W H I T E P A P E R

Chris Huff, Chief Strategy Officer, KofaxDavid Sentongo, Center of Excellence Lead, Kofax

S C A L I N G , E X PA N D I N G A N D E XC E L L I N G

INTELLIGENT AUTOMATION

Work Like Tomorw.

CONTENTS

Introduction ................................................................................................................. 4

The Kofax Intelligent Automation Platform ......................................................... 7

“Platform to Life”: An Example of Intelligent Automation in Practice .......... 8

The Center of Excellence: An Operations Vehicle That Supports Scale .... 12

Getting Started with Intelligent Automation ..................................................... 17

Final Thoughts ........................................................................................................... 21

About Us .................................................................................................................... 22

INTRODUCTION

There is a convergence taking place between the digital economy and the physical

world, which presents an opportunity for organizations to get ahead by managing

how these worlds come together. This means implementing automation to work

tightly alongside people so that organizations can operate better, faster, and more

efficiently. Early adopters, who have found a healthy balance between people and

automation, are already seeing results, and this will continue.

According to a Deloitte Survey1, this group has observed outcomes such as improved productivity (95%), improved compliance (93%), reduction in costs (91%), and improved data quality (77%).

1Deloitte Global RPA Survey

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Organizations that remain relevant and prosper will ‘win’ with a focus on

delivering a positive end-to-end digital customer experience, while also improving

operational efficiency. They will invest in Intelligent Automation platforms that

unite people, processes, and technology in order to enhance operations and

deliver the personalized experiences that customers are increasingly becoming

accustomed to.

This is called “Working Like Tomorrow.”

Organizations can Work Like Tomorrow using an Intelligent Automation platform

that brings together an optimal mix of interoperable automation technologies into a

‘toolkit’ for automating end-to-end operations.

According to the Everest report2, tight integration between complementary

platform technologies enables end-to-end automation for organizations.

However, Working Like Tomorrow with Intelligent Automation encompasses more than just a technology platform.

Intelligent Automation requires organizations to rethink how their operating

models work. For example, this includes re-engineering operations as needed to

streamline (pre-any automation) prior to automating them and empowering people

to adopt elevated roles and responsibilities.

In this white paper, we’ll further define what it means to take an elevated ‘platform

approach’ to automation while also positioning the Center of Excellence, which is

an organization’s ‘office’ for scaling automation and navigating the operating model

impact driven by introducing a digital workforce. We’ll wrap up with next steps for

organizations wanting to Work Like Tomorrow with Intelligent Automation.

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2Everest Group, Intelligent Document Processing (IDP) – Technology Vendor Landscape with Products PEAK Matrix™ Assessment, 2019

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A platform integrates several ‘point’ solutions to further extend the value they individually would drive within organizations.

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THE KOFAX INTELLIGENT AUTOMATION PLATFORM

The Kofax Intelligent Automation platform brings together people, processes, and

technology such that organizations can automate a greater and more diverse set of

business problems while reducing total cost of ownership for automation. With this

toolbox, organizations can automate a greater and more diverse set of business

problems while avoiding the shortcomings of stretching individual technologies

beyond their limits.

For example, RPA alone is often not enough to automate operations. What if at a

certain point, unstructured data needs to be ingested? What if multiple ingestion

channels need to be supported? Is there active hand-off that needs to take place

between people and automation? These and many other questions suggest that an

end-to-end scalable solution involves multiple technologies, not just one.

PEOPLE Empowering workers with

robust automation solutions

and shifting them to more

judgement-based activities.

TECHNOLOGYProviding a holistic

Intelligent Automation

platform of interoperable

capabilities that serves

as the ‘connective tissue’

across the enterprise

to deliver capacity.

PROCESS Orchestrating

end-to-end automation

of operations while

improving the

collaboration between

workers and automation.

INTELLIGENTAUTOMATION

TOTAL AUTOMATION YIELD

The value of a platform approach can be measured via a concept called ‘Total

Automation Yield,’ which is a function of the financial, operations, workforce,

and strategic impact driven by automation. Each of these buckets have

quantitative and qualitative factors, and there are a variety of detailed metrics

within that can be included or excluded.

Therefore, there isn’t one standard way to calculate Total Automation Yield. However,

and more importantly, it provides a framework for considering the benefits of adopting

a platform vs. point solutions.

