HR Transformation:Looking Ahead

May 2017

2

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

A brief history of HR1910 – 1945 1946 – 1979 1980 – 1995 1996 – 2010 2011 –

What HR is

Known AsLabor Management Personnel Management Human Resources People Management

Human Capital

Management

HR’s FocusWorker safety and union

relationsAdministration Policy and program design

People and process

efficiency / effectivenessDelivering strategic value

HR MetricsSafety incidents;

organizing activityFlawless transactions

Compliance, program

effectivenessHR balanced scorecard Business goal achievement

HR Tools PaperMainframe computers /

limited data

Client server / abundant

data

Web applications / robust

information with analytics

Cloud computing,

predictive analytics,

cognitive automation

3

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Evolution of the HR operating model

HR Business Partners

Centers of Expertise

Shared Services

ConsultativeTransactional

CentralizedDecentralized

Prevalent modelUlrich model Now What?

The boundary-less HR function

The Prevalent ModelThe Prevalent HR Model

5

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

HR Service Delivery Model H

R C

us

tom

ers

Applicants Employees & Managers

Retirees Consultants

Direct Access

HRSS

Centers of Expertise

Business HR

HR

Leadership

24x7 Access to

organized HR

content

Self-service:• Make inquiries

• Review policies

• Apply for open

position

• Enroll in learning

• Update personal data

• View pay statements

• Enroll in benefits

• Manage performance

• Manage

compensation

• Etc.

Portal and on-line tools

support

Policy, program, and

process inquiries

Available via multiple

channels (web, phone,

chat, email)

Complex transactions

Specialized admin (e.g.,

recruiting, learning,

comp, leave)

Data & reporting

specialists

Support COEs with

process changes

ESS/MSS

Service

Reps

Functional

Specialists

Strategy & design for

HR programs and

policies

Ensure alignment of

shared services to BPs

Provide subject matter

expertise, advice, and

guidance to BPs and

shared services

Drive continuous

improvementCompensation

Benefits

Mobility

Recruiting

Org Development & Learning

Employee & Labor Relations

Interface/coordinate with shared services

Ensure compliance with local regs

Handle in-person EE/labor relations

General employee/manager coaching

Interpret business needs & align or

broker strategic HR support

Leadership coaching & development

Change, org design, & talent leadership

Ensure alignment of HR priorities and

strategies with the business

Provide input to business strategies

Strategic talent and organizational

guidance to business executives

Leadership and governance of global

people strategy

Local HR Generalists/Operations Business Partners

Executive

Leaders

Case management, knowledge

base, and other enabling

technologies; data & analytics

SubjectMatter

Experts

Tier

0

Tiers

1-2

Tier

3

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Define the Target Operating ModelTransformation Component Description

Service

delivery model— Model for how HR work is done to take advantage of technology

People/structure — Leading practice-based role and organization structure design

Process — Leading-practice based process design

Governance

and controls— Governance and security aligned with processes and technology

Supporting

technology— Pre-built configuration and integrations aligned with leading practices

Data and

reporting— Pre-enabled reporting templates and predefined master data structures

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Set HR priorities for HR Transformation1. HR Activity, Investment, Metrics (AIM) survey

AIM tells us:

• Who performs each HR activity and where and How much is spent on each HR activity

2. HR Customer (HRC) survey

HRC tells us:

• How well HR performs each HR activity and How important is each HR activity

3. Option Analysis

High Low

High

Low

Imp

ac

t

Do it now!

Quick and

impactful

win

Don’t

bother!

Difficulty of Implementation

Easy and

Empty win

High priority for

potential

investment:

Careful scoping

required

a

b

c

e

d

g

h

j

k

f

i

SAMPLE

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Highly customized Highly

standardized

One size fits all Tailored

Highly

“commercial”

Highly

collaborative

Face-to-face,

interactive

Online,

automated

Role of line managers in managing peopleHeavy HR SupportLimited HR

Support

Role of COEPull Push

Role of HR OperationsAdministrative Admin /

Advisory

Role of HR Business PartnerOperational Strategic

Gain alignment on Guiding Principles

Agreed on Target Destination

Current State

Proposed Target Destination

before facilitated

discussion/alignment

SAMPLE

Nature of process standardization

Consistency of the model

Relationships among parts of HR

End-user experience

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Apply leading practices

Service

Delivery Model

Process Roles Config Technology

10

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Leading Practices / Disruptive TrendsClouds in the Forecast

increased adoption

Going Social

is business critical

Mobile is Mandatory

transforming the traditional

Data & Analytics Drives Value

but people make decisions

Talent Trumps

must be integrated at the core

Systems of Engagement

experience is everything

Data integrity is paramount

to driving people-related business decisions

Get it Real & Right

real-time, integrated and accurate systems

11

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Cloud is here to stay and only going to grow

Source: KPMG 2016 HR Transformation Survey Total respondents (n = 854)

Cloud HR success demands

the intelligent integration of:

Technology People Processes

Cloud HR is becoming the

leading model for HR tech.

