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TRANSCRIPT
Presenting Your Speakers
Susie West
CEO
sharedserviceslink
Dan French
CEO
Consider Solutions
© 2018 Consider Solutions All rights reserved2
sharespace.digital
The slides will be available after the webinar at www.sharespace.digital
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All webinar registrants will be sent an email with a link to the sharespace page.
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Agenda
• Context for the day
• Introductions
• Setting the scene – where are we with RPA
• Hype and Reality
• Challenges on the Road to Intelligent Automation
• Driving Sustainable Process Improvement
• Critical Factors for Success
• Summary & Re-cap
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Context
• RPA and Intelligent Automation have had a lot of coverage in the last 18
months, and the conversation has moved from vision to execution.
• Now it’s time for a reality check.
• There is now enough experience to diagnose some of the key challenges
and identify root causes that are impacting the success of RPA.
• Let’s take a look!
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This Session
Introductions
Setting the scene – where are we with RPA
Hype and Reality
Challenges on the Road to Intelligent Automation
Driving Sustainable Process Improvement
Critical Factors for Success
Summary & Re-cap
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Poll Question 1
Where are you today with RPA?
‐ Researching
‐ Pilot
‐ Rollout
‐ Extending
‐ Advising
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Business Focus
Revenue growth through the “Uber-ization” of business through delivery of new/innovative products/services
Continue to drive down operating costs
Re-engineer / Optimize core processes for efficiency, effectiveness and strategic flexibility
Enable faster cycle decision making and course-correction
Find, attract and retain talent globally
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Shared Services Imperative
Look beyond the SSC – it’s not just about efficiency within, but effectiveness beyond
Empower the GPO – provide the tools, resources, accountability and authority
Embrace Robotics and AI – explore, learn, strategize and exploit new ways of adding value
Drive Analytics – Just Do It!
Focus on Talent – what skills do we
need to acquire/retain for the future
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Top 2018 organizational priorities KPMG Global Insights Pulse - January 2018
1. Continue to drive down operating costs
2. Invest in new/improved traditional & emerging IT
3. Invest more in robotic process automation
4. Optimize processes and functions to best exploit automation efforts
5. Optimize global service delivery channels; excel at GBS
6. Redesign/re-engineer core business processes
7. Invest more in artificial intelligence/cognitive computing
8. Deliver new/innovative products/services into the market
9. Find, attract and retain talent globally
10. Bring outsourced work back in-house; swap digital labour for outsourced services
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“Robotics, RPA, AI, Machine Learning, Intelligent Automation, Cognitive, Augmented . . .”
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Robotics & Process Automation (RPA)
Software (robots) which allow enterprises to automate high-volume, repeatable tasks on top of existing applications for processing a transaction, manipulating data, triggering responses and communicating with other systems.
‐ Basic process automation, Enhanced process automation
‐ “Cognitive” process automation, Intelligent Automation
Powerful rules-based automation – but not AI, and for good reason!
RPA, as a strategy, competes with outsourcing to drive lower operating costs, decreased cycle times and increased employee productivity
RPA software is especially useful for organizations that have multiple systems and data sources that need to interact together to achieve task outcomes
Simplification, Standardisation & Automation are strategic priorities to achieve sustainable efficiency, effectiveness and strategic flexibility
Buzzwords & Reality
“RPA is about fixing the potholes in the road. Do not confuse it with building the new highway”
Steve Gordon, VP Global Service Operations – BD
" Don't trade the entire toolbox for one screwdriver“
Sanjay Srivastava, Chief Digital Office – GENPACT
Smart Finance Leaders are signing-up to innovation
1. To deliver superior performance
2. To attract and retain the best talent
3. To ensure the entire business thrives
• 35% see innovation as relatively small steps in automation and integration rather than wholesale change to something completely new.
• 20% see innovation as the implementation of a new ERP system
• 19% see it as analytical applications that deliver better insight.
Source - Innovation in the Finance Function Survey 2018 (FSN)
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“2018 is certain to be the year of RPA / intelligent automation, though a large gap will remain between expectations and readiness and capabilities”
Global Insights Pulse
KPMG
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Poll Question 2
Which process are you currently focussing on for RPA?