Broadly speaking, given the ability of a platform to automate a larger percentage

of operations compared to point solutions (operations and workforce impact),

along with lower total cost of ownership as compared to bringing together

multiple vendor technologies (financial impact), organizations may find that

there is higher yield in adopting a platform vs. an alternative approach.

INTELLIGENT AUTOMATION: P&N BANK

With a customer-focus mindset, P&N sets itself apart from traditional banking

institutions to boost service levels and transform back office operations. They

recognized an opportunity to implement RPA to complete transaction requests.

Later in their journey, they realized that although RPA is powerful, they needed

a complementary capability to manage end-to-end digital operations, which

led them to scale into the Kofax platform product for orchestration, Kofax

TotalAgility. Using the two products together, P&N has been able to boost

productivity by 20% while also improving service levels with their customers.

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Customer registers via web/mobile app, scans relevant documents, and submits application.

MOBILITY & COGNITIVE CAPTURE

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Verify applicants via external/internal records.

Customer e-signs contract and other docs.

Complete, accurate, verified application submitted to the systems of record.

RPA & ORCHESTRATION

MOBILITY & ENGAGEMENT

RPA & ANALYTICS 2

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Customer reviews confirmation of application approval.

7 ORCHESTRATION

Employee reviews application for approval.

Employee approves application.

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A simple customer onboarding example below demonstrates the power of taking

a platform-based approach to automation. A customer onboarding workflow has

steps that span multiple technologies and people. With a platform, the hand-off

of data along each step becomes seamless, reducing maintenance overhead for

the organization, and enhancing the customer’s experience. This wouldn’t be so

seamless integrating multiple vendor technologies, and it wouldn’t be possible if

an organization had only one of the technologies below:

‘PLATFORM TO LIFE’ - AN EXAMPLE OF INTELLIGENT AUTOMATION IN PRACTICE

CUSTOMERS

A Kofax insurance customer used the platform to reduce time spent processing

customer requests by 75%. The customer estimated that after adopting a platform

approach, it achieved a 25% reduction in the number of calls from customers

checking on the status of requests, and customer satisfaction scores increased by

15%. This is one organization among many that are creating optimized customer

experiences and ‘working like tomorrow’ with Intelligent Automation.

As organizations evaluate the strength of a platform, they can also consider the

following characteristics:

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A ‘BUSINESS USER-FRIENDLY’ FEEL: Critical for the platform to be simple

and user-intuitive such that it is well-adopted across the organization.

AI ENABLEMENT: Platform should allow organizations to integrate third-party

machine learning and AI engines, while also supporting such capability where relevant.

MOBILE SUPPORT: Platform capabilities should be easily accessible on the go,

as we shift more towards a world where a greater level of business is done from

mobile devices.

STRONG SUPPORT EXTENDED BY AN ECOSYSTEM: No platform can

exist on an island. Therefore, looking to the network of alliance and channel partners

along with customer engagement efforts is a strong indicator of a vendor’s strength.

A FLEXIBLE ARCHITECTURE: Ability to support cloud, hybrid and on-premise

deployment; easy integration to third-party applications via REST and SOAP web

services, Java and .NET APIs.

AVAILABILITY OF ‘REAL-TIME’ OPERATIONS ANALYTICS: Ability to

analyze what automation is doing and measure digital operations efficiency, policy

compliance and risk exposure associated with automated operations.

A scalable platform of Intelligent Automation technologies empowers employees to become creative problem-solversin ways that improvebusiness performance.

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A CENTER OF EXCELLENCE SUPPORTS OPERATIONS AND SCALE

Organizations that position a team of people to focus on each of these areas are strongly

positioned to scale Intelligent Automation and realize long-term benefits:

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PROGRAM LEADERSHIP &

VISION

HUMAN CAPITAL & TRANSITION

PLANNING

VENDOR & IT RELATIONS

KNOWLEDGE MANAGEMENT & CONTINUAL

IMPROVEMENT

PLATFORM ENABLEMENT

PROGRAM REPORTING

SIX-COMPETENCY

MODEL

PROGRAM LEADERSHIP & VISION

VENDOR & IT RELATIONS

Resources devoted to program leadership and vision are responsible for overseeing

the Center of Excellence (COE), while ensuring that relevant company groups

remain informed and consulted as an automation program grows. For example,

this group could liaise with internal audit team, ensuring audit standards are

interwoven within operations of the automation program. Similarly, these resources

might coordinate with IT to ensure that IT stakeholders understand the reach and

workings of the program. An automation program can quickly be stifled without

liaison resources like this. In practice, this might look like a steering committee

that regularly meets to discuss, manage, and track all things automation related,

subsequently activating other program participants as necessary to drive initiatives.

