unveiling the early leaders providing ai capabilities for ......using predictive analytics and...
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© 2017 HfS Research, Ltd. Proprietary │Page 1
The Services Research Company
Unveiling the Early Leaders
Providing AI Capabilities
for the Digital OneOffice
An HfS Webcast Production
July 7th 2017
Phil FershtCEO and Chief [email protected]
Tom ReunerSVP, Intelligent Automation & IT [email protected]
© 2017 HfS Research, Ltd. Proprietary │Page 2
Overview:
• Industry analyst, author, speaker, strategist, entrepreneur and blogger
• 20 years’ in the global IT and business process outsourcing and shared services industry spanning analyst and consulting roles
• Coined the As-a-Service Economy in 2014
• Coined The Digital OneOfficeTM in 2017
• Advised and on 100’s of global IT services, BPO and shared services engagements
• Overseas the largest global network of enterprise services and operations professionals
Career Experience:
• Founded HfS Research in 2010, overseeing an unprecedented growth story in the analyst industry
• Practice Lead, Global IT Services & BPO Research, Gartner, Inc
• Global BPO Marketplace Leader, Deloitte Consulting
• Consulting Practice Head, IDC Asia/Pacific
• European IT Markets Practice Lead, IDC Europe
Education:
• BSc. Honors in Business & Technology, Coventry University, UK
• Diplôme Universitaire de Technologie in Business & Technology, University of Grenoble, France
@pfershtWeb: hfsresearch.comBlog: horsesforsources.com
Phil Fersht, CEO and Chief Analyst, HfS Research
© 2017 HfS Research, Ltd. Proprietary │Page 3
B2B Digital SpendCould reach $2
Trillion in North America in
2020, as high as $7
Trillion Globally
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Investment Banking
Retail Banking Insurance Technology
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Retail Banking Pharmaceutical Government
Digital Renovation: Digital Transformations Create Revenue Streams and Enhance Customer Engagement
Once a stodgy catalog company, Argos has undergone a digital transformation to the 3rd largest online retailer in the UK.
Argos now provides an omni channel experience through linking online, mobile and physical channels. Online and mobile spend now 50% of revenue stream
European Financial Group created online bank Widiba to move from a product centric view to a client centric one.
New front end system allows for multiple languages, high level of personalization and excellent user experience. Widibaattracted 20,000 new 1st customers within 3 months.
GSK’s new Digital Platform was built to deliver a better B2B experience.
GSK has upgraded its direct B2B purchasing system to add multi-device access and new elements that make purchasing vaccines similar to a consumer shopping experience. Results are an approx 3.2% increase in buyers
Using predictive analytics and social media and connect with the public. These two approaches are building trust within the community and preventing large scale crime.
Estimate is timeliness of information reporting by the public has increased 37% since 2015
© 2017 HfS Research, Ltd. Proprietary │Page 6
The Fundamentals
of a “OneOffice”
Organization
Standardized
Processes
Automated,
Real Time &
Converged
Data
Diverse Global
Workforce
Multiple Avenues
to Source Talent
on-demand
Flat
Structure
Dynamic Management
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The Future of Operations: The Digital OneOfficeTM Organization
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[email protected]@tom_reuner
Overview▪ Tom Reuner is Senior Vice President, Intelligent Automation and IT
Services at HfS. Tom is responsible for driving the HfS research agenda
for Intelligent Automation and IT Services. Automation cuts across the
whole gamut ranging from RPA to Autonomics to Cognitive Computing
and Artificial Intelligence. This includes increasingly the intersections of
unstructured data, Analytics, and Cognitive Automation while mobilizing
the HfS analysts to research Intelligent Automation dynamics across
specific industries and business functions. Furthermore, he is supporting
HfS’ push to disrupt IT Services research by focusing on application
services and testing. A central theme for all his research is the increasing
linkages between technological evolution and evolution in the delivery of
business processes.
Previous Experience▪ Tom’s deep understanding of the dynamics of this market comes from
having held senior positions with Gartner, Ovum and KPMG Consulting
in the UK and with IDC in Germany where his responsibilities ranged
from research and consulting to business development. He has always
been involved in advising clients on the formulation of strategies,
guiding them through methodologies and analytical data and working
with clients to develop impactful and actionable insights. Tom is
frequently quoted in the leading business and national press, appeared
on TV and is a regular presenter at conferences.
Education▪ Tom has a PhD in History from the University of Göttingen in Germany.
