The New Digital WorkforceUnderstanding How Robotic Process Automation is Impacting How Work Gets Done

PRESENTED BY:

› JOHN CAVALIER, MBA, DIRECTOR

November 13, 2018

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Agenda

I. WHAT?? What is Robotic Process Automation (Hint – there is no resemblance to Johnny 5)II. WHY?? Why should this be something I care about

III. WHERE?? Where is RPA being deployed today? Where does it fit within my organization?IV. HOW & WHEN?? Now you have my attention – how can my organization start our automation

journey? How long till I have my own personal 'bot'?

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Question

Who has heard of Robotic Process Automation?

How many are actually considering it for your organization?

I. What is Robotic Process Automation?

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Robotic Process Automation: A new reality, or a tremendous amount of hype?

“Challenge the idea that… ‘talent’ or ‘work’ and human beings are synonymous”

“45% of work activities can be automated…which can create $2trillion in savings in global workforce costs”

“Robotics and artificial intelligence has the potential to change the workplace in a similar fashion that the industrial revolution changed manufacturing”

“It is clear that the first act in the ‘robotics revolution’ has not been a slam dunk for many…”

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Robotics & Artificial Intelligence: What are we talking about here?

Bots are software programmed to perform repeatable tasks: Using recorders and easy programming language, robots are programmed to replicate repetitive human tasks

RPA operates in the user interface layer: It is able to automate rules-based work without compromising the underlying IT infrastructure

RPA replicates human interactions with proven technology: It mimics common tasks such as queries, cut/paste, merging, button clicks, etc.

RPA can be implemented at the desktop or in the virtual environment: Flexibility to quickly deploy robots directly onto existing desktops or virtually to save on additional hardware costs

Robotic process and intelligent automation tools help enterprises improve the effectiveness of services faster and at far lower costs then current methods

Computer-coded, rules-based software that automate manual tasks by performing repetitive rules-based tasks

Avoids massive IT infrastructure investment and transformation

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RPA and UiPath Demo: A short overview of RPA deployment within invoice processing

Cohen & Company has partnered with the leader in the RPA space – investing in

automation technology within our own tax practice as well as across a number of

current clients

II. Why should you care about RPA?

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The Evolution of How Work Gets Done: Taking from the past and embracing the future…The enterprise service delivery model (SDM) defines – WHAT work is being done WHERE, HOW and by WHOM; leading organizations have continually sought to optimize and innovate their service delivery model strategy

Simplification & Standardization• Lean & Six-Sigma• Process Standardization• Demand Management

Centralization• Process Centralization• Shared Services• Performance

Management• End-to-end Process

Governance

Labor Arbitrage• Business Process

Outsourcing• Nearshore / Off-shore• Location / Foot-print

Optimization

Knowledge Centers• Centers of Expertise

/ Excellence• Resource

Reallocation• Knowledge

Management• Business Intelligence

Automation Arbitrage• Work Repatriation• RPA Applications• Optic and Voice

Recognition

Tran

sfor

mat

ion

5-15% 5-15% 0-60% NA 25-75%

Time

1980’s

1990’s

2000’s

2010’s

Today

Potential Efficiency Gains

Big ERP

BI

AIRPA

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Triggers for RPA Deployment: What are the triggers that signal an opportunity to explore functional transformation?

RPA is not necessarily a standalone solution to achieve transformation, but a valuable tool to accelerate desired outcomes and benefits

Problems plaguing my company

• Growth that has not been systematically managed

• A patchwork of less-than-optimal business processes and applications that do not talk to each other

• Disparate “solutions” that rarely ease workloads nor generate insights, which leads to increased costs, inconsistent quality and high cycle-times

• Inadequate attention to scalability of processes and technologies due to highly siloed functions

• Growth through acquisitions with inadequate integration, resulting in disjointed organizations with multiple sets of operations

• Compliance and controls gaps due to non-standardized processes and poor visibility

Resource Scalability

Process Efficiency

Compliance & Controls

Flexible Workforce

Desired Results

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Optimizing Resource Deployment: Helping businesses redeploy resource capacity further up the value chain

