digital transformation: how to model human behavior in digitization
TRANSCRIPT
How to Model Human
Behavior in Digitization
Today’s speakers
Frank Beyer,
Former BPM Manager
Kyocera
Gerhard Unger,
General Manager DACH
Bizagi
We help organizations to
transform into digital businesses
Global customers and partners
PARTNERS
Brief Introduction to Bizagi
Transformation Story: How to Model Human Behavior
in Digitization in Kyocera
Q&A – Your Chance to Ask Questions
Quick run through of what we’ll be talking about
Today’s session
Transformation Story:
Kyocera
Kyocera
Manufacturing
The digital transformation universe
Digital Processes
Definition
Digital transformation is the change associated with the application of digital technology in all aspects of human society.
For businesses, it is about creating a competitive edge by digitizing operations for greater efficiency, intelligence and agility.
Digital Organisation
Levels of process automation
Ditigizinghuman
activities
ConnectingSystems
e.g.IoT
Digitizing DataPaperless, OCR, Scanning, etc.
Artificialintelligence
Robotics PA
Cognitivetechnologies
Data-drivendecisions
High
Digitizing human
activities amplifies
all other
automation
efforts
Types of human actions(requiring cognitive skills)
Source:
http://www.rubrics4assessment.net/bloom.htm
Example of processes requiring higher-level cognitive skills
(analysis, synthesis and evaluation):
• All industries:
• responding to RFQs (request for special price quotation)
• fraud detection and risk management.
• marketing campaigns (dispatch of information to micro
segments)
• Entertainment: uses machine learning to predict which
movies a customer will like.
• Transportation: efficiently matches demand with supply.
• eCommerce: leverages machine learning technology to
enhance the speed, accuracy and relevance of search
Special price approval (SPA) process
Key Account Mgr submitsSPA request
Customer requests
special price
Sales Department evaluates and
approves
VP /
CEO
Use Bizagi Studio to:
• Go paperless and/or remove Excel files.
• Control the approval process.
• Facilitate communication and reporting.
• Connect to other systems, e.g. local sales
systems.
But:
• How to fully automate the
process including evaluation
and decision making?
• How to break the cognitive
barrier?
?
Breaking the cognitive barrier: scoring scheme
Evaluation criteria (simplified):
• Total sales (€)
• Profit (€ and/or €)
• Discount (%)
• Strategic importance
Score
Key Account Mgr submitsSPA request
Customer requests
special price
Example: special price requestProduct Quantity
(pcs)
Special
Price
Normal
Price
Discount
P1 50 350 € 500 € 30%
P2 100 200 € 300 € 33%
P3 200 100 € 160 € 38%
P4 30 90 € 110 € 18%
Total
Sales 60.200 €
Total
Discount 33%
How to design a flexible scoring scheme
Discrete -> Discrete Analogue -> Discrete
1. Define min and
max value per
criterion.
2. Use intermediate
score ranging
from 0 to 10.
3. Convert to final
score (see next
slide).
1. Introduce a discrete
rating of analogue value.
2. Define min and max
value per criterion.
3. Use intermediate score
ranging from 0 to 10.
4. Convert to final score
(see next slide).
Final
Score
Intermedi
ate ScoreValue
25,00 10 Very high
18,75 7,5 High
12,50 5,0 Medium
6,25 2,5 Low
0,00 0,0 Very low
Strategic
Importance
To automate the evaluation of analogue values like
strategic importance advanced cognitive technologies such
as natural language processing are required.
Final
Score
Intermedi
ate ScoreValue
25,00 10 250.000
22,50 9 200.000
20,00 8 150.000
17,50 7 100.000
15,00 6 50.000
12,50 5 0
10,00 4 -50.000
7,50 3 -100.000
5,00 2 -150.000
2,50 1 -200.000
0,00 0 -250.000
Profit €
Final
score
Intermedi
ate ScoreValue Final
Score
Intermedi
ate ScoreValue Final
Score
Intermedia
te ScoreValue Final
Score
Intermedi
ate ScoreValue
25,00 10 2.000.000 25,00 10 250.000 25,00 10 0% 25,00 10 Very high
22,50 9 1.800.000 22,50 9 200.000 22,50 9 5% 18,75 7,5 High
20,00 8 1.600.000 20,00 8 150.000 20,00 8 10% 12,50 5,0 Medium
17,50 7 1.400.000 17,50 7 100.000 17,50 7 15% 6,25 2,5 Low
15,00 6 1.200.000 15,00 6 50.000 15,00 6 20% 0,00 0,0 Very low
12,50 5 1.000.000 12,50 5 0 12,50 5 25%
10,00 4 800.000 10,00 4 -50.000 10,00 4 30%
7,50 3 600.000 7,50 3 -100.000 7,50 3 35%
5,00 2 400.000 5,00 2 -150.000 5,00 2 40%
2,50 1 200.000 2,50 1 -200.000 2,50 1 45%
0,00 0 0 0,00 0 -250.000 0,00 0 50%
Total Sales € Profit € Strategic
Importance
Discount %
How to design a flexible scoring scheme – cont’d
Synthesis
Analysis
Evaluation
Steps to digitise human activities (=RPA)
• ..the business rules.
• ..the (tacit) knowledge
applied to these rules.
• ..conditions for
exceptions.
• ..the data used thereby
differentiating between
discrete and analogue.
• ..the sources of data.
• ..the type of output.
• …business rules into logical
expressions (e.g. IF-THEN
statements).
• Verify them.
• Simulate scenario’s and test
the rules / the logical
expressions.
• Select processes
suitable for digitisation.
Source: https://dupress.deloitte.com/dup-us-en/deloitte-
review/issue-16/cognitive-technologies-business-
applications.html
Impact of digitisation on the degree of automation
• Standard cases are fully
automated, e.g. through
implementation of a scoring
scheme.
• Only exceptions still require
human activities -> focus ->
quality.
• Majority of cases are
handled as exceptions due
to a lack of clear business
rules.
• Only a few cases are
processed in a standard way
following business rules.
Exceptions
Standard
Exceptions
Standard
Exceptions
AutomatedObserveIdentify
Translate
• Business rules are
established and apply to
the majority of cases.
• Still all cases require
human activities.
Digitized & Imple-
mented
• Tacit knowledge becomes transparent and validated
(a hidden benefit, but one of the biggest).
• Reduced heterogeneity (remove bias and individual,
undocumented and unofficial business rules).
• Clarity of data needed, i.e. brings structure into
unstructured (big) data.
Benefits of digitising human/ cognitive activities
Implementing logical expressions in Bizagi
Summary
• The cognitive barrier preventing
companies to fully automate processes.
• How to break through by digitising
human activities.
• Observe -> Identify -> Translate.
• How to digitise cognitive activities such as
analysis, synthesis and evaluation through a
scoring scheme using Bizagi.
• Significant hidden benefits.
• A simple but effective way to embark on
RPA.
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