ISG POV Workplace of the Future February 2018

Workplace of the Future
James Kane
February 2018
SERVICE DESK AND CLIENT SERVICES

Industry View of Workplace Scope

3ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved.
Functional Perspectives on Sourcing – Service Desk
The outsourcing of Service Desks is fairly common. Scope can vary from the support of only End User Equipment support to full IT Services.
Service Desk
Process Services
Strategic Services
Service Desk Services
IT Performance Reporting
Risk Management
FAQ/Self Service
IT Incident Management Support and Coordination
EUC Equipment Procurement
EUC Equipment Request Management (Sys Catalog, IMACs*, Project IMACs)
Third Party Vendor Break-Fix coordination
Level 1.5 End User Device Remote Takeover
Level 1 Mobile Device Support
Service Desk Services Satisfaction Measurement
Omni Channel Contact Receipt (phone, chat, web, social media)
Security – Level 1 Support
EUC Equipment Incident Management
IT Satisfaction Survey Support
Service Desk Business Continuity Management
IT Request Management
Knowledge Base Management
Call Logging and Tracking
IT Change Management
Major Incident Management Support and Coordination
VIP Support (on-site, off-site)
Stock Management (phones, EUC devices & peripherals, etc.)
eDiscovery
Operations/Monitoring Center Integration
Ticketing System Maintenance, Support, and Communication
IT Problem Management Coordination
Level 1 Application Usability Support
Business Continuity Management
Field Services Dispatch/Depot/Disposal Coordination
Possible outsourcing candidate
Strong retained candidate
Strong outsourcing candidate
Suitability For Sourcing
HighEnterpriseValueAdded
Basic HighComplexity of Interaction
Level 1 End User Equipment Support (laptops, desktops, printers, scanners, video room equipment, etc.)
* Install, Move, Add or Change

Functional Perspectives on Sourcing – Client Services
Client services is a mature sourcing market that offers top global service providers and remote monitoring / administration services.
Strategic
Services
Operational
Services
Transaction
Services
Business Continuity Management
Centralized Video Conferencing
Access Control Infrastructure Administration
Software Distribution
Email Services (Email Servers, Blackberry Servers)
Client-side Mobile Device Support (PDA/Blackberry/iPhone/iPad)
Printer & Multi-function Device Services & Support
Level 1Technical Support
Collaborative Messaging Applications (SharePoint, WebEx)
Peer to Peer Messaging (video, voice & text; Yahoo, Skype, AIM)
Asset Management
IT Strategy Development
Platform Strategy Development
Platform Engineering
Desktop as a Service (Citrix, VMware)
Level 2 Technical Support
Site Operations (IMACs**, Desk side Support)
Desktop Video Conferencing
VIP/Executive Support
Remote Access Services
Directory Services (DHCP, DNS*, Active Directory)
Risk Management
Disaster Recovery
User Training
Technical Training
Possible outsourcing candidate
Strong retained candidate
Strong outsourcing candidate
Suitability For Sourcing
HighEnterpriseValueAdded
Basic HighComplexity of Interaction
Systems Monitoring
* Domain Name System/ Dynamic Host Configuration Protocol
** Install, Move, Add or Change

Bring People, Processes, and Technology together to deliver anywhere, anytime on any device
end user services with a goal of providing great business outcomes utilizing secure business applications and data.
The Workplace of the Future
Delivery Staff
● Technical skills require staff to be “hyper converged engineers” to manage the current and future converged technology.
● Domain staff will be required to know the domain business processes, terminology, and applications their clients are utilizing.
● Compliance – need to be aware of domain regulations, security compliance.
Client Flexibility, Mobility and Experience
● Users want the same experience they have on “Sunday” with their iPhone or Android device and business applications as they
experience “Monday.”
● Choice of devices, workstyles, and mobile.
● Virtual desktop flexibility
● eXperience Level Agreements (XLAs) - An Augmentation of SLAs, focused on harder-to-quantify metrics like satisfaction, agility,
empathy displayed and changing business requirements.
Delivery Models
● Highlighted by onshore/nearshore, automation, and ‘Next Generation Self Service’.
● Moving to persona based models.
● Verticalization of the Horizontal will trend – EUC Services understand their domain.
● Less workstations and more collaborative meeting areas.
● Process optimization by leveraging data analytics.

