2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r...

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© 2017 Avasant LLC. All Rights Reserved. Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Avasant LLC. Wednesday, April 25, 2018 Building an AI Powered Enterprise Mission: Digital Business Transformation Digital Transformation Advisory

Transcript of 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r...

Page 1: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

©2017

Ava

sant

LLC.

AllRig

htsRe

serve

d.

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rieta

rya

ndC

onfid

entia

l.No

pa

rto

fthisd

oc

ume

ntm

ay

be

rep

rod

uce

din

any

form

orb

ya

nye

lec

tronic

orm

ec

hanic

alm

ea

ns,inc

luding

inform

atio

nsto

rag

ea

ndre

trieva

lde

vice

so

rsystem

s,witho

utp

riorw

ritten

pe

rmissio

nfro

mA

vasa

ntLLC

.

We

dne

sda

y, Ap

ril 25, 2018

Building

an A

I Pow

ere

d Ente

rprise

Missio

n: Dig

ital Busine

ss Tra

nsform

atio

n

Dig

ital Tra

nsfo

rma

tion

Ad

visory

Page 2: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

2 The rise

of A

I Na

tive c

om

pa

nies

Born D

igita

l –A

I at the

co

re

Tosuc

ce

ed

inthe

dig

itale

ra,

firms

willne

ed

tob

ec

om

ed

igita

lente

rprise

s,re

thinkinge

very

asp

ec

to

fthe

irbusine

ssa

nda

ligning

theiro

pe

rating

mo

de

lino

rde

rtoc

rea

ted

igita

lexp

erie

nce

s.

0

Larg

est a

cc

om

mo

da

tion

pro

vide

r ow

ns no re

al

esta

te

Wo

rld’s la

rge

st Taxi

co

mp

any o

wns no

ta

xis

Larg

est o

nline re

taile

r o

nly ma

kes 10%

of its

pro

fits on re

tail

Mo

st valua

ble

re

taile

r has no

inve

ntory

Mo

st po

pula

r me

dia

c

om

pa

ny cre

ate

s no

co

ntent

Faste

st gro

wing

b

ank ha

s no a

ctua

l m

one

y

Larg

est m

ovie

ho

use o

wns no

c

inem

as

Larg

est so

ftwa

re

vend

ors d

on’t w

rite

the a

pp

s

Faste

st gro

wing

we

alth

ma

nag

em

ent firm

has no

fina

ncia

l ad

visors

Page 3: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

3

Intelligent O

perations M

anagement

Agile Platform

/ A

rchitecture

InnovativeEngagem

ent

Transformational

Relationships

Sensors and

D

ata

Integra

tion

Cloud

&

Platform

s AI/C

ognitive-b

ased

System

s M

ana

gement

Ad

ap

tab

le A

pp

. & M

icro-services

Architecture

Autom

ation

and

Business Process

ExcellenceBlockcha

ina

nd D

LT

Outcom

e/ V

alue Ba

se Enga

gement

Agile &

Co-

innovation

Partnership

s

Predictive

Ana

lytics &

Real-tim

e Insights

AR/V

R and

Im

mersive

UX

Custom

er a

nd D

oma

in C

entricity

Digita

l Transform

ation

The new p

ara

digm

for Digita

l Tra

nsforma

tion

Integrated

Security &

C

omplia

nce

Operational excellence,

Autom

ation and D

ata Driven

insights are fundam

ental for Digital

Transformation

… custom

er centricity, innovation investm

ents and

outcome based

engagem

ent aligned to

digital transform

ation objectives

Sourcing relationships in the D

igital age are layered and

support the pervasive and

continuous d

elivery of digital

transformation initiatives w

ithin the organization.

Page 4: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

4 Auto

ma

tion a

nd A

I are

the e

ssentia

l fuel fo

r Dig

ital Tra

nsform

atio

n

Hum

an -M

achine coherence

Machine

intelligence

Natural

Language Interface

Biom

etric

s a

nd Io

Tse

nsors

Visua

l and

Pa

ttern

Rec

og

nition

Ma

chine

Le

arning

Lang

uag

e

Ge

nera

tion

Cha

tbo

tsa

nd

Dig

ital V

irtual

Ag

ents

Vo

ice

C

om

me

rce

Swa

rm

Intellig

enc

eC

og

nitive

Rea

soning

Na

tural

Lang

uag

e

Proc

essing

Sem

antic

e

ngine

s

Auto

ma

tion + A

I are

fast b

ec

om

ing o

ne o

f the m

ost tra

nsform

atio

nal b

uilding

b

loc

ks for o

rga

nizatio

ns that a

re e

mb

rac

ing D

igita

l to d

rive b

usiness o

utco

me

s

AI is a

set o

f co

mp

lex fo

unda

tiona

l b

uilding

blo

cks a

nd a

pp

lica

tions

whic

h drive

ubiq

uitous, se

am

less a

nd

auto

nom

ous d

ec

ision m

aking

and

a

ctio

ns.

