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Achieving Automation through Cognitive Technologies Timothy Ho Deloitte

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Page 1: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Achieving Automation through Cognitive Technologies

Timothy Ho

Deloitte

Page 2: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Technology is the key driver of change in finance

Page 3: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Cloud Process VisualizationRobotics

Cognitive Computing

In-Memory Computing

BlockchainAdvanced Analytics

Seven technologies have growing relevance for how the work of finance gets done.Core Modernization

Exponentials

Page 4: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Finance is expected to deliver in four key roles, however the balance of responsibilities is changing

Operator

StrategistCatalyst

Steward

How much time (in %) is your finance organization spending in top half vs lower half?

Page 5: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Definition : Automation Spectrum

Page 6: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

The future of operational Finance is the establishment of a Finance factory; a fully automated control center with process visualizations tools

Monitoring of processes on a continuous basis to provide insight

Process Automation to drive greater productivity and quality

Page 7: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Robotic Process Automation (RPA)

Opening email andattachments

Logging into web/enterprise applications

Moving files and folders

Copying and pasting

Filling in forms

Reading and writing to databases

Making calculations

Scraping data from the web

Connecting tosystem APIs

Extracting structured data fromdocuments

Collecting social media statistics

Following “if/then” decisions/rules

RPA is… RPA is not…

Computer-coded software

Programs that replace humans performing repetitive rules-basedtasks

Cross-functional and cross-application macros

Walking, talking auto-bots

Physically existing machines processing paper

Artificial intelligence or voice recognition and reply software

What itcan do

Page 8: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

RPA Demo Video

Process automation - generate billing in the system

Process steps:

1. Receive email with attachment (in pdf – standardformat)

2. Convert data into an excel file – Copy and paste from pdf

3. Log in to system

4. Go to generate billing screen and input billingrequest – Copy and paste from excel file

5. Send email to requestor to confirm process is completed

Video Link: https://youtu.be/FV8lM9SIFQ8

Page 9: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

RPA Benefits

Page 10: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Risk Analytics – Deloitte Analytics Platform

Use more data, quickly• Unleash enterprise data, including

internal and 3rd Party sources

• Quickly cleanse and map data for

analysis

• Enhance data quality and

completeness

Produce better insights• Leverage proven risk models across

business processes Procure-to-Pay,

Payroll, Travel & Expense, and P-Cards

• Identify emerging patterns driving

anomalous behaviors through trending

and benchmarking

• Aggregate risk and use historical results

to reduce false positives

Understand business

impact

• Easy-to-use dashboards enable users to

investigate and report results

• Review historical results of similar risks

identified to predict potential

outcomes

Analytics

Platform

Understand the risk universe• Deliver predictive risk modeling and risk

sensing capabilities

Develop the audit plan• Perform dynamic risk assessments

• Generate dynamic audit plans

Design the audit programs• Continuously audit / monitor risk & controls

• Enable remote auditing

• Conduct exception-based audits

Deliver results & insights• Automated advanced dashboards

Page 11: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Sample Risk Analytics

Page 12: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

“We are drowning in

information but starvedfor

knowledge”- JohnNaisbitt1

Page 13: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

What is analytics?

Predictive modeling/optimization

Scenario/tradeoff simulation

Pushed exceptions and alerts

Company and individual performancevisibility

Operational reporting

Hindsight

Enterprise data management

Foresight

Insight

Industrialized Dashboards

and KPIs

Bespoke Traditional Analytics

Cognitive Computing and

Machine Learning at

Scale

Page 14: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Analytics is evolving

Drivers & disruptors Evolution of analytics

IN-MEMORY PROCESSING

INTERNET OF THINGS

INTELLIGENT AGENTS

TEXT ANALYTICS MACHINE LEARNING

CROWD-SOURCING& COMPETITIONS

ADVANCED HUMAN COMPUTER INTERFACE

EXPONENTIALS

CYBER SECURITY

ARTIFICIAL INTELLIGENCE & COGNITIVE ANALYTICS

CLOUD VISUALIZATIONS DATA LAKES BIG DATA &PREDICTIVE ANALYTICS

TABLE STAKES

Dataproliferation

New data sources

Technologydisruption

Innovative Science

DATAWAREHOUSING

& DATA BUSINESS

MODELING INTELLIGENCELE

VE

L O

F E

NT

ER

PR

ISE

-WID

E A

DO

PT

ION

Page 15: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Data Extraction - Argus

Argus

Page 16: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

CognitiveSpend retains human intelligence to get smarter as more data is processed

How the Tool Learns

Feedback Portal

Dynamic in-tool pivot table to capture human input

Initial

Training Data

Initial

Classification

Additional

Feedback

Previous feedback from other projects

totaling ~$50B of spend across 100M

line items

250 most meaningful line items

(identified using data science) classified

by user to jumpstart classification

Additional amendments by user are

retained for learning purposes

+

+

How the Tool Classifies

CognitiveSpend leverages previous

classifications to predict

classifications for data it has never

seen before

Example Classification

Line Item Description:

“SEM”

Rules-Based

Unknown

Cognitive

Search Engine Marketing

95%+=Accuracy

through

Automation

Page 17: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Analytics

Cognitive Insights

StatisticalModelling

Visualization

Page 18: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Cognitive Insights

➢ Extract concepts and relationships from various data streams, text sources and social media and generate new insights including market threats and opportunities through cognitive analysis and correlation of data

➢ Deliver applications thatintelligently “understand” the context and provide the right insight at the right time explaining why it is relevant and important

Page 19: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Statistical Modelling

$0

$50

$100

$250

$200

$150

$300

$350

Revenue

(mill

ions)

2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

$0

$50

$100

$150

$200

$250

$300

$350

Revenue

(millio

ns)

2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

Traditional Approach: Linear Projection Predictive Approach: Multiple Linear Regression

Forecast Forecast

Year 08 09 10 11 12 13 14 15 16

Revenue$150 $155 $202 $193 $210 $280 $293 $311 $336

Year 08 09 10 11 12 13 14 15 16

Revenue$150 $155 $202 $193 $210 $280 $293 $266 $254

Var A* 2 3 5 4 6 7 8 2 3

Var B* 7 6 5 6 4 4 3 4 5

Var C* 1 1 4 5 3 7 8 5 7

R2 = .95

Standard error = 16.42

R2 = .99

Standard error = 3.52

Outcome for two different forecasting approaches

•1 More accurate model, illustrated by the higher R2

and lower standard error

•2 Can highlight problems based on nuanced changes before they have a negative impact on the company

•3 Allows executives to see which drivers have the greatest impact on revenue forecasts

•4 Enables better and quicker decision-making in order to take action and enhance future performance

Page 20: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Visualization

Visualization

• Multi Dimensional reporting, and ability to drill down to details

• Real time information

• Dashboard for management

Page 21: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Natural Language Generation

Data Audience

ANALYZE INFER GENERATE INSIGHTS

Natural Language Generation

Produces an analysis and text automatically

Generates standardized text from the same domain knowledge base

Tailors the text to the user’s expertise level and context

Drives actionable insights, increases productivity, andoperational efficiency

Page 22: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Natural Language Generation LinktoYoutube

Page 23: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Integrating NLG with Robotics can significantly automate Decision Support activities, enabling a greater focus on analysis

Report Submission

Data Collection

Data Manipulation

Insights Generation

Commentary Generation

Driver Analysis

Report Submission

Data Collection

Data Manipulation

Insights Generation

Commentary Generation

Driver Analysis

Legend: Manual Process RPA Tool NLG Tool

Curr

ent

Sta

te

Desir

ed

Sta

te

Illustrative Business Partnering support process

Page 24: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

The CFO is the logical position to oversee predictiveanalytics capabilities and to partner with the business

Page 25: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Getting Started

THINK BIG

Immerse Yourself in Innovation

Join an immersive experience (e.g., Digital Finance Lab) to

explore the “art of the possible” and determine a future state vision, goals, and benefits

Build Your Ecosystem

Evolve your Finance organisation by collaborating with other

business functions,, and vendors

ESTABLISH A DIGITAL LEADERSHIP TEAM

Identify a visionary program leader and assemble a team to accelerate your digital goals.Determine a governance model and policies that might need to be adapted to execute successful change management and ensure the solution is absorbed into the business.

START SMALL

Scaling the Edges

Disconnect from the core business and set up a digital leadership

team to assess disruptive opportunities within the

organisation

Pick One or Two Plays

Prioritise your desired tactics and pick just one or two to get

started in order to establish proof of concept

ACT FAST

Prove it Works (Quickly)

Use an agile, iterative piloting approach to move from strategy to prototyping as quickly as possible –“fail fast” and achieve rapid results

Market Your Own Success

Seek opportunities to share digital experiences with other functions –

knowledge share

Page 26: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Crunch Time Series

Crunch Time:

Finance in a Digital World

Crunch Time, too.

CFOs talk off the record

about Finance in a digital world

Crunch Time IV:

Blockchain for Finance– What CFOs

Need toKnow

Crunch Time III: The

CFO’s guideto cognitivetechnology

Crunch Time V: Finance

2025

Link toreports: https://www2.deloitte.com/sg/en/pages/finance-transformation/articles/finance-digital-

transformation-for-cfos.html

Page 27: Achieving Automation through Cognitive Technologies€¦ · Achieving Automation through Cognitive Technologies Timothy Ho Deloitte. Technology is the key driver of change in finance

Contact : [email protected]

Contact Details