The Workplace of the Future comes with different workplace types which are based on the individual requirements of the end user groups.
Defining Workplace Types based on Personas
Requirements
Mobile Working
Computing Power
Level of Expert Help
Number of Apps
Example Personas
Low High
Low High
Low High
Low High
Backoffice
Workplace
Low High
Low High
Low High
Low High
3D CAD
Workplace
Low High
Low High
Low High
Low High
Sales Force
Workplace
Low High
Low High
Low High
Low High
VIP Workplace
● Each workplace type includes
a support model tailored to
the needs of the respective
end user groups.
● The different workplace types
are fully aligned to the
requirements of the end user
groups.
● Instead of single services, the
end users receive a fit for
purpose Workplace bundle.
CLIENT EXAMPLE
Example Workplace Types

Workplace of the Future – Mobility, Connectivity and Collaboration
2012 – Mobility 2017 – Connectivity 2020 – Collaboration
Workforce productivity and engagement is a source of competitive advantage.
The workplace technology experience drives this
● Workforce mobility has grown
exponentially
● The workplace encompasses three
environments; the office, the home and
the road
● More staff are working across more
locations everyday
● Seamless connectivity across devices is
critical
● Integration of work and life technology is
enabled through programs such as BYOD
● Yet, users appear overwhelmed by choice of
device, workplace tools
and systems
● True collaboration brings people together
from anywhere, able to work together anytime
● In the smart economy, where BOTS execute
repeatable tasks, collaboration and
productivity across the smart workforce
becomes a point of differentiation

Contemporary Service Desk solutions contain the following elements:
Service Desk Elements
TABLES STAKES (and often underrated)
Service Request Automation6
Bring Your Own Device/Pick Your Own Device
Corporate Application Store
Enterprise Service Portal
Knowledge Article Management that is trusted -
Video articles
Language(s) support – @ Service desk and @ desk5
4
3
2
1
ADVANCED (and hard work by all parties)
Data Analytics Engine
Conversational Commerce – virtual chat
Elective Channel Access with digital transfers
Tech Bars i.e., Genius Bars11
10
9
8
7
Gamification12
Automation

Companies are focused on the mantra of eliminate, shift left, automate.
Smart service centres catch the remaining support calls.
Workplace of the Future – Support Channel Shift
2012
Voice contact
(90 – 95%)
Self
service
Live
chat
● Just five years ago, almost all
support contacts were initiated
through voice, regardless of call type
● Support centers were staffed with
large numbers of low skilled
personnel
2017
● Channels have expanded, decreasing
the reliance on voice
● Managing the complex multichannel
support experience is challenging
● Support staff are struggling with more
complex calls due to rigorous shift
left programs
Voice contact
(45 – 50%)
Live
chat
SocialChat
bots
Self
service
Kiosk
2020 & beyond
● Sophisticated companies have all but
eliminated voice, while improving the
customer experience
● Chatbots dominate as a gateway experience
to self service tools and information portals
● Virtual assistants will become ‘plug and play’.
● As shift left continues, support staff will be
highly skilled
Virtual
assistance
Social
Chatbots
Self
service
Kiosk
Voice

Optimum costs come from the right use and integration of the different
stakeholders and tools. Well managed, the shift left initiative can increase user satisfaction.
Service Desk must be integrated in the Support Value Chain
Technical Expert
Level 2
$$$
Service Desk
Level 1
$$
Application Expert
Level 2
$$$$
Self-Help Portal
Level 0
$
Value and perception of value from End-Users comes from the quality of integration
Improved Adoption: lead the effort to drive user adoption

Zero Trust endpoint security model
The most contemporary Client Services solutions contain the following elements.
Client Services Elements
EXPECTED
Smart Hands and Feet
Asset Management
Dedicated, hot swap, hub & spoke, rotational
visits, dedicated dispatch and depot equipment
models
Remote management tools for diagnostics
and resolution4
3
2
1
HIGH TOUCH
Proximity Services – Uber-like
VIP Support with “SOS Help Me Now Button”
Near Zero Downtime
Automated Service Requests9
8
7
6
Vending machines/smart lockers 105