Resource(s) in the COE should be designated to manage the relationship with an

Intelligent Automation platform vendor. Externally, this encompasses tracking

vendor software updates, coordinating with vendor customer support personnel

to troubleshoot problems, negotiating discounts and licensing, and evaluating the

landscape for new vendors to the extent the enterprise outgrows its current vendor.

Internal considerations exist as well; will automation software be run on a dedicated

server? Or within a server shared with other resources? Who monitors the infrastructure

day to day to ensure that equipment does not get overloaded or abused?

These are just a few of the many questions a resource dedicated to internal coordination

would focus on always having an answer to. In practice, a program ‘operations specialist’

might be assigned these responsibilities, but these people resources can exist within IT,

the business, or can even be a blend of both. The bottom line: it is important to ensure

that people within the enterprise are continually focused on monitoring these things.

Although seemingly innocuous in the short term, problems here can immediately bring

an automation initiative to a halt.

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PLATFORM ENABLEMENT

HUMAN CAPITAL & TRANSITION PLANNING

Resource(s) should be dedicated to creating enablement assets to support adoption

and proliferation of automation. This is a very ‘wide’ statement, and will mean

something different within each organization, based upon how their program is

structured. For example, an organization that has decided automation solutions

should be designed internally (by its employees) will want to think through how

exactly designated developers will be trained to develop using centralized standards

(as established by the governance function). An organization that has outsourced

automation development might still consider training focused on how to identify and

evaluate use case candidates.

Human capital-focused resources work on proactively identifying the people impacts

driven by automation and how to address them in such a way that the workforce continues

to feel empowered. This encompasses changes in roles/positions, how automation can

impact future hiring (skills sets), and closing broader skills gaps created by automation.

These resources should also be focused on creating positive sentiment around an

automation initiative and addressing the natural fears that can arise along this journey (i.e,

job loss and workforce arbitrage). Leading enterprises quickly realize that success does

not lie in driving straight-through processing (STP) rates to the highest degree possible

and/or establishing automation programs predicated on reducing headcount. Instead,

it means finding the right balance between their people and a new wave of ‘digital ’

workforce capacity provided through automation.

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Broadly speaking, training is about addressing and closing any skills gaps that could impede success in a ‘tomorrow’ state marked by increased use of automation.

PROGRAM REPORTING

KNOWLEDGE MANAGEMENT & CONTINUAL IMPROVEMENT

Continued investment is predicated upon a track record of creating quantifiable

impact. Therefore, it is natural that resource(s) should be allocated towards

monitoring the impact that automation is driving, and regularly reporting out to a

program champion/sponsor. Thinking about this upfront also helps the business

develop a clear picture of what success looks like with automation, and how it ties

back to broader strategic initiatives. Success metrics have a direct influence on

what format reporting should take (i.e, KPIs to measure, problem indicators, etc.).

There is so much to be learned in the process of actively designing and deploying

automation. For example, an organization might establish a defined set of best

practices that revolve around testing and deploying a new version of automation

software. Given the pace of innovation and change within the space, it is natural

to see vendors release frequent (even quarterly) updates to software. This creates

a need for the business to have a systematic way of adopting, testing, and

deploying new releases without disrupting existing automated operations.

Program reporting is not limited to justifying investment; it can also feed into

human capital and enablement efforts. For example, communicating and

leveraging good news stories across the enterprise is a great way to alleviate initial

apprehension and show people in a practical way how automation can drive impact.

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It is critical that the business has a way to quantitively measure the impact that automation is driving via the lens of metrics that mature to program sponsors/investors.

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How to get started?

GETTING STARTED WITH INTELLIGENT AUTOMATION

As with all things, the first step to answering ‘big’ questions is establishing a simple

framework that makes sense of the noise. With time, what seemed insurmountable

begins to make sense, and ultimately becomes second nature. Organizations can

follow a phased approach to adopting automation: starting with a maturity model

assessment, maturing that into an implementation journey map, and finally standing

up and operating an automation initiative based on the journey map established.

