accenture public service - the future of government back office operations

TRANSFORMING TO IMPROVE CITIZEN SERVICES

THE FUTURE OF GOVERNMENT BACK OFFICE OPERATIONS

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CITIZENS EXPECT MORE FROM GOVERNMENTHOW CAN BACK OFFICES KEEP UP?

3Copyright 2017 Accenture. All rights reserved.

73%

85%???

GOOD ENOUGH FOR GOVERNMENT

% of citizens that

expect the same or

higher quality from

government digital

services as they do

from commercial

organizations

Accenture Public Services Pulse Survey, Digital Expectations 4/2016—Survey of 3,311 of voting citizens

2014 2016 2018

IS NOT GOOD ENOUGH


SEVEN IN TEN CITIZENS FEEL THAT PUBLIC AGENCIES COULD PROVIDE A BETTER CUSTOMER EXPERIENCE BY USING THE LATEST TECHNOLOGIES

Source: Accenture

5

ARE GOVERNMENT BACK OFFICES READY?

CAN THEY SUPPORT DIGITAL CITIZEN SERVICES?

By 2020, enterprises that continue to

invest in heavily customized,

traditional, monolithic ERP solutions

will be 75% less effective in supporting

digital business strategies.

—Gartner

Are you investing in large, traditional ERP solutions?

OR

Are you getting ready for the future so you can support better digital citizen services?

Source: Gartner, Government CIOs Should Consider Postmodern ERP to Modernize Legacy Business Applications (pub. May 18, 2017)


ERP IS TRANSFORMINGFROM FOCUS ON ‘CONTROL’ TO ‘VALUE’

1st Generation Custom ERP

Delivered & customized

to 1,000s of client

requirements

Standardized to

leading processes

Customized only

where required

Focused on

commoditized

cloud-based systems

Combines digital and

human workforce via RPA

and AI

2nd GenerationProcess Led ERP

3rd GenerationPlatformed Back

Office

4th GenerationAugmented Back

Office

The market is here

7

“It is expected that the service-based approach for IT will become the preferred option over the software-based approach over time, as end-user organizations look to downsize the operation side of their IT portfolios.”

—Gartner

Source: Gartner, Magic Quadrant for Enterprise Integration Platform as a Service (IPaaS), 30 March 2017


ERP IN TRANSFORMATION

1Source: Center for Digital Government, Future of ERP Report, 2015 2Source: Gartner, Forecast Overview: ERP Software, Worldwide, 2016 (pub. Oct. 11, 2016)

States are investing in Cloud-based systems:

83% implemented or deployed cloud in multiple agencies

─Center for Digital Govt1

Primary examples are content and document management, business

intelligence, health applications, and GIS systems

By 2020, 50% of ERP spending will be SaaS-based and

underpinned by hybrid modernization strategies

─Gartner2

PLATFORMED BACK OFFICE IS GROWING


WHY MOVE TO PLATFORMED BACK OFFICE?

Current

• Fixed Costs

• Cumbersome

• Capital Intensive

• High Maintenance and Run Costs

• Security Issues

• Business Lagging

• Out-dated

COMPELLING VALUE PROPOSITION

Future• Pay by the Drink’

• Agile

• Capital Light

• 20%+ Lower Maintenance

and Run Costs

• Managed Security

• Business Leading

• New Technologies


PLATFORMED BACK OFFICE

Business services, delivered through 3 possible models:

WHAT IS IT?

Typically

chosen

when:

ON-PREMISE ERP HYBRID MODELSome, but not all, Cloud Components

UNIFIED CLOUD PLATFORM

• Current version of ERP software /

straightforward upgrades

• No business case for ERP transformation

• Customizations are necessary or regulated

• Adopt best-in-class cloud modules

• Core ERP processes with little change

• Maintain control over critical data/ functions

• Capital investment in On-Premise ERP

• Cloud ERP not ready (~12-18 months ago)

• Replace multiple legacy systems or new

solution

• Cloud is “Case for Change”

• Employee engagement: mobile, social,

collaboration, seamless UX

• Recent implementation (<12 months)

As-a-Service


PLATFORMED BACK OFFICEONE EXAMPLE OF HOW IT MIGHT WORK

POTENTIAL BUSINESS SERVICES:

On-Premise

CORE HR BENEFITS

PAYROLL

Performance

Management

Compensation

Management

Recruiting

Learning

Management

Workforce

Analytics

ESS

MSS

Mobility and

Collaboration


PLATFORMED BACK OFFICE

Identify business process / determine value

Keep it internal? Or external service provider?

