Designing a Program that Increases Your Intelligent ... · Broader Process Evaluation Robotic...
Transcript of Designing a Program that Increases Your Intelligent ... · Broader Process Evaluation Robotic...
Copyright © 2018 ScottMadden, Inc. All rights reserved.
Designing a Program that Increases YourIntelligent Automation “Velocity”
Intelligent Automation Week
Chicago
July 30, 2018
Copyright © 2018 ScottMadden, Inc. All rights reserved.
ScottMadden Areas of Focus
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Adding Velocity to Your IA Program
2
Today’s Discussion
Shop for Knowledge
with RPA Pilots
Flip to a Broader IA
Process Evaluation
Expand Digital Vision
across the Enterprise
Paint an IA
Governance Picture
Shopping for Knowledge with RPA Pilot
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■ What types of licenses do I need to buy?
■ How much RPA scripting can fit on a license?
■ When should I run RPA applications?
■ How much will this cost in licenses, training,
communications?
■ How long will it take me get this set up?
■ Do I need a recording device?
■ What types of access will I need?
■ Can robots run on my laptops, or do I need servers?
■ What level of skill do I need to program robots?
■ What types of processes lend the most impact?
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RPA Knowledge Shopping
You Will Learn More from a Pilot than a Conference!
Answers to these questions differ for every company and RPA scenario
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Don’t Overanalyze…Just Get Started!
Move through a pilot in four phases:
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RPA Knowledge Shopping
Strong champions are not hard to find
these days
“Thunderous rivers” are more
interesting than “trickling creeks”
You don’t need the perfect RPA
vendor just yet
This will force governance
applicable to broader IA
▪ Find a problem
▪ Find an influencer
▪ “Gut feel” what to fix
▪ Find the team
▪ Introduce the players
▪ Avoid flow charts
▪ Think “volume flow”
▪ Think “batching”
▪ Look for forms
▪ Ask your staff
▪ Path of least resistance
▪ Go get a trial license
▪ Set up environment
▪ Get a few laptops
▪ Find your “scripter”
▪ Document
▪ Train/communicate
▪ Assign roles
▪ Point to production
▪ Showcase and expand
Move into ProductionSelect the Right ProcessDevelop and Test
the BotsFind a Business Partner
Your learning on smaller RPA pilots will be applicable to building out broader IA programs
Copyright © 2018 ScottMadden, Inc. All rights reserved.
Find a High-volume Flow…with Lots of Easy Follow-on
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RPA Knowledge Shopping
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Automation Potential
More is better
■ Are there any forms involved in the processes?
■ What percentage of the process is rule-based (logical if… else… then) steps?
■ How many applications and data sources does the process need to integrate with?
Less is better
■ Has this process changed frequently in the past two years?
■ Does IT make frequent changes to the systems involving this process?
■ Does your process involve secure data?
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RPA Knowledge Shopping
Also consider business criticality—less critical processes offer less risk but also less “wow” factor to
gain enterprise momentum. Find the right mix for a pilot
Flip to a Broader IA Process Evaluation
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You’ve Successfully Completed Some RPA Pilots…What’s Next?
Your options…
■ Declare RPA pilot victory and quit
■ Do another pilot, then another…and another
■ Start randomly pushing to production as pilots become ready
■ Develop/promote an enterprise-wide program
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Broader Process Evaluation
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Understanding Where to Go from Here
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Broader Process Evaluation
Robotic Process
Automation
Virtual Agents and
Chatbots
Artificial
Intelligence
Level of Adoption 55% 10% 5%
Characteristics of
Data Input
Structured, rule driven, static
Structured data, but requirescognitive computing
Unstructured/structured data with hidden patterns
Nature of Ideal
Process Fit
■ Digital repetitive steps
■ Rule based/logic driven
■ Time consuming
■ Documented
■ Static rules
■ Customer interfacing
■ Requires access to solve?
