The Robots Are Rising

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1 The Robots Are Rising Implementing Intelligent Automation in the Organization Building Business Capabilities, Orlando, Florida 9. November, 2017 KPMG Digital

2 Intelligent Automation as part of Digital Operations

3 What is Digital Operations Optimizing and redesigning our processes with modern technological components in order to change how we operate Product- and Service Innovation through renewed Customer Centricity and Digital Transformation requires Strategy, Operations and People Operating model Strategy & Transformation Strategy & Direction Competitors Business drivers Goals & Outcomes Customers Competitors Business model Digital Processes Automation & Robotics Digital Operations Artificial Intelligence Implementation Workforce & Competence Workforce collaboration Employees Career development Knowledge Skillset Change management WHAT we are trying to do Analytics How we utilize our People How we operate w/technology

4 Smarter processes moving from «Best Practise» to «New Practise» Benchmarking old processes will drive cost, quality, time but it will not make them «smarter» Rethinking our old processes based on the new Digital Enablement Best Practice Optimizing existing processes with a focus on time, cost and quality New Practice Rethinking processes with a new design approach and new technology to reinvent processes Re-think Developing smarter processes to transform the customer experience Zero based design Average Best practise New Practice No touch processes Data-driven on demand real-time in the process 55 Days 20 Days 5 minutes Customer end-goal

5 Currently we are enabling the customer journey. Customer Touchpoints Need Navigate Technology support Find Give direction We are optimizing individual touch points in the customer journey Arrive Get generic recommendation Shop Pricing info Pay Mobile payment Register Register information Transport Predictive marketing

6 we want to remove the customer journey Customer Touchpoints Need Intelligent Automation Conversation Predict Refocus: Want to go shopping or do you want to go home? Recommendation Adjust Shop Pay & Register Arrive Transport

7 Intelligent automation: Translate technological capability into Skills Technological components Many of the concepts spoken of in context with automation and AI are very abstract. To simplify we translate new and viable solutions and platforms into what we call Automation skill sets. Automation «Skill sets» These skills in turn serve as stand-alone or complementary components in the ecosystem available to the Enterprise. AI, NLU, NLP, RPA, Machine learning Deep Learning, Knowledge Enegineering Cognitive, Neural nets,

8 Intelligent Automation The capabilities of automation technology can be classified into four groups of automation skillsets Transact Interpret Interact Recommend / Decide Rule-based automation Analytical automation Dialogue automation Cognitive automation Perform transaction based on standard rules and workflow Interpret unstructured data, language, images, sound Have conversations & interaction, clarify intent and support Make recommendations and predictions based on data Structured input data Defined workflow Defined rules & logic Existing applications Interpret unstructured data, images, video, sound Base knowledge Structure data Language processing Interpretation Confer with knowledge base Generate response Big data processing Pattern recognition Machine learning Adaptive logic & reasoning Technology Technology Technology Technology

9 Key components in the Organizations Automation Journey

10 Key components in adopting Automation into the organization High level steps for driving the automation journey 1 Identify business drivers and areas to prioritize processes for automation and opportunities 2 Develop a strategy and roadmap to implement automation in the organizations processes 3 Select the needed technology to provide the required automation skills to deliver the automations 4 Redesign and optimize the processes to leverage the capability of the automation skill sets 5 Establish a governance strategy and CoE to oversee the automation program and ensure benefits are realized 6 Put in place a human transition plan to establish knowledge requirements and change management strategy

11 1 Identify business drivers and areas to prioritize processes for automation and opportunities 2 Develop a strategy and roadmap to implement automation in the organizations processes 3 Select the needed technology to provide the required automation skills to deliver the automations 4 Redesign and optimize the processes to leverage the capability of the automation skill sets 5 Establish a governance strategy and CoE to oversee the automation program and ensure benefits are realized 6 Put in place a human transition plan to establish knowledge requirements and change management strategy

