Shamus has over 23 years’ experience in Back Office transformation cross-industry and a broad in-field knowledge of undertaking Operational Strategy work for various global clients, from Investment Banks through to major Leisure companies. In 1993 he disrupted the BPO industry by building the first multi-function, multi-client BPO business. Shamus later joined PWC Consulting as a Financial Services Partner before that was acquired by IBM. He then went on to build IBM’s first BPO operation in India and followed that by building dozens of Shared Service Centres around the world and in 2004/5 was managing a series of centres with 17,000 staff in Asia, Europe and the Americas, delivering Banking Operations, Insurance Claims, Finance, HR, Procurement and Call Centre services to clients globally. With the emergence of advanced automation Shamus is now leading the Automation Proposition covering everything from advanced robotics all the way through to Cognitive Computing. And all this in addition to his 120 km a week cycling addiction.

1. Winningthe
Digitalrace
Shamus Rae
linkedin.com/in/shamus-rae
@RaeShamus

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2
The conjecture that every aspect of learning or any other
feature of intelligence can in principle be so precisely
described that a machine can be made to simulate it
John McCarthy 1956
195
6
1972 2015/16 2029 2045
If someone describes to you the world of the mid twenty-
first century and is sounds like science fiction, it is probably
false. But then if somebody describes to you a world of the
mid twenty-first century and it doesn’t sound like science
fiction – it is certainly false
Yuval Noah Harari 2018

3. © 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No
member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 3
Ashiftinglandscape
Paradigm
Shift
New channels /
changing
customer
behaviours
Decline in trust /
Increased
competition
Technology driven
innovation /
improvements
Growing advice from peers
Willingness to adopt
new technology
Less loyalty,
more cherry-picking
The internet of me
Decline in institutional trust
Tech giants disrupting
traditional markets
Non-traditional players
entering the market
Non-traditional
alternatives
Start-up collaboration
Traditional players
leveraging technology
Platform-based
business models
Unprecedented speed
5G Networks
Shrinking profit pools, increased competition, savvy consumers
and rapidly evolving technologies.

4. © 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No
member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 4
Digital
Business
Strategy
Enterprise
Digital
Transformation
Customer
Connected
(End-to-
End)
Enterprise
Digital
Customer
Engagement
Digital
Marketing
Mobile
Digital
Supply
Chain
Disruptive
Business
Models
2010 2016
FRONT
2018+
Digitaltransformationagendaisshifting
1st Transformation Wave: Digital First 2nd Transformation Wave: Digital Operations Next Wave: Efficient Execution
Brands will build holistic
customer experiences that
transcend touch points.
Digital enterprises will
accelerate work to break
down their silos between
customers’ digital and offline
engagement.
They will also break down
the silos between functions
and created a Connected
Customer Enterprise
Activity was centered
on front office and
customer experience
Consulting firms created
digital practices through
strategic acquisitions
Digital agencies
entered the market and
played a big role
A digital focus on just the
front office will not provide
sustainable competitive
advantage
Organisations focus on
restructuring operations beyond
customer-facing functions to
enable enterprise-wide digital
transformation
Organisations spend more on
digitizing operations in the middle
and back office
Moving from experience to operations, emphasizing the client need to connect front to back offices

5. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Document Classification: KPMG Public
5
Superhuman@objectdetection

6. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Document Classification: KPMG Public
6
Superhuman@Speechrecognition
Duplex

7. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Document Classification: KPMG Public
7
Superhuman@text(next)
Superhuman
By 2020
Prof Hinton
– Language to Thought
– Thought to Language
– But so what

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8
Respondents are more likely to share their personal data with their hospitals
than any other organisation, followed by banks and the police
Which, if any, of these organisations would you be willing to share your
personal data with if it meant an improved service or capabilities?
Buttrustisgone…
56%
47%
33%
24%
22%
15%
11%
8%
8%
7%
Hospitals
Banks
Political organisations
Media companies
Internet companies
Charities
Pharmaceutical companies
Government
None of the above
The police

9. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
9
Theglobalracehasbegun
Top AI Countries
By Research papers
2011-2015
By activity and talent pool
China China
US US
Japan Russia
Due to military spending
UK Canada
Prof Hinton

10. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
10
ForgetUtopiaversusDystopia
1
2
3
4
5
The next 10 years will be hard
Job ‘rotation’ will accelerate
Old dogs need to learn new trick
More Kodak moments – Retail first but all industries will follow
The economic benefits of AI are currently narrowly focused
geographically and socially (Gini)
KPMG CEO Outlook Survey 2017: >50% of CEO’s see more disruption
in the next three years than they have in the prior 50 years
Proactive Management of the next 10 years is needed

11. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
11
Ecosystemsandacademia
1
2
3
4
5
Academia, Industry Capability and Data as one
Data Innovation Zones outside of Cambridge/London
New Adult re-training – change in culture to make it the norm
Provide above school infrastructure
Ecosystem of players large and small but focus on trust

12. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Thefutureenterprise-sourceKPMG
12
API
economy
real-time
payments
predictive
analytics
artificial
intelligence
Data platforms
drones
cloudblockchain
New
InterfacesVoice/nlp
Augmented
& Virtual
reality
BotsMobile
New
Interfaces
BotsVoice/NLP
augmented
& virtual
reality
Mobile
internet of
things
biometrics
customer
A 21 century enterprise delivers the best customer experience, leveraging
data collected from customers to adapt and personalise experiences.
Interface
Layer
workforce
A 21 century enterprise is lean, utilises smart automation and accesses skills
on demand through platforms and alternative employment models.
Interface
Layer
Hypothesis
The 21 century enterprise will
shift from a labor-dependent
business model to a tech-
dependent business model in
order to create new value.

13. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
13
Diseconomiesofscale...riseofthestartup
Large legacy organisations have large legacy IT
Regulations requires them to keep old systems
going for 7 to 10 years
Culture and ways of working .... Active Inertia
Engine A versus Engine B
Acquisitions and consolidation

14. © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
JPMorgan
KPMG Loans ToolFOXCONN Robots Financial Services Fraud
8m
emails and chats
monitored per month
Slang and tone monitored
Tesla Level 4 by December 2018
100%
Calls
Telecom Inbound Calls
JD.com robot-run warehouse in Shanghai
60,000
Packages
processed
every hour
200k
Using robotic
unloading systems,
barcode scanning,
automated vans and
even drone
deliveries
350m listening with active
script management and
learning responses
Of a bank’s loan
book can now be
reviewed and
reassessed by AI
300K
COIN
Hours of legal word reviewing financial deals
COntract INtelligence AI system
after
1
500
Workers replaced
500k FTE’s to
be replaced by
1 Million robots
1.3Bn
4
Total number of
training miles
Level
Person
employed
Previously
where
Ambulance Planning
Route planning
by 2020
Plans optimum route given initial
diagnosis, distance to hospital, hospital
capability and capacity

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Client data
Marketplace Platform
Free
GLFraud
Free
MITool
AuditPrep
tool
Blockchain
for secure data
transfer
Smart
Contract
Audit ready
historic results
Supplier Due
Diligence Record
Distributed Trust Layer
Trust Record
Assurance certificate,
data review etc.
Disruptingourownindustry
Ecosystems &
Hubs
Ecosystems
& Hubs
UK US
KPMG
Hub
KPMG
Hub

16. More
insights
KPMGReviewMagazine

17. Document Classification: arial
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a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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