Designing a Program that Increases Your Intelligent Automation “Velocity”

Copyright © 2018 ScottMadden, Inc. All rights reserved.
Designing a Program that Increases Your
Intelligent Automation “Velocity”
Intelligent Automation Week
Chicago
July 30, 2018

ScottMadden Areas of Focus
1

Adding Velocity to Your IA Program
2
Today’s Discussion
Shop for Knowledge
with RPA Pilots
Flip to a Broader IA
Process Evaluation
Expand Digital Vision
across the Enterprise
Paint an IA
Governance Picture

Shopping for Knowledge with RPA Pilot

￭ What types of licenses do I need to buy?
￭ How much RPA scripting can fit on a license?
￭ When should I run RPA applications?
￭ How much will this cost in licenses, training,
communications?
￭ How long will it take me get this set up?
￭ Do I need a recording device?
￭ What types of access will I need?
￭ Can robots run on my laptops, or do I need servers?
￭ What level of skill do I need to program robots?
￭ What types of processes lend the most impact?
4
RPA Knowledge Shopping
You Will Learn More from a Pilot than a Conference!
Answers to these questions differ for every company and RPA scenario

Don’t Overanalyze…Just Get Started!
Move through a pilot in four phases:
5
Strong champions are not hard to find
these days
“Thunderous rivers” are more
interesting than “trickling creeks”
You don’t need the perfect RPA
vendor just yet
This will force governance
applicable to broader IA
▪ Find a problem
▪ Find an influencer
▪ “Gut feel” what to fix
▪ Find the team
▪ Introduce the players
▪ Avoid flow charts
▪ Think “volume flow”
▪ Think “batching”
▪ Look for forms
▪ Ask your staff
▪ Path of least resistance
▪ Go get a trial license
▪ Set up environment
▪ Get a few laptops
▪ Find your “scripter”
▪ Document
▪ Train/communicate
▪ Assign roles
▪ Point to production
▪ Showcase and expand
Move into ProductionSelect the Right Process
Develop and Test
the Bots
Find a Business Partner
Your learning on smaller RPA pilots will be applicable to building out broader IA programs

Find a High-volume Flow…with Lots of Easy Follow-on
6

Automation Potential
More is better
￭ Are there any forms involved in the processes?
￭ What percentage of the process is rule-based (logical if… else… then) steps?
￭ How many applications and data sources does the process need to integrate with?
Less is better
￭ Has this process changed frequently in the past two years?
￭ Does IT make frequent changes to the systems involving this process?
￭ Does your process involve secure data?
7
Also consider business criticality—less critical processes offer less risk but also less “wow” factor to
gain enterprise momentum. Find the right mix for a pilot

Flip to a Broader IA Process Evaluation

You’ve Successfully Completed Some RPA Pilots…What’s Next?
Your options…
￭ Declare RPA pilot victory and quit
￭ Do another pilot, then another…and another
￭ Start randomly pushing to production as pilots become ready
￭ Develop/promote an enterprise-wide program
9
Broader Process Evaluation

Understanding Where to Go from Here
10
Robotic Process
Automation
Virtual Agents and
Chatbots
Artificial
Intelligence
Level of Adoption 55% 10% 5%
Characteristics of
Data Input
Structured, rule driven,
static
Structured data, but requires
cognitive computing
Unstructured/structured
data with hidden patterns
Nature of Ideal
Process Fit
￭ Digital repetitive steps
￭ Rule based/logic driven
￭ Time consuming
￭ Documented
￭ Static rules
￭ Customer interfacing
￭ Requires access to solve?
￭ Multiple languages required
￭ Multiple time zones required
￭ Requires research
￭ Non-routine inquiries
￭ Formula driven
￭ Requires pattern and
detailed analysis
Process Candidate
Examples
￭ AP/AR management
￭ Billing and invoices
￭ Data entry/management
￭ Customer service
￭ Vendor inquiries
￭ Delivery/scheduling
￭ Forecasting (e.g., FP&A)
￭ High volume research
￭ Exception handling
Data structure and integrity is essential across all IA