12 The automation assessment is a planning tool to target clear benefits The assessment matches the business drivers with the affected domains, processes and automation skills WHY WHERE WHAT Business Drivers Impacted domains and processes Automation Skills What are you looking to achieve? Strategic shift What gives you an competitive advantage? How do we enable your future opearating model? Tactical improvement Agility Speed Cost Quality Compliance Drivers Asessment, roadmap & action plan Enablers An assesment of the type of technological capability that can be leveraged to redesign / optimize current and new process using Intelligent Automation Not relevant Rule-based Analytical Dialogue Cognitive Business priorities Problem resolution Business Case Recommendations Design & Solutions Implementation plan HOW & WHEN

13 1 Identify business drivers and areas to prioritize processes for automation and opportunities 2 Develop a strategy and roadmap to implement automation in the organizations processes 3 Select the needed technology to provide the required automation skills to deliver the automations 4 Redesign and optimize the processes to leverage the capability of the automation skill sets 5 Establish a governance strategy and CoE to oversee the automation program and ensure benefits are realized 6 Put in place a human transition plan to establish knowledge requirements and change management strategy

14 The automated process must target the process E2E The design must look at how we can fulfil the objectives in the most efficient and effective way The goal is to design an automated process solution that delivers the best possible outcome 1.Re-focus 2. Standardize 3. Optimize 4. Business applications 5. Automation Determine clear objectives for the process Determine reasons for waste and automation barriers Remove unnecessary activities by addressing the underlying root cause Ensure the best data-flow by moving common input elements up-stream in the process Convert analog process elements into digital don t just automate analog flow Focus on data flow, input/ output and not on todays way of working Design the most efficient and effective use of skillsets (automated and human) Utilize existing technology platforms to make the automation most efficient Configure the business applications, where possible, to make the automation robust Deploy automation skills and technology solutions to remove manual activities Structure automation to limit maintenance and maximize reuse REFOCUS THE PROCESS BASED ON NEW DESIGN APPROACH STANDARDIZE THE PROCESS FLOW AND VARIATIONS OPTIMIZE THE DESIGN FOR AUTOMATED OPERATION UTILIZE POTENTIAL WITHIN EXISTING APPLICATIONS AUTOMATE OPERATIONS ACROSS SYSTEMS

15 1 Identify business drivers and areas to prioritize processes for automation and opportunities 2 Develop a strategy and roadmap to implement automation in the organizations processes 3 Select the needed technology to provide the required automation skills to deliver the automations 4 Redesign and optimize the processes to leverage the capability of the automation skill sets 5 Establish a governance strategy and CoE to oversee the automation program and ensure benefits are realized 6 Put in place a human transition plan to establish knowledge requirements and change management strategy

16 Typical implementation model for Intelligent Automation ~1 Week 4-6 Weeks 8-10 Weeks Ongoing Setting Direction Proof of Concept Building for Enterprise-wide Scaling Maintenance and Support Screen and evaluate potential processes/ areas Clarify internal resources to be a part of POC Agree on scope Design, develop and test automation Decide potential automation percent for automation Prepare and verify Business case Centre of Excellence and Governance Establish and implement governing elements for automation initiatives Build and implement Automation Centre of Excellence Train internal resources Establish Automation Operating Environment Implementation of Automations Move to automation portfolio Initiate maintenance, surveillance and support Audit automation percent and exception handling Initiate improvement Plan overall project plan GO-Live with Proof Of Concept Evaluation, mapping, design, development, testing and implementation of new automations Administer and maintain common components

17 Governing Elements for deploying Intelligent Automation in the Enterprise In order to scale Intelligent Automation in an Enterprise setting, there needs to be clear Governance in place both to control and support delivery. The governance has several components that tie together, and it is developmed and maintained by the Center of Excellence