Business process purchased ‘a la carte’

Create an integration platform

Business service roll out based on need and value delivered

HOW WOULD I DECIDE?

1

2

3

4

5


NETFLIX FOR ERP, CHOOSE WHAT YOU NEED

Australian Financial Institution:

• Moved 30 legacy systems to cloud

• Virtual P2V migration with minimal service disruption

• Pay-as-you-go services

AND SEE RESULTS

U.S. Department of State: uses flexible and modular system to save time and money

• Deployed 4 mobile apps onto PeopleSoft solution to support Mobile Diplomat initiative

• Apps scope: motor pool services to order fulfillment— 3 more mobile apps planned for 2016

RESULTS OVER THREE YEARS:

$1.5M savings

Speed of application server delivery from 13 weeks to 3 days

700 transactions per second for 16m customer accounts at peak times

RESULTS:

Save 16,000+ data entry hours

1 million sheets of paper annually


“Unsexy specialties such as contract management, tax compliance and regulatory tools are getting a fresh glitter of promise for what’s possible.

That is because the future of machine learning for extracting new data insights and heading off corporate risks could save corporations enormous costs.”

—The Wall Street Journal

15

ERP IN TRANSFORMATIONAI FOR BACK OFFICE IS JUST GETTING STARTED

More of the IT workforce willfocus on AI related functions:

By 2019, more than 10% of IT hires in

customer service will mostly write scripts for bot interactions.

By 2020, 20% of companies will dedicate

workers to monitor and guide neural networks.2

Organizations are investing in AI

and are seeing positive results:

55% of private sector enterprises plan to

invest in AI in the next 12 months

45% of organizations are seeing positive

results from their AI projects

50% of organizations who had invested in AI

said that the results from their AI investments

met or exceeded their expectations.1

1Source: Forrester, Artificial Intelligence: A CIOs Guide to AI’s Promises and Perils, January 9, 2017

2Source: Gartner, Predicts 2017: Artificial Intelligence, 23 November 2016


AI IS HAVING AN IMPACT, INSIDE AND OUTSIDE OF YOUR ORGANIZATION

AI’s impact will be felt throughout the economy.

AI has the potential to double the annual economic growth rates by 2035 for developed economies.

In the same time frame AI can boost labor productivity by 40 percent.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

The Economic Impact of AI

Baseline AI Steady State Source: Accenture and Frontier EconomicsReal gross value added(GVA) (% Growth)

https://www.accenture.com/us-en/insight-artificial-intelligence-future-growth


AND CONSUMERS ARE GROWING MORE COMFORTABLE WITH USING AI

Source: Accenture Digital Consumer Survey 2017

are interested in using

a voice-enabled

digital assistant in

smartphones

1/3interact through AI-

powered live chats

or mobile apps on

a monthly basis

52%are comfortable with

an AI responding to

their query.

62%reported that the top

benefit of AI advisors

over human is they

are available

anytime.

82%

https://www.accenture.com/us-en/insight-dynamic-consumers?src=SOMS


AI IS A BROAD CONCEPT AND CAN PERFORM MANY FUNCTIONS IN THE BACK OFFICE

Artificial Intelligence

is a:

Disclaimer: Technologies vs. Applications/ Capabilities are broadly classified here, subjective to individual interpretation

Sense Act

Applications

Technologies

Gesture

Recognition

Biometrics Identity

Facial Recognition

Computer Vision

Audio Processing

Sensor

Processing

Context-Aware

Computing

Expert Systems

Video Analytics

Inference Engines

Artificial Intelligence

Comprehend

Natural Language

Processing

Speech to Text

Machine Learning

Text Analytics

Knowledge

RepresentationDeep Learning

Mini Bots

Robotic Process

Automation

Virtual AssistantsSemantics/

Ontology

Augmented

Reality

Reinforcement

Learning

Recommendation

systems

System

Optimization

Source: Accenture Research

System that

possesses human-like

intelligence and

learning capabilities

Collection of

technologies that,

together, enable

human-like intelligence

https://www.accenture.com/t20170614T050454__w__/us-en/_acnmedia/Accenture/next-gen-5/event-g20-yea-summit/pdfs/Accenture-Boost-Your-AIQ.pdf


AI FOR GOVERNMENT BACK OFFICE A SIMPLER WAY TO THINK ABOUT APPLYING THE TECH

• Standardized rigid

processes

• Manual entry and monitoring

of repetitive tasks

Standardized

Processes

• RPA perform repetitive

actions efficiently

• Minimal oversight

• Requires no decision

making.