A Process Breakdown Will Lend Clues to IA Opportunity
11
Analytical = AI? Transactional = RPA? Customer Facing = Cognitive?
1.1 Establish credit
policies
1.2 Analyze/approve
new account
applications
1.3 Review existing
accounts
1.4 Produce
credit/collection
reports
1.5 Reinstate or suspend
accounts based on
credit policies
1.0 Process customer
credit
2.1 Maintain
customer/product
master files
2.2 Generate customer
billing data
2.3 Transmit billing data
to customers
2.4 Post receivable
entries
2.5 Resolve customer
billing inquiries
2.0 Invoice customer
3.1 Establish AR policies
3.2 Analyze/approve
new account
applications
3.3 Apply cash
remittances
3.4 Prepare AR reports
3.5 Post AR activity to the
general ledger
3.0 Process accounts
receivable
4.1 Establish policies for
delinquent accounts
4.2 Analyze delinquent
account balances
4.3 Correspond/negotiate
with delinquent
accounts
4.4 Discuss account
resolution with internal
parties
4.5 Process
adjustments/write off
balances
4.0 Manage and process
collections
5.1 Establish
policies/procedures
for adjustments
5.2 Analyze adjustments
5.3 Correspond/negotiate
with customer
5.4 Discuss resolution
with internal parties
5.5 Prepare chargeback
invoices
5.6 Process related
entries
5.0 Manage and process
adjustments/deductions
Perform Revenue Accounting

Process Analytical Tools Provide Great Insight
Process tools can assist
with:
￭ Collecting process step
data
￭ Identifying characteristics
that lend themselves to
RPA, Virtual Agents,
and Artificial
Intelligence technology
12
Check all that apply or those that most closely resemble your process. If your process is not
listed, please type in the cells below "Other".
Use drop down menu to make
appropriate selection
Use drop down menu
to make appropriate
selection
Use drop down menu to
make appropriate
selection
make appropriate selection
select whether there is a
national, area, or global policy
for this activity
Type the description of
the related policy in the
cells below
Type any related gov't
regulations in the cells below
Type any related tax law in the
cells below
Type a
respon
column
Process Donations / Accounts Receivable
Instructions:
Process customer credit
Establish credit policies
Not Applicable
Establish/revise national credit policy as necessary. No defined process
Other: Please describe below
Analyze/Approve new account applications
### Not Applicable
###
Review existing accounts and balances
### Not Applicable
### Perform review of existing accounts and balances periodically and as needed
###
Produce credit/collection reports
### Not Applicable
### Generate reports from accounting software
###
Draft emails to notify debtors of delinquent accounts either based on knowledge of debtors or
by looking within the accounting software
###
Reinstate or suspend accounts based on credit policies
### Not Applicable
###
Drop down menu
• Rule driven
• Repetitive
• Static steps
Drop down menu
• Customer contact
• Repetitive Q&A
• Knowledgebase
driven
Chat Bot/Virtual Agent
Opportunity
Work Characterization
Field
RPA
Opportunity

Process Analytics – Example
13

Process Analytics – Example for Customer Credit
Number of frequencies, parties, and technologies involved in processing customer credit
14

Process Analytics – Example for Order-to-Cash
15

Build a Process Opportunity Dashboard to Help Prioritize
A process tool helps:
￭ Organizations understand
standardization in
process approach,
execution, efficiency,
and technology use
￭ Identify process steps that
can benefit from RPA and
other IA solutions
16

Prioritize Automation Opportunities
Early identification of which
process steps present the
greatest opportunity for
automation solutions will
allow your organization to
maximize the benefit of its
automation roadmap.
17
Automation Potential
1.1
1.2
1.3 1.4
2.1
2.2
2.3
2.5
3.1
3.4
3.5
4.1
4.4
5.1
5.25.3
5.4
1.5
2.4
3.23.34.2 4.3
4.5
5.5
5.6
BusinessBenefit
Specific Process Steps