Today’s Resource Allocation Target Resource Allocation

Core Capabilities: • Description: Party transactional, supports

enterprise objectives and business• Examples: GL accounting, reporting, tax,

internal audit, budgeting• Objectives: Quality and effectiveness

Strategic Capabilities: • Description: Differentiators that can provide a

competitive advantage• Examples: Business intelligence and analytics,

risk management, M&A• Objectives: Build knowledge and drive decisions

Foundational Capabilities: • Description: Highly transactional, low value to

the business• Examples: AP, AR, payroll, T&E• Objective: Standardize, simplify, automate and

eliminate

1. Simplify, automate and eliminate transactional tasks that are low or no value to the business

2. Identify higher-value capabilities that provide greater value and strategic advantages to the business and its stakeholders

3. Redeploy resources and capacity to build and enhance those value-driving strategic capabilities

Path to Optimization

Core

Foundational

Foundational

Strategic

Strategic

Core

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RPA in Context: Strategic priorities for automationThe objectives for RPA should be considered in the broader context of the organization’s service delivery model. Though RPA offers a number of benefits, understanding and prioritizing goals and objectives help drive value realization

Workforce Engagement

New Competencies

Improved G&A Spend

Resourcing Scale & Flexibility

Control & Compliance

Reduced Cycle Time

.

Redeploy Capacity

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Benefits to RPA: Where is value created and how much return on investment can I expect?The RPA value proposition is fundamentally different than traditional forms of labor arbitrage; and though ROI is compelling, it is a by-product of being able to complete work better and faster

¹ Source: The Robots are Coming – Deloitte Insight

Expected cost savings and other benefits from robotic process automation¹

Cheaper Faster Better Better Faster

Labor Arbitrage Automation Arbitrage

CheaperFasterBetter

III. Where do we see RPA being deployed today?

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RPA Driving Efficiency: AP Processes tend to be where organizations make the leap into RPA

0 10 20 30 40 50 60 70 80 90 100

Accounts Payable

Travel & expenses

Fixed assets

General ledger

Marketing

Customer service

Credit administration

Financial reporting

Compensation administration

Payment card

Payroll

Transactional HR

Operations processes

Enterprise anticipated areas of RPA implementation1

¹ “The robots are coming”; Deloitte Insight

As organizations test the water with AP and T&E, they quickly gain maturity and are able to leverage RPA in other transactional processes

Typi

cal d

eplo

ymen

t ev

olut

ion

% respondents

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Processes Fit for Robotic Automation: Where are we seeing organizations deploying RPA solutions within Finance & Accounting?

Accounts Receivable Accounts Payable

T&E Processing

Cash Management

General Accounting

Inventory Accounting

Payroll

Fixed Asset Accounting

Transaction Processing

Project Accounting

Maintain Customer Data

Manage Customer Credit Exposure

Process Invoices

Process Payments

Manage Collections

Period End Processing & Reporting

Maintain Supplier Master Data

Process Invoices

Perform Payments

Period End Processing & Reporting

Receive & Compile Reimbursement Request

Audit & Document Expense Reports

Authorize & Process Payments

Perform Project Accounting

Perform Banking & Cash Mgmt. Activities

Manage Foreign Exchange

Maintain G/L Master Data

Process Journal Entries

Process Intercompany Transactions

Perform Fixed Asset Accounting

Period End Processing & Reporting

Perform Inventory Accounting

Transfer Pricing

Period End Processing & Reporting

Maintain Employee Master Data

Manage Payroll

Authorize & Process Payments

Project Accounting

Perform Tax AccountingLow Medium HighRPA

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Processes Fit for Robotic Automation : Where are we seeing organizations deploying RPA solutions within Finance & Accounting?

Financial Close

Close

GL Accounting

Low Medium HighRPA

ReportPerform Mgmt.

