machine learning, natural language processing etc. Key characteristics of AI/cognitive that RPA lacks are: Ability to undertake judgmental processes Ability to adapt the process as it learns Largely based on statistical techniques so probabilistic in nature whereas RPA is deterministic Example products: Celaton, IPSoft Amelia, TCS Ignio, IBM Watson, Wipro Holmes NelsonHall-Proprietary Not for distribution without permission 11

12 Examples of RPA Application & Benefits within F&A BPS Within finance & accounting, RPA most applicable to procure-to-pay P2P: supplier management & catalog management, 3-way matching, reconciliations O2C: customer data management, cash application, reconciliation R2R: reporting, inter-company accounting, reconciliations Examples Vendor master creation: 35% FTE saving Invoice processing (3-way matching & posting): 35% Invoice data capture & data entry: 20%-25% productivity Vendor queries: 20%-25% FTE savings Remediating errors in billing data: 25% cost reduction Overall impact across entirety of F&A is ~20% cost reduction, typically achieved over 2-3 year period NelsonHall-Proprietary Not for distribution without permission 12

13 Examples of RPA Application & Benefits within BFSI Automation of application sign-on process 28 applications/multiple log-ins due to time-outs Automation of login and access to required application page eadjudicator Automated matching of claims parameters against rule library 70% reduction in support FTEs New business data entry (insurance) Swivel-chair across multiple, unsynchronized screens Automated data entry 30%-40% efficiency improvement Trauma quotations Approve endorsements, update cases, & generate quote documents & letters Healthcare Payer Provider contract data management, largely contract validation (75% automated) 4 bots in 90 days Productivity improvement of 40% NelsonHall-Proprietary Not for distribution without permission 13

14 Requirements for Successful Application of RPA Process improvement expertise Rule-based process with strong standard operating procedures Standardized processes Digitized structured data Agent change management RPA governance Involve in-house IT Don t run before you can walk But be prepared to reorganize process steps Guidelines Need CxO sponsorship Need early proof-of-concept Avoid highly volatile processes Avoid highly fragmented processes Select process for improvement prior to tool selection Establish Center of Excellence Be prepared to use toolkit rather than single RPA magic bullet Design for STP Use savings from RPA to fund new initiatives NelsonHall-Proprietary Not for distribution without permission 14

15 Moving to New Digital Process Models NelsonHall-Proprietary Not for distribution without permission 15

16 Combining Data Mining, Analytics and Execution Sense : ability to assimilate and mine diverse data sources, both internal and external, both structured and unstructured (via text mining techniques) (cognitive) Think : ability to identify trends & patterns and make predictions and estimate risk (predictive analytics) Act : execute context-aware autonomous actions (RPA) Learn : improving its knowledge on a continuous basis and self-learning its context (machine learning) NelsonHall-Proprietary Not for distribution without permission 16

17 Example of New Digital Process Model: Source-to-Pay Sourcing strategy & category management Vendor investigation: cognitive Vendor decisioning: Predictive analytics Contract management KYV data extraction: cognitive Ordering & Supply Management PO communication: RPA Supplier master modification: RPA Other Elements in S2P Digital Process Model BPM backbone Supplier portal Procurement SaaS platform Invoice Processing 2-way/3-way invoice matching & posting: RPA Helpdesk Chatbot: cognitive Compliance/Analysis Online reputation monitoring: social media analytics Preventing fraudulent transactions: predictive analytics NelsonHall-Proprietary Not for distribution without permission 17

18 Example of New Digital Process Model: Claims Processing & Underwriting Mobile & self-service customer interfaces and/or broker portal Analyze and cross-reference public domain and claim report information Cognitive: machine vision, voice recognition & NLP technologies Vendor investigation: cognitive Detect anomalies while processing claims Machine learning Predict probability of fraud Predictive analytics using data from internal and external sources RPA for automated processing of claims achieving STP for low-risk claims Underwriting Prediction of success for deal conversions Broker quotation analysis using predictive analytics Prioritize underwriting RPA to auto-identify appropriate underwriter RPA to queue quotations for underwriters NelsonHall-Proprietary Not for distribution without permission 18

19 Vendor investigation: cognitive Example of New Digital Process Model: ekyc Scan and download relevant documents from multiple sources Access external web sites, registries & trusted sources alongside internal information NLP-based cognitive search Extract contextualized information using machine learning Benefits ~40% reduction in KYC effort 60%-70% reduction in turnaround times for customer onboarding NelsonHall-Proprietary Not for distribution without permission 19

20 Contact Center enablement Organizations principally looking to move queries to self-service & automate agent assistance Typically buying sub-set of functionality and implementing channel by channel Key components Web self-service: contextual response, predictive analytics linked to knowledge-base, customer info, billing systems etc. Guiding & pivoting to appropriate channel Live agent assisted chat: co-browsing, multi-media sharing Automated chat: natural language processing 2-way SMS Video chat Social media NelsonHall-Proprietary Not for distribution without permission 20

21 Conclusions NelsonHall-Proprietary Not for distribution without permission 21

22 Conclusions Impact on Operations RPA currently primarily supports fixing of the current business model rather than introduction of new business models and processes Makes continuous improvement realizable rather than a major hurdle for rule-based processes New digital process models now emerging combining RPA with AI technologies Key characteristic include: Digital inputs & outputs Minimize customer effort but maximize customer feedback Complement internal sources with external sources Directly impact business metrics and aim for STP/end-to-end digitalization Means re-imagining business processes RPA largely retains As-Is processes To-Be processes & outcomes fundamentally different for NDPMs NelsonHall-Proprietary Not for distribution without permission 22

23 Q&A John Willmott, NelsonHall Sourcing Interests Group March 14, 2017 Sign up for blogs & alerts NelsonHall Vendor Evaluation & Assessment Tool NelsonHall-Proprietary Not for distribution without permission 23

24 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Workshop (#09) COMPLETE & SUBMIT EVAL

25 Workshop # 9 Beyond RPA: Revamping Operations with New Digital Process Models NelsonHall John Willmott CEO Download the App: bit.ly/sigamelia Tweet: #SIGspring17

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