The AI H

ive

Page 5: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

5 The Ro

ad

to Inte

llige

nt Auto

ma

tion

We

are

at a

n inflec

tion p

oint, a

nd a

structure

d V

alue

Ac

ce

lera

tion Ro

ad

ma

pTM

ca

n d

rive 10-15x m

ore

ente

rprise

value

than c

urrent a

utom

atio

n effo

rts

Technology Autom

ationTools

Robotic Autom

ation ofRepetitive Tasks

Judgment and Decision

Accelerators

Cognitive and A

nalytics Integration

Artificial Intelligence enabled

Business Models

% of Enterprise Revenue Impacted

Intelligent Autom

ation Journey

IT

F&A, HR,

Custom

er Ops

Core Business O

perations

Revenue Models

and Channels

We are here

Possible by 2020

Intellig

ent A

utom

atio

n is a jo

urney, a

nd its true

b

usiness va

lue w

ill imp

ac

t co

re o

pe

ratio

ns and

re

venue

s

Page 6: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

6 RPA + A

I = Intelligent Autom

ation

Intelligent Autom

ation uses a combination of RPA

and

AI tools, w

hich work together in tand

em to

radically im

prove business processes and custom

er experience, w

hile reducing costs and

enhancing business outcom

es.

ØBut how

do w

e orchestrate and apply them

across the business value chain?

ØHow

do w

e leverage our ecosystem of vend

ors?

ØHow

do w

e achieve ROI?

ØHow

do w

e select the right tools?

But many questions have to be ad

dressed

Page 7: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

7 AI A

mp

lifies the

imp

ac

t of RPA

Stag

e 3. RPA

Role

A

cc

ep

t co

mm

and

instructio

ns fro

m A

I, alo

ng w

ith custo

me

r ve

rifica

tion.

Exec

ute fina

ncia

l transa

ctio

n–

Enga

ge

pro

prie

ty financ

ial

transa

ctio

ns

Stag

e 6. A

I Role

Big

Da

ta A

nalysis

–a

nalyze

c

ustom

er tra

nsac

tions e

xec

uted

b

y huma

ns and

RPA to

ols to

a

ssess a

nd id

entify p

ote

ntial

fraud

ulent a

ctivitie

s. A

nalyze

ove

rall c

ustom

er a

ctivity

to d

ete

ct tre

nds in c

ustom

er

be

havio

r, rec

om

me

nd ne

w

pro

duc

ts.

Stag

e 4. RPA

Ide

ntify and

sca

le d

elive

ry reso

urce

s, A

utom

atic

upd

ate

s on the

arriva

l a

nd sta

tus of tra

nspo

rted

invento

ry

Stag

e 2. A

I Role

Na

tural La

ngua

ge

Proc

essing

-use

the c

ustom

er’s na

tural sp

ee

ch to

a

cc

ep

t co

mm

and

s. Big

Da

ta A

nalysis a

nd M

ac

hine

Lea

rning -Q

uickly find

quic

k fac

ts a

bo

ut custo

me

r to c

onte

xtualize

e

xpe

rienc

eM

ac

hine Le

arning

–V

erify vo

ice

, c

ustom

er re

spo

nses, id

entify

fraud

ulent p

atte

rns

Stag

e 1. C

ustom

er Re

que

stC

ustom

er d

ials into

a C

all C

ente

r.

Stag

e 5. A

IN

atura

l Lang

uag

e Pro

ce

ssing –

Ve

rba

lize c

onfirm

atio

n resp

onse

to

custo

me

r, and

ac

ce

pt a

dd

itiona

l fe

ed

ba

ck.

While

ea

ch to

ol e

xce

ls unde

r diffe

rent c

ond

itions, A

I and

RPA c

an w

ork in ta

nde

m to

imp

rove

the c

ustom

er

exp

erie

nce

, while

red

ucing

co

sts and

imp

roving

busine

ss outc

om

es.