Robotic Process

Automation

• AI for decision making,

orchestration, or communication

• Works through learned behaviour.

• Capable to “run-the-show”

• Calls RPA to perform tactical

actions.

AI-powered

Automation

• Expanded capabilities

• AI + RPA + Data leads to

the Digital Workforce

• capable of augmenting

human counterparts.

Digital

Worker

CURRENT STATE SIMPLE MEDIUM COMPLEX

Remove redundant low level

tasks from your workforce

Enable resources to be used much

more effectively and valuably

Increase engagement with

your citizens and employees

LOWER WORK TEDIUM LABOR REALIGNMENT INNOVATION

BENEFITS


ONE GOVERNMENT IS USING AI TO TRANSFORM THEIR MODEL OF CUSTOMER SERVICE

HELP DESK EMPLOYEES WERE SPENDING THE

MAJORITY OF TIME ON ROUTINE CUSTOMER

QUERIES

ACCENTURE PROPOSED AUTOMATING THE PROCESS WITH AI

VA IS ALSO ABLE TO UNDERSTANDTHE CONTEXT IN

CUSTOMER REQUESTS

Client wanted to reduce the time, cost and

effort of repetitive tasks so employees focused

on complex tasks

Virtual Agent (VA):

• Understands / process natural language

• Autonomously handles calls / webchat

using cognitive-semantic analysis and

machine-learning algorithms.

VA can:

• Extract what customers are looking for

• Support decision making process with

variables

• Customers receive answers by querying

data / documents in natural language or a

form through voice, assisted by agent


Ticket resolved by agent

75%

Increased users satisfaction

65%

Decreased operator tasks

55%


95%


85%


85%


52%


55%


20%


35%


45%


15%

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

PROJECT IMPLEMENTATION

3 Months - 2 FTE to Analyze and Build the Virtual Assistant 1 Months - 1,5 FTE to train the Virtual Assistant

AI HELPED DECREASE TASKS FOR THE FIRST LEVEL OPERATOR BY ~85% WHILE INCREASING CUSTOMER SATISFACTION


AN OPPORTUNITY FOR TRANSFORMATIONAI CAN BE USED AT ANY ERP MATURITY LEVELAI can by used independently, extending the life and functionality of legacy systems and

enhancing the capabilities of major and platformed ERPs

All types of systems can bring greater value when augmented with AI

Custom ERP

Process Led ERP

Platformed ERPAI Driven ERP

AI


AN OPPORTUNITY FOR TRANSFORMATION‘LEAPFROGGING’ IS POSSIBLE

ERPs can continue moving up the maturity scale

On legacy system, no plans

to move

On legacy system, considering move

to major ERP

3: PlatformedBack Office

4: Augmented Back OfficeOn premise ERP

with major vendor

Current State Future State


A HIGH LEVEL OF SECURITY WILL BE KEY TO NEW TECHNOLOGIES’ SUCCESS

Eight in ten citizens

expressed concern about

the privacy and security of

their personal data

Three-quarters lack

confidence in the

government’s ability to

safeguard their information.

Unknown malware is

downloaded in enterprises

every 34 seconds.

Source: Accenture Research

Checkpoint


SECURITY MUST BE “DESIGNED IN” FOR EVERYTHING-AS-A-SERVICETHE NEW NORM

Increase proper IT & security

governance to maintain control

Leverage Security as a Service for

coverage and business benefits

Establish a shared responsibility

security model and strategy

Design, implement, extend existing

security capabilities to cloud

Develop consistent security ops

across cloud and enterprise

environments

Security Considerations

Cloud adoption challenges:

Security

• Lack of Expertise

• Governance and Control

• Compliance

• Integration with Legacy Systems

• Multiple Cloud Services

Management

• SLAs

Broad

Network

Access Rapid

Scalability

and Elasticity

Measured

service

On-demand

self-service

Resource

Pooling

MYTHS SURROUND SECURITY OF THE CLOUDKNOW THE REALITIES

1Source: 20 of the Greatest Myths of Cloud Security, CIO.com May 13 2015.