Will replace their existing HR

system with a Cloud solution

42%

Simply implementing Cloud HR

does not guarantee benefits.

Report that Cloud HR brings

the ability to reconfigure the

HR function to drive greater

business value

Only 24%

Cloud HR benefits don’t always

match the reality.

63%

Expect improved

value add from HR

to the business

The Evolving Model

13

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

The boundary-less HR functionArchitects:

Set direction, monitor, and align HR support to

strategic business objectives

Workforce consultants:

Drive and execute

workforce strategy for their

business area and coach

business leaders

Workforce solutions:

Cross-functional teams that

deliver program and system

solutions and provide expert

research and analytics

Workforce central:

Technology-enabled service delivery center,

providing cognitive interactions and self service

solutions for employee and line manager support

across the employee lifecycle

- Human labor

- Predictive analytics

- Robotic and cognitive

automation

- External expert

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Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

How do we close the talent gap?

Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012

Gaps Between Growth in Talent Demand vs. Supply, 2011 – 2021

Norway 0.5U.K. 0.9

France 0.7

Spain 0.2

Canada 0.9

U.S. 0.8

Mexico 0.1

Colombia -1.1

Argentina 0.1

Chile 1.0

Peru -0.6

Russia 0.1

Philippines -0.2

Thailand 0.6

Malaysia -0.1

Indonesia -1.5

Netherlands 0.4

Germany 0.6

Poland 1.2

Czech Rep -0.8

Austria 0.4

Switzerland 0.5

Italy 0.8

Greece 0.7

Singapore 0.6

Egypt -0.7

Saudi Arabia -0.2

United Arab Emirates

-0.2

China 0.0

India -2.1

South Africa -1.0

Bermuda -0.1

Australia 0.5

Deficit countries Surplus countriesAt equilibrium

Sweden 0.5

Brazil -0.1

Morocco -0.8

Qatar -0.6

Turkey 0.7

Japan 1.4

South Korea 0.9

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Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Digital Labor – what is it?

CLASS 3

— Artificial intelligence

— Natural language recognition and processing

— Self-learning (sometimes self optimizing)

— Processing of super data sets

— Predictive analytics/hypothesis generation

— Evidence-based learning

CLASS 2

— Built-in knowledge repository

— Learning capabilities

— Ability to work with unstructured data

— Pattern recognition

— Reading source data manuals

— Natural language processing

CLASS 1

— Macro-based applets

— Screen level and OCR data collection

— Workflow automation

— Process mapping

— Self executing

Basic process automation

Enhanced process automation

Processing of

unstructured data and

base knowledgeRules

engine

Visual

Data

Collection

Work

flow

Cognitive automation

Machine

Learning

Large-scale

processing

Adaptive

alteration

Artificial

intelligence

Big data

analytics

Natural

language

processing

16

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

The players

Example

IPSoft’s Amelia™ utilizes Artificial

Intelligence and advanced semantic

reasoning to understand questions,

provide answers, and escalate to humans.

Providers

— IPSoft™

— Arago

— Automation Anywhere ®

— TCS®

— Wipro®

Example

Firms are leveraging IBM Watson’s™

sophisticated ontologies, natural language

processing, machine learning, pattern

recognition and probabilistic reasoning

algorithms to aid skilled employees and

robots with complex decisions.

Providers

— IBM Watson™

— Wipro Holmes™

— Next IT (Alme)™

— Google (Deepmind)™

— IPSoft™

Example

Blue Prism® has automated tier-1

inquiries (e.g., address change) for a

US-based online bank.

Providers

— Automation Anywhere ®

— Blue Prism®

— UiPath

— Interactive Media

Rules

Basic process

automation

Learning

Enhanced process

automation

Reasoning

Cognitive

automation

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

The Landscape of Digital

18

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Digital labor will dramatically affect the way work is doneThe global market for robots and artificial

intelligence is expected to reach $152.7 billion by

2020 (2x the current US smartphone market).