Page 8: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

9 Investment in A

rtificial Intelligence

VC

investment in A

I alm

ost doubled

, attracting $12 billion

AI Startup acquisitions

increased by 44%

between

2016 and 2017

US$ 12 B

US$ 6 B

2017

2016

Corporate Investm

ent lead

ing funding A

I accounting for betw

een US$ 18 –

27 Billion

US $27

Billion

Total investment in A

I in 2017, w

as estim

ated to be

greater than $ 50 Billion

> $50 Billio

n

Source: IDC

September 2017 Forecast

Source: KPMG

Enterprise Venture Pulse Q

4 2017, Global analysis of venture funding

Organizations across ind

ustries, from A

uto-tech to Fintech, Robotics and Health-Tech are increasingly realizing the

potential of AI to transform

their business and are investing in A

I as a key transformational pillar.

115 A

I Startup

Acquired

Spending on cognitive and

AI

solutions will grow

from around

$12.0 billion in 2017. to $57.6 billion in 2021.

US $57

Billion

Page 9: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

10 AI Exp

ectations &

Ad

option

22%

32%

23%

18%

5%

0%5%

10%15%

20%25%

30%35%

No Pla

ns to Ad

opt

Has Investig

ated

Pilot Stage

Some A

I Integration

Extensive AI Integ

ration

Source: Boston Consulting G

roup a

nd M

IT Sloan M

ana

gement

Review-Resha

ping Business W

ith Artificia

l Intelligence

While 83%

of orga

nizations b

elieve AI is a

strateg

ic priority for their b

usiness, less than 25%

of businesses ha

ve successfully integ

rated

AI a

s pa

rt of their overall b

usiness strateg

y or opera

tions.

Stag

e o

f Ad

op

tion

84% of resp

ondents sa

y AI w

ill ena

ble them

to obta

in or sustain

a com

petitive a

dva

ntag

e84%

75% sta

te that A

I will a

llow them

to m

ove into new b

usinesses and

ventures.

75%

69% of resp

ondents exp

ect incum

bent com

petitors in their

industry to use A

I to ga

in an

ad

vanta

ge

69%

Page 10: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

11 Key Im

pa

cts o

f AI in D

igita

l Transfo

rma

tion

Sourc

e: C

ap

ge

mini -D

igita

l Transfo

rma

tion Re

view

Artific

ial

Intellig

enc

e D

ec

od

ed

Eleve

nth Editio

n: Artific

ial Inte

llige

nce

De

co

de

d

Sales and Custom

er Experience75%

of o

rga

nizatio

ns imp

lem

enting

AI inc

rea

se

sale

s of ne

w p

rod

ucts a

nd se

rvice

s by m

ore

than

10%

75%

78%C

ustomer Experience and Satisfaction

78% o

f org

aniza

tions using

AI e

nhanc

e

custo

me

r satisfa

ctio

n by m

ore

than 10%

Operational M

odels75%

of o

rga

nizatio

ns imp

lem

enting

AI

incre

ase

op

era

tiona

l effic

ienc

y by m

ore

tha

n 10%

75%

28%D

igital Business Models

28% o

f org

aniza

tions im

ple

me

nting A

I initia

tives g

ene

rate

new

insights a

nd

be

tter a

nalysis.

This flurry of inve

stme

nt is be

ing d

riven b

y the a

bility o

f AI to

ge

nera

te

rea

l busine

ss imp

ac

t.

Page 11: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

12 AI is a

ccelerating the p

rocess of Digita

l Transform

ation

Digita

l Op

erating M

odels

Creating an agile organization

with a culture of innovation and

end

to end d

igital integration

Digita

l Business Mod

elsPivoting the business m

odel

to drive d

igital revenue and

proactively add

ress market

disruption.

Digita

l Experiences

Driving d

eeper engagement

through intuitive and ubiquitous

user experiences that enhance d

igital entanglement.

Dig

ital re

ad

iness

revo

lves a

round

three

laye

red

pilla

rs that

wo

rk in co

nce

rt to e

nab

le a

n end

to e

nd D

igita

l exp

erie

nce

fo

r eve

ryone

–C

ustom

ers, Pa

rtners, V

end

ors, Em

plo

yee

s, Sta

keho

lde

rs …

AI is d

riving outcomes across all three com

ponents of a Digital enterprise.

