Presentation from the January 2017 Robotic Process Automation Congress in London

1. The Services Research Company
The Continuum of Intelligent Automation:
How RPA, Cognitive and AI are coming of age
Orlando, January 24th, 2016
Tom Reuner, SVP, HfS Research
tom.reuner@hfsresearch.com
@tom_reuner #hfsresearch
Web: www.hfsresearch.com | Blog: www.horsesforsources.com

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tom.reuner@hfsresearch.com
Overview
 Tom Reuner is Senior Vice President, Intelligent Automation and IT
Services at HfS. Tom is responsible for driving the HfS research agenda
for Intelligent Automation and IT Services. Automation cuts across the
whole gamut ranging from RPA to Autonomics to Cognitive Computing
and Artificial Intelligence. This includes increasingly the intersections of
unstructured data, Analytics, and Cognitive Automation while mobilizing
the HfS analysts to research Intelligent Automation dynamics across
specific industries and business functions. Furthermore, he is supporting
HfS’ push to disrupt IT Services research by focusing on application
services and testing. A central theme for all his research is the increasing
linkages between technological evolution and evolution in the delivery of
business processes.
Previous Experience
 Tom’s deep understanding of the dynamics of this market comes from
having held senior positions with Gartner, Ovum and KPMG Consulting
in the UK and with IDC in Germany where his responsibilities ranged
from research and consulting to business development. He has always
been involved in advising clients on the formulation of strategies,
guiding them through methodologies and analytical data and working
with clients to develop impactful and actionable insights. Tom is
frequently quoted in the leading business and national press, appeared
on TV and is a regular presenter at conferences.
Education
 Tom has a PhD in History from the University of Göttingen in Germany.
Tom Reuner, SVP, HfS Research

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HfS Research Gives You an Unvarnished View on the
Market

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HfS Research Has Been Writing About Intelligent
Automation for 4+ Years

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Fixed Assets Leveraged Assets
2
Design
Thinking
3
Brokers of
Capability
1
Write Off
Legacy
4
Collaborative
Engagement
7
Holistic
Security
5
Intelligent
Automation 6
Accessible &
Actionable
Data
8
Plug & Play
Digital
Services
SOLUTION
Ideals
LEGACY
ECONOMY
AS-A-SERVICE
ECONOMYCHANGE MGMT
Ideals
 “As-a-Service” is about augmenting human performance by re-thinking business model changes,
enabled by Digital Technologies and Intelligent Automation
 Moving into the As-a-Service Economy means changing the nature, attitude, focus and financial
constructs of engagements between Enterprise Buyers, their Service Providers, technology suppliers
and advisors
Industry is Heading toward the As-a-Service Economy

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C-Suite wants OneOffice integration, predictive real-time data
and speed to market – while aggressively driving down costs
How critical are the following C-Suite directives to your operations strategy? (SVPs and above) )
20%
22%
24%
26%
29%
30%
31%
31%
42%
48%
46%
38%
55%
50%
45%
48%
48%
43%
19%
19%
17%
13%
17%
20%
15%
15%
8%
12%
12%
21%
5%
4%
5%
6%
6%
7%
Investin cognitive technologies and machinelearningto reduce reliance on…
Investin process automation androbotics to reduce reliance on low-skilled…
Policies that restrictthehiring ofpeople
Improve the qualityof operationstalent
Scalable / Flexibleservices
Accelerate speed tomarket withnew products
Create real-time data that supports predictive, not reactive decisions
Align middle/back office operations toimprove customer experiences
Drive downoperating costs
Mission Critical IncreasinglyImportant Emerging Not aDirective
Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017”
Sample: n=454 Enterprise Buyers

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Enterprise Leadership has Automation as top Investment
Priority for 2017-2018
20%
19%
20%
23%
27%
29%
30%
25%
20%
30%
28%
28%
32%
34%
33%
43%
Hiring millennials
Public cloud investments
Cognitive computing solutions
Training and workforce development /
change management
SaaS platforms replacing on-premise
solutions
Analytics solutions
Customer-centric digital enablement
(Social/Mobile/Interactive)
Robotic automation of processes
SVP+
VP and Below
Q. How much investment is your organization intending to make in the following initiatives in the coming
two years? (significant investment selected)
Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017”
Sample: n=454 Enterprise Buyers

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Automation Really is in the Eye of the Beholder

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…and RPA is no Different
Other/Acces
s to
sourcing
decisions
Core RPA
capabilities
Front
office
BPM
ERP
Productivity
tools
RPA
positioning

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HfS Sees Intelligent Automation as a Continuum Today
trigger based
Characteristic of process
rules based
dynamic language
rules based
standardized language
Structured
Characteristic of data/information
Unstructured without patternsUnstructured patterned
Data Center
Automation:
Runbook
Scripting
Scheduling
Job control
Workload
automation
Process
orchestration
SOA
Virtualization
Cloud services
RPA
Cognitive
Computing
Artificial
Intelligence
BPM
Workflow
ERP
Autonomics