Reporting

Consolidate

Perform Legal & External Reporting

Perform Consolidation

Risk & ControlStrategy & Execution

Develop Strategic Plan & Targets

Define Value Drivers & KPIs

Execute Optimization Initiatives

Performance & Decisions

Budgeting & Forecasting

Business Financial Analysis

Develop Annual Budget & Monthly ForecastBudget & Forecast

ConsolidationComplete Variance &

Flux Analysis

Ad-hoc Financial Support to Business

Overhead Allocations & Product Costing

Performance Management Execution

Risk Management Control

Financial Reconciliations

Inquiry Handling

Accounting & Tax Policy

Internal Audit

Internal Consulting

Risk Management

Specialized Services

Acquisitions & Divestitures

Real Estate Management

Project Management

How is RPA deployed and how long does it take?

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RPA Service Types: Different levels of RPA servicesAutomation can span across four primary levels – the specific needs and requirements of the business inform what the appropriate project looks like and desired outcomes

Prototype

Pilot

Lift & Shift Automation

Functional Transformation

Impact:

OverviewProject Type• Rapid proof-of-concept• Typically only represents a small piece of a larger process• Doesn’t run in a production environment• May lead to a full implementation, but not a pre-requisite to one

• Accelerated, typically involving a single, less complex process• Provides an entry platform to test, prove changes and verify business case• Typically run in test, and later, a production environment• Typically an initial stage of a potential larger implementation

• Existing processes are lifted out of the current organization and shifted to an RPA environment• Processes are scripted to be performed with little to no change• Achieves efficiencies and scale benefits; doesn’t address systemic issues or innovation

• Overhaul of key business processes • Accomplishes multiple objectives including: performance gains, quality and cost reduction• Addresses broader strategic imperatives to support enterprise objectives

Low Transformative

Impact

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RPA Deployment Roadmap: Rapidly deploying RPA on a small-scale, with eyes toward the longer-term roadmapThe Reality: Many of the largest organizations today are well down the RPA path, looking toward the next frontier; in the near-future, many more will have deployed RPA and be reaping the benefits

The Good News: The journey need not be long and strenuous – quickly proving out the capabilities and building internal know-how will allow businesses to leap frog their own journey and begin transforming their back-office service delivery model

Diagnostic & Roadmap

Proof-of-Concept Initial Deployment

Roadmap Execution

• Identify the processes ‘fit’ for RPA

• Develop deployment prioritization, business case and roadmap

• Define the proof-of-concept

• Map end-to-end revised process

• Develop automation script

• Test automation

• Develop change material

• Deploy and monitor

• Map end-to-end revised process

• Develop automation script

• Test automation

• Develop change material

• Deploy and monitor

• Execute go-forward roadmap

~ 2 weeks ~ 2-4 weeks ~ 3-6 weeks 1-6 months

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Rapid Diagnostic: Assessing the fit of RPA across transactional processes A fitness (Fit) and readiness (Ready) test, leveraging a defined set of criteria, can help identify processes that are appropriate for RPA consideration

Test Criteria Suitability

FIT

Transactional Processes that are high volume and repetitive

Manual Processes with little automation today, requiring large manual effort to complete

Rules-based Processes that can be defined in terms of a set of unambiguous business rules

Flexibility Processes that need to accommodate changes in transaction volumes or service levels

Disparate Systems Processes that require employees to access structured data across different platforms and applications

REA

DY

Standardization Simpler processes with little task variations or exceptions in delivery

Defined Processes that are clearly defined and documented, including desired inputs/outputs and exceptions

Data Integrity Data is consistent, accessible and structured (garbage in = garbage out)

Fit ReadyCriteria used to assess the ability to automate a given process and projected benefit of automation

Assessment used to help determine timing and prioritization of applying RPA, ultimately leading to a roadmap

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Rapid Diagnostic: Identifying process opportunities for RPA

A detailed process mapping and assessment can identify and prioritize candidates for RPA

Thank you.

Information presented is not meant to constitute legal, accounting or other professional advice. Any action taken based on information in this presentation should be taken only after a detailed

review of the specific facts and circumstances. Information is current as of the date presented.November 13, 2018