Page 12: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

13 Building a

n AI Pow

ered O

rganiza

tion

Legacy O

pera

ting mod

elsD

igital O

pera

ting mod

els•

Wa

terfall p

rocesses

•V

ertical integra

tion

•C

omm

and

and

control

•Peop

le-centric process

•M

ulti-year Prod

uct Cycles

•IT a

s a cost center

•Resp

onsive, Ad

ap

tab

le, Agile

•Extend

ed enterp

rise, Digita

l ecosystems

•Innova

tion culture, Dem

ocratized

idea

s

•A

I/Data driven

•C

ontinuous innovation, JIT d

elivery

•IT a

s growth d

river

AI is helping organizations to save costs, and

improve process efficiency, freeing up tim

e to focus on strategic initiatives, that is enabling them

to remain relevant in an evolving land

scape.

Page 13: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

14 AI is having a d

ramatic im

pact on business operations across multiple ind

ustries, including, Financial Services,

Retail, Manufacturing and

High Tech.

Business Operations &

AI

Source: Capgem

ini -Digital Transform

ation Review A

rtificial Intelligence D

ecoded Eleventh Edition: Artificial Intelligence D

ecoded

78%

77%

75%

70%

68%

0%20%

40%60%

80%100%

Increased

opera

tional

efficiency

Enhancem

ent in emp

loyeep

roductivity

Reduced

operationa

l costd

ue to process improvem

ent

Greater leg

al/regulatory

complia

nce at low

er cost

Reduced

false-p

ositives

Siemens used

an AI to optim

ize the com

bustion processes in their flagship gas turbines, red

ucing em

issions by 20%

20%Em

issions Red

uction

JP Morgan w

as able to save over 360,000 m

an hours from their legal

team by ad

opting an AI solution

which is faster and

less prone to errors.

360K Em

ployee hours

Atlas C

opco estimates that they

have been able to see gains of over 20%

by moving to m

ore autonom

ous solutions,

20%Efficiency

Ga

ins

Page 14: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

16

THEG

OA

L:-Leve

rag

ingA

Itore

duc

em

anho

urssp

ent

on

rep

etitive

issues

and

allo

wsta

ffto

foc

uso

na

ctivitie

sw

here

huma

ninte

llige

nce

ca

nd

riveva

lue.

Overview

:

Case Study: Le

vera

ging

AI to

allo

w sta

ff to

foc

us on Stra

teg

ic Initia

tives

Product Integration Prud

entia

l ga

ve the

ir tea

m o

f ad

visors a

co

mp

etitive

a

dva

ntag

e, b

y leve

rag

ing a

n AI e

nab

led

Dig

ital

Virtua

l ag

ent to

red

uce

the tim

e sp

ent o

n rep

etitive

w

orklo

ad

s, and

allo

wing

them

to fo

cus o

n ad

ding

va

lue to

the c

lient.

Impact

AI is he

lping

Prude

ntial b

e m

ore

op

era

tiona

lly e

fficie

nt, pro

duc

tive, c

om

pe

titive, a

nd im

pro

ve the

q

uality o

f life fo

r staff.

Key Challenge

6000 financ

ial a

dvise

rs we

re sp

end

ing a

n ave

rag

e o

f fo

ur minute

s on e

very c

all d

oing

ca

ller id

entific

atio

n a

nd ve

rifica

tion.

Page 15: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

17 Redefining your b

usiness in the Digita

l era

Legacy Business M

odels

Digita

l Business Mod

els•

Priced for O

wnership

•Bulk p

urchase

•A

sset intensive

•Bund

led p

roducts

•M

ass Prod

uced

•Priced

for Usage

•M

icro purcha

se

•A

sset light

•M

odula

r services

•Persona

lizing and

ma

ss customiza

tion

Organizations are seeing tangible benefits from

the adoption of A

I to transform their business m

odels. D

riving new

revenue streams and

products w

hile improving their ability to increase custom

er value

Page 16: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

18

Ca

se Stud

y: Ge

nera

l Elec

tric (D

igita

l Business M

od

el)

GE, a

pio

nee

r of the

“Industria

l Interne

t”, is transfo

rming

the tra

ditio

nal

ma

nufac

turing ind

ustry by c

om

bining

hard

wa

re, so

ftwa

re, a

nd

ana

lytics into

system

s that c

an m

onito

r, co

llec

t, exc

hang

e, e

xam

ine,

and

de

liver insig

hts to c

ustom

ers c

rea

ting a

dig

ital e

xpe

rienc

e.

