Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive...
Transcript of Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive...
Achieving Automation through Cognitive Technologies
Timothy Ho
Deloitte
Technology is the key driver of change in finance
Cloud Process VisualizationRobotics
Cognitive Computing
In-Memory Computing
BlockchainAdvanced Analytics
Seven technologies have growing relevance for how the work of finance gets done.Core Modernization
Exponentials
Finance is expected to deliver in four key roles, however the balance of responsibilities is changing
Operator
StrategistCatalyst
Steward
How much time (in %) is your finance organization spending in top half vs lower half?
Definition : Automation Spectrum
The future of operational Finance is the establishment of a Finance factory; a fully automated control center with process visualizations tools
Monitoring of processes on a continuous basis to provide insight
Process Automation to drive greater productivity and quality
Robotic Process Automation (RPA)
Opening email andattachments
Logging into web/enterprise applications
Moving files and folders
Copying and pasting
Filling in forms
Reading and writing to databases
Making calculations
Scraping data from the web
Connecting tosystem APIs
Extracting structured data fromdocuments
Collecting social media statistics
Following “if/then” decisions/rules
RPA is… RPA is not…
Computer-coded software
Programs that replace humans performing repetitive rules-basedtasks
Cross-functional and cross-application macros
Walking, talking auto-bots
Physically existing machines processing paper
Artificial intelligence or voice recognition and reply software
What itcan do
RPA Demo Video
Process automation - generate billing in the system
Process steps:
1. Receive email with attachment (in pdf – standardformat)
2. Convert data into an excel file – Copy and paste from pdf
3. Log in to system
4. Go to generate billing screen and input billingrequest – Copy and paste from excel file
5. Send email to requestor to confirm process is completed
Video Link: https://youtu.be/FV8lM9SIFQ8
RPA Benefits
Risk Analytics – Deloitte Analytics Platform
Use more data, quickly• Unleash enterprise data, including
internal and 3rd Party sources
• Quickly cleanse and map data for
analysis
• Enhance data quality and
completeness
Produce better insights• Leverage proven risk models across
business processes Procure-to-Pay,
Payroll, Travel & Expense, and P-Cards
• Identify emerging patterns driving
anomalous behaviors through trending
and benchmarking
• Aggregate risk and use historical results
to reduce false positives
Understand business
impact
• Easy-to-use dashboards enable users to
investigate and report results
• Review historical results of similar risks
identified to predict potential
outcomes
Analytics
Platform
Understand the risk universe• Deliver predictive risk modeling and risk
sensing capabilities
Develop the audit plan• Perform dynamic risk assessments
• Generate dynamic audit plans
Design the audit programs• Continuously audit / monitor risk & controls
• Enable remote auditing
• Conduct exception-based audits
Deliver results & insights• Automated advanced dashboards
Sample Risk Analytics
“We are drowning in
information but starvedfor
knowledge”- JohnNaisbitt1
What is analytics?
Predictive modeling/optimization
Scenario/tradeoff simulation
Pushed exceptions and alerts
Company and individual performancevisibility
Operational reporting
Hindsight
Enterprise data management
Foresight
Insight
Industrialized Dashboards
and KPIs
Bespoke Traditional Analytics
Cognitive Computing and
Machine Learning at
Scale
Analytics is evolving
Drivers & disruptors Evolution of analytics
IN-MEMORY PROCESSING
INTERNET OF THINGS
INTELLIGENT AGENTS
TEXT ANALYTICS MACHINE LEARNING
CROWD-SOURCING& COMPETITIONS
ADVANCED HUMAN COMPUTER INTERFACE
EXPONENTIALS
CYBER SECURITY
ARTIFICIAL INTELLIGENCE & COGNITIVE ANALYTICS
CLOUD VISUALIZATIONS DATA LAKES BIG DATA &PREDICTIVE ANALYTICS
TABLE STAKES
Dataproliferation
New data sources
Technologydisruption
Innovative Science
DATAWAREHOUSING
& DATA BUSINESS
MODELING INTELLIGENCELE
VE
L O
F E
NT
ER
PR
ISE
-WID
E A
DO
PT
ION
CognitiveSpend retains human intelligence to get smarter as more data is processed
How the Tool Learns
Feedback Portal
Dynamic in-tool pivot table to capture human input
Initial
Training Data
Initial
Classification
Additional
Feedback
Previous feedback from other projects
totaling ~$50B of spend across 100M
line items
250 most meaningful line items
(identified using data science) classified
by user to jumpstart classification