Workplace of the Future – Field Support
● Walk up or schedule an appointment during
business hours
● Can be located conveniently anywhere in your
premises as a permanent location or alternately
moved between your offices in the same
geographic area
● Equipped with skilled experts, tools and spare
parts
● Storefront-style,
face-to-face support
for hardware and
software issues
TECH BAR (Kiosk, Genius Bar)
● Instant, self-service provisioning of end
user devices
● Automated approval workflow
and billing
VENDING MACHINE
● Pickup and return of devices such as
notebooks and mobile phones
● 24x7 availability
LOCKER STATION
Enhancing Employee
Productivity Through
Personal, On-site Support
by implementing Tech Bars,
Vending Machines and
Locker Stations

Automation is generating a new set of critical business terms and conditions in service agreements.
The Business of Automation
Enterprise
Architecture
Development
Standards
Intellectual
Property
Exit Rights
Responsibility
Matrices
SLAs
Pricing Terms
Commercial and Legal Content
TechnologyContent
Low High
Low
High

Robotic IT Automation & Autonomics Cognitive
Business Goals Automation of algorithmic processes to reduce
cost and enhance speed, accuracy, availability
and auditability
Automation of repetitive, algorithmic processes
to reduce cost and enhance speed, accuracy,
availability and auditability, primarily in IT
Automation of non-standard, heuristic processes typically
requiring human intervention. Where Automation ends,
Cognitive begins.
Functional Targets Any process (F&A, HR, Ops, IT, etc.) involving
structured digital data and business rules
IT processes involving structured digital data and
business rules, such as in dev/ops, service desk
and end user computing
Processes that require voice interaction, image
recognition, fuzzy logic and/or involve semi and
unstructured data
Value Proposition ● Automate any process without changing the
process or the systems – GUI Level
● No change to systems – no data level (API)
required
● Business rules-driven
● Enterprise-ready – security, controls,
auditability, analytics, scalability and
reporting
● Low cost to deploy/run
● Typical Pilot = 4-6 weeks
● Automate IT “commodity” processes
● Business rules plus learning algorithms;
actions based on trends/patterns
● Medium cost to deploy/run
● Typical Pilot = 3-6 months
● Structure, semi-structured, unstructured data
● Automate human interaction
● Analyze “big data” trends/patterns
● Enterprise-ready - security, controls, auditability,
analytics, scalability and reporting
● Higher cost to deploy/run
● Typical Pilot = 3-18 months
Requirements ● Structured digital data – as found in most
applications and systems
● Business rules – clear, mature, objective
● Structured digital data and data sets for
autonomic trending and pattern analysis
● Business rules – clear, mature, objective
● Large data inputs required
● ETL process needed
● Business rules – clear, mature, objective or subjective
Example Solutions
ISG Market Point of View

Example Service Provider Automation Offerings
All competitive providers are driving towards the digital future.
Provider Technology Detail
HCL DryiCE and Lucy Autonomics & Orchestration platform – sense & act, prevent & heal, ideate & create,
engage & collaborate, visualize & insight, orchestrate & choreograph
NTT Data IPSoft (Amelia) AI solution with ability to learn and continuously improve
Wipro Holmes Automation platform, digital virtual agents, predictive systems, process automation,
knowledge virtualization, robotics
TEKsystems Licensed use of ServiceNow Configure the ServiceNow platform and provide end-to-end service management support
& service design automation to improve customer satisfaction
IPSoft IPcenter Autonomic, Amelia,
Apollo
Engineers -> Virtual Engineers; Human Agents -> Virtual Agents; Virtual Engineers &
Virtual Agents
DXC Technology Turbonomic Platform Automation Standard
IBM Watson Automation, Artificial Intelligence – Understand, reason, learn, interact
Infosys Nia Infosys positions Nia as a “purposeful automation” platform – meaning, it is built to solve
common to enterprise support functions: lack of connectivity to the end customer,
underutilized assets and siloed and stranded data.
TCS Ignio Neural Artificial Intelligence platform
E
x
a
m
p
l
e
s
O
n
l
y

