Top 5 RPA Myths Dispelled | Webinar Deck

Top 5 RPA Myths Dispelled: Insights from our
RPA Pinnacle Model™ Assessment
April 12, 2018

Proprietary & Confidential. © 2018, Everest Global, Inc. 2®
Introductions
Moderator
Michel Janssen
Chief Research Guru
Sakshi Garg
Practice Director, Global Sourcing
Alan Wolfe
Senior Vice President
®

Discussion points for today
Differentiators for
RPA Pinnacle
Enterprises™
Q&A
Dispelling the
top 5 RPA
myths
Implications for
enterprises

Everest Group’s Service Delivery Automation (SDA) spectrum
High Low
Intelligence
Humaninvolvement
Futuretech
Maturity
Robotic Desktop
Automation (RDA)
Robotic Process
Automation (RPA)
Autonomics
Narrow Artificial
Intelligence
General Artificial
Intelligence
Ability to handle
input data type
Structured only
Structured and
semi-structured
Structured and
semi-structured
All types of data
including
unstructured
All types of data
including
unstructured
Ability to
learn
No
No
No
Yes, but limited
to a particular
area
Yes, across
multiple areas
Context
awareness
Minimal
Minimal
Yes, but limited to its
computing environment
Yes, but limited to a
particular domain
Yes, across multiple
domains
and similar to human brain
Focus of this today’s webinar

PI ACLEEverest Group identified RPA Pinnacle Enterprises™ based
on their focus on outcomes and capability maturity
Source: Everest Group’s RPA Pinnacle Model Assessment (2018)
Outcomes
Level2Level1Level3
Typical AdvancedBasic Leaders
Everest Group recently assessed Enterprise RPA adoption on the Pinnacle Model™ based on a study
with 52 enterprises
Business impact
Operational impact
Cost impact
Vision & strategy TechnologyOrganization & talentImplementation
Capability maturity
Pinnacle Enterprises
Resourcing

Distinctive benefits Pinnacle Enterprises achieved
Cost impact
Enterprises are seeing 30% cost
savings impact from RPA in areas
where they have applied automation
31%
30%
Pinnacle Enterprises Other enterprises

Operational impact
Pinnacle Enterprises, on average, have
achieved 50% improvement in
operational metrics (over the pre-RPA
scenario), compared to 30% by other
enterprises across various operational
metrics
Cost impact
31%
30%
Increase in process accuracy
Reduction in process cycle time
Improvement in staff productivity
21%
29%
37%
38%
39%
41%
58%
63%
Improvement in SLA compliance

Operational impact
Pinnacle Enterprises, on average, have
achieved 50% improvement in
operational metrics (over the pre-RPA
scenario), compared to 30% by other
enterprises across various operational
metrics
Cost impact
Business impact
A significantly higher share of Pinnacle
Enterprises have generated “high
impact” in strategic areas (e.g.,
customer experience and time-to-market)
31%
30%
Increase in process accuracy
Reduction in process cycle time
Improvement in staff productivity
21%
29%
37%
38%
39%
41%
58%
63%
Improvement in SLA compliance
23%
19%
49%
44%
56%
78%
Improve customer experience
Create new business models
Decrease time-to-market for new products
and services

Top five capabilities of RPA Pinnacle Enterprises
90%
100%
4X
25%
100%
focus on preparing the organization from a risk, security, and
process optimization perspective before implementing RPA
establish RPA CoEs and encourage sharing and pooling of
resources across the organization
higher scale of bots deployed
faster in scaling up the RPA deployment from the pilot stage, and
3X faster bots deployment
develop and share reusable robots, methods, and modules across
the organization to speed RPA adoption
Vision &
strategy
Organization
& talent
Implementation
Implementation
Technology

Poll: What level of growth are you expecting in
your RPA efforts in 2018 compared to 2017?

