HfS Webinar Slides: The Virtual Workforce - How RPA Liberates People From Robotic Work

Architecting the As-a-Service Economy
The Virtual Workforce
Charles Sutherland
Chief Research Officer, HfS Research
charles.sutherland@hfsresearch.com
How RPA Liberates People From Robotic Work
An HfS Webinar Production, 25th February, 2016
Tom Reuner
Managing Director, HfS Research
tom.reuner@hfsresearch.com

© 2016 HfS Research Ltd. Proprietary │Page 2
Our Panel For Today’s Webinar
Prof. Leslie Willcocks
London School of Economics
Charles Sutherland
HfS Research
David Moss
Blue Prism
Tom Reuner
HfS Research
Prof. Mary Lacity
University of Missouri – St Louis

Charles.Sutherland@hfsresearch.com
Overview
 Charles Sutherland is the Chief Research Officer at HfS. Charles is responsible for the overall
research agenda for HfS across the “as a service” economy. He personally covers the areas of
automation, business platforms, supply chain, procurement and various vertical processes.
Since joining HfS in 2013, Charles has had the opportunity to speak at various industry
forums including NASSCOM and has had his research covered widely in the business and
outsourcing press as well.
Previous Experience
 Charles has been in the business services market for 20 years including previous roles as the
Chief Strategy Officer for a BPO service provider and the Managing Director, Growth &
Strategy for Accenture’s Operations Growth Platform. In these roles he has had a breadth of
experience in thought leadership, strategy development, acquisitions, business development
and long term investment planning in both BPO and ITO.
 Charles has also had Growth & Strategy roles for Accenture in Infrastructure Outsourcing and
for the Communications, Media and High Tech Operating Group. Prior to that he was a
Strategy Consultant in London for Accenture serving clients in the Media, Communications
and Consumer Goods industries. If you go even further back in time he was also a Marketing
Director for Olivetti in Canada and Europe.
Education
 MBA from INSEAD in Fontainebleau, France
 Honors BA in Economics and Political Science from the University of Toronto.
Charles Sutherland
Chief Research Officer, HfS Research – Dallas, TX

Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com

…With a More Serious Side Too! www.hfsresearch.com

HfS Research By The Numbers

Reetika
Joshi
Research
Director
Analytics,
Insurance
and Utilities
Charles
Sutherland
Chief Research
Officer
Barbra
McGann
EVP
Business
Ops &
Healthcare
Research
Jamie
Snowdon
EVP
Market
Analysis and
Forecasting
Meet the HfS Research Practice Leaders
Thomas
Reuner
MD, ITO
SaaS,
Automation,
Cognitive
Computing,
Cloud
Hema
Santosh
Principal
Analyst
Finance
Strategies,
BPO, IT
Services
Khalda
de Souza
Principal
Analyst
SaaS
Services
Fred
McClimans
MD
Digital Trust
& Security
John Haworth
Chairman
HfS Sourcing
Executive
Council
Pareekh
Jain
Research
Director
Engineering
Services,
Telecom
Operations
Phil
Fersht
CEO &
Industry
Analyst
Melissa
O’Brien
Research
Director
Contact Ctr.
and Omni-
Channel BPO
Derk
Erbé
MD
Digital
Business,
Energy,
Utilities &
Resources
Mike
Cook
Research
Director
HR-as-a-
Service, HR
Outsourcing

Real-time data from
1000’s of industry
stakeholders
Driving Real
Unvarnished
Community Dialog
Blueprint Market
Analyses and Best
Practices
Industry-Leading
Buyer-led Summits
On-tap Strategy,
Analytics and Advice
HfS: Research As-a-Service!

Q1
 Analytics in Financial
Services
 Design Thinking
 F&A-as-a-Service
 Pharma BPO
 SAP SuccessFactors
Services
 Supply Chain
Management Services
Q2
 Banking Operations
 Consumer Health
Integration
 Contact Center
Operations
 Energy Operations
 HR As a Service
 Mortgage-as-a-
Service
 Security-as-a-Cloud
 ServiceNow Services
 Telecom Operations
Q3
 App Testing-as-a-
Service
 Digital Trust-as-a-
Service
 Intelligent
Automation
Services
 PLM Services
 RPO as-a-Service
 Workday Services
Q4
 As-a-Service Masters
 Healthcare Payer
Operations
 Health Providers
 IoT Transformation
Services
 Manufacturing-as-a-
Service
 Omni-Channel Marketing-
as-a-Service
 P&C Insurance-as-a-
Service
 Procurement-as-a-Service
 Salesforce Services
Subject to change
HfS Blueprint As-a-Service Publication Schedule, 2016

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
 Moving into the As-a-Service Economy means changing the nature and focus of engagement between
Enterprise Buyers, Service Providers, and Advisors
 “As-a-Service” unleashes people talent to drive new value through smarter technology and
automation
Journey to the As-a-Service Economy

tom.reuner@hfsresearch.com
Tom Reuner
Managing Director for IT Outsourcing Research, HfS Research – London, England
Overview
 Tom Reuner is Managing Director for IT Outsourcing Research at HfS. Tom is responsible for
driving the HfS research agenda for the “As-a-Service Economy" across SaaS applications, cloud
eco-systems and IT . Together with his HfS colleagues Tom continues to develop ground
breaking research around process automation and cognitive computing in both IT and business
processes. 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.