Tom Reuner, SVP, HfS Research
© 2017 HfS Research, Ltd. Proprietary │Page 9
AI is Hyped, Inflationary, Undefined, yet Starting to Become
Pervasive
© 2017 HfS Research, Ltd. Proprietary │Page 10
Just like Intelligent Automation, AI Should Be Seen as
Continuum
AI
NeuralNetworks
Autonomics
VirtualAgent
MachineLearning
ImageRecognition
MachineReasoning Natural
LanguageProcessing
Chatbot
DeepLearning
ComputerVision
SpeechRecognition
KnowledgeRepresen-
tation
© 2017 HfS Research, Ltd. Proprietary │Page 11© 2017 HfS Research Proprietary │Page 11
AI Building Blocks (Examples)
Technology: Nuance, Cortana, Alexa
Use cases: voice recognition, conversational services
Technology: Google DeepMind, Tensorflow, Loop AI, Microsoft Cognitive Services
Use cases: integration of data on an industrial scale, pattern recognition without
ontology or knowledge base, analysis of dark or IoT data
Technology: IPcenter, HIRO, ignio, HOLMES
Use cases: password reset in IT help desk, self-healing IT environment
Technology: IBM Watson, Amelia, LivingActor, Accenture myWizard
Use cases: substitute of IT and business agent, virtual data scientist, virtual scrum
master, mortgage broker advisor
Technology: HIRO, ignio, HOLMES
Use cases: discovery in accounting, KYC, batch management
Technology: AntWorks, AlchemyAPI, Clarifai
Use cases: pattern recognition in images, integration of handwriting
NLP
Machine/Deep
Learning
Neural Networks
Virtual Agents
Auto-nomics
Computer Vision
© 2017 HfS Research, Ltd. Proprietary │Page 12
User Journey from Unstructured Request to Execution
Customerrequests
Virtual AgentStandard
transactionsSelf-service
formsDynamic Case
Flow Mgt.
• Unstructured
forms of
requests
• Different media
• Conversation
• Knowledge
infusion
• Natural
language
processing
• Analytics
• Transactions
that comply
with standard
operating
procedure
• Knowledge
base
• Interactive
forms
• Service
catalogue
• Governance
• Orchestration
of interactions
and workflows
Bots
Chat
Knowledgedatabase
NLP
• Extraction of
data
• Execution of
requests
• Scheduling
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© 2017 HfS Research, Ltd. Proprietary │Page 13
Scope
Definition of "The AI-Powered OneOffice“
The AI-Powered OneOffice is enabled by a broad set of automation and process
technologies and approaches with AI advancing the decoupling of service delivery and labor
arbitrage. Thus, AI is key enabler to move toward notions of unattended, increasingly
touchless automation. However, there is a blurred perception between AI and Cognitive
Computing, with the latter being a sub-set of AI. While we acknowledge that RPA tools are
evolving toward integrating AI capabilities, they are not in scope ion this study.
Against this background, for the purpose of this study, we understand AI as the simulation of
human thought processes across the front, middle and back office of the enterprise, where
the system makes autonomous decisions, using high-level policies, constantly monitoring
and optimizing its performance and automatically adapting itself to changing conditions and
evolving business rules and dynamics.
It involves self-learning systems that use data mining, pattern recognition and natural
language processing to mimic the way the human brain works, without continuous manual
intervention. In this context, AI is helping erode the silos across business functions to drive
real-time predictive capabilities and an engaging digital experience that unifies all the
stakeholders across the organization: the customers, partners and employees.
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Key Issues Advancing Service Delivery and Integrating AI
How do organizations integrate (increasingly unstructured) data on an industrial scale into delivery backbones?
How do you manage those data sets (clean, annotate, structure, pre-process etc.)?
How do you derive meaning and insights from those data sets?
How do you route customer specific data from interaction all the way to execution?
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The Long and Difficult Journey Toward Data-Centric Model
Supervised
Learning
Unsupervised
Learning
Deep
Learning
Insights, Meaning
Data,Input
AppliedLearning
Process,Production
Identify & Acquire Data
Store, Structure, Pre-process Data
Analyze Data via Machine Learning &Similar Approaches
Integrate into Production
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Endgame: Vertically infused data and insights?!
Insights, Data
Vertical Processes
Vertically infusedinsights and data
BPaaS, BPO as-a-stack,Industry platforms.