■ Multiple languages required
■ Multiple time zones required
■ Requires research
■ Non-routine inquiries
■ Formula driven
■ Requires pattern anddetailed analysis
Process Candidate
Examples
■ AP/AR management
■ Billing and invoices
■ Data entry/management
■ Customer service
■ Vendor inquiries
■ Delivery/scheduling
■ Forecasting (e.g., FP&A)
■ High volume research
■ Exception handling
Data structure and integrity is essential across all IA
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A Process Breakdown Will Lend Clues to IA Opportunity
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Broader Process Evaluation
Analytical = AI? Transactional = RPA? Customer Facing = Cognitive?
1.1 Establish credit
policies
1.2 Analyze/approve
new account
applications
1.3 Review existing
accounts
1.4 Produce
credit/collection
reports
1.5 Reinstate or suspend
accounts based on
credit policies
1.0 Process customer
credit
2.1 Maintain
customer/product
master files
2.2 Generate customer
billing data
2.3 Transmit billing data
to customers
2.4 Post receivable
entries
2.5 Resolve customer
billing inquiries
2.0 Invoice customer
3.1 Establish AR policies
3.2 Analyze/approve
new account
applications
3.3 Apply cash
remittances
3.4 Prepare AR reports
3.5 Post AR activity to the
general ledger
3.0 Process accounts
receivable
4.1 Establish policies for
delinquent accounts
4.2 Analyze delinquent
account balances
4.3 Correspond/negotiate
with delinquent
accounts
4.4 Discuss account
resolution with internal
parties
4.5 Process
adjustments/write off
balances
4.0 Manage and process
collections
5.1 Establish
policies/procedures
for adjustments
5.2 Analyze adjustments
5.3 Correspond/negotiate
with customer
5.4 Discuss resolution
with internal parties
5.5 Prepare chargeback
invoices
5.6 Process related
entries
5.0 Manage and process
adjustments/deductions
Perform Revenue Accounting
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Process Analytical Tools Provide Great Insight
Process tools can assist with:
■ Collecting process step data
■ Identifying characteristics that lend themselves to RPA, Virtual Agents, and Artificial Intelligence technology
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Broader Process Evaluation
Check all that apply or those that most closely resemble your process. If your process is not
listed, please type in the cells below "Other".
Use drop down menu to make
appropriate selection
Use drop down menu
to make appropriate
selection
Use drop down menu to
make appropriate
selection
Use drop down menu to
make appropriate selection
Use drop down menu to
select whether there is a
national, area, or global policy
for this activity
Type the description of
the related policy in the
cells below
Type any related gov't
regulations in the cells below
Type any related tax law in the
cells below
Type any additional notes; If
responded as "Other" in any
column, please describe here
Process Donations / Accounts Receivable
Instructions:
Process customer credit
Establish credit policies
Not Applicable
Establish/revise national credit policy as necessary. No defined process
Other: Please describe below
Analyze/Approve new account applications
### Not Applicable
Other: Please describe below
###
Review existing accounts and balances
### Not Applicable
### Perform review of existing accounts and balances periodically and as needed
Other: Please describe below
###
Produce credit/collection reports
### Not Applicable
### Generate reports from accounting software
###Draft emails to notify debtors of delinquent accounts either based on knowledge of debtors or
by looking within the accounting software
Other: Please describe below
###
Reinstate or suspend accounts based on credit policies
### Not Applicable
Other: Please describe below
###
Drop down menu • Rule driven • Repetitive
• Static steps
Drop down menu • Customer contact • Repetitive Q&A
• Knowledgebase driven
Chat Bot/Virtual Agent
Opportunity
Work Characterization
Field
RPA
Opportunity
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Process Analytics – Example
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Broader Process Evaluation
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Process Analytics – Example for Customer Credit
Number of frequencies, parties, and technologies involved in processing customer credit
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Broader Process Evaluation
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Process Analytics – Example for Order-to-Cash
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Broader Process Evaluation
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Build a Process Opportunity Dashboard to Help Prioritize
A process tool helps:
■ Organizations understand standardization in process approach, execution, efficiency, and technology use
■ Identify process steps that can benefit from RPA and other IA solutions
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Broader Process Evaluation
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Prioritize Automation Opportunities
Early identification of which process steps present the greatest opportunity for automation solutions will allow your organization to maximize the benefit of its automation roadmap.
