information and digitise it, extracting key data...
Transcript of information and digitise it, extracting key data...
virtual-operations.com
Practically every major organisation is on
a automation journey, capitalising on the
power of Process Automation and
integrating Artificial intelligence (AI) with
Robotic Process Automation (RPA).
Properly executed, the potential benefits
can even surpass the media hype. It
really is possible to create sustainable
transformation and deliver significant
shareholder value. It feels undoubtedly
like there is an automation gold rush on
the horizon. How to make the most of
this new frontier?
As with every gold-rush there are draw-
backs, pitfalls and … cowboys.
Companies can only succeed if they
know where the gold is, what it looks like,
and how to mine it. Done correctly, the
risk is low and there are fortunes to be
made with the right approach.
In this document we examine the crucial
part that AI can play in large scale
Automation Programmes. We offer you a
10 point C-suite guide, written from an
expert practitioner’s perspective.
virtual-operations.com
There are many technologies available today and
the vast array can, at first, be confusing. Many are
complementary and many perform the same
function; albeit in different ways. The simplest
approach is to consider them in groups. The
principal groups are: Robotic (e.g. Blue Prism),
Desktop (e.g. Openspan) and AI (e.g.
Perceptive). We also routinely include products
such as analytics and OCR but these are
peripheral. To maximise the potential, you will
need to understand the role each of these
products plays, what their strengths and
limitations are and how they can be combined to
best effect for your process portfolio. It is worth
remembering that these tools are relatively
inexpensive but, in combination, the cost may
become prohibitive. You also need to consider
how this market may shape up in a few years’
time. We often advocate a “champion and
challenger” model to guard against the possibility
of our clients’ chosen technologies no longer being
available or best in class. It is almost certain that
you will require a combination of at least two
technologies. This is where AI plays a pivotal role.
The AI we are referring to is not cognitive and we
don’t expect cognitive technology to play any
significant role for many years (We are often asked
if we support truly cognitive technology but the
truth is it’s not ready yet). The AI we deploy is
mainly used to take unstructured, non-digitised
information and digitise it, extracting key data as
required. It then hands over the inputs (previously
unstructured) to a robot or an application in such a
way that it can be used. We have worked with
many Fortune 100 clients and in every case AI was
required to complement the RPA tool(s).
Surprisingly the service provider market is
relatively immature. Most of the technical product
providers will offer short-term help with
implementing their products but very few have the
resources to do this at scale and prefer to
concentrate on developing their products. With a
few notable exceptions, the majority of the BPO
and Consulting providers have been slow to adopt
Process Automation and most are restricted to
one technology offering (and a process level
approach) which may lead to small pockets of
efficiency but will not lead to large scale
transformation. Automation is a low-cost service
offering, can be transitional in nature and
therefore doesn’t lend itself to the commercial
models of these organisations.
The choice is between: do-it-yourself, partially
outsource (and form a joint automation team) or
outsource completely. Running automation in-
house has a number of attractions. It is lower cost
in the long term, key-skills are retained within the
organisation and dependency on external
providers is minimised. However, it will take longer
to achieve the desired outcomes and many
organisations lack the skills, focus and drive to
manage large-scale programmes of this nature. If
you decide to partially or fully outsource
automation services, then you will need to
consider the maturity of the services market. It
doesn’t make economic sense to outsource to a
partner who must train resources from scratch to
meet your needs, you may as well do that yourself.
You also need to consider how you want to buy.
The standard approach is time and materials but
you may wish to pay as you use (access to tools by
the minute), pay per transaction or pay for value
delivered.
The attraction of the different pricing models
becomes more obvious when the portfolio of
candidate processes is known. For example, paying
by the robot-minute works best with large-scale
but highly seasonal work. High volumes of simple
transactions, on the other hand, might lean
towards a transaction-based pricing model. Note
that many of the AI providers will only sell on a
value pricing basis, based on a percentage of the
overall business case delivered through
automation.
