Threat or Opportunity? -...
Transcript of Threat or Opportunity? -...
1 | September 19, 2016 | © 2016 ExlService Holdings, Inc.
ROBOTICS PROCESS AUTOMATIONThreat or Opportunity?
SEP, 2016
2 | September 19, 2016 | © 2016 ExlService Holdings, Inc.
2Robonomics and Trend Overview
Source: TMR Analysis - March 2015
AA & RPA as a disruptive trend could displace ~40% of knowledge workers
by 2018
More hype – than real capabilities and depth with providers as of Q1, 2015
60.5% (CAGR) of Robotics between 2014 to 2020 to reach US $ 4.98 Bn
Clients are now actively exploring Robotics as a sourcing strategy
lever and seeking pilots
Robots made cars, unloaded ships and assembled
products but in today’s enterprise digital age, software
robots are augmenting/replacing physical labor
Cost of Manual Operations
~ 30 % reduction due to outsourcing
~ 15-20 % efficiency from
BPA
+ Onshore operations + Cost Arbitrage
+ Labor Arbitrage
+ Business Process
Automation
Breakthrough outcomes from RPA
+ Robotics Process automation
+ New business-models
3 | September 19, 2016 | © 2016 ExlService Holdings, Inc.
Automation, Robotics & AI emerging as disrupting trend in marketplace
Automation and Robotics is growing rapidly…
… and transform the value proposition of the BPM industry
“1/3rd jobs will be replaced by software, robots, and smart machines by 2025 “– Gartner
“RPA* adoption in BPM growing at CAGR of 100+%” – Everest
“45 % of work activities could be automated using already demonstrated technology” – McKinsey
“Automation radically transforms operations, delivering much lower costs while
improving service quality, increasing compliance and decreasing delivery times” – HBR
“RPA* could save companies 20 to 40 % in labor costs” – IRPA
“investment recovery period as short as 6-9 months; and, a generally non-
invasive, easy-to-manage nature” – NASSCOM-Everest
“The potential business benefits of artificial intelligence technologies are much
broader than the cost Savings” – Deloitte
* known as Advanced Automation & Robotics in EXL
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We recognize the impact for Clients and BPM Providers, our PoV is …
> Exploring alternatives in the market place
+ Evaluating Advanced Automation, Robotics and Artificial Intelligence for onshore processes
+ Seeding Advanced Automation in outsourced operations leveraging Robotics and Cognition
+ Advanced Automation as an interim approach to Legacy Platform modernization
> Seeking Advanced Automation Consulting from their BPM and other providers
> Attracted to a risk-sharing and outcome based engagement
> Reimagined Digital Operations to achieve accelerated time-to-value,
enhanced customer experience and drive intelligent Business processes
> Increasing share of Automation led Revenue (10-20% to 40-60%)
> Accelerated solution delivery for faster value realization
> Transformational lever for business operations
+ Adjacent Human and BOT queues
+ BOT: Repetitive, High-scale, Cognition
+ Human: Exceptions, Hyper-specialization; driving up Offshore Value Chain
Clients
BPM Providers
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… to enable Breakthrough Outcomes for our Clients …
> Bottom-line impact through new commercial engagement models (Outcome Based Pricing,
Transaction Based Pricing, Gain Share)
> Top-line impact driven by reduced business process cycle time, enabling Clients to handle
increased transaction volumes
> Enhanced Customer centricity through Advanced Technologies (Mobility, AI, Machine
Learning, NLP, NLG) and Customer experience through unattended automation
> Reduce risk of failure in adopting new technology by seeding in outsourced operations and
transferring risk to BPM providers
> Rapid process transformation without prohibitive upfront investment in legacy
Technology modernization
> Breakthrough outcomes in traditional process performance matrices : operating cost,
accuracy, quality and compliance adherence
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Operational:
Efficient and Effective Operations
Reduced Risk of Skill and Knowledge Loss
Improved Accuracy and Reduced Risks of Errors
Economic:
Reduced Cost of Operations
Outcomes based Pricing Model
Re-assign Experienced Resources to Higher Value Activities
Strategic:
Competitive Business Performance Advantage
Enabling Accelerated Growth
Improved Customer Loyalty
Key Drivers for Advanced Automation
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August 25, 2016 | © 2016 EXL Confidential
The healthcare industry has a tremendous need for automation and the success of customers
in the industry has been the driving force for innovation.