HfS sees Intelligent Automation as a Continuum Today
HFS INTELLIGENT AUTOMATION CONTINUUM
Data Center
Automation:
Runbook
Scripting
Scheduling
Job control
Workload
automation
Process
orchestration
SOA
Virtualization
Cloud services
RPA
Autonomic
Platforms
True
Artificial
Intelligence
BPM
Business process automation
Workflow
trigger based rules based
dynamic language
rules based
standardized language
Structured
Characteristic of data/information
Unstructured without patternsUnstructured patterned
Cognitive
Computing

© 2015 HfS Research Proprietary │Page 13
The State of Play in Intelligent Automation
Nascent state of market development – service providers are not (yet)
educating the stakeholders
Lack of understanding of impact on revenue models as well as fear of
transparency likely reason for this highly unusual reluctance
Deals are typically client specific and often on sub-process level
Narrative is shifting from narrow cost, FTE replacement focus toward
transformation and business agility – akin cloud discussion
Perception is dominated by RPA – Autonomics or broader impact of
Cognitive Computing largely not discussed
Direction of travel is toward unstructured data, less will defined
processes and broad notions of Cognitive Computing and AI

Lessons from the RPA Trenches
RPA can be confused as process transformation, many a times it is rework
transformation or a more efficient way of running a bad process.
It's easy to create a software robot. It's hard to industrialize them to deliver
significant benefits.
Position RPA into the IT roadmap - is RPA a short-term fix while major
technology refreshes come on stream
Lack of standardization continues to be an automation bottleneck
(e.g., requests received by email with subjective instructions)
Accessing applications through the UI, especially via Citrix can be
challenging and fragile. See if you can use web services and APIs.
Use an agile implementation approach but do not take on too many
parallel projects. Start small and simple and build momentum.

Human augmentation through
automation will be mainstream
Change management will be
critical success factor
Notion of a bot store is emerging
Scaling up of deployments
Transparency in communication
with employees essential
Enterprise level governance &
control paramount
Virtual
Workforce
We need to retool our education
systems and philosophies
How is the Virtual Workforce Evolving?

Prof. Leslie Willcocks
London School of Economics
Overview
 Dr. Leslie P. Willcocks is Professor of Technology Work and Globalization and Director of the
Outsourcing Unit at the London School of Economics and Political Science, UK.
 He is known for his work on global sourcing, information management, IT evaluation and
organizational transformation as well as for his practitioner contributions to many corporations
and government agencies.
 He has been Editor-in-Chief of the Journal of Information Technology for the last twenty years
and has co-authored more than 35 books including the most recent, Service Automation:
Robots And The Future of Work together with Professor Lacity.
 He has published over 220 refereed papers in journals such as Harvard Business Review, Sloan
Management Review, MIS Quarterly, MISQ Executive, Journal of Management Studies,
Communications of the ACM, and Journal of Strategic Information Systems.
 HfS Research is proud to have Prof. Willcocks as a speaker at our March 2016 European Service
Buyers Summit: Avoiding The Race To Irrelevance.
Service Automation: Robots and the Future of Work
 The Book is available via sales@stevebrookes.com or http://stevebrookes.com/service_automation.html

Prof. Mary Lacity
University of Missouri – St Louis
Overview
 Dr. Mary Lacity is Curators’ Professor of Information Systems and an International Business
Fellow at the University of Missouri-St. Louis. She is also Visiting Professor at the London School
of Economics, a Certified Outsourcing Professional ®, Co-Chair of the IAOP Midwest Chapter,
Industry Advisor for the Outsourcing Angels, Co-editor of the Palgrave Series: Work, Technology,
and Globalization, and on the Editorial Boards for Journal of Information Technology, MIS
Quarterly Executive, IEEE Transactions on Engineering Management, Journal of Strategic
Information Systems, and Strategic Outsourcing: An International Journal.
 Her research focuses on global outsourcing of business and IT services. She has conducted case
studies and surveys of hundreds of organizations on their outsourcing and management
practices. She has given executive seminars world-wide and has served as an expert witness for
the US Congress.
 She has published more than 20 books including the newly published Service Automation:
Robots And The Future of Work together with Professor Willcocks. Her publications have
appeared in the Harvard Business Review, Sloan Management Review, MIS Quarterly, IEEE
Computer, Communications of the ACM, and many other academic and practitioner outlets.
 HfS Research is proud to have Prof. Lacity as a speaker at our May 2016 San Francisco Service
Buyers Summit: Vision 2020 For Intelligent Operations.
mary.lacity@umsl.edu
Service Automation: Robots and the Future of Work
 The Book is available via sales@stevebrookes.com or http://stevebrookes.com/service_automation.html

Proprietary │Page 18
Copyright © Lacity and Willcocks 2016
So far we have seen RPA client adoptions in mostly
business operations…

