Auxis Webinar: Diving into RPA

1
NOVEMBER 9, 2017
RPA WEBINAR SERIES | PART 2
DIVING INTO RPA

Recap From Last Webinar…
Confidential & Proprietary 2
Robotic Process Automation (RPA) essentially “mimics” the way a
human worker performs a transaction, using a virtual workforce
(“bots”) to interact with any of your company’s systems in the same
way the human worker would
 Traditional back offices are not going to cut it. You need to modernize and free up
time for real value-added activities.
 RPA is a great tool to achieve this, and it’s happening right now!
 RPA can help you drive efficiencies in highly complicated operating environments,
where traditional IT solutions are not readily available or are too costly to
implement
 RPA is not a project, it’s a journey. Before embarking on it, make sure you partner
with an expert that has both the business process and the technical expertise.
 Start small and test it. Take the time understand the opportunities that exist in your
organization, and define a realistic and practical implementation approach.

Today’s Agenda
We will be covering:
1. A detailed look at how to effectively identify,
evaluate and prioritize the RPA opportunities in
your organization
2. What new skills and capabilities are needed to
implement and support RPA?
3. Who are the major software vendor providers
in the market? How do they compare?
4. What are your deployment model options –
internally vs. robotics as a service
5. How to embrace your workforce?

RPA Opportunity
Assessment Approach

Recommended RPA Roadmap
An effective RPA roadmap should include a thorough analysis of the RPA
opportunities, followed by an initial proof of concept, with multiple checkpoints
to plan and evaluate performance, benefits, and “lessons learned.”
Formalized Operations
& Management
Ongoing
Implementation
Proof of Concept
(“POC”)
Assessment &
Fit Analysis
After the initial implementation, RPA should be institutionalized, with restructured
operations to formalize support, monitoring and management to ensure
business continuity and stable performance.

Auxis RPA Assessment:
Choosing The Right Option For You
Proof Of Concept
Assessment
(~3 weeks)
• For any sized organization
that has determined to
implement RPA but wants
to quickly demonstrate its
value
• Pre-defined scope, based
on perceived value and
operational fit
• Requires initial managed
services deployment
approach
• Gain share opportunity
based on realized cost
savings
• Small upfront investment,
fastest time to value
Opportunity
Assessment
(~4-6 weeks)
• Typically for mid-to-large
organizations evaluating RPA
fit and investment criteria
• Identifies and prioritizes RPA
opportunities within scope
based on business case,
operational complexity & other
priorities
• Establishes short-term RPA
roadmap & deployment model
• Defines initial POC, timing and
budget
• Limited scope and operational
complexity
• Medium upfront investment,
fast time to value
Strategic
Assessment
(~8-12 weeks)
• Typically for large
enterprises embarking on
a global RPA strategy
• Identifies and prioritizes
key RPA opportunities
• Establishes complete,
long-term RPA roadmap,
including tools,
processes, deployment
model and business case
• Higher upfront cost,
longer time to value

RPA Opportunity Assessment
Approach & Framework
Cost &
Benchmarking
Analysis
RPA
Assessment &
Business Case
• Process Taxonomy-
Categorization of
Processes, Sub-
Processes and Activities
within a function
• Process Walk-Through-
Workshops to review
processes in scope and
determine automation
potential for each activity
based on defined criteria
• Data Compilation and
Analysis
- Volumetric Data
- Cycle Times
- Productivity and
Performance Analysis
- FTE Analysis
• Investment needed
• Timing for POC
implementation
• Operating model
• Projected cost savings
• Process prioritization
and high level
implementation
roadmap after the first
the POC selected
process
• Cost Analysis
- Payroll cost
- Other costs
(facilities, licenses,
etc.)
- Per transaction
cost
• Benchmarking
Analysis
- Comparison to
industry
benchmarks
• Systems Complexity
Analysis
- Core Systems
- Integrations & Add-
Ons
- Infrastructure
• RPA Opportunity
Assessment
- Complexity
- Performance
improvement
- Cost savings
• RPA Cycle Times
- Impact of RPA to
activities in scope
• Business Case
- Current total
operating cost vs.
RPA operating cost
- RPA investment
- Cost savings
- ROI
POC
Recommendation
Process Walkthrough
& Operational
Analysis