End user computing solutions focus on the user experience, proactive/problem prevention,
auto troubleshoot/diagnose/fix, self service and machine-learned and driven improvements.
Autonomics In End User Computing
Self-Service Tools
● App store
● Online chat
● Self configuring systems
● Self protecting
● Self optimizing
Productivity Tools
● User experience
management
● Auto detect/resolution/self-
healing
● Mobility enablement
● Performance
analytics/dashboards
Service Desk Tools
● Auto alerts/resolve
● Auto ticketing
● Auto email
response/routing
● Virtual service desk agent
● User profile management
● Performance monitoring
Deskside Support Tools
● Automated patch
management
● Capacity management
● Auto-dispatch smart
hands/feet

Source: ISG Insights 2017 Automation and AI Survey, n=532
Adoption Today vs. 2019
4%
28%
12%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
16%
In the next two years, the
number of mission-critical
processes supported by
automation and AI will grow
more than 3X.
3 or more mission critical processes
1-2 mission critical business processes
3 or more non-mission critical processes
1-2 non-mission critical processes
Piloting
Have not started
Q: Describe the current state of your company’s adoption of automation and AI today,
and how you believe it will change by 2019.
Use of Automation & AI to support
mission-critical business processes will
increase sharply by 2019.
Sixteen percent of respondents indicate
they have applied automation and AI to
one or more mission-critical business
processes. By 2019, this increases to
more than 50 percent. This suggests that
executives are investing heavily in
automation in the current period to meet
this outcome.
2017 2019
51%

47%
Average
22%
Average
Which Technologies?
The rate of adoption of automation and
AI technologies is set to double by 2019.
The level of adoption across all
automation and AI categories is set to
double within the next 24 months. This
suggests that competency in every
category is required in order to increase
the level of adoption within a company’s
critical business processes.
.
Q: For the following list of technologies, please indicate the current state of adoption
within your company, and what you believe it will be by 2019.
2019
2017
Automation Autonomics Virtual
Customer
Service
Agents
Virtual
Personal
Assistants
Natural
Language
Processing
Machine
Learning
23% 24%
23%
20%
18%
24%
49%
51%
48%
44% 43%
48%
0%
10%
20%
30%
40%
50%
2X
in
2 years
RPA

Deployment Obstacles
23%
25%
26%
28%
29%
29%
33%
33%
36%
37%Lack of budget
Organizational
resistance to change
Governance, risk or
compliance concerns
Security concerns
Concerns about how automation
will impact existing licenses/contracts
Difficulty providing ROI
Lack of skills
to implement
Lack of executive
commitment
Lack of visibility
of outcomes
Lack of IT support
Q: Rank the top three obstacles to successfully deploying
automation and AI at your company.
Budget, organizational change, risk,
compliance, and security all cited as the
primary obstacles to success.
We are early on the maturity curve of these
technologies, and, as a result, many
organizations are in process of establishing the
appropriate governance, compliance, and
security around automation and AI
technologies.
While governance, risk, control (GRC) and
security are top concerns, the reality is that
these often are the areas most positively
impacted with the application of technologies
such as RPA and autonomics. Digital labor
cannot be socially engineered, and all activity is
logged, so in reality, GRC and security issues
are in many ways improved with the
application of automation and AI technologies.

How is IT Outsourcing Impacted?

● The market is at an inflection point. After many years of increasing adoption of outsourcing and offshoring, the market
leaders and challengers are looking to get an edge over other market players through the use of automation and AI
● There are dramatic productivity improvements across nearly every tower, which is leading to significant cost reduction
opportunities for our clients; in some cases, upwards of 70 percent.
● ISG’s point of view is that automation hype has exceeded reality, however that is beginning to change as these
agreements include contractual commitments to achieve cost and productivity performance levels.
● Customers and advisors are becoming increasingly savvy about automation and are asking specific implementation
questions, as well as structuring one-time deliverables for automation and AI projects.
● Clients should address new operational and governance risks associated with the implementation of automation
technologies.
Automation in IT Outsourcing: Key Themes