Paint an IA Governance Picture

What Do You Want to Achieve with Intelligent Automation?
19
IA Governance Picture
Answers help define program design and funding requirements

There Is No “One-Size-Fits-All” Governance Model
What others are saying (quotes from past SSON conferences)
￭ Yes, maybe the system should do this, but it doesn’t and it’s not going to because IT is busy, so we use RPA (Walgreens)
￭ Our IT preferred in-house servers (vs. cloud) for data security, others may not… (Walgreens)
￭ Standardize and eliminate waste before robotizing (Ascension)
￭ Processes may not require standardization or optimization before automating (ANZ Bank)
￭ ROI increases as people begin to think digitally – opportunity becomes increasingly apparent (AA)
￭ Fish where the fish are – if there are a lot of people working on particular tasks, it’s probably a good place for RPA (AA)
￭ We set up robots in the system as contractors (McKesson)
￭ We set up robots as existing workers who had access but did not work the process (Ascension)
￭ We reinvest our IA savings into IA (Aruna, MasterCard)
20

The Answer Is Typically Some Degree of Hybrid (But There’s a Broad Range)
21
Description Enterprise Role Challenges
 RPA launched from within
enterprise COE or shared services
with high visibility and control of
efforts
 Almost entirely enterprise-led
approach (typically IT, though it
could be led by another centralized
business function)
 Less responsive
 Development time reduces impact
opportunity
 Baseline guidelines, controls and
QA
 Core team provides automation
services for areas unable to support
own needs
 Provides:
• Direction and leadership
• Orchestration and quality
assurance
• Optional process selection/
design
• Optional scripting
 Potential conflicts between central
and local efforts and authority
 RPA efforts are launched locally
within business functions
 Can have business or function-
specific COEs
 Little/no involvement at enterprise
level
 Informal ad-hoc coordination
 Varying quality
 Potential bot impact on other
departments/bots
 Robot chaos

Governance – Program Decisions
22
An IA program without central standards and quality assurance is a weaker “program,”
but tradeoff may be a reduced speed to implementation
Governance Approach (Example)
Support Type IA Program Decisions COE Process Owner IT Dept.
Program Decisions
Standards – Define IA requirements and
performance metrics
X
More Autonomous
(Decentral)
Certification – Approve qualified vendors
to develop IA projects
X
Training – Enable business units to
identify and implement IA projects
X

Governance – Execution Decisions
23
IA prioritization and project execution warrants business unit knowledge of needs,
but an IA COE can help keep this organized and avoid surprises
Project Execution
Project Planning – Manage IA
implementation schedule and budget
More Regimental
(Central)
X
Demand Management – Track and
prioritize IA project request
X
Process Identification – Assess
applicability of an IA solution
X
Development – Program and apply IA to
process steps
X

Governance – Maintenance and Planning Decisions
24
Running IA programs without IT is a fallacy—IT will need to be involved in maintenance at a minimum.
But, an IA COE can serve as a great “head on the horse” to promote IA visioning and planning
Project Execution
Technology Infrastructure – Create the
foundational elements for RPA operations
X
Program Operation – Orchestration and
optimization of IA schedule
X
More Autonomous
(Decentral)
More Regimental
(Central)
Program Planning
Vision Development – IA program
leadership and promotion
X
Future Planning – Reflect the
enterprise's technological change in IA
portfolio
X

IA COE Framework – Hybrid Example
25
Consultative to Process Owner
Consultative to IT

Expand Digitization across the Enterprise

Transactional
￭ Low-cost transactional centers and BPOs
• AP, AR, accounting transactions
• Master data entry and maintenance
• Customer issue assignment
Functional – Customer Facing
￭ Service hubs and call centers –
“Amelia-like” virtual agent, chatbots
• Vendor help desks
• Employee service centers
• IT help desks
• Customer service order taking
AI Specialist
￭ Centers of expertise
• Credit and risk analysis
• Fraud prevention and controls
• Forecasting, planning, and budgeting
• Tax strategy
• M&A targeting
• Compensation design
• Recruiting and retention
• Workforce planning
• Demand planning
• Spend-reduction opportunity
27
Expanding Digital Vision
What Types of Work Will IA Impact?