Softw

are

de

fined

GE a

da

pte

d its hig

hly structure

d Six Sig

ma

pro

duc

t d

eve

lop

me

nt pro

ce

ss for m

anufa

cturing

me

dic

al, je

ts, and

p

ow

er e

quip

me

nt with a

new

fail fa

st softw

are

culture

te

rme

d “Fa

stWo

rks” whic

h allo

ws the

m to

integ

rate

and

sell

new

softw

are

servic

es a

long

with the

ir trad

itiona

l pro

duc

ts.

Imp

ac

tRe

inventing

its busine

ss mo

de

l has no

t only a

llow

ed

GE

to b

ette

r serve

its custo

me

rs, but ha

s yield

ed

substa

ntial

financ

ial re

turn, with re

venue

s from

‘Pred

ictivity’

solutio

ns exp

ec

ted

to re

ac

h $5 billio

n by 2017. “Pre

dix”

has b

ec

om

e d

efa

cto

pla

tform

for Ind

ustrial inte

rnet

Cha

nging

Custo

me

r Expe

rienc

e a

nd Busine

ss Mo

de

lsG

E has fo

cuse

d o

n pro

viding

clie

nts with d

ata

-drive

n so

lutions to

imp

rove

ma

chine

effic

ienc

y, pre

vent d

ow

ntime

, a

nalyzing

50 millio

n da

ta p

oints fro

m 10 m

illion se

nsors o

n $1 trillio

n of m

ana

ge

d a

ssets.

Page 17: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

19

THEG

OA

L:C

ar

ma

nufac

turers

are

leve

rag

ingA

Ite

chno

log

yto

cre

ate

auto

nom

ous

vehic

les,

whic

hc

an

ena

ble

new

ow

nership

mo

de

lsa

nda

pp

ea

ltoa

wid

erse

gm

ento

fthem

arke

t.

Overview

:

Case Study: Se

lf Driving

Ca

rs

Product Integration A

utono

mo

us tec

hnolo

gy c

ould

po

tentia

lly allo

w

vehic

les to

be

auto

ma

tica

lly de

livere

d to

custo

me

rs re

ga

rdle

ss of the

ir loc

atio

n right a

fter a

n online

p

urcha

se.

Impact

This new

busine

ss line, is he

lping

ma

nufac

turers to

g

ene

rate

mo

re re

venue

from

a tra

ditio

nally

untap

pe

d c

ustom

er b

ase

.

Key Challenge

Ne

w usa

ge

pro

gra

ms like

Aud

i on d

em

and

, and

Vo

lvo

subsc

riptio

n are

ena

bling

new

wa

ys for c

ar

ma

nufac

turers to

cre

ate

pro

duc

ts that a

pp

ea

l to a

w

ide

r custo

me

r ba

se a

nd a

re ye

t pe

rsona

lized

to

individ

ual p

refe

renc

es.

Page 18: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

20 Engaging custom

ers where they a

re, when they w

ant, how

they desire …

Legacy Exp

eriencesD

igital Exp

eriences•

Com

plex a

nd Proced

ural

•Ra

ce for more fea

tures

•UX com

pa

red w

ithin the industry

•Fixed

Usage M

odels

•M

ass a

nd sta

nda

rdized

•Sim

ple a

nd Intuitive

•Ra

ce for engagem

ent

•UX com

pa

red to a

ll user experiences

•O

n-Dem

and

•C

ontextual a

nd Persona

lized

AI is enabling business to better engage w

ith their customer base, pred

icting dem

and, personalizing and

allowing

customers to find

the relevant products and

services, and have seam

less on-line to in-store experience

Page 19: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

21 AI is d

riving benefits across the organization, improving custom

er intimacy, and

enabling their organizations to becom

e more creative, and

focus on strategic aspects of the customer engagem

ent experience.

AI Transform

ation of the Sales and C

ustomer Experience

Source: Capgem

ini -Digital Transform

ation Review A

rtificial Intelligence D

ecoded Eleventh Edition: Artificial Intelligence D

ecoded

74%

74%

68%

66% 72%

73%

0%20%

40%60%

80%100%

Increase in sa

les of newp

roducts a

nd service

Increase in sa

les of traditiona

lp

roducts a

nd services

Increase in inbound

customer

leads

Reduced churn

Reduced custom

er complaint

Enhanced customer sa

tisfaction(increase in N

PS)

Harley-David

son, used A

I for highly targeted

marketing

activities which helped

increase sales lead

s by 2,930% w

ithin three m

onths

2,930%

In a three-month pilot, C

osabellaused

an AI platform

to produce a

336% return on ad

spend (RO

AS)

and a 155%

increase in revenue (Q

4, 2016).