‐ P2P – Purchase to Pay, Source to Pay, Source to Settle
‐ O2C – Order to Cash, Customer to Cash
‐ R2R – Record to Report, General Accounting, Financial Close
‐ Multiple
‐ Undecided
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“Bot Plaudits”
Potential massive percentage efficiency gains
Reduced cycle times for “swivel chair” tasks
Bots don’t get bored, tired or lose concentration!
Massive reduction in data entry/transposition errors
Consistent task execution data helps improve processes
Improved auditability for compliance related tasks
Rapid implementation / Ease of development
Eliminates frustrating tasks from valuable people
Refocus talent on higher value work
Makes the workplace more appealing to hire into
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“Bot Kicking”
“Bot-Sitting” control, oversight and governance – who is looking after the bots?
Bot-development still needs governance, control and process
Bots have no judgement and will repeat errors at scale if bot rules are not well designed and monitored
Powerful rules-based automation – but not AI, and for good reason!
If you don’t have detailed, task level, standard operating instructions (SOP), don’t bother with RPA
“Automation makes bad worse, faster”
The higher the percentage productivity benefit claimed, the smaller the task
Scaling RPA benefits from task to process is challenging
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“Bot Insights”
“RPA is about fixing the potholes in the road. Do not confuse it with building the new highway”
RPA does not replace traditional IT, but it helps close the gap in the ‘last mile’ of processing
“The best automation is elimination”
“It’s not about the task, it’s about process outcomes”
Getting it right with RPA, “engage IT, CISO, Audit early, as well as the business process stakeholders”
Team structure and placement for RPA is crucial, balanced set of business process skills with logic, data and systems skills
“Understand, Simplify, Harmonise/Standardise”
GIGO – it was ever thus . . .
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Poll Question 3
How many tasks have you successfully applied RPA to?
‐ None yet
‐ In progress
‐ 1
‐ 2-10
‐ 10+
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Observations and Impact from the early movers
“There is no centre of gravity around the ERP anymore”
“RPA needs extremely well documented ‘keystroke’ level procedures like you have never had before”
“Key criteria for RPA ready tasks are REPETITIVE, ROUTINE, RULES-BASED”
Need to understand impact on risk and internal controls, Segregation of Duties for example . . .
38% of RPA implementations FAIL to achieve expected benefits
28% RPA will impact decision to renew BPO contracts
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Culture & Change Management
87% of executives are positive about robotics and RPA whilst only 17% of transactional workers are on board. Need to improve the communication of the outcome.
Bot “sabotage” is big challenge in culture and change management
17% see RPA impacting talent management / HR strategy
“Avoid confusion. It’s not RPA, it is Robotic Task Automation”
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The Road to “Fail to Scale”
End-to-End Business Process understanding
Choice of RPA target tasks to automate – business analysis
Technical knowledge, talent and skills
Creating reusable designs/templates
Governance of bots
Addressing master data / input data quality prior to RPA
Detailing bot rules, standardisation & understanding exceptions
Organisation implications in RPA itself, CoE etc
Organisational impact in business: roles, talent, change, acceptance
Impact of upgrades/maintenance/changes to source systems (ERP)
Apparent reduced dependency on IT is misleading . . .
Managing expectations and risk of future ‘legacy’
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Robotic Task Automation & The Big Prize
RPA can drive positive change at a fraction of the cost of ERP developments – embrace it
But . . .
‐ Process vs task optimisation
‐ Perception of low-cost simplicity
‐ The RPA process governance challenge
‐ Driving performance improvement at scale
‐ Be prepared to surf the waves of change
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There is a delicate balance to be made
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Action
Insight
Where are our Performance Gaps?
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Peer Group Benchmark
Smart Data Analytics provides Key Insight
Up to 76% of POs are created by some form of RPA
Up to 20% of POs created automatically are subsequently deleted or unused
11% of vendor master is duplicated or erroneous
0.4% of supplier invoices still slip through as duplicates
1.3% of supplier invoices are entered /processed late
16% of POs are high vendor frequency (within a week)
24% of POs have a value below £1000
Up to 92% touchless invoices
Up to 60% early payment discount capture
80% of payment terms rarely used
Surprisingly improperly segregated duties (requestors/approvers)
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Poll Question 4
How do you identify the areas for process improvement?