-Bank of America Merrill Lynch

A recent study by HfS Research and KPMG

LLP reports that 55 percent of North

American enterprises are looking at new

opportunities available with RPA systems

The return on investment in robotic

technologies can be between 600% and

800%

-London School of Economics

81% of CEOs are concerned about the

integration of basic automated business

processes with AI and cognitive processes

-KPMG 2016 Global CEO Survey

Gartner predicts that by 2020, smart machines

will be a top five investment priority for

more than 30% of CIOs

Smart robots could replace more than 100

million knowledge workers—or one-third of

the world’s jobs—by 2025

-McKinsey Research

$152.7

BILLION

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Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Digital Labor: Where are we now?RPA adoption is occurring across the enterprise

Virtual chat / chat bots are the most hyped technology of 2017, but they still work

best for discrete interactions

Large BPOs are building proprietary platforms, but they are not aggressively

disrupting their existing client base

Organizations see the promise of cognitive automation & AI, but they are struggling

with where to start

Many organizations are bypassing IT as they adopt Digital Labor technologies

20

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

HR opportunities in Digital Labor

Implementation Complexity

Process Sub Process #

Talent

Acquisition &

Onboarding

Recruit Applicants

Screen Applicants

Employee Onboarding

Talent

Management

Annual Workforce Planning

Organization Performance Mgmt

Employee Performance Mgmt

Talent Review

Learning

Workforce

Administration

Organization Management

Employee Data Management

Separations

Global & Domestic Mobility

Analytics &

Insight

Reporting & Dashboards

Predictive Analytics

Strategic Workforce Planning

Support Manage Support L1 & L2 HRSS

1

2

3

4

5

Bu

sin

es

s B

en

efi

t

HighLow

6

7

8

9

10

11

12

13

14

15

16

1

2

3

45

6 7

8

9

10

11

12

13

1514

16

High

Low

21

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Benefits of Digital Labor for HRImproved Data

Integrity

• Employs advanced analytics to anticipate and resolve issues

• Monitors system stats and starts troubleshooting efforts

• Enables scheduled maintenance and interface checks

Reduced Risk

• Monitors environments for compliance with latest statutes

• Flags fraud, security risks, and governance violations

• Maintains record of tasks completed for compliance record keeping

Higher Work Quality

• Reduces human error rate and

• Increases accuracy of processes

• Detects HR transaction and approval exceptions

• Provides accurate reports on demand

• Enables better decision-making

Greater Consistency

• Increases consistency of output in HR processes

• Improves service delivery predictability

• Enables standardization of processes across entities

Faster Cycle Times

• Reduces cycle time (e.g. Recruitment)

• Performs tasks 365 days a year at 24/7 availability

• Accelerates completion of tasks compared to human labor

• Enables scale during spike events (e.g., M&A and AE)

Greater Efficiency

• Reduces work and rework

• Reduces manual entry/corrections

• Streamlines administrative tasks

• Creates capacity in the HR shared services function

22

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Levels of Opportunity in Digital HR Labor Process

Rules-Based

AutomationMachine Learning Cognitive Augmentation

Total Rewards Bonus Administration

Employee Stock Ownership

Annual Open Enrollment

Qualifying Life Events

Benefits Accounting

Compliance & Reporting

Defined Benefit Retirement

Administration & Initiation

Salary Planning

Long-term Incentives

Benefit Denial Appeals

Benefit Communication

Workforce Administration Mass Changes

Employee Personal Data Updates

Work Employment Changes

Citizenship Tracking

Employee Death

Assignment Administration &

Relocation

Organization Structure Mgmt Mergers, Acquisitions,

Divestitures

Voluntary Separations

Involuntary Separations

Outplacement Administration

Exit Interviews

On Assignment Activities

Manage Support Documentation Services

Compliance Reporting Systems

Call CenterTech

Vendor Management

Problem Management

Quality Assurance

Analytics & Insights Standard Reporting

Statutory & Regulatory Reporting

Ad Hoc Reporting

Design/Maintain Dashboards

Benchmarking

Predictive Analytics

Strategic Workforce Planning

23

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Identifying Digital Labor Opportunities1 Is the process/task highly manual and repetitive?

2 Is the process/task prone to errors or re-work?

3 Does the process/task require "stare and compare" activities with multiple systems?

4 Does the process/task require "copy and paste" activities between multiple systems?

5 Does the process/task require several different systems to complete the process?

6 Does the process/task require searching, collating, researching and/or updating information?

7 Can the process/task be decomposed into unambiguous rules?

8 Is the technology/application environment relatively stable for the process in question?

9 Does the process involve complex calculations and/or logic (judgment based decisions)?

10 Is there extensive internal company knowledge needed to process the transaction?

24

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Digital Labor ReadinessAreas of Digital Labor Readiness

Governance 2.2

HR and HR Delivery Strategic Alignment 2.4

Process Design 2.7

Overall Readiness 2.4

Data and Analytics 2.4

Enabling Technology 2.3

Organization and Role Design 2.2

Change and Communication Management 2.6

1 2 3 4 5

LOW HIGH

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3 things you might do tomorrow1. Assess the opportunity…What is possible? Are we ready?

2. Create a formal HR technology strategy…and incorporate Digital Labor

3. Start small, but start.