336%

KLM w

as able to generate a 35%

Improvem

ent in customer service

efficiency using an AI pow

ered

customer experience.

35%“The

mo

st po

pula

r use c

ase

right no

w is in the

co

ntac

t c

ente

r. There

is just so m

uch ro

om

for im

pro

vem

ent in the

c

ustom

er e

xpe

rienc

e, the

ab

ilities o

f the a

ge

nts involve

d,

and

the re

latio

nship b

etw

ee

n the institutio

n and

its c

ustom

ers.” -Rob High, IBM

Fellow, V

P & C

TO, W

atson

Page 20: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

22

THEG

OA

L:-LeveragingA

Itored

ucem

anhoursspenton

repetitiveissues

andallow

themto

focuson

activitiesw

herehum

anintelligence

cand

rivevalue

Overview

:

Case Study: Im

prove Digital Sales C

onversion Rates using A

I.

Product Integration Sentient Tech w

as able to use AI to im

prove inventory visibility to betw

een 75% and

80% using A

I to help users navigate the sites and

contextually in real tim

e display the d

esired SKUs.

Cost Saving Im

pactsW

ith improved

catalog visibility, clients like Sunglass Hut and

Skechers, were able to see betw

een 30%

and 40%

improvem

ents in conversion rates

Key Challenge

Online retailers have very low

conversion rates, owing

partially, to the fact that users are only seeing about 10%

of inventory.

Page 21: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

23 Challenges in A

dopting A

I as part of the Digital Transform

ation Strategy 59%

of organizations are still gathering information to build

their AI strategies.

Go

verna

nce

Firm

s with a

ded

icated

AI H

ead

or CO

E observed a

17% increa

se in inbound

customer lea

ds using A

I. How

ever, only about a

third (37%

) of orga

nizations im

plementing A

I have a

ded

icated

AI H

ead

in their firm.

Initiative

Sele

ctio

nSom

e organiza

tions have a

lread

y jumped

to ad

opting AI for a

dva

nced

use cases w

hile bypassing the “low

hanging fruit” tha

t can ena

ble quick returns for their orga

nizations. E.g. V

olvo and

self driving ca

rs vs. Custom

er Enga

gement Tech. Test interna

lly before exposing customers to A

I.

Emp

loye

e Eng

ag

em

ent

Effectively comm

unicating w

ith employees a

nd investing in skills

developm

ent should be a

priority for firms. 63%

of organiza

tions said

that

AI d

id not d

estroy any jobs w

ithin their organiza

tions. Ad

ditiona

lly 71% of

organiza

tions are investing in up-skilling their em

ployees in AI field

s.

Sca

le a

nd Sta

keho

lde

r Buy-inO

nly 20% of com

panies a

re implem

enting “must-d

o” use cases a

t sca

le, lacking key sta

keholder buy-in a

nd orga

nizationa

l confidence in

the technology to reliably execute the w

orkload

s.

Source: Gartner Top 10 Strategic Technology Trends for 2018

Source: Capgem

ini -Digital Transform

ation Review A

rtificial Intelligence Decoded Eleventh Edition: A

rtificial Intelligence Decoded

Page 22: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

24 The Inte

llige

nt Auto

ma

tion e

co

system

IA Ecosystem

RPA

IT Infra A

utomation

AI

HR

Marketing

Finance

BPM

Security

Page 23: 2017 LLC - Outsourcing · 2018. 5. 2. · l, g y t of ir s d g ir g l in r to e l es. 0 e i nt s r l o y y s s s. 3 t m / e ve t s n s e-t o-s e ss e n t e Co-s s & l-s n UX n y on

Emp

owering

Beyond

GET C

ON

NEC

TED

ww

w.A

vasa

nt.com

Wa

shington D

C

New

YorkD

alla

s

Los Ang

eles(H

ead

qua

rters)

Toronto

London

Port of Spa

in

Bang

alore

Mum

ba

iH

ong Kong Tokyo

Delhi

Dub

ai

Johannesb

urg Kam

pa

la

Ma

drid

Partner

Anup

am

Govil

anup

am

.govil@

Ava

sant.com

512-762-7384