Additional amendments by user are
retained for learning purposes
+
+
How the Tool Classifies
CognitiveSpend leverages previous
classifications to predict
classifications for data it has never
seen before
Example Classification
Line Item Description:
“SEM”
Rules-Based
Unknown
Cognitive
Search Engine Marketing
95%+=Accuracy
through
Automation
Analytics
Cognitive Insights
StatisticalModelling
Visualization
Cognitive Insights
➢ Extract concepts and relationships from various data streams, text sources and social media and generate new insights including market threats and opportunities through cognitive analysis and correlation of data
➢ Deliver applications thatintelligently “understand” the context and provide the right insight at the right time explaining why it is relevant and important
Statistical Modelling
$0
$50
$100
$250
$200
$150
$300
$350
Revenue
(mill
ions)
2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
$0
$50
$100
$150
$200
$250
$300
$350
Revenue
(millio
ns)
2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
Traditional Approach: Linear Projection Predictive Approach: Multiple Linear Regression
Forecast Forecast
Year 08 09 10 11 12 13 14 15 16
Revenue$150 $155 $202 $193 $210 $280 $293 $311 $336
Year 08 09 10 11 12 13 14 15 16
Revenue$150 $155 $202 $193 $210 $280 $293 $266 $254
Var A* 2 3 5 4 6 7 8 2 3
Var B* 7 6 5 6 4 4 3 4 5
Var C* 1 1 4 5 3 7 8 5 7
R2 = .95
Standard error = 16.42
R2 = .99
Standard error = 3.52
Outcome for two different forecasting approaches
•1 More accurate model, illustrated by the higher R2
and lower standard error
•2 Can highlight problems based on nuanced changes before they have a negative impact on the company
•3 Allows executives to see which drivers have the greatest impact on revenue forecasts
•4 Enables better and quicker decision-making in order to take action and enhance future performance
Visualization
Visualization
• Multi Dimensional reporting, and ability to drill down to details
• Real time information
• Dashboard for management
Natural Language Generation
Data Audience
ANALYZE INFER GENERATE INSIGHTS
Natural Language Generation
Produces an analysis and text automatically
Generates standardized text from the same domain knowledge base
Tailors the text to the user’s expertise level and context
Drives actionable insights, increases productivity, andoperational efficiency
Natural Language Generation LinktoYoutube
Integrating NLG with Robotics can significantly automate Decision Support activities, enabling a greater focus on analysis
Report Submission
Data Collection
Data Manipulation
Insights Generation
Commentary Generation
Driver Analysis
Report Submission
Data Collection
Data Manipulation
Insights Generation
Commentary Generation
Driver Analysis
Legend: Manual Process RPA Tool NLG Tool
Curr
ent
Sta
te
Desir
ed
Sta
te
Illustrative Business Partnering support process
The CFO is the logical position to oversee predictiveanalytics capabilities and to partner with the business
Getting Started
THINK BIG
Immerse Yourself in Innovation
Join an immersive experience (e.g., Digital Finance Lab) to
explore the “art of the possible” and determine a future state vision, goals, and benefits
Build Your Ecosystem
Evolve your Finance organisation by collaborating with other
business functions,, and vendors
ESTABLISH A DIGITAL LEADERSHIP TEAM
Identify a visionary program leader and assemble a team to accelerate your digital goals.Determine a governance model and policies that might need to be adapted to execute successful change management and ensure the solution is absorbed into the business.
START SMALL
Scaling the Edges
Disconnect from the core business and set up a digital leadership
team to assess disruptive opportunities within the
organisation
Pick One or Two Plays
Prioritise your desired tactics and pick just one or two to get
started in order to establish proof of concept
ACT FAST
Prove it Works (Quickly)
Use an agile, iterative piloting approach to move from strategy to prototyping as quickly as possible –“fail fast” and achieve rapid results
Market Your Own Success
Seek opportunities to share digital experiences with other functions –
knowledge share
Crunch Time Series
Crunch Time:
Finance in a Digital World
Crunch Time, too.
CFOs talk off the record
about Finance in a digital world
Crunch Time IV:
Blockchain for Finance– What CFOs
Need toKnow
Crunch Time III: The
CFO’s guideto cognitivetechnology
Crunch Time V: Finance
2025
Link toreports: https://www2.deloitte.com/sg/en/pages/finance-transformation/articles/finance-digital-
transformation-for-cfos.html