‐ Requirements workshops/discussion with process stakeholders
‐ Industry standard KPIs and benchmarks
‐ Internal Audit
‐ Relevant case studies
‐ Process Analytics
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Critical Factors for RPA Success
1. Selecting the Right Target for RPA
‐ Analyse your end to end process (P2P, O2C, R2R, H2R)
‐ Identify end to end process performance gaps
‐ Decompose end to end process to identify RPA friendly tasks
Transposing data between applications
Extracting, entering, transposing from files and spreadsheets
Processing and updating forms
Merging, consolidating, archiving data
Tracking and monitoring tasks and data
Formatting and reporting
File (Excel) management, downloading, updating, uploading
Repetitive calculations on data
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Critical Factors for RPA Success
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1. Selecting the Right Target for RPA
Demand Sourcing Contracting Ordering Fulfilment Settlement
Source to Contract Purchase to Pay
Source to Pay
Critical Factors for RPA Success
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1. Selecting the Right Target for RPA
Identify the manual, repetitive, routine, rules based tasks
Demand Sourcing Contracting Ordering Fulfilment Settlement
Source to Contract Purchase to Pay
Source to Pay
Supplier details registrationSupplier onboardingContract terms captureSupplier data validation
Purchase Request ApprovalPurchase Order CreationPurchase Order ApprovalSupplier Order ManagementSupplier Queries
Invoice CaptureInvoice MatchingReceipt ConfirmationInvoice ApprovalPayment Scheduling
Critical Factors for RPA Success
2. Planning the Journey
‐ Engage Stakeholders and agree business outcomes
‐ Agree realistic measures of success and milestones
‐ Build the team with an eye to the future
‐ Agree your RPA process /operating model
‐ Central/Local/Remote?
‐ Select the right tool for the use-case
Linear task, task orchestration, ERP integration
‐ Work out how you will get/develop the skills
‐ Decide rollout/iteration/business value confirmation model
Surprise? It’s a human change challenge
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Critical Factors for RPA Success 2. Planning the Journey
Stakeholder Management
Measuring & Communicating
Progress
Program Organisation &
Governance
Process Design
Business Service
Management
Skills & Capability
Automation & Enabling
Technology
ProcessManagement
Process Placement, Sourcing & Operation
Defining Outcomes
Monitor
Driving Sustainable
Change
Critical Factors for RPA Success
3. Building the RPA Centre of Excellence
‐ The RPA Strategy & Process
‐ Roles & Responsibilities
‐ Relationship Management & Service Level Management
‐ Business Process Knowledge & Business Analysis skills
‐ RPA Readiness Assessment
‐ Change Management, Governance
‐ Audit Readiness – risk and control
‐ RPA Tool skills & Reusable Components
‐ IT Impact & System Incident Planning & Management
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Task vs Process Balancing Priorities in Time & Investment
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Future of Intelligent / Smart Automation
Transactional Work
Decision Work
Knowledge Work
ADAPT
“Sequence & Execute”
SENSE
“Gather & Evaluate”
ERPProcess SuitesRPA
AnalyticsSearchAI
ChoicesAuthorisationRisk Taking
Automation Augmentation
Interpretation
Platforms for Success – e2e Process
System of Record (ERP)
Augmented Process Suites (P2P, O2C, R2R)
Task Automation/Integration (RPA +)
Performance Management (AI +)
End to End Process Ownership & Governance (GPO)
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Action & Insight in Balance
57
Increased Contract Compliance
Increased spend visibility
Bring more spend under control
Pay on time
P2P Efficiency
By implementing P2P Standardisation we will:
➢ Increase contract compliance
➢ Increase spend visibility
➢ Pay suppliers on time
➢ Increase the efficiency of the P2P process
➢ Increase reach of the P2P compliant solution; and
➢ Reduce risk by bringing more spend under control
This Session
Introductions
Setting the scene – where are we with RPA
Hype and Reality
Challenges on the Road to Intelligent Automation
Driving Sustainable Process Improvement
Critical Factors for Success
Summary & Re-cap
61 © 2018 Consider Solutions All rights reserved
“I skate to where the puck is going to be, not where it has been.”
Wayne Gretzky
Reputedly the greatest ice-hockey player ever
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