18 A CoE helps ensure implementation of Intelligent Automation in the organization The Center or Excellence is a critical function int order to ensure a sucessfull implementation in the organization. This is done by governing, supporting and driving delivery of automations. This ensures progress, scalability, standardization and benefit realization. Scope Typical Processes in a CoE Involved Roles Driven by the business and operated based on organizations priorities IT involvement to ensure alignment to existing application portfolio Assess different types of automation skillsets Supporting the organization with benefits realization Supporting the organization in assessment of potential automations Responsible for Automation Portfolio Manage and align with strategy Prioritize and ensure delivery Support implementation Automation Strategy and drivers Screening of Processes Approval and Deployment Robotic Operating Environment Management Principles and Guidelines Evaluation and Prioritization of Processes Trial production and Approval Training and Competency Core Support Coordination of Portfolio Map existing process Monitoring of Automation Change Management and Communication Ownership, Approval and Risk Management Design new Process Automation Maintenance and Improvement Human-Robot Interaction Technology Surveillance Develop and Test Automation Exception Handling Standards, Guidelines and Templates Core roles in CoE CoE Owner / Manager Automation Architect Automation BA Automation Developer Process controller Associated roles in the line Line Manager Automation-driver Process Owner Process SME IT Architecture / Maintenance

19 The augmented BPM Center of Excellence Process & Technology joining forces to align with Digital CoE Combining Skillsets Automation & Robotics RPA to remove manual, repetitive tasks End-to-end automation Orchestration and integration coming together with other technologies Coordinate the workforce, human labour and digital workforce Business & Technology Digital Process Understanding of the business model Domain expertise to understand challenge Define the specific Business Case Business analysis Design thinking for the E2E solution Process design methodology Artificial Intelligence Use cognitive and pattern reignition Package the components to solve problems Evaluation of technology toolsets Bolt-on versus standard Automations vs Cognitive support Empowered workforce Process & Information Analytics Tap into unstructured data Aligning process and information Extend use cases for automation Utilize predictions and learning Provide performance data on-demand Live-analytics for support Solution Components

20 1 Identify business drivers and areas to prioritize processes for automation and opportunities 2 Develop a strategy and roadmap to implement automation in the organizations processes 3 Select the needed technology to provide the required automation skills to deliver the automations 4 Redesign and optimize the processes to leverage the capability of the automation skill sets 5 Establish a governance strategy and CoE to oversee the automation program and ensure benefits are realized 6 Put in place a human transition plan to establish knowledge requirements and change management strategy

21 What this does mean for the workforce? We need to consider what is clearly human value added in the process landscape, and the required human skills Separating the process landscpae Automated as Staring point The process landscape will be further classified when implementing intelligent automation. Core / support / mgmt will be separated further The concept of human-vaue added will be applied together with a starting point of Zero-based design in terms of automated operations Support - Non-Value Added Automated Non-Value Added Manual or Semi-Automated Core Value Added Customer Manual & Automated Efficiency & Cost Quality & Requirements Strategy & Customer Value

22 Organizational and people impact of intelligent automation Alignment of the human workforce and the skillsets Key characteristics of intelligent automation implementations Speed of implementation The rate of change is faster than traditional process and system implementations Workforce shaping Adaptive workforce realignment for evolving digital labor needs Demands a higher purpose Employers will need to understand and engage with the impact they will have on society Culture shift Overcoming the fear factor Talent Hiring, reskilling, and exiting talent Constant change Automation implementations will be iterative and constantly evolving to develop optimal workforce productivity and ROI Leadership vision Agreeing on the organization s future state vision Organizational and people impacts Changing behaviors Adopting and adapting the new ways of working Proactive workforce alignment Organizations must proactively address impacts to people and the overall organization in order to minimize business disruption and expedite the timing of benefits realization.

23 Examples from Organizations

24 Some examples from organizations, their results and challenges

25 Questions & Discussion Tom Einar Nyberg Head of Digital Operations KPMG Digital Ida Aspaas Karlsen Robotics, Automation and AI KPMG Digital

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