Work the way you live Deloitte Shared Services Conference 2019client’s automation journey to-date...

Work the way you liveDeloitte Shared Services Conference 2019

Scaling robotic and intelligent automationDavid Wright, Nick Clarke and Nadia Shamsad, Deloitte

2 | Copyright © 2019 Deloitte MCS Limited. All rights reserved.

Dave Wright Nadia ShamsadNick Clark


Automation with Intelligence

What’s the Value?

Addressing Barriers

Takeaways

Barriers to Scale


Where are you from? Who's traveled

the furthest?

What agenda item are you most interested in?


“We have heard of Automation but don’t know where to start.”

Aware Piloting

(1-10 automations)

“We have piloted a number of task

based or use-cases

Automations”

Implementing

(11- 50 automations)

“We have implemented

Automations in a live business

environment.”

Scaling

(51+ automations)

“We have over 50 Automations in

production and want to continue scale

more rapidly.”

Automation with IntelligenceThe state of automation


1 – Robotic Process AutomationSoftware used to capture and interpret existing applications for the purpose of automating transaction processing, data manipulation, and communication across multiple IT systems

- Deloitte, “The Robots are Coming”

Screen scraping data collection

Rule based business process management

Tactical toolset to automate repetitive tasks

Cheaper and faster step towards process efficiency

3 – Artificial Intelligence“The theory and development of computer systems able to perform tasks that normally require human intelligence.”

- Deloitte, DU Press “Cognitive Technologies”

Natural language recognition and processing

Dealing with unstructured super data sets

Hypothesis based predictive analysis

Self-learning rules continuously rewritten to improve performance

2 – Intelligent AutomationAutomate non routine tasks involving intuition, judgment, creativity, persuasion, or problem solving

- Deloitte, “Automate This”

Data input and output in any format

Pattern recognition within unstructured data

Replication of judgment based tasks

Basic learning capabilities for continuous improvement to quality and speed


We often use Process Excellence, RPA, AI and other tools to unlock greater potential in E2E processes

Receive email/call for customer

complaint

Log into CRM system and access

queueSelect dateStart EndUpdate complaint

Complete and close complaint

Create internal report

Send report to business owner

Example Robotic Process Automation Scope

• RPA automates repetitive, rules-based elements

• RPA can read/write databases, make calculations & extract structured data

Example AI scope

• AI scans through multiple templates and extracts data required for CRM system

• AI can handle unstructured data (including pattern recognition) & replicate judgment-based tasks

Example Process Excellence scope

• Process Excellence implements simplification and process reengineering prior to automation to avoid automating waste

• Identification of value in a process and where it is being blocked

• Standardise process, ensure compliance and allow quantitative process performance analysis

What’s the Value?What does ‘value’ mean to our clients, and where are they focusing their efforts?


Task

s

• Commoditised, table stakes

• Frequently low returns

• Challenges to scale

• Differentiate through quality, speed, price

• Alternative service models

Use

Ca

ses

• Point solutions, components

• Often high value

• Challenges to embed in workflows

• Differentiate through repeatable solutions

• Enable with new revenue models

E2

E

• Emerging market

• High value, transformation

• Challenges to ‘productise’

• Differentiate through service integration

• Alternative service models

No. of opportunities

Valu

e P

ote

nti

al

TasksEnd to End

Low value opportunities

Hig

h v

alu

e o

pport

unitie

s

Use Cases

Commercial Operations R&D Services

EnablerMarketplaceDirector

Purpose/Role of Automation CoE/ProgrammeRe-Imagine

Re-invent

Scale

Activate


There is an opportunity to comprehensively demonstrate the benefits derived from automation

Speed/Productivity(Process performance)

Accuracy(Cost avoidance)

Stakeholder Experience(Revenue, cost avoidance)

= Error Rate × Volume(Processed)×Labour Cost (per unit)

= Processing Rate × Value of Outcome

= Experience Impact × Value

=Average cost of fraud, fine or other value loss

Volume of relevant transactions being reviewed

Fraud & Fine Avoidance(Cost avoidance, risk reduction)

Labour Capacity Release(Cost Displacement)

= Labour × Labour Cost (per unit)

Quality

Barriers to ScaleThe challenges in scaling automation


Typically there are six barriers that stand in the way of successful automation scaling


Our research shows that organisations face fragmented processes, lack of IT buy-in/readiness and an unclear intelligent automation vision for implementation

IT Readiness

Process Fragmentation

Mindset & Vision

Addressing BarriersHow the Automation Scaling Lab is helping our clients to overcome their barriers to scale and maximise value from automation


Before the Lab, we aim to understand the client’s automation journey to-date and the barriers to scaling that are currently holding them back.