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Broader Process Evaluation
Automation Potential
1.1
1.2
1.3 1.4
2.12.2
2.3
2.5
3.1
3.4
3.5
4.1
4.4
5.1
5.25.3
5.4
1.5
2.4
3.23.34.2 4.3
4.5
5.55.6
Bu
sin
ess B
en
efi
t
Specific Process Steps
Paint an IA Governance Picture
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What Do You Want to Achieve with Intelligent Automation?
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IA Governance Picture
Answers help define program design and funding requirements
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There Is No “One-Size-Fits-All” Governance Model
What others are saying (quotes from past SSON conferences)
■ Yes, maybe the system should do this, but it doesn’t and it’s not going to because IT is busy, so we use RPA (Walgreens)
■ Our IT preferred in-house servers (vs. cloud) for data security, others may not… (Walgreens)
■ Standardize and eliminate waste before robotizing (Ascension)
■ Processes may not require standardization or optimization before automating (ANZ Bank)
■ ROI increases as people begin to think digitally – opportunity becomes increasingly apparent (AA)
■ Fish where the fish are – if there are a lot of people working on particular tasks, it’s probably a good place for RPA (AA)
■ We set up robots in the system as contractors (McKesson)
■ We set up robots as existing workers who had access but did not work the process (Ascension)
■ We reinvest our IA savings into IA (Aruna, MasterCard)
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IA Governance Picture
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The Answer Is Typically Some Degree of Hybrid (But There’s a Broad Range)
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IA Governance Picture
Description Enterprise Role Challenges
RPA launched from within
enterprise COE or shared services
with high visibility and control of
efforts
Almost entirely enterprise-led
approach (typically IT, though it
could be led by another centralized
business function)
Less responsive
Development time reduces impact
opportunity
Baseline guidelines, controls and
QA
Core team provides automation
services for areas unable to support
own needs
Provides:
• Direction and leadership
• Orchestration and quality
assurance
• Optional process selection/
design
• Optional scripting
Potential conflicts between central
and local efforts and authority
RPA efforts are launched locally
within business functions
Can have business or function-
specific COEs
Little/no involvement at enterprise
level
Informal ad-hoc coordination
Varying quality
Potential bot impact on other
departments/bots
Robot chaos
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Governance – Program Decisions
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IA Governance Picture
An IA program without central standards and quality assurance is a weaker “program,”
but tradeoff may be a reduced speed to implementation
Governance Approach (Example)
Support Type IA Program Decisions COE Process Owner IT Dept.
Program Decisions
Standards – Define IA requirements and
performance metricsX
More Autonomous
(Decentral)Certification – Approve qualified vendors
to develop IA projectsX
Training – Enable business units to
identify and implement IA projectsX
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Governance – Execution Decisions
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IA Governance Picture
IA prioritization and project execution warrants business unit knowledge of needs,
but an IA COE can help keep this organized and avoid surprises
Governance Approach (Example)
Support Type IA Program Decisions COE Process Owner IT Dept.
Project Execution
Project Planning – Manage IA
implementation schedule and budget
More Regimental
(Central)
X
Demand Management – Track and
prioritize IA project requestX
Process Identification – Assess
applicability of an IA solutionX
Development – Program and apply IA to
process stepsX
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Governance – Maintenance and Planning Decisions
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IA Governance Picture
Running IA programs without IT is a fallacy—IT will need to be involved in maintenance at a minimum.
But, an IA COE can serve as a great “head on the horse” to promote IA visioning and planning
Governance Approach (Example)
Support Type IA Program Decisions COE Process Owner IT Dept.
Project Execution
Technology Infrastructure – Create the
foundational elements for RPA operationsX
Program Operation – Orchestration and
optimization of IA scheduleX
More Autonomous
(Decentral)
More Regimental
(Central)Program Planning
Vision Development – IA program
leadership and promotionX
Future Planning – Reflect the
enterprise's technological change in IA
portfolio
X
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IA COE Framework – Hybrid Example
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IA Governance Picture
Consultative to Process Owner
Consultative to IT
Expand Digitization across the Enterprise
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Transactional
■ Low-cost transactional centers and BPOs
• AP, AR, accounting transactions
• Master data entry and maintenance
• Customer issue assignment
Functional – Customer Facing
■ Service hubs and call centers –“Amelia-like” virtual agent, chatbots
• Vendor help desks
• Employee service centers
• IT help desks
• Customer service order taking
AI Specialist
■ Centers of expertise
• Credit and risk analysis
• Fraud prevention and controls
• Forecasting, planning, and budgeting
• Tax strategy
• M&A targeting
• Compensation design
• Recruiting and retention
• Workforce planning
• Demand planning
• Spend-reduction opportunity
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Expanding Digital Vision
What Types of Work Will IA Impact?
