TRANSFORMING TO IMPROVE CITIZEN SERVICES
THE FUTURE OF GOVERNMENT BACK OFFICE OPERATIONS
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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
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SEVEN IN TEN CITIZENS FEEL THAT PUBLIC AGENCIES COULD PROVIDE A BETTER CUSTOMER EXPERIENCE BY USING THE LATEST TECHNOLOGIES
Source: Accenture
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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.
—GartnerAre you investing in large, traditional ERP solutions?
ORAre 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)
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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
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“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
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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 Govt1Primary 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
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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
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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
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PLATFORMED BACK OFFICEONE EXAMPLE OF HOW IT MIGHT WORKPOTENTIAL BUSINESS SERVICES:
On-Premise
CORE HR BENEFITS
PAYROLL
Performance Management
CompensationManagement
Recruiting
LearningManagement
Workforce Analytics
ESS
MSS
Mobility and Collaboration
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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
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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 RESULTSU.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
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“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
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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
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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)
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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%
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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 Representation Deep 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
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AI FOR GOVERNMENT BACK OFFICE A SIMPLER WAY TO THINK ABOUT APPLYING THE TECH
• Standardized rigid processes
• Manual entry and monitoring of repetitive tasks
StandardizedProcesses
• RPA perform repetitive actions efficiently
• Minimal oversight • Requires no decision
making.
Robotic ProcessAutomation
• AI for decision making, orchestration, or communication
• Works through learned behaviour. • Capable to “run-the-show”• Calls RPA to perform tactical
actions.
AI-poweredAutomation
• 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
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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
20Copyright 2017 Accenture. All rights reserved.
Ticket resolved by agent75%
Increased users satisfaction65%
Decreased operator tasks55%
Ticket resolved by agent95%
Increased users satisfaction85%
Decreased operator tasks85%
Ticket resolved by agent52%
Increased users satisfaction55%
Decreased operator tasks20%
Ticket resolved by agent35%
Increased users satisfaction45%
Decreased operator tasks15%
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
PROJECT IMPLEMENTATION3 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
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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 ERPProcess Led ERP
Platformed ERPAI Driven ERP
AI
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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
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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 ResearchCheckpoint
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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 enterpriseenvironments
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:
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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 RESKILLTHE CURRENT WORKFORCE
AI WILL CHANGE THE GOVERNMENT WORKFORCE
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…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.
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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
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ABOUT ACCENTURE
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 384,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives.
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Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.This document is produced by Accenture as general information on the subject. It is not intended to provide advice on your specific circumstances.
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