nasscom bpm summit 2014 : key note robotics process automation : - charles sutherland, executive vp,...
DESCRIPTION
Presentation by Charles Sutherland, Executive VP, Hfs Research in NASSCOM BPM Summit 2014TRANSCRIPT
Architects of Global Business | Research Strategy Community
The State of Robotic Process Automation“A Maturity Model Underneath The Hype”
NASSCOM BPM SummitSeptember 16th-17th, 2014
Charles Sutherland
EVP Research, HfS
© 2014 HfS Research Ltd. Proprietary │Page 2
Charles Sutherland
EVP, Research $$ Dallas, TexasOverview• Oversees the entire research agenda for HfS while also maintaining coverage
personally over supply chain, procurement and mortgage services.• Researches and writes about BPM service provide strategies and how automation and
SMAC (Social, Mobility, Analytics and Cloud) is creating value for buyers and new sources of growth for the BPM marketplace.
Previous Experience• Growth & Strategy MD for Accenture’s Operations Growth Platform• Chief Strategy Officer for a $500M BPM Service Provider• Growth & Strategy for Application and Infrastructure Outsourcing, Accenture• Growth & Strategy for Communications, Media and High Tech OG, Accenture• Marketing Director, Olivetti
Education• MBA from INSEAD in Fontainebleau, France • Honors BA in Economics and Political Science from the University of Toronto.
© 2014 HfS Research Ltd. Proprietary │Page 3
Robotic Process Automation (RPA) is in vogue today because operations leaders are expecting to make a quick leap to technology-enabled operations
49%
23%28%26% 26%
49%
Today 2 Years' time
Source: HfS Research, 2014. Sample = 189 Major Enterprises
State of BPO Engagements today and expectations for 2 years time
Progressive Shift in How Services are Delivered
© 2014 HfS Research Ltd. Proprietary │Page 4
Year 1 Year 2 Year 4 Year 5
Valu
e of
Ser
vice
s Re
lativ
e to
Des
ired
Busi
ness
Out
com
es
Strong Alignment between Business Objectives and Services Outcomes (Collaborative)
Services Delivery provides staff augmentation for existing processes (Master/Slave)
But that desire to change has to first overcome the challenges created by many of the existing BPM contract structures
Client evaluates levers to pull to improve delivery relevance to business
Year 3Year 0
Client realizes its own team is not focused on transformation – only maintaining the status quo
Source: HfS Sourcing Executive Council Members, 2014
Transition goes well
Existing work now operational in provider’s centers
Client realizes provider will only deliver what was actually “purchased”
Client restructures contractual terms to provide more strategic support
© 2014 HfS Research Ltd. Proprietary │Page 5
Analytics and automation have become crucial technologies for improving outsourcing outcomes and making that leap
Q. What role can each of the following emerging technologies play in improving the outcomes of your current and future outsourcing engagement(s)?
Source: HfS Research 2014. Note: n=189 Enterprise BPO Clients
Social
Mobile
Cloud
Automation
Analytics
12%
25%
30%
47%
49%
24%
29%
31%
29%
33%
24%
31%
28%
17%
13%
24%
9%
7%
4%
3%
16%
6%
4%
3%
2%
5. It is a critical component 4 3 2 1. None - no value in it for BPO
© 2014 HfS Research Ltd. Proprietary │Page 6
Year 1 Year 2 Year 4 Year 5
Valu
e of
Ser
vice
s Re
lativ
e to
Des
ired
Busi
ness
Out
com
es
Strong Alignment between Business Objectives and Services Outcomes (Collaborative)
Services Delivery provides staff augmentation for existing processes (Master/Slave)
Automation is about improving value throughout a contract
Year 3Year 0
Source: HfS Sourcing Executive Council Members, 2014
“Intent of RPABut is it hype?”
© 2014 HfS Research Ltd. Proprietary │Page 7
Based on recent interviews with 15 BPM service providers across functions and the globe we have developed a three level maturity model for the key aspects of RPA deployment and use
To understand where the line is between hype and reality for RPA we have developed an HfS Maturity Model for RPA
Level 1 - Initialization
Level 2 - Industrialization
Level 3 - Institutionalization
© 2014 HfS Research Ltd. Proprietary │Page 8
We have identified 9 differentiated elements as to how RPA is being designed and implemented across the BPM market today
Goal of RPA
RPAMindset
RPAProgramOwner
RPAProgramFunding
Best Practice
Approach
Maturity of
Processes
RPATech
Vision
Mgmt&
AnalyticsOngoing Evolution
Institutionalization
CognitiveAddition
“Fleet Managed Robots”
BPO/BPMCTO or
COO
Extensive centralized subsidies for OPEX
and CAPEX
Extensive and
CurrentCatalogue
Detailed, Repeated
ConfiguredProcesses
Integrated into
Service Provider Business Platforms
RPA mgmt data auto extracted and built
into dashboard
Integrated solutions
with “self-healing” robots
Industrialization
AugmentSpecialists
Orchestra of Robots
Global Process or
OpexLead
Limited centralized subsidies
Basic or Limited Program
and Sharing
Expand to include
“what if” processes
Integrated into clients apps and
worlkflows
RPA mgmt data
extracted in
systematic manner
Flexible and configurabl
e robots
Initialization
ReplaceLabour
IndividualRobots
Client Team Leads
OrCenter Leads
Project based or
client recovery
Ad-HocFocus on individual
as-is
Citrix Based Use
Cases
RPA mgmt data used at best in
ad-hoc moments
Static robots with
manual changes
© 2014 HfS Research Ltd. Proprietary │Page 9
However, in the current state of RPA we are generally still in level 1 across most BPM service providers
Goal of RPA
RPAMindset
RPAProgramOwner
RPAProgramFunding
Best Practice
Approach
Maturity of
Processes
RPATech
Vision
Mgmt&
AnalyticsOngoing Evolution
Institutionalization
Integrated into
Service Provider Business Platforms
Industrialization
Global Process or
OpexLead
Limited centralized subsidies
Integrated into clients apps and
worlkflows
RPA mgmt data
extracted in
systematic manner
Initialization
ReplaceLabour
IndividualRobots
Client Team Leads
OrCenter Leads
Project based or
client recovery
Ad-HocFocus on individual
as-is
Citrix Based Use
Cases
RPA mgmt data used at best in
ad-hoc moments
Static robots with
manual changes
© 2014 HfS Research Ltd. Proprietary │Page 10
So what’s next for RPA
In the next six month’s we expect to see in RPA:
A slow down in the overall level of hype and more discussion of this Maturity Model
Real end user case studies emerging that detail realistic cost/efficiency improvements
More shared center/captive/GBS leads who implement RPA across their BPM providers
Varied solutions (third party and proprietary) for different technology environments
Extensive integration of RPA into BPM service provider business platforms
Version 2 of the HfS Robotic Premier League (December 2014)