Whatever you decide in terms of technology and
service choices, our recommended approach is
“think big, move fast and get organised”. This is
based on the considerable experience gained by
Virtual Operations in supporting our clients’ large-
scale automation programmes.
virtual-operations.com
Understand your objectives. We have
found that the principal drivers dictate
the way in which the programme is
constructed. Cost reduction is almost
invariably a major goal but can be considered as a
pre-requisite. Other operational issues are often
seen as more important including:
Enabling legacy systems to interact seamlessly
with new technologies (a major step towards
creating a digital enterprise)
Increasing regulatory compliance (and regulator
confidence)
Workforce management (especially coping with
peak or seasonal work-loads)
Reducing the off-shore footprint
Improved customer experience / satisfaction
and follow-up (e.g. combining IVR, Artificial
intelligence and robots in call centres)
All large organisations will have a wide
range of processes which could be
automated and technologies which can
be deployed. Defining your
‘Operational Landscape’ is a critical step in
optimising the value from automation. The
following link will guide you further. http://virtual-
operations.com/key-questions-to-consider/
Communicate and sell. A wide range
of stakeholders will become involved in
any programme of significant scale.
Regular and timely communication
(selling and education) is a vital element in
managing the stakeholder group. Business owner
buy-in will create a pull for automation. Remember
that automation programmes are low risk but will
invariably involve disruption. With the holistic
approach disruption is anticipated, managed and
minimised. Personnel who are to be released or
redeployed will require particular attention not
least because the detailed process data will be
gathered from within this group. External
communication is also a major consideration as
stock markets look favourably upon well -
orchestrated change initiatives.
Think big and take a holistic approach.
Aim at least at the functional level & not
process by process. http://virtual-
operations.com/rpa-and-the-glass-ceiling/
Build an Automation Centre of
Excellence (CoE). Unlike Shared
Service Centres, CoE’s in the automation
world are relatively small. The purpose
they serve is to provide the resources and tools
required to ensure a consistent, low risk, leveraged
cost to the programme and the disciplines and
standards, (strategic focus, governance and
prioritisation) that should be applied across the
organisation. The CoE will:
Manage the Target Operating Model design and
development (roles, organisations,
relationships, governance (working with IT)) of a
federated CoE to support and sustain full-scale
production;
Build an automation methodology for use
within the CoE;
Align CoE activity to other areas of activity
within the organisation such as IT Roadmap or
other process optimisation (eg Lean) and
shared services to break through the
automation “glass-ceiling”;
Act as subject matter experts in support of the
automation technology;
Manage skills sourcing and/or training;
Future-proof the programme by keeping pace
with the leading automation technologies.
virtual-operations.com
Release sufficient resources and
budget. Well planned and organised
automation-programmes will break-
even after approximately 12 months. It
is a false economy not to invest in a programme
which will have such a rapid and high return.
Appoint a Head of Automation from
within; a focal point and an organiser.
This is a senior role and requires a
combination of vision, persuasion and
project management abilities.
Train your own people where
possible. The most diffi cult tasks we
face are identifying the right
opportunities and then mapping them
accurately. Once the process has been mapped,
the implementation is usually straightforward.
Run Pilots not Proofs of Concept.
All of the leading technologies have now
been proven on multiple occasions. If
you need reassurance with your own
systems and your data then we would recommend
that you run a pilot which can go into production
and deliver value when it succeeds.
Don’t stop in-flight
Automations. In many
organisations isolated
automation initiatives are
already underway. Typically these are tactical, with
a single tool (usually Robotic) and are conducted
on a process by process approach. Our advice is to
let these initiatives continue. They are highly likely
to succeed, they present little risk, they will almost
certainly underpin automation as a change lever
and, most importantly, they can be gathered in
when the CoE is operational.
Virtual Operations UK Ltd
Palladium House
Argyll St
London
W1F 7LD
+44 2035 891 549
virtual-operations.com
In part 2 and 3 of this series we will explore the
operational framework required to bring new auto-
mation value to life and some tips on how to
choose a partner.