This information is used to customise the Lab experience to accelerate momentum behind automation.

Pre-LabBarriers to scaling and priority focus

areas are identified via interviews

with selected stakeholders and an

online questionnaire which is

completed by all attendees.

Post LabSummary output deck capturing the

defined R&IA vision and ambition, a

write-up of exercise outcomes and a

detailed Scaling Roadmap.

LabIndustry insight, thought leadership

and interactive exercises designed to

help clients understand key barriers

to scaling; the specific foundational

capabilities required to scale; and

define actions for R&IA scaling.

1 | Copyright © 2018 Deloitte Development LLP. All rights reserved. R&IA Scaling Lab

Based on your answers …

1. Mindset: We are fully aware of what automation means, it’s potential and how we will harness it at scale. We are comfortable exploring and taking risks even in a world of uncertain outcomes

2. Goals: We have a clear and agreed set of organisation-wide goals for automation that we all buy into

3. Value: We have consensus on how and where value will be captured from automation and how we will prioritise our investments

4. Ownership & Collaboration: We know exactly who is responsible for what and how we should collaborate together to achieve results

5. Readiness: Our people, teams and capabilities (process, technology and data) are ready to support automation at scale and at pace

6. Momentum: There is a significant amount of momentum behind automation, we are making rapid progress and we are only getting faster

Question

•

NeutralStrongly Disagree

Strongly Agree Key Insights

Key: Average Range


“Enable our people to focus on valuable, interesting tasks by automating dull, repetitive work. Provide Fast and High

quality service to internal and external customers. Automate across the

enterprise, starting with fast, reputation building ‘quick wins’.”

“Our ambition is to release a material level of capacity back to the business. Our

goal is to release $500m to $850m of value not just from FTE automation but

also from reduced fines, increased revenue capture, improved working

capital and faster turnaround.”

“We will rapidly create value through

reduced costs, increased revenues and

enhanced customer opportunities. We

will work across Finance, HR and

Operations using Data & value as our

guide rather than relying on historic

processes.”

“Our aim is to reduce cost by at least £150m in the next three years. This is

achieved by focusing on process improvement and automation to

reduce cost and revenue uplift. We expect one year payback and

improvements in control, accuracy, timeliness and customer experience.”

“We want to differentiate ourselves by

delivering a seamless customer

experience whilst also improving internal

employee satisfaction. We will focus on

truly transformative opportunities,

working across organisational

boundaries, leveraging our best people to

redesign processes and customer

journeys.”

“Our ambition is to generate £22.5m -£45m of cost savings (over 3 years) from

business process re-engineering and automation opportunities whilst also

releasing capacity back into our business - freeing up our people to focus

on higher value-add activities and enabling investments in customer

experience and propositions”

Our successful clients are ambitious, value-driven and have the right people bought in


A starting point to take back into your organisation and refine into a quantitative Vision statement


Typically there are six barriers that stand in the way of successful automation scaling

Takeaways


2019 looks to be a breakout year for intelligent automation. Our clients will increasingly seek to incorporate more advanced analytical and AI technologies as part of their solutions.

Enterprise-wide strategy for intelligent automation is the norm

Double the number of companies are reaching scale compared to 2018

The way we live and work will be transformed through automation

Combining RPA with AI enables organisations to maximise the value from Automation

Understanding how to capture value from intelligent automation leads to much higher reductions in costs

If it isn’t working, pause, fix and re-start when you’ve got the foundations ready

This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this

publication. Deloitte MCS Limited accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

Deloitte MCS Limited is registered in England and Wales with registered number 03311052 and its registered office at Hill House, 1 Little New Street, London, EC4A 3TR, United

Kingdom.

Deloitte MCS Limited is a subsidiary of Deloitte LLP, which is the United Kingdom affiliate of Deloitte NWE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private

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© 2019 Deloitte MCS Limited. All rights reserved.

Work the way you live Deloitte Shared Services Conference 2019client’s automation journey to-date...

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