Differentiators for
RPA Pinnacle
Enterprises™
Q&A
Dispelling the
top 5 RPA
myths
Implications for
enterprises

Myth #1
Robots will replace humans

Reality: Enterprises are focusing on
reskilling/upskilling resources rather than lay-offs

Pinnacle Enterprises have significantly higher focus on talent
management compared to other enterprises
Distribution of employees impacted by RPA by type of impact
Number of impacted employees
Reskilled / upskilled /
redeployed
Laid-off 17%
2%
83%
98%
Source: Everest Group’s RPA Pinnacle Model Assessment (2018)
Pinnacle EnterprisesOther enterprises
89%
11%
All participating enterprisesXX%
 Some job loss impact is likely
to happen due to RPA
 Talent upskilling/reskilling is an
imperative, not an opportunity

RPA will gradually lead to a change in organizations’ labor
pyramids
Head
Current pyramid “Automated” pyramid
Managers
SMEs
Transactional
workers
 Increased need for roles such as solution architects, infrastructure experts, and high-level,
high-touch customer care staff
 This change will drive a need for resource upskilling, and changes in the recruitment and
training engine

Poll: Which of the following talent
upskilling/reskilling approach have you found to
be most effective?

Myth #2
RPA is applicable in only few industry
verticals and functions

Reality: RPA use cases are already available
across industry verticals and functions

RPA use cases can be found across most verticals…
1 Based on the responses of 18 RPA technology vendors
Top five verticals RPA market share1
Banking and
capital markets
Telecom &
media
Insurance
Healthcare &
pharma
CPG & retail
26%
13%
12%
10%
9%
Key drivers of RPA adoption
 Transaction volumes; repetitive nature of
tasks
 Built-in compliance at lower cost
 Pressure to improve quality of service
and lower costs
 Move toward digital and self-service
channels

…and many horizontal and industry-specific functions
RPA adoption by business process/function1
Percent of total RPA technology vendor revenue
35%
21%
11%
8%
5%
5%
4%
11%
Contact centers
Web-based
Industry-specific
HR
F&A
Procurement
Others
 Claims processing
 Policy servicing and
reporting
 Card activation
 Fraud claims discovery
 Customer data
management
 Contact processing
 GL & reporting
 AR & cash
management
 AP & expense reporting
 New joiners and
leavers
 Payroll variation
checking
 Invoice processing
 PO processing
 Inventory
management
IT services
1 Based on the responses of 18 RPA technology vendors

Myth #3
RPA is only about cost reduction

Reality: RPA’s benefits extend beyond cost
savings to operational, employee, and customer
experience improvement

Pinnacle Enterprises are deriving significantly more benefits
from RPA, beyond cost reduction
Operational
improvement
Employee
experience
improvement
Customer
experience
improvement
 Reduction in process cycle time
 Improvement in staff productivity
and process accuracy
 Reduction in work that is
transactional/repetitive in nature
 Focus on creative, customer-centric,
and judgement-intensive areas of
work
 Consistent and superior
engagement with customers
 Lower cost to serve customers
Compliance and
governance
improvement
 Improvement in SLA
compliance, audits, governance
 Timely reporting and appropriate
enforcement of rules
50% Improvement in operational metrics
39% Improvement in SLA compliance
100% Enterprises seeing happier employees
78% Enterprises seeing significant impact
Benefits from RPA Comments Pinnacle Enterprise performance

Experian (an RPA Pinnacle Enterprise) derives upwards of 10X
productivity increase through a harmonized adoption of Lean
and automation
ControlMeasureDefine Analyze Improve
● RPA is a key component within the “Improve” step of the DMAIC cycle
● Assess opportunity to apply robotics to improve productivity, quality, accuracy, etc.
● Modify the process (as needed) to incorporate automation
● Configure and test robot; configure performance dashboard
● Train and coach people on the required tools/methodologies
● Conduct follow-ups to ensure desired outcomes are achieved
60-70%
400-800%
Lean only
Lean & RPA 98%
6X
Strategy and approach for RPA
Key outcomes
Average productivity improvement (over baseline)
Average transaction success rate
Growth in cost savings from combined
Lean & RPA implementation