There are More

Breaches in the

Cloud

Physical Control of

Data on Premises

Implies Security

Cloud Security

Tools & Capabilities

Are Not Ready

Cloud Security is

Far Too Difficult to

Maintain

REALITY:

“When the correct security

policies for preventing

attacks and detecting

them are implemented,

attacks are no more

threatening to the cloud

than any other piece of

infrastructure.”

REALITY:

“The various high profile

security breaches over

the past few months

have served to highlight

that the physical location

of the data matters less

than the access and

associated controls.”

REALITY:

“There are now tools and

capabilities that allow IT

to enable cloud securely

in any number of

environments specific to

unique requirements’

needs thanks to the

ubiquitous nature of

APIs.”

REALITY:

“The same

standardization applied

to on premise security

management can be

applied to cloud security

management.”

Cloud is Inherently

Insecure

REALITY:

“A multi-tenant cloud

may actually be

more secure

because it makes it

difficult to target a

particular company

or data set.'”

Significant improvements have been made to overcome security concerns associated with cloud adoption1

MYTH 1: MYTH 2: MYTH 3: MYTH 4: MYTH 5:


GOVERNMENTS HAVE AN OPPORTUNITY TO ELEVATE THE SKILLS OF THEIR CURRENT WORKFORCE

Less time on routine tasks, more time

making a difference

• 63% said developing talent within

the organization would increase

satisfaction

• 60% said it would increase

attractiveness of public sector.2

AI will require new jobs, roles, and

skills.

• 17% of government leaders said

they had a hard time filling IT roles

• 1/3 said wages were not

competitive with the labor market.1

1Source: Center for State and Local Government Excellence: Survey findings state and local government workforce, 20172Source: Accenture Research Survey, Accenture Pulse Survey—Public Service Talent Jan 2016—Sample of 3046 US Voting age citizens

AI CREATES AN

OPPORTUNITY TO RESKILL

THE CURRENT WORKFORCE

AI WILL CHANGE THE

GOVERNMENT WORKFORCE

http://slge.org/wp-content/uploads/2017/06/State-and-Local-Government-Workforce-2017-Trends.pdf


…AND THE IMPACT OUTSIDE OF GOVERNMENT MUST ALSO BE CONSIDEREDThe increase in AI will not only raise ethical questions and challenges within government agencies,

but government will also be asked to provide regulation and policy guidance for the use of AI

throughout the private sector. The World Economic Forum and others identify key areas of concern:

Source: World Economic Forum: https://www.weforum.org/agenda/2016/10/top-10-ethical-issues-in-artificial-intelligence/

Unemployment and Job Displacement: Components of many jobs will be automated and workers will be displaced.

Governments will need to consider how to reskill their workforce and the broader workforce.

Inequality: As companies become more automated they will require fewer people to produce the same amount,

wealth will be increasingly concentrated with fewer people.

AI can learn bias: AI systems are created by humans and learn from human habits. Thus they are subject to the

same biases that humans have. Any citizen facing system will have to protect against these biases.

Security: AI systems are faster and more capable than humans and could cause damage if hacked and maliciously

used. This makes cybersecurity incredible important.

Unintended Consequences: AI can be used and hacked for nefarious purposes. Furthermore the machines

themselves could ‘turn against us.’ By not understanding the full human context the results that AI machines arrive at

may be the most efficient but could create harm.

https://www.weforum.org/agenda/2016/10/top-10-ethical-issues-in-artificial-intelligence/


QUESTIONS

MARK HOWARDGlobal Public Administration Lead CLICK HERE

TO LEARN

MORE ABOUT

BACK OFFICE

[email protected]

https://twitter.com/markhoward_co?lang=en

https://www.linkedin.com/in/markhowardco

https://www.accenture.com/us-en/insight-back-office-gov-innovation?sr_source=lift_taboola&c=psv_pscsfy18ss_10000006&n=smc_0817



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