Top 8 Process Characteristics for RPA
The characteristics of a process will determine how effectively RPA can be applied:
Process Characteristic AP Invoice
Processing
AR Order
Entry
High volume, large number of
staff assigned
Highly manual and repetitive
activities
Clearly defined business rules
with limited judgement required
Stable process with a low number
of exceptions
Requires access to multiple
systems
Structured and digital data
available
Compatible and stable systems
infrastructure
Strong business case –
automation savings available
1
2
3
4
5
6
7
8
AP is the best RPA candidate

Detailed Process Evaluation Worksheet
Function P2P Process Accounts Payable Activity 1 Invoice Indexing Activity 2 Invoice Entry
Activity 3 Invoice Coding Activity 4 Three Way Match Activity 5 Exception Handling Activity 6 Payment Entry
Automation Potential 72% Automation Complexity 60%
Volumetrics (Monthly)
Transactions/Month 3,473 Digitally Received 80% # Invoice Line items 12,156 # Purchase Orders 2,605
Invoices to Code 868 Invoices to Index 695 AP Error Rate 5% Number of Suppliers 321
% Exceptions 25% # Exceptions 651 # Payments 247 # Manual Payments 40
AP Cycle Time/Days 5 AP Backlog % 5% AP Backlog - # 174 # Master Data Chgs 48
Cycle Time (Minutes Per Transaction)
Invoice Entry 4.0 Invoice Processing 8.0 Invoice Coding 5.0 Three Way Match 3.0
Exception Handling 10.0 Invoice Rework 3.0 Vendor Support 5.0 Payment Processing 3.0
Cycle Time (Total in Hours) and Per FTE Performance
Total Hours 1,033.4 Available Hrs./FTE 137.6 FTE's Required 7.5 Assigned FTE's 9.0
Invoices Per FTE 386 Inv. Line Items/FTE 1,351

Detailed Process Evaluation Steps:
Process Activity and Systems Breakdown
Function P2P Process Accounts Payable Activity 1 Invoice Indexing Activity 2 Invoice Entry
Activity 3 Invoice Coding Activity 4 Three Way Match Activity 5 Exception Handling Activity 6 Payment Entry
Automation Potential 72% Automation Complexity 60%
1. Break down the process into its key sub-processes
2. Break down sub-processes into activities performed
3. Evaluate automation potential based on pre-defined process characteristics (72%)
4. Note exceptions, variables and any steps requiring manual action or judgement
5. Evaluate automation complexity based on the key steps required (60%)
6. Note data sources and the number of systems, screens and fields required for
transaction processing

Automation Potential
A Closer Look
High
Volume
Activity
Manual
Repetitive
Activities
Low
Exception
Rate
Number of
Inputs
Process
Improvement?
Organizational
Impact?
Systems
Integration?
Not all processes are good candidates for automation, beyond just
their operational characteristics.
Evaluate processes for stability, cultural and organizational inhibitors,
and established systems solutions.
For processes that are non-standard or unstable, consider process
improvement initiatives to first standardize and streamline the process.
Well Defined
Business
RulesPotential?
KEY CHARACTERISTICS

Automation Complexity
A Closer Look
Complexity is determined by a combination of the underlying systems and
infrastructure, and the intricacies of the process itself (and the expertise of the
coding required to perform them).
Complexity goes beyond the initial development, and factors in the ongoing
support needed to maintain the robotic code.
Navigation
of Systems
and Screen
Stability of
Systems
Infrastructure
Structured
Digital Data
Sources
Security &
Compliance
Complexity?
LOW COMPLEXITY
Desktop or web
applications, with
simple development
or process recording,
with minimal
customization
Data transfer
between systems,
virtualized
infrastructure,
conversion of
standard, non-
digital data (OCR)
MEDIUM COMPLEXITY
Formatting of data,
exception handling,
extensive
interpretation of non-
digital data (hand-
written), many inputs,
complex security
HIGH COMPLEXITY
KEY CHARACTERISTICS