Healthcare is process intensive it is challenged by consolidation and needs to adjust quickly to
demand for healthcare services
As it’s constantly growing and expanding, extremely dependent on technology, they are
highly regulated, demanding privacy and data security issues where information sharing and
transmitting is critical
Consolidations have created a need for merging, sharing, and storing medical data among
facilities that was originally created using incompatible systems
Health insurance plans are continuously seeking ways to grow revenue by becoming more
consumer focused and rapidly bringing new products to market, while at the same time
driving down costs and improving service through improved IT and process efficiencies
View of Robotics and Automation in Healthcare
Source: Network Automation Inc.
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August 25, 2016 | © 2016 EXL Confidential
Benefits of RPA in Healthcare
17%
20%
11%
11%
28%
20%
30%
29%
28%
22%
34%
37%
47%
40%
39%
39%
41%
50%
Member / provider customer support
Medical management
Fraud and abuse services
Overpayment recovery services
Claims coding and processing
Enrolling and billing services
Areas where RPA can offer benefit going forward in Healthcare industry and specific
functional areas
From 1 year ago Expected 1-2 years Expected in 5-7 years
In healthcare, claims processing consumes a significant amount of time, effort and manpower across markets
worldwide. With a centralized, enterprise-wide rule-based process oriented system already established, RPA
can:
Help significantly drive down operational costs
Improve accuracy and turnaround time
Enhance end customer experience
Significantly lower the possibility of claim frauds and litigation
Source: Mindfields - Robotic Process Automation
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Background
EXL processes Group insurance enrollments along
with amendment requests. Depending on
benefits and coverage, premium is decided for
each member to be enrolled.
Solution Functionalities
Auto extraction and data update in Client system
Automated rules based decision making
State –wise exceptional applied automatically
Flagging for any special instructions
Challenges
Each enrollment takes approx. 20 mins
Each benefits / coverage change takes 8-10 mins
Peak season volume variation becomes bottleneck
for on-time clearance
Benefits
30% faster turnaround of member requests
Increases productivity by 1.5 times*
Enhanced customer satisfaction
Productivity
increase
1.5 x
Faster turnaround
of Member
requests
30%
EXL’sBenEligibility
ADVANCED AUTOMATION
* Restricted by client’s systems availability, productivity could be enhanced further
EXL SolutionPartner Solution
GROUP HEALTHCARE INSURANCE ELIGIBILITY SERVICES ENROLLMENT, BENEFIT AND COVERAGES
Solution: BenEligibilityBOT extracts data from member’s service request, checks for the
eligibility in client’s mainframe and updates member account for eligible benefits
Case Study – Healthcare
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11EXL’s AA and RPA: Nomenclature and Definition
> work productivity focus
> improve efficiency by identifying/diagnosing process
inefficiencies and fixing them by restructuring
processes and by automating process-steps
> emphasis on aiding FTEs in their decision making
through business-rules and packaged analytics
> focus is on creating relevant tools and wrappers
wherever possible
> time-to-implement and time-to-value is higher
because it requires complex development/integration
> still results in human FTEs with improved processes and
systems and doesn’t solve for 24 X 7 operations
> worker elimination focus
> Break-through outcomes by identifying routine and
repetitive human activities within a process or process-
step that is replaced with virtual FTE
> emphasis on automated decision making by deriving
common (progressively complex) decision making patterns
> focus is on technology agnostic RPA implementations
are, works on broad tool-kits, menus, parameters
> time-to-value is faster because RPA works mostly non-
intrusively, doesn’t require complex integration
> Cost of operations are lower due to manual work
elimination,, 24 X 7 and tireless operations by robots
EXL’s Advanced Automation (AA)
Business Process Automation “BPA”Human FTEs, working on optimized processes and
automated systems, targeting efficiency
Robotic Process Automation “RPA”Virtual FTEs, working round the clock on highly
standard and repetitive processes
combination of BPA and RPA, providing break-through outcomes
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EXL’s Advanced Automation & Robotics provides Transformational
outcomes in Outsourced Operations Management and beyond …
Reimagining
business processes
and customer
journey through
design-thinking
approach
Transforming
business processes
embedding
Advanced
Automation and
Cognitive solutionsTransformational Solutions