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General Distribution of Back-office Impact Potential
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Expanding Digital Vision
Strategic6%
Specialist11%
Customer Facing23%
Hands On16%
Transactional32%
Robotic12%
Repetitive task, often
related to admin or routine
data entry
(low-cost labor spots)
Deep specialist focus
typically associated with
decades of experience
(COE where talent is)
In-depth subject matter
expertise and closer
proximity to customer
(regional support hub)
Total FTE
RPA work fits a small COE
for controlling work,
developing programs, and
maintaining “bots”
Hands-on touching of work,
government interface, legal
requirements
(local, on site)
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Global Business Service Models Today
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Expanding Digital Vision
AMERICAS EMEA
APAC
Transaction
Center
Transaction
Center
Corp HQ
Service
Support
Hub
Service
Support
Hub
COEs
Service
Support
Hub
▪ Low-cost locations
▪ High-volume transactions
▪ Standardized
▪ BPO sweet spot
• Regional knowledge
• Language requirements
• Time-zone sensitivity
• Specialist knowledge
• Experience to recognize patterns
• High-volume research/analytics
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Transactional Shift – Away from Lost-cost Areas?
30
Expanding Digital Vision
AMERICAS EMEA
APAC
Transaction
Center
Transaction
Center
Corp HQ
RPA
Center
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Service Shift – Virtual or Smaller Service Hubs?
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Expanding Digital Vision
AMERICAS EMEA
APAC
Corp HQ
AI
Agent
Hub
Service
Support
Hub
Service
Support
Hub
Service
Support
Hub
Service
Support
Hub
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Specialists COEs – Smaller, Intelligent, Data Driven?
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Expanding Digital Vision
AMERICAS EMEA
APAC
Corp HQ
HR
COE
Supply
COE
IT
COE
Finance
COE
AI
Analytics
COE
AI
Analytics
COE
Legal
COE
Manufacturing
COE
Engineering
COE
Marketing
COE
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GBS Model of the Future
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Expanding Digital Vision
AMERICAS EMEA
APAC
Corp HQ
AI
Analytics
COE
Legal
COE
Mftg
COE
Eng
COE
Marketing
COE
Service
Support
Hub Service
Support
Hub
Service
Support
Hub
Transaction
Center
Transaction
Center
RPA
Center
AI
Agent
Hub
HR
COE
Supply
COE
IT
COE
Finance
COE
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Impact to Future Work Types Will Change Our Business Cases – Example
34
Expanding Digital Vision
Today
Transactional
(Low-cost Center)
Hands On
Functional
(Service Hub)
Specialist
(COE)
Strategic
Tomorrow – with IA (hypothetical)
Hands On
Functional
(Service Hub)
Specialist
COE
Strategic
RPA Transactions
30%?
Cognitive
Agents and
Chatbots
15%?
AI Analysis
5%?
Transactional
(Low-cost
Center)
45%
15%
20%
10%
5%
Future impact to our rationale for existing GBS models may require rethinking and result in completely
different delivery frameworks than we have today
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How Can You Prepare Now?
Avoid surprises and create your future model now
■ Find process steps that lend themselves to IA
■ Observe process characteristics and align to IA technology (RPA, virtual agents, AI)
■ Build the case for investment and a realistic pace for your company
■ Prepare your data (governance, structure, cleaning)
■ Start formulating a beginner governance model
■ Assess upcoming long-term strategic decisions vs. a highly likely future of disruptive technology
• BPO decisions
• ERP decisions
• Service support decisions
• Location decisions35
Expanding Digital Vision
Preparing the future conceptual model and business case now will avoid the potential for costly
initiatives that may not add value in the near future (e.g., call center builds, BPO contracts, etc.)