General Distribution of Back-office Impact Potential
28
Strategic
6%
Specialist
11%
Customer Facing
23%
Hands On
16%
Transactional
32%
Robotic
12%
Repetitive task, often
related to admin or routine
data entry
(low-cost labor spots)
Deep specialist focus
typically associated with
decades of experience
(COE where talent is)
In-depth subject matter
expertise and closer
proximity to customer
(regional support hub)
Total FTE
RPA work fits a small COE
for controlling work,
developing programs, and
maintaining “bots”
Hands-on touching of work,
government interface, legal
requirements
(local, on site)

Global Business Service Models Today
29
AMERICAS EMEA
APAC
Transaction
Center
Transaction
Center
Corp HQ
Service
Support
Hub
Service
Support
Hub
COEs
Service
Support
Hub
▪ Low-cost locations
▪ High-volume transactions
▪ Standardized
▪ BPO sweet spot
• Regional knowledge
• Language requirements
• Time-zone sensitivity
• Specialist knowledge
• Experience to recognize patterns
• High-volume research/analytics

Transactional Shift – Away from Lost-cost Areas?
30
AMERICAS EMEA
APAC
Transaction
Center
Transaction
Center
Corp HQ
RPA
Center

Service Shift – Virtual or Smaller Service Hubs?
31
AMERICAS EMEA
APAC
Corp HQ
AI
Agent
Hub
Service
Support
Hub
Service
Support
Hub
Service
Support
Hub
Service
Support
Hub

Specialists COEs – Smaller, Intelligent, Data Driven?
32
AMERICAS EMEA
APAC
Corp HQ
HR
COE
Supply
COE
IT
COE
Finance
COE
AI
Analytics
COE
AI
Analytics
COE
Legal
COE
Manufacturing
COE
Engineering
COE
Marketing
COE

GBS Model of the Future
33
AMERICAS EMEA
APAC
Corp HQ
AI
Analytics
COE
Legal
COE
Mftg
COE
Eng
COE
Marketing
COE
Service
Support
Hub Service
Support
Hub
Service
Support
Hub
Transaction
Center
Transaction
Center
RPA
Center
AI
Agent
Hub
HR
COE
Supply
COE
IT
COE
Finance
COE

Impact to Future Work Types Will Change Our Business Cases – Example
34
Today
Transactional
(Low-cost Center)
Hands On
Functional
(Service Hub)
Specialist
(COE)
Strategic
Tomorrow – with IA (hypothetical)
Hands On
Functional
(Service Hub)
Specialist
COE
Strategic
RPA Transactions
30%?
Cognitive
Agents and
Chatbots
15%?
AI Analysis
5%?
Transactional
(Low-cost
Center)
45%
15%
20%
10%
5%
Future impact to our rationale for existing GBS models may require rethinking and result in completely
different delivery frameworks than we have today

How Can You Prepare Now?
Avoid surprises and create your future model now
￭ Find process steps that lend themselves to IA
￭ Observe process characteristics and align to IA technology (RPA, virtual agents, AI)
￭ Build the case for investment and a realistic pace for your company
￭ Prepare your data (governance, structure, cleaning)
￭ Start formulating a beginner governance model
￭ Assess upcoming long-term strategic decisions vs. a highly likely future of disruptive technology
• BPO decisions
• ERP decisions
• Service support decisions
• Location decisions
35
Preparing the future conceptual model and business case now will avoid the potential for costly
initiatives that may not add value in the near future (e.g., call center builds, BPO contracts, etc.)

Designing a Program that Increases Your Intelligent Automation “Velocity”

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