The *ISG Automation Index represents contractually committed performance data.
Automation Index Productivity Comparison
Unit of Measure Time Metric Client Baseline
Automation
Index
% Change
Applications managed per FTE Monthly 2.0 3.1 +53%
Data Center: OSIs per FTE Monthly 48 71 +48%
Data Center: Storage GB per FTE Monthly 231,000 370,000 +60%
Network: Devices per FTE Monthly 150 270 +78%
Workplace: Email accounts per FTE Monthly 5,000 9,100 +80%
Workplace: Workstations per FTE Monthly 260 410 +55%
Service Desk: Users per FTE Monthly 275 400 +46%
Research method
● Client base case data (financials, volumetrics, etc.) is used as the basis for comparison.
● Staffing across automation index data is based on typical infrastructure outsourcing scope.
● Productivity metrics utilize the same contract data from the cost comparison.
● No growth in volume baselines.
*ISG follows a rigorous process of identifying and analyzing engagement data in order to provide clients with cost and productivity performance metrics.

Area Descriptions Impact* Activities/Tasks Affected
Change
Management
Service Request
Automation
8-10% ● Identifying and automating manual service requests with third-party or custom-developed solutions:
 Access management
 Mail task automation
 Remote diagnostics
 Remediation tools for endpoint security
 SSL certificates on ADFS/WAP servers
Change
Management
Testing Automation 1-2% ● Establish dependencies between applications (usually through analytics and usage reports)
● Utilize tooling to develop automated functional testing in order to improve:
 Release quality
 Release cadence
 Reduce effort lost in rectifying compatibility issues
Incident
Management
Analytics for
Reduced Effort
6-8% ● Perform ongoing regular ticket analysis
● Targeted application or infrastructure problem resolution
● Use of self-healing scripts (i.e., ServiceNow scripts or developed by service provider)
Incident
Management
Elimination of Busy
Work
10-14% ● Utilize RPA (third-party) or custom-developed solution to eliminate mature, well-defined tasks
● Implementation of DevOps approach to drive higher efficiencies
Incident
Management
Chatbots & Virtual
Agents
None ● Generally refers to the automated response or interaction with end-users
● The research team has not observed any contractual commitments to deploy this technology
Governance
Reporting
Dashboard
Automation
1-2% ● Utilize RPA (third-party) or custom-developed solution to automate periodic reporting such as:
 Service level reports
 Management reports
Service Desk Automation: Major Activities Automated
*Means impact on labor productivity
26-36%

Organizational Change Management -
Automation Implementation

Levels of automation that will be implemented & end user adoption required
There are really 2 levels of automation that IT Service Providers provide to their clients:
1. Infrastructure – These would be the bots used to resolve alerts that are triggered by the monitoring layer and the bots used to
predict where outages will occur to proactive resolve problems before alerts are generated. No interaction required.
2. End User – These would be self-help and self-healing tools on the desktop. Also, service catalog for service requests and automated
problem resolution. These would include all 'bots' used on the Service Desk to capture, enrich or resolve end user tickets. Some
interaction required by End Users, Service Desk agents leverage.
Note that only a subset of these items rely on end user adoption (self-help, service catalog, etc.). The rest are typically transparent to the
end user and require very little change on their part. Note that "chat" and "text" are a big part of the industry movement away from
service desk agents and towards bots. That is an area where service providers, as part of their solution, will design an adoption program
for clients to increase their rate of adoption. They will utilize several methods to do this including gamification strategies.

Sustained Automation Implementation Success with OCM
76% of automation end users
have a substandard
understanding of how Automation
impacts processes
76%
DON’T
GET IT
#1 reason for failed
implementations
Employee resistance to automation
Companies invest in Automation to improve business operations, reduce operating costs and gain competitive advantage. Success of
these Automation investments depends on four factors:
 Organizational readiness to embrace and fully utilize a digital workforce as part of the digital transformation strategy.
 Rapid human adoption and management of the digital workforce by communicating what Automation means to the business.
 Establishment of an Automation CoE Model to manage and govern the automation implementations.
 Sustainable high quality automation configuration and effective implementation of bots into the environment.
78% of automation deployments
have a substandard operating
model and digital governance
structure creating silos
of automation
80% of automation deployments
have robust and hardened
automation configurations upon
initial deployment
  

The Mind-Shift Journey for Automation Self-Service Adoption
Gauging user
satisfaction and
continually
monitoring their
experience for
ongoing
improvement.
Adoption
Ability
Desire
Understanding
Awareness
Understanding and enabling a cultural shift for users to be ready, willing
and able to adopt to self service
Helping people
understand what is
changing and the value
of cost-reallocation
driving self service
Creating visibility to the features,
benefits and tools available for
self service is critical.
Providing users an understanding of
what to expect, how their experience
will change, interaction demos and
setting their expectations of the overall
benefits of the future model.
Supporting users to
understand how to
operate in the new
model with dynamic
and zero touch
methods.