Volumetric Analysis
Volumetrics (Monthly)
Transactions/Month 3,473 Digitally Received 80% # Invoice Line items 12,156 # Purchase Orders 2,605
Invoices to Code 868 Invoices to Index 695 AP Error Rate 5% Number of Suppliers 321
% Exceptions 25% # Exceptions 651 # Payments 247 # Manual Payments 40
AP Cycle Time/Days 5 AP Backlog % 5% AP Backlog - # 174 # Master Data Chgs 48
1. Compile key process volumetrics to baseline current performance and match to
benchmark data (if available)
2. Identify areas of opportunity for efficiencies and performance improvement

Cycle Time Capture
Cycle Time (Minutes Per Transaction)
Cycle Time (Total in Hours) and Per FTE Performance
Total Hours 1,033.4 Available Hrs./FTE 137.6 FTE's Required 7.5 Assigned FTE's 9.0
Invoices Per FTE 386 Inv. Line Items/FTE 1,351
1. Calculate cycle times for primary activities within a sub-process by observing and
timing transactional performance
2. Calculate total cycle time required based on current performance and transaction
volumes
3. Calculate FTE’s required (account for non-productive time) and compare to current
staffing levels, noting variances

Total Operational Cost Analysis
1. Calculate current operational cost based on fully loaded personnel cost
2. Include other, non-payroll related costs such as facilities, systems and infrastructure,
variable cost, etc.
3. Calculate a cost per transaction and compare to benchmark data (if available)
Payroll cost/FTE $54K
Other costs/FTE
• Facilities
• Infrastructure
• Systems
$20K
$10K
$5K
$5K
$666K
per year
x 9FTEs =
Cost per transaction:
$11.66
Cost per line item:
$3.33

RPA Cycle Time Impact (“Before and After”)
1. Calculate RPA cycle times for primary activities by determining which activities can be
automated and the amount of time the robot will require to perform the task
2. NOTE: systems performance, OCR and data conversions, number of systems to
access, etc. will impact RPA cycle times
3. Calculate total RPA performance based on volumetric data and note number of robots
and FTE’s required to perform the tasks in an RPA environment

RPA Cycle Time Impact (“Before and After”)
1. Calculate RPA cycle times for primary activities by determining which activities can be
automated and the amount of time the robot will require to perform the task
2. NOTE: systems performance, OCR and data conversions, number of systems to
access, etc. will impact RPA cycle times
3. Calculate total RPA performance based on volumetric data and note number of robots
and FTE’s required to perform the tasks in an RPA environment
1033.4
212.4
0
200
400
600
800
1000
1200
Current Cycle Time (hrs/month) RPA Cycle Time (hrs/month)
Cycle Time Per Month - Invoice Processing

Business Case
$11.66
$4.14
$2.55
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
Current Cost Per
Invoice
Median Benchmark
Cost Per Invoice
RPA Cost Per Invoice
Cost Per Invoice
$626,000
$153,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Current Operational Cost RPA Operational Cost
Annual Operating Cost
1. Calculate the RPA Business Case by comparing RPA operating cost to current cost
2. Include all investment required (RPA licensing, development, training, ongoing support)
and other costs (severance, if applicable) to determine opportunity
3. Calculate cost per transaction with RPA and compare to current and benchmark
standards

Key Next Steps for a Successful POC
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Based on cost benefit,
automation potential and
complexity
Define how the RPA
environment will operate –
people, processes
Record and document
every step of the
process, noting
exceptions, judgement
activities and hand-offs
Hand off to development
team for coding and
testing
Use a test environment
that simulates the
operating infrastructure,
using “real” transactions
to simulate operations
• Thoroughly test the
transaction flow across
all types of scenarios
• Incorporate production
staff to ensure all
exceptions/operational
nuances are captured
Run monitored
production batches,
increasing transaction
volumes as robotic
performance proves
accurate
• Ensure adequate
training, monitoring and
support are instituted
• Roles redefinition– RPA
monitoring/admin roles
vs. exception
handling/remaining
manual activities
2. High Level Process
and Org Design
3. Detailed Process
Walkthrough
1. Select Best
Process for “POC”
4. Turn Over to
RPA Developer
5. Coding 6. Testing 7. Soft Go-Live
8. Full Production
Mode

