HfS Webinar Slides: Standard Bank Case Discussion - Improving Customer Experience through RPA + AI-powered Cognitive Automation

1. The Services Research Company Standard Bank Case Discussion: Improving Customer Experience through RPA + AI-powered Cognitive Automation Webinar in collaboration with WorkFusion September 28th , 2016 Tom Reuner, Research VP, HfS Research tom.reuner@hfsresearch.com @tom_reuner #hfsresearch Web: www.hfsresearch.com | Blog: www.horsesforsources.com

2. © 2015 HfS Research Proprietary │Page 1 tom.reuner@hfsresearch.com Overview § Tom Reuner is Research Vice President, Intelligent Automation at HfS. Tom is responsible for driving the HfS research agenda for Intelligent Automation practice across the whole gamut ranging from RPA to Autonomics to Cognitive Computing and Artificial Intelligence. A key element in Tom’s responsibilities is guiding clients and stakeholders on the evolution of Intelligent Automation including the coverage of new players and approaches. Furthermore, he is driving the research on application testing and service management. A central theme for all of 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, Research VP, HfS Research

5. © 2016 HfS Research Ltd. 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 Ø “As-a-Service” is about augmenting human performance by re-thinking business model changes, enabled by Digital Technologies and Intelligent Automation Ø 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

7. © 2015 HfS Research Robotic Process Automation describes a software development toolkit that allows non-engineers quickly to create software robots to automate rules-driven business processes. E.g. digitizing the process of collecting of unpaid invoices, that involves mimicking manual activities in the RPA software, the integration of electronic documents and generation of automated emails to ensure the whole collections, process is run digitally and can be repeated in a high-throughput, high intensity model. Cognitive computing is the simulation of human thought processes in an Intelligent Automation process or set of processes. It involves self-learning systems that use data mining, pattern recognition and natural language processing to mimic the way the human brain works, without continuous manual intervention. E.g. an insurance adjudication system that assesses claims, based on scanned documents and available data from similar claims and evaluates payment awards. Autonomics is referring to self-learning and self-remediating engines, where the system makes autonomous decisions, using high-level policies, constantly monitoring and optimizing its performance and automatically adapting itself to changing conditions and evolving business rules and dynamics. Increasingly minimal human intervention. E.g. a virtual support agent continuously learning to handle queries and creating new rules/exceptions as products evolves and queries change. Artificial Intelligence is where intelligent automation systems go beyond routine business and IT process activity to make decisions and orchestrate processes. E.g. an AI system managing a fleet of self-driving cars or drones to deliver goods to clients, manage aftermarket warranties and continuously improve the supply chain. How HfS Defines the Building Blocks for Intelligent Automation

8. © 2015 HfS Research Ltd. The Key Take-aways § It is not a question whether Intelligent Automation 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 § Service providers have to prepare for revenue model disruption § There is a lack of discussion in the Enterprise/B2B market – the perception is dominated by the likes of Facebook, Google etc. § 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

10. Intelligent Automation at Standard Bank The tech that’s digitizing the bank from the insight out

11. They call it Africa we call it home

12. Ian and his cohorts Operational Excellence Measurement Business Solutions Engneering Robotics feature teams Exco Team

13. 13 24/7 What matters? Customer Cost The vision

14. COI Bank StatementsPayslips KYC Proof of Residence Proof of Identification Employment Confirmation COE Standard Bank’s challenge was similar to many: checking documents and capturing info into core systems Process for originating a Revolving Credit Plan, aka a short term loan Problems: highly manual process to check docs, reliance on customer to send docs or bring them into branches, KYC required to establish ID and residence of applicants – proof of residence

15. What does the solution look like? Customer enters: § Name § PIN § Address WorkFusion action: § API calls to trusted 3rd party databases § 19 sources validate information § Human escalations for corrections and validations Elimination of human investigation, data capture, copying-and-pasting, moving info from one system to another

16. Standard Bank customer experience win: 22 days 5 mins Account opening time reduced by 99.98%

17. The buzz is justified. How can a business born analog grow like digital businesses?

18. Workflow Robotics Cognitive (AI) Worker Mgmt Analytics Process-level automation (vs. task level) Automate applications using application UI Automate judgment work on unstructured data Automate routing of exceptions and quality control Derive insights about performance Control Tower Monitor business activities for Automation The capabilities behind the results: A complete Smart Process Automation “toolkit”

19. The buzz is justified. Why did Standard Bank choose WorkFusion over every other RPA solution?

20. WorkFusion doesn’t just automate the task, it automates the end-to-end business process.

21. Whereas other solutions provide an “if / then” robotic approach, WorkFusion learns.

22. Whereas pay-per-bot model is complex, WorkFusion scales simply and encourages “big things.” “how many bots you want?” “what do you want to achieve?”

23. Sneak peek of big things to come.... WorkFusion Chatbots WorkFusion Smart Process Automation WorkFusion Crowdsourcing Automate customer inquiries and task execution of through chat interface Automate operation of legacy applications and judgment work on unstructured data Automate FTE and external worker sourcing and management

25. © 2015 HfS Research Proprietary │Page 25 About HfS Research HfS Research is the leading analyst authority and global network for IT and business services, with a specific focus on global business services, digital transformation, and outsourcing. HfS serves the research, governance, and services strategy needs of business operations and IT leaders across finance, supply chain, human resources, marketing, and core industry functions. The firm provides insightful and meaningful analyst coverage of best business practices and innovations that impact successful business outcomes, such as the digital transformation of operations, cloud-based business platforms, services talent development strategies, process automation and outsourcing, mobility, analytics, and social collaboration. HfS applies its acclaimed Blueprint Methodology to evaluate the performance of service and technology in terms of innovating and executing against those business outcomes. HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currently comprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Executive Council, the acclaimed elite group of sourcing practitioners from leading organizations that meets bi-annually to share the future direction of the global services industry and to discuss the future enterprise operations framework. HfS provides sourcing executive council members with the HfS Governance Academy and Certification Program to help its clients improve the governance of their global business services and vendor relationships. In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named “Analyst of the Year” by the International Institute of Analyst Relations (IIAR), the premier body of analyst-facing professionals, and achieved the distinctive award of being voted the research analyst industry's Most Innovative Analyst Firm in 2012. In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out of the 44 leading industry analyst firms in the 2013 Analyst Value Index. Now in its seventh year of publication, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the most widely read and revered destination for unfettered collective insight, research, and open debate about sourcing industry issues and developments. Horses for Sources today receives over a million web visits a year. To learn more about HfS Research, please email research@HfSResearch.com.