Myth #4
RPA can be implemented without the
involvement of the IT department

Reality: RPA’s programs result in
better outcomes when supported by IT

Pinnacle Enterprises have better alignment with their IT
organizations for RPA implementation
have full support
from IT or have
operations and IT
jointly
implementing RPA
90%
60%
Alignment with security and risk policies
before adopting RPA
Share of enterprises
100%
30%
Level of support from IT for RPA
Pinnacle
Enterprises
Other
Enterprises

The IT organization performs multiple responsibilities in the
enterprise RPA journey
Role of IT in RPA implementation
Help select and
own RPA
technology
Manage and
integrate RPA
technology
Provide
supporting
infrastructure
Review and
mitigate risk and
security
implications
Standardize
technology/tools
Ensure
conformance
with enterprise
performance
standards
Sync bots with
application &
infrastructure
changes

Myth #5
RPA is only suitable for
high-volume activities

Reality: RPA is suitable for a variety of activities;
however, impact is typically higher for
high-volume and rules-based work

Cost savings impact increases with potential extent of
automation in the process
RPA cost savings1 based on complexity of work / extent of automation
6% 12%
19%
26%
33%
40%
0%
10%
20%
30%
40%
50%
10% 20% 30% 40% 50% 60%
Potential extent of automation
Percentagecostsavings
Judgement-based Rule-based
1 The analysis considers the impact of change in potential extent of automation, while keeping other factors constant

RPA use cases are available beyond transactional activities
Process evaluation for RPA applicability
We are using RPA to collate financial
insights for small enterprises, which were
earlier not engaged in this manner. We
are expecting an increase in our business
with these enterprises as a result of this
engagement.
– Head of Intelligent Automation, US regional bank
We deployed RPA in areas that were
earlier not catered to due to lack of
bandwidth in the team. These are not
high-volume processes, but unique work
areas, such as the customer win-back
process, which did not get much focus
earlier.
– Senior Program Manager, US utilities firm
Uniqueness
of work
(Repetitive or
unique work)
Complexity
of work
Rules-based
or judgement-
based
Transaction volumes
(Low volume or high volume)

Differentiators for
RPA Pinnacle
Enterprises™
Q&A
Dispelling the
top 5 RPA
myths
Implications for
enterprises

The benefits of RPA are real, but the majority of enterprises are still in the early stages of
adoption
1
The impact of RPA on jobs is way overblown; most enterprises do not see RPA as a
means to reduce headcount
Improved operational effectiveness and enhanced employee and customer experience
are key drivers of RPA adoption
Successful RPA adopters have a participative – rather than a top-down – approach to
drive RPA adoption
Successful RPA requires both speed and scale of adoption, so quick decision-making and
collaboration are key
While RPA is for – and by – operations, IT needs to be an end-to-end partner
2
3
4
5
6
Key implications for enterprises

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Differentiators for
RPA Pinnacle
Enterprises™
Q&A
Dispelling the
top 5 RPA
myths
Implications for
enterprises

Have a question?
To ask a question during the Q&A session
 Click the question mark (Q&A) button located on right
side of your screen. This opens Q&A
 Be sure to keep the default set to “send to All Panelists”
 Type your question in the box at the bottom of the Q&A
box and click the send button
 Attendees will receive an email with instructions for downloading today’s presentation
 For questions or to learn more about how Everest Group can assist your organization, contact us
 To ask a specific follow-up question, please contact the individual directly at the email ID below:
– Alan Wolfe: alan.wolfe@everestgrp.com
– Michel Janssen: michel.janssen@everestgrp.com
– Sakshi Garg: sakshi.garg@everestgrp.com

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in making
well-informed decisions that deliver high-impact results and achieve sustained value.
Our insight and guidance empower clients to improve organizational efficiency,
effectiveness, agility, and responsiveness. What sets Everest Group apart is the
integration of deep sourcing knowledge, problem-solving skills and original research.
Details and in-depth content are available at www.everestgrp.com.
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