Building your RPA team

•In charge of defining the
Architecture of the RPA solution.
Guardian of the end to end
performance of the solution
agreed
Building a Winning RPA Team!
RPA Sponsor
RPA Business Analyst
RPA Developer
RPA Operator
RPA Service Support
RPA Champion
RPA Solution
Architect
RPA Change Manager
RPA Infrastructure
Engineer
RPA Operations
RPA Transition
• Imprints the RPA vision and mission
within the organization
• Acts as an internal Evangelist for RPA
• In charge of ensuring a healthy
automation pipeline
• Head of the operational management
of the virtual workforce
• In charge or Server installations
and troubleshooting
OT
• In charge of designing,
developing, testing the
automation artifacts
• In charge of creating a change and
communication plan which is aligned
to the project deliverables, in order
to ease the RPA adoption within the
company.
• Initiates the idea of automation,
underwrites resources and
protects progress into business
adoption
• Process Subject Matter experts
located in Business Operations.
• In charge of creating the process
definitions and process maps used
for automation
• First line support for the RPA
solution deployed
• Administers, orchestrates and
controls the virtual workforce in
operational environment
• Focused on continuously
improving the robots operational
performance
OT
T O
O
T
T
 Business process
reengineering skills
 Business change skills
 Operational skills
 IT development skills
 Lean development skills
T
O
CROSS
FUNCTIONAL
TEAM

Major RPA Software
Providers in the market

Automation Anywhere, Blue Prism
and UiPath Lead the Pack
Source: The Forrester Wave™: Robotic Process Automation, Q1 2017
Vendor Inclusion Criteria:
1. Has a product orientation, as
opposed to a service orientation
2. Has strong breadth of RPA
functionality
3. Markets actively in at least 2
major regions
4. Meets at least $3M in total
software revenue derived from
RPA
5. Has significant market share
or is an innovator developing
new capabilities
6. Generates strong customer
interest
Evaluation Criteria: Current Offering | Strategy | Market Presence

Automation Anywhere, Blue Prism
and UiPath Lead the Pack
Weight
I. Current Offering 50% 3.69 3.39 3.53
Deployment, governance and security 40% 3.66 4.00 3.66
Bot development and core functions 20% 3.70 2.50 3.25
Control room, system management, reporting and
resilience
10% 2.80 3.80 3.80
RPA analytics 10% 3.66 2.00 3.00
Architecture 10% 4.33 3.66 3.99
Breadth of use case 10% 4.10 3.40 2.75
II. Strategy 50% 4.25 4.25 4.00
Vision, execution and strategy 100% 4.25 4.25 4.00
III. Market Presence 0% 4.50 4.00 2.00
Installed base 100% 4.50 4.00 2.00
*All scores are based on a scale of 0 (weak) to 5 (strong)
Source: The Forrester Wave™: Robotic Process Automation, Q1 2017

Ease of Development
• More script based – need
better programming skills
• Macro-recorder available
• Visual process designer
• Macro-recorder not available
• Visual process designer
• Macro-recorder available
Web-based vs. Client-based server
• Client based servers,
accessible only through their
apps.
• Client based servers,
accessible only through their
apps.
• “The Orchestrator” is web
based, and can be accessed
from the browser or mobile.
Pricing
• $100K/year for the RPA
platform, including:
• 3 control rooms
• 10 bot creators
• 5 bot runners (5 bots)
• Additional licenses: $10K
control room, $3K bot creator,
5K bot runner)
• Analytics Platform ($50K)
• $15K per robot/year
(discounts start applying with
50+ robots)
• 10 min. licenses required
($150K min. investment)
• no add-on costs for additional
modules (analytics, control
rooms, etc.)
• Lowest license cost
• Unattended bot: $6K/year
• Attended bot: $1.2K/year
• Orchestrator: $20K/year
• Studio: $3K-$5K/year
• No min. investment
required
• Market share leader
• Equal balance of direct and
channel customers
• 90% back office/10% front office
• RPA Pioneer founded in 2001
• Strong partner focus and
dependency – 80% of revenue
from license fees
• No front office robots
• 90% of implementations
delivered through partners–
success based on appeal to
independent-minded partners
and savvy end users