Machine learning,Neural networks,Enterprise search,Artificial intelligenceAnalytics
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Key Developments Shaping the Build-out of AI
▪ Broadly speaking, AI has a different starting point than RPA; crucially AI has much more depth and scale
▪ Focal point is the integration of data into service delivery on an industrial scale
▪ Early development phase sees organizations pursuing AI solutions with a “bolt-on” approach, applying AI at the edge of the enterprise
▪ As the market matures, AI will disrupt enterprise architectures and enterprise software
▪ Mega-ISV ecosystems evolving strongly: Microsoft, Google, AWS
▪ Even though IBM is struggling to convey strategic parameters, Watson partner ecosystem is starting to take shape
▪ Chatbots are low level and commodity. Virtual Agents routing customer requests all the way to execution
© 2017 HfS Research, Ltd. Proprietary │Page 18
AI-Powered: Methodology & Scoring (1)
Building on HfS OneOffice Premier League Table and 2016
Intelligent Automation Blueprint
Questions in RFI:
• What is your vision as well as your investments in AI that can enable the Digital
OneOffice and innovate service delivery?
• How are you organized to deliver AI and how are you integrating AI into your
service delivery organization?
• What methods are you deploying to train staff in AI related disciplines (Both IT and
non IT)?
• How do you manage to scale AI deployments?
• What are the main use cases for integrating AI?
• What are your main partnerships in AI (both technology and services firms)?
• What is your strategy in terms of developing proprietary AI solutions versus
partnering with third party apps?
• What are examples of successful deploying AI for clients? Where are you having
most success / challenges – both by industries and processes?
• What do you think will be the impact of AI on governance, testing and talent in the
next couple of years?
• What is your outlook and roadmap on AI for the next two years?
© 2017 HfS Research, Ltd. Proprietary │Page 19
AI-Powered: Methodology & Scoring (2)
Scoring:
• AI-specific:
• Vision as well as Investments in AI that can Enable the Digital OneOffice and
Innovate Service Delivery (25%)
• OneOffice Fundamentals:
• Fostering genuine Digital Customer, Partner and Employee Engagement (10%)
• Embedding Design Thinking Techniques to achieve Continuous Digital Outcomes
(5%)
• Building a Scalable Digital Underbelly that Automates and Digitizes (25%)
• Achieving an Intelligent Digital Support Function without Hierarchies and Silos
(10%)
• Establishing Intelligent, Cognitive Processes that Promote Predictive Decision
Making (25%)
© 2017 HfS Research, Ltd. Proprietary │Page 20
Call to Action for All AI Technology Providers
▪ HfS will follow up on this research with a heatmap on innovative technology approaches in AI
▪ Do get in touch in you are interested to work with us on that
▪ We are keen to learn more about innovative approaches and compelling use cases
▪ As with this research the context is service delivery
▪ If interested, drop me a line at: [email protected]
© 2017 HfS Research, Ltd. Proprietary │Page 21
The Artificial Intelligence OneOffice Premier League
Coming soon – www.hfsresearch.com/research
© 2017 HfS Research, Ltd. Proprietary │Page 22
Hear from industry leaders to learn how they have experienced our events
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www.youtube.com/watch?v=gIa5Zp6WrVs www.youtube.com/watch?v=-0m2p4iI62o www.youtube.com/watch?v=Us6ifQde4zo
© 2017 HfS Research, Ltd. Proprietary │Page 23
HfS Research: The Services Research Company
HfS Research is The Services Research Company™—the leading analyst authority and global community for business operations and IT services. The firm helps enterprises validate and improve their global operations with world-class research, benchmarking and peer networking. HfS Research was named "Independent Analyst Firm of the Year for 2017" by the Institute of Industry Analyst Relations which voted on 170 other leading analysts. HfS Chief Analyst, Phil Fersht, was named Analyst of the Year in 2017 for the third time.
HfS coined the terms "The As-a-Service Economy" and "OneOffice™", which describe HfS Research's vision for the future of global operations and the impact of cognitive automation and digital technologies. HfS' vision is centered on creating the digital customer experience and an intelligent, single office to enable and support it. HfS’ core mission is about helping clients achieve an integrated support operation that has the digital prowess to enable its enterprise to meet customer demand - as and when that demand happens. With specific practice areas focused on the Digitization of business processes and Design Thinking, Intelligent Automation and Outsourcing, HfS analysts apply industry knowledge in healthcare, life sciences, retail, manufacturing, energy, utilities, telecommunications and financial services to form a real viewpoint of the future of business operations.
HfS facilitates a thriving and dynamic global community which contributes to its research and stages several OneOffice™ Summits each year, bringing together senior service buyers, advisors, providers and technology suppliers in an intimate forum to develop collective recommendations for the industry and add depth to the firm’s research publications and analyst offerings.
Now in its tenth year of publication, HfS Research’s acclaimed blog Horses for Sources is the most widely read and trusted destination for unfettered collective insight, research and open debate about sourcing industry issues and developments.
HfS was named Analyst Firm of the Year for 2017, alongside Gartner and Forrester, by leading analyst observer InfluencerRelations.