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The HfS Intelligent Automation Continuum
trigger based
Characteristic of process
rules based
dynamic language
rules based
standardized language
Structured
Characteristic of data/information
Unstructured without patternsUnstructured patterned
Data Center
Automation:
Runbook
Scripting
Scheduling
Job control
Workload
automation
Process
orchestration
SOA
Virtualization
Cloud services
RPA
Cognitive
Computing
Artificial
Intelligence
BPM
Workflow
ERP
Autonomics

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It Is A Nascent Market But There Are Broad Lessons
Already
Automation is a journey: Automation is not a quick fix; it is a journey. It takes
preparation to find the right candidates and can be done effectively only by taking
support from the people who are involved in the business or IT operations
War for talent: IA strategies require a unique talent set with the right mix of
technical knowledge and business acumen. Scarcity of this talent is currently the
biggest factor limiting the speed of execution
Finding a common language: As IA is not defined, stakeholders are struggling with
blurred perceptions in the marketplace. Many tools and approaches use the
automation moniker. Many stakeholders fail to understand the nuanced differences
Data curation is critical: Applying Cognitive and machine learning solutions to IA
requires access to large amounts of relevant data to build reliable models
Crossing the chasm: A major challenge is to convince and align client stakeholders.
In the words of one executive: “People don’t believe, people don’t trust. A lot of
people are talking about automation, but few really understand it.”
Look beyond task automation: The marketing noise is largely around RPA and
implicitly notions of task automation. Therefore, it can be challenging to get a sense
of the bigger picture

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WorkFusion (and Commoditization) are Challenging the
Fundamentals of RPA
Intelligent Automation:
Virtual Agents, Deep Learning, Self-remediation
RPA extension:
Operational analytics,
Machine Learning

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The Intelligent OneOffice is all about Connecting the Front and
the Back Office

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Endgame: Vertically infused data and insights?!
Insights, Data
Vertical Processes
Vertically infused
insights and data
BPaaS, BPO as-a-stack,
Industry platforms.
Machine learning,
Neural networks,
Enterprise search,
Artificial intelligence
Analytics

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The Rise of Virtual Agents
Virtual
Agent
Desktop
automation
Integration of heterogenous
data and information
Screen scraping Data extraction
Process studio
Conversational
services
Self-learning
Self-remediation
Execution
Enhancement of data
Chatbot
OpenSpan
Jacada
Cicero
NICE
Staples “Easy Button
Amazon “Dash Button
RBS Luvo
Kik
Slack
Siri
Cortana
Alexa
Google Assistant
IBM Watson
IPsoft Amelia
LivingActor
CogniCor
Virtual
Assistant
RPA
Blue Prism
UiPath
AutomationAnyw.
Jidoka
Voice focused
services
Front office Back office Internet Mobile phone OneOffice
Human
Agent
Conversational
interaction
Process
execution
Augmentation
of human agent
Substitution
of human agent

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Redundancy Re-skilling Re-badging
There Will Be Fallout from Intelligent Automation:
The Three Rs

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The Key Take-aways
 It is not a question whether Intelligent Automation (and with that RPA)
will happen – it has arrived
 It is a question of where, how, at what scale and under which name
 It is about Human Augmentation – not Matrix 3.0
 Service delivery is being decoupled from labour arbitrage
 RPA is morphing into Cognitive Automation
 Core RPA is being commoditized – and disrupted
 AI and Virtual Agents are coming to the fore
 You have to set the agenda:
Start with the use case - NOT technology
Help the client/stakeholder to envision the journey
and the end-state

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Questions?

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About HfS Research
HfS Research is The Services Research Company™—the leading analyst authority and global community for business operations and IT
services. The firm helps organizations validate and improve their global operations with world-class research, benchmarking and peer
networking. HfS Research was named "Independent Analyst Firm of the Year for 2016" by the Institute of Industry Analyst Relations
which voted on 170 other leading analysts. HfS Chief Analyst, Phil Fersht, was named Analyst of the Year in 2016 for the third time.
HfS coined the terms "The As-a-Service Economy" and "OneOffice™", which describe HfS Research's vision for the future of global
operations and the impact of cognitive automation and digital technologies. HfS' vision is centered on creating the digital customer
experience and an intelligent, single office to enable and support it. HfS’ core mission is about helping clients achieve an integrated
support operation that has the digital prowess to enable its organization to meet customer demand - as and when that demand happens.
With specific practice areas focused on the Digitization of business processes and Design Thinking, Intelligent Automation and
Outsourcing, HfS analysts apply industry knowledge in healthcare, life sciences, retail, manufacturing, energy, utilities,
telecommunications and financial services to form a real viewpoint of the future of business operations.
HfS facilitates a thriving and dynamic global community which contributes to its research and stages several OneOffice™ Summits each
year, bringing together senior service buyers, advisors, providers and technology suppliers in an intimate forum to develop collective
recommendations for the industry and add depth to the firm’s research publications and analyst offerings.
Now in its tenth year of publication, HfS Research’s acclaimed blog Horses for Sources is the most widely read and trusted destination for
unfettered collective insight, research and open debate about sourcing industry issues and developments.
HfS was named Analyst Firm of the Year for 2016, alongside Gartner and Forrester, by leading analyst observer InfluencerRelations.