Deployment Model Options
Build vs. Buy

To Partner or Not to Partner….
• Is RPA a strategic capability in your
organization?
- What is the ultimate business objective?
 Short term cost savings? Long term
business growth and scalability?
 Size of the organization being
impacted
• What is the capacity of the organization to
manage this type of initiative?
- Do you have the resources, knowledge,
skills and experience?
 Process assessment, mapping,
design
 Development and testing
 Ongoing management, monitoring
and support
 Timing
- Is RPA an IT initiative or a Business
initiative?
 Internal vs. Cloud-based
 Automation Center of Excellence
 Governance
RPA can be deployed in a model
where it is managed internally or
through an outsourced managed
service model. An organization needs
to determine which RPA deployment
model fits its “DNA.”

Partnering Considerations
• Direct
o Licenses purchased directly from the vendor or reseller
‾ Per robot, per node, per agent, etc.
‾ Management and development tools
‾ Implementation not included
• Direct with Implementation
o Licenses purchased directly from the vendor or reseller, bundled with implementation
services
• Outsourced
o “RPA-As-A-Service”
‾ Per transaction, per service, percentage of savings, etc.
‾ Bundled with implementation and software cost
• Vendor Demo vs. POC
• Ongoing support
• Once implemented, there is “no turning back.”
Licensing and Implementation
The Proof of Concept
Short term vs. Long Term

Embracing Your Workforce

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“51% of total employment in the US can be automated.” – McKinsey, 2017
“One in three jobs will be automated by 2025.” – Gartner, 2016
Businesses (and their employees) have adopted and adapted to these
disruptive technologies without, well, disrupting their lives
The printing press…
The telegraph…
The telephone…
The fax machine…
The personal computer…
The internet…
The smart phones…

RPA is Coming to Your Business Whether
Your Employees Want It or Not…
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 RPA requires a new set of skills and capabilities – ideally to be
performed by current “operators”
 Most of the tasks that will be automated are those that most employees
would gladly give up!
 Educating employees on how RPA will allow them to focus their time
on higher value-added activities will help get them on board!
Change can be scary, but it can also be liberating!
• Most organizations who have implemented RPA have focused on increasing the
efficiency and effectiveness of their operations, rather than eliminating jobs
• Those who embrace the change, will receive the benefits (e.g. Higher pay, more
interesting work, increased morale and motivation, lower attrition, etc.)
• With every innovation, there are some people who will be left behind
- Accept the fact that not everyone will embrace the change, or is capable of performing
higher value work
YOU CAN’T AFFORD TO LET YOUR BUSINESS FALL BEHIND!

Summary
Confidential & Proprietary
 An effective RPA roadmap should include a thorough analysis of the RPA opportunities,
followed by an initial POC, with multiple checkpoints to plan and evaluate performance,
benefits, and “lessons learned.”
 Establish a formal methodology to identify, quantify and prioritize RPA opportunities.
 Cycle times, volumetrics and operational/systems complexity are key drivers to the automation
potential and business case.
 The RPA Operating Model requires an organization that is trained and focused on RPA
design, operations and ongoing support.
 There are many RPA software vendors in the market, offering a wide range of similar
solutions at various price points
 RPA can be deployed in a model where it is managed internally or through an outsourced
model. An organization needs to determine which RPA deployment model fits its “DNA.”
 Automation can increase the effectiveness of your best, most valued employees, and
provide a higher level of service to your customers, but not everyone will embrace the
change.
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Schedule your Free
1-Hour RPA Consultation
E-mail fabiana.corredor@auxis.com
Academy
• Training type: online/instructor-led
• Training duration: 4 hours
• Audience: Process owners, any business representatives
• Attendees: minimum 5 persons, no upper limit
Attend an RPA Awareness
Training for your team on us!

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THANK YOU
@AuxisConsulting
WWW.AUXIS.COM
@Auxis@Auxis
954-236-4000
Connect with us:
Eric Liebross
eric.liebross@auxis.com
954-236-4004

Auxis Webinar: Diving into RPA

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