Automation Adoption Best Practices
ISG conducted interviews with service provider automation leaders on the topic of automation adoption. Below are some of the consistent
points that we should keep top of mind as to what we should expect to hear and see from our service providers’ solutions
● Agile Approach – heavily test chatbots/virtual agents with end customers (either internal to IT or external) – spend a week with
customers, then deploy three changes based on their input, then do this again two to three more times.
● Stage the Deployment – roll it out to a subset of users, get feedback (above) then grow the audience.
● Small number of use cases (also called Intents) – make those awesome, get them out the door, then do more. Don’t try to boil the
ocean by solving every problem that comes into the service desk – solve a small number well.
● Communicate ROI - don’t focus on communicating about the technology; business users will expect that it works. Focus on ROI and
make it overwhelmingly attractive from a business perspective (e.g., won’t have to hire 10 new people as volumes increase).
● Channel Transfer – ensure there is a easy, seamless way to escalate/escape to a human channel for assistance.
● Technology Adoption and Enablement – Tool sets are being implemented, but technology adoption must address people and process
change as well.

Transition Approaches to Manage Change to the Business
Managing change to the business via a measured transition approach possibly leveraging persona-based rollouts.
IVR Password
Reset
Establish
Transition
Governance
MFDM
Kickoff
Baseline
SLA/KPI
Automation Setup
Cognitive Automation
Transition Execution
Establish Tech Cafe setup at
Campus Sites
Cognitive Automation
Modernization
 Proactive problem analysis
 Role based dashboard creation
 Operationalize MFDM
 Self Service empowerment
 Initiatives to enhance user experience
 Automate for repetitive events
Integrate Exelon Endpoint
toolset
Automation Soft LaunchPersona Analysis
Target Operating Model
One Chat
Solution
ProductTM
Proactive Monitoring Client
Health for EUC devices
Process Standardization/Alignment
Right Answers
Omni Digital Assistant
Transition
 Stakeholder Orientation
 Planning & Prioritization
 Team Readiness
Value Enhancement
Get Basics Right Proactive Client Health
Year 1
Digitized Site Support
Year 2
Omnipresent Workplace
Year 3
Day 1 Operating
Model
Automation
Deployment
Setup Smart Locker
IT Vending Machines
Representative sample from a service provider’s solution

Research Papers from “ISG Insights”
ISG Research Study - Unprecedented Growth of Automation and AI in Enterprise Support Functions
Briefing Notes - IBM Watson Works to Reinvent the Service Desk
Provider Snapshot - Re-imagining Computing through Cognitive Systems
Digital Disruptors: Cognitive Platform Competition with IBM, IPsoft, TCS and Wipro
Service Desk: Philosophy Before Skills and Solutions

Clients consistently face four key challenges in the transformation of their Workplace.
Challenges of Workplace Transformation
Elective Omni Channel Management
Seamless Digital experience across multiple channels; connected, contextual and consistent.
Shift Left & Training
As simple calls shift left, must invest in training for smart service center staff.
Measures
Shift left impacts the traditional ‘first contact resolution’ metric. User metrics supplement contractual SLAs and
KPIs, such as % of incidents resolved through self-healing
Commercial Construct
Changing dynamics of support will require contract structures to evolve

Shadow support was shunned. Today users are encouraged to self help, with tools provided to facilitate this. Service
providers are designing advanced service delivery models encompassing ‘bring your own service’ methods.
Next Act – Bring Your Own Service (BYOS)
Hyper Automation
Vending machines
Kiosks
Social Media
Trusted Knowledge
Articles
Service Catalog
as a Service