Common Business Outcomes for RPA
FTE savings resulting in high ROI
Better service quality
Faster deployment of new services
Higher compliance
Increased scalability
More flexible workforce
Happier, more productive employees

Three Case Studies of a Virtual Workforce
# processes
automated
# RPA
transactions
per month
Business
Value ROI
35% of back
office
(15 core
processes)
400,000 to
500,000
Faster delivery
Better service
quality
Higher
compliance
Unbeatable
scalability
Strategic
enablement
FTE avoidance
FTE
redeployment
FTE savings
650% to
800% 3-
YR
35% of back
office 3 million
200% 1-
YR
14 core
processes
120,000
30% per
process

RPA…Taking the Robot out of the Human
Submit LPAN
Structure submissions
Find errors
Add more data from
Systems of Record
Create Official LPAN
Add to Insurance
Market Repository
Deal with
exceptions

How was Success Achieved?
Strategy:
6 practices
Launch:
6 practices
Mature
Enterprise
Capability:
8 practices
Change
Management:
5 practices
Service
Automation
Outcomes
25 practices

Cultural Adoption by the C-Suite
Motto is “Technology at our core”
Robotics is part of corporate strategy and feature in 2014 annual
report

Bring IT On Board Early
Comply with IT security, auditability, and change management
IT can help with infrastructure configuration & scalability
Prevent shadow IT and proliferation of RPA islands
IT will benefit—RPA reduces backlog of business operations
requests High volumes
24

Business
Units
Service Automation
Center of Excellence
(housed in business
operations)
1. Requests for
Automation Feasibility
Reviews
2. Approved Automation Projects
AUTOMATION DEVELOPMENT
Define  Design  Configure  Verify
AUTOMATION CONTROLLERS
Schedule  Monitor  Handle
Exceptions
3. Automated Process
goes “live”
4. Quality
Assurance and
Continuous
Improvement
Cycles
Automation
Component
Library
IT Infrastructure
& Governance
Create A Mature Enterprise Capability

No internal layoffs; FTEs redeployed or natural attrition.
Telefónica O2 and UTILITY used service automation to reduce FTE
headcounts in the outsourcing provider firms by a few hundred
people.
Xchanging automated in Indian delivery center and kept
automation offshore
Effects on Jobs & Outsourcing

David.moss@blueprism.com
David Moss
CTO & Co-Founder, Blue Prism
Overview
 David Moss is CTO and Co-founder of Blue Prism, a company launched in 2001 to pursue the
founders’ dream of delivering the vision of robotics into the office environment.
 David is a technologist and thought leader in the Robotic Process Automation movement and a
pioneer in the creation of the Virtual Workforce concept. His recent TEDx UCL talk on the topic
of the benefits of automation in service industries – “White Collar Robots: The Virtual
Workforce” – can be viewed on YouTube https://www.youtube.com/watch?v=1SximAg9t4w
 Prior to Blue Prism, David worked as a software architect for Lynx Financial Systems, providing
packaged and bespoke large-scale enterprise software solutions to major names in Financial
Services.
 David holds a BSc (Hons) in Mathematics from Leeds University.

Different Approaches to RPA
Desktop Recorded Automation
Speed
Short, tactical automations rapidly built on
the desktop
IT Project
Software Development
Ops Project
Desktop Recorded Automations
IT Support, Operational
Control – Virtual Workforce
Software Development Kits (SDK)
Solutioning
Provides a “virtual API” to assist IT projects
where interfaces don’t exist
Technology Division
Operations
IT Support, Operational
Control – Virtual Workforce
Enterprise Virtual Workforce
Security and Scalability
Configuration & Control
Enterprise strength, scalable, server-based
capabilities delivering strategic benefit

The 7 Pillars of Successful Enterprise RPA
Platform
Architecture
Deployment
model
Management
Control
Ability to Scale
Management
Overhead
Operating
Architecture
Design
architecture
Operating
model
Runtime
platform
State
Management
Methodology
Process
architecture
Development
approach,
atomicity
Design
methodology
Testing
methodology
Security
Security model
Penetration
Testing -
Security
hardening
Logical access
management
Segregation of
Duties
Resilience
Resilience
Redundancy
model
Failover Design
Disaster
Recovery
Load Balancing
Governance
Compliance
Governance
Accountability
Activity
Monitoring
Data
Classification &
Retention
Risk
Management
Operational
Risk
Management
System &
Change
Management
Security Risk
Management
Internal Fraud
Prevention
IT Supported Enterprise Infrastructure
Operationally Led Centre of Excellence
Demand Management Business Benefit
Operations

30
Building a Mature RPA Capability
Operational
Assurance
Data and
Pattern Analysis
Controlled by the
Operation
Flexible Pipeline
Management
Supported and
Hosted by IT
Enterprise
Infrastructure
Regulatory
Compliance
Supported
Platform
Secured
Environment
Scalable
Deployment
Ease of Demand
Management
Autonomic
Work Allocation
Scalable Change
Model - TCO
Business Benefit
Measurement
Powered by
Software Robots
Virtual Workforce

Audience Questions?

About HfS Research
HfS Research is the leading analyst authority and global network for IT and business services, with 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.

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