Supplier solutions that bring innovation
Workplace –My* Best of the Best
Supplier Best of the Best Example
Wipro Proactive monitoring Aternity health check
Unisys Analytics Power BI
ATOS Integrated solution Device as a Service
DXC Technology Tech cafe Menu based
CompuCom Click to Fix Bot
HCL Virtual agent chatbot
CapGemini Online procedures Run books on mobile devices
NTT Data Asset Management Flexera
TCS Social media collaboration TCS Karma Engine - Gamification for adoption of the self-service technology
IBM Customer experience measures Sentiment analysis
Workplace
Lifecycle
*Jim’s
* Jim Kane

The Business of Automation
Description Key Topics and Comments
NDA ● Standard Non Disclosure Agreement – does it apply to bots developed/deployed by the client that the service provider may use, bots developed/deployed by the service provider
that may be re-used from other clients, or will be re-used by the service provider on other accounts?
Bot development ● What are the process compliance requirements? Does the client need to sign off on process definition, solution design, build, test and deploy? How engaged is the client?
● What are the security requirements?
● What are process/data control requirements?
● What are the hardening requirements?
● What are the deadlines for bot completion? Who owns meeting the deadlines?
● Which party provides the software?
● On which party’s infrastructure is the automation software deployed? What are the implications for bot performance? Service provider performance? Support/maintenance?
● Which party owns the IP (i.e., the automations) when complete?
Source Code Escrow
Agreement
● Agreement for escrowing specified provider software – is the “code” for any bots developed/deployed included?
Statement of Work
(SOW)
● Automation life cycle – what requirements does the client have for the provider to adhere to so that when an automation is deployed is meets the full process requirements and
metrics, reporting, controls, redundancy, reliability, performance, documentation, audit, etc.
● Support for automations – what are the service levels to fix defects and other problems that might occur when an automation encounters errors or comes to a complete stop?
Who will fix? What are the allowable downtimes?
● Audit for automations – how will the client audit the provider’s bots? Who will conduct the audit(s)? how frequently?
Termination ● What happens to the bots upon termination?
● If they revert to the provider can the provider use all or part of them with other clients?
● If the revert to the client can the client actually use them? Will the client staff the process and process the work exactly as the provider did? If the automations were
developed/deployed on the infrastructure of the provider, how will they be transferred to the client infrastructure? Who will do the transfer/installation? What are the obligations
of the provider to train the client staff? To support/maintain the automations? Is there a warranty period?
● Assistance to be provided by provider in the event of termination or contract expiration. – what is the impact on/impact of robotics?
Policies and
Procedures
● List of client Policies that provider must adhere to and can be update as needed by client. – what is the impact on/impact of robotics?
Pricing and Financial
Provisions
● How does robotics impact the pricing?
● How does robotics impact process and pricing improvements required during the life of the agreement?

What is an Autonomic Tool?
Autonomic
Orchestration
Automation
IncreasingLevelsofAutonomicCapability
● Checks/analyzes (monitors) activities
● Automatically triggers actions and decision-making
● Adaptive, optimizes to changing conditions
● Self-learns (remembers) from previous actions/interactions
● Work flow automation for services/processes
● Often organizes and runs scripts
● Likely not complete end-to-end automation
● Requires maintenance to fine-tune and improve
● Simple, task level script-based automation
● Often requires human intervention before/after script runs
● Requires rewriting when environment changes

Leaders are using Automation and AI to
improve their services and products as
well as freeing up their staff.
Consistent with what we see in our work
with clients, IT and business leaders are
using automation and AI to increase
resource productivity and deliver products
and services in a more consistent and
effective fashion.
Why and How?
Q: Indicate your level of agreement with the following automation and AI statements.
Note: Agree + Strongly Agree responses shown.
63%
66%
68%
74%
75%
Automation and AI will
be critical to delivering
products and services
Automation and AI will free
up staff to do more value-
added work
Automation and AI initiatives
are focused on automating
tasks, not roles
Automation and AI will
be critical to fend off
digital competition
Automation and AI will mean
a complete re-think of
talent management

Automation Outcomes – Importance and Success
Levels of importance and success are
usually correlated. Avoiding long-term
costs and improving employee morale
appear to be less successful.
There exists a bigger perceived gap within
the long-term cost avoidance and
employee morale outcomes. Additional
attention and effort should be taken to
ensure these outcomes are achieved.
Q: From the following list of potential outcomes of automation and AI, indicate how
important and successful each one is to your company.
60%
65%
74% 75%
79% 81% 81%
85% 86%
54%
48%
60% 58%
63% 64%
67% 69%
60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Reducing
offshore
labor risk
Improving
employee
morale
Reducing
short-term
costs
Getting
products to
market
faster
Improving
compliance
Executing
internal
processes
faster
Improving
customer
experience
Improving
productivity
(doing more
with the
same
number of
people)
Avoiding
long-term
costs
Importance Success

Targeted Functional Areas
0% 10% 20% 30% 40% 50% 60% 70%
Human Resources
Governance, Risk and Compliance
Supply Chain/Logistics
Finance/Accounting
Sales and Marketing
Customer Care
Information Technology
Q: For each of the following business areas, choose the top three areas you expect
will be most impacted by automation and AI in the next two years.
Company executives feel that IT, customer
care, sales and marketing will be the areas
most affected by automation and AI.
IT has a significant margin (at least 20% ahead)
of the other business functions. This suggests
that IT executives will/are being tasked with
the successful deployment of automation and
AI technologies.

ISG follows a rigorous process of identifying and analyzing engagement data in order
to provide clients with cost and productivity performance metrics.
Measuring Productivity on ISG Advised Deals
Global ISG Deals
(approx. 10 – 15B TCV)
Deals with Disruptive
Levels of Productivity
(approx. 20% of total)
Data Collection
Validation
Analysis
Collect base case and contract information
● Technical solutions and software
● Personnel, financials, volumetrics
● Other terms affected (i.e., SLAs)
Interview ISG directors and clients to understand the
context of the data.
Analyze the data based on what can be collected. If data is
not complete, we do not use the data point. No attempted
normalizations for SLAs, size, etc.
Automation Index
Report

Providers choosing one of several routes
● Build out outsourcing provider’s custom autonomic solution (e.g., TCS, Infosys, Wipro).
● Outsource the work and technology to IPsoft (e.g., CGI, IBM, Accenture).
● Utilize Arago’s technologies (e.g., Mphasis, Zensar).
● Partner with both IPsoft and Arago (e.g., Atos, NTT Data).
● Building a platform integrating many third-party, point solutions (e.g., HCL, Cognizant).
IT Automation – Provider Positioning and Strategies

We are seeing a significant increase in interest for chat bots and virtual agents,
primarily for call centers, but increasingly for service desks.
Intelligent Assistance: Research Underway
Technology vendors we’re being asked to evaluate

Conversational AI
Interesting Tech Parties
Process Characteristics
● When a conversation is needed either with a customer or fellow staff member
● High volumes, only create journeys for top contact reasons
● Needs documented knowledge to leverage the answers to top questions
● Could be Voice or Text, mainly text interactions previously
Likely Process Candidates
● Online Customer Service / Replacing Online Chat or Social interactions
● HR Services
● IT Service Desk
● Self service from the home using tools like Amazons Alexa
Time & Complexity to implement
● Both time & complexity differ depending on products
● Product aside the success is all down to the implementation
● Once journeys are created you should be able to use them across channels,
using speech to text (Nuance IVR into Watson Conversation as an example)
Expected Costs
● Initial software implementation between $150K to $1m
● Implementation of journeys on some software can be completed by SME’s
● Professional services $500 per day Watson Cognitive Agent, but
PM $3K per day
● Price per “interaction between 10p and $1 (software dependent)

ISG (Information Services Group) (NASDAQ: III) is a leading global technology research and advisory
firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the
world, ISG is committed to helping corporations, public sector organizations, and service and technology
providers achieve operational excellence and faster growth. The firm specializes in digital
transformation services, including automation, cloud and data analytics; sourcing advisory; managed
governance and risk services; network carrier services; technology strategy and operations design;
change management; market intelligence and technology research and analysis. Founded in 2006, and
based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20
countries—a global team known for its innovative thinking, market influence, deep industry and
technology expertise, and world-class research and analytical capabilities based on the industry’s most
comprehensive marketplace data.
isg-one.com

ISG POV Workplace of the Future February 2018

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