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START WITH A MATURITY MODEL ASSESSMENT

A maturity model assessment begins with evaluating automation readiness from a

technology and process perspective. IT should be engaged early to understand

how automation technologies will fit within an enterprise IT stack, who will manage

software once implemented, and how to ensure security protocol is adhered to

along the journey. Many times, IT has a process for software architecture review and

approval prior to any software install. This can take time and should be factored into

a roadmap to adoption.

Parallel to this is evaluating the state of business operations. How well-documented

are they? Is there a layer of initial optimization and re-engineering that can take

place prior to automation?

Optimizing anything ‘broken’ that might exist in current state day-to-day workflows/

activities is an important precursor to implementing automation. Organizations will

win by injecting automation to further enhance a well-documented and optimized

set of operations, as opposed to compensating for any ‘brokenness’ in how things are

currently being done.

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After performing a maturity model assessment, the business should create a blueprint

for identifying and evaluating candidate use cases for intelligent automation, designing

solutions in automation software, and creating a program office around automation.

A framework for evaluating automation candidates addresses what technologies are

required to automate them, as well as the business case for automating each respective

process. This allows the business to objectively evaluate and rank candidates, which is

critical to prioritizing development efforts when resources are limited.

After use case candidates have been identified, a standard gate review workflow can

be applied as they move from ‘concept’ to implementation. Gate review encompasses

steps such as initial documentation/design, to building the solution across respective

platform technologies, user acceptance testing, and ultimately, going live. A scalable

model calls for check points at each step, with artifacts to validate movement along

the gate review workflow.

ESTABLISH AN IMPLEMENTATION JOURNEY MAP

During this stage, the business should also agree upon an ‘operating model’ for

its automation program. Operating models range from Centralized, to Hybrid, and

even Decentralized. This encompasses the consolidation of people responsibilities

within an automation program:

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CENTRALIZED

All aspects of

running the program

are performed and

controlled by

a single team.

DECENTRALIZED

All aspects of running

the program are

replicated across

separate business units.

HYBRID

Some aspects of

the running program

are centralized with

a single team, while

others are replicated

across separate

business units.

A program may initially function under a Centralized model, with a few people

who manage all things program related. This makes sense if only a small group

of people is initially involved with automation efforts. A gradual shift to a Hybrid

approach may take place as more business units adopt automation. To support

scale, responsibilities that were previously centralized are outsourced to the

business units so the central team can focus more on program-wide initiatives.

BUSINESS OPERATING MODELS

SCALE & INNOVATE

After performing a maturity model assessment and establishing a roadmap for

change, the business can shift focus to operating and growing its automation program

according to that roadmap. The roadmap provides a framework for scale, along with

mechanisms for capturing lessons learned and best practices along the way.

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Scale should be supplemented with innovation, and a continual ‘outward look’ for new technologies that can be brought into the program.

FINAL THOUGHTS

Intelligent Automation will fundamentally change the way we do business.

The concept of introducing digital capacity and tightly inter weaving it with people will result in untold increases in productivity, faster decision-making, improved auditability of business processes, a more empowered workforce, and overall better business.

Armed with the above considerations on people, processes, and technology, we believe that you will be best positioned to adopt and realize the benefits that Intelligent Automation has to offer.

For more information, visit KOFAX.COM.

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ABOUT US

Kofax helps organizations transform information-intensive business processes,

reduce manual work and errors, minimize cost, and improve customer engagement.

We offer an integrated Intelligent Automation platform that combines RPA,

cognitive capture, process orchestration, advanced analytics, and mobility &

engagement capabilities. This makes it easy for our enterprise customers to

implement and scale for dramatic, immediate results that mitigate compliance risk

and increase competitiveness, growth and profitability.

We also offer a Platform Advisory service to introduce customers to the people

and technology considerations that arise in scaling with the Kofax Intelligent

Automation platform. The Platform Advisory service is a great medium through

which to learn about the various frameworks for standing up an automation

program, along with support models (i.e. where there are opportunities to

leverage a solution integrator or outside consultant vs. in-sourcing program

responsibilities). The Platform Advisory service positions customers to make

informed decisions as to how to manage automation and where they can leverage

external help along the journey.

Kofax provides a rapid return on investment for over 30,000 Kofax

customers in financial services, insurance, government, healthcare, supply

chain, business process outsourcing and other markets. Kofax delivers its

software and solutions through its direct sales and services organization

and more than 650 indirect channel partners in more than 60 countries

throughout the Americas, EMEA and Asia Pacific.

kofax.com© 2019 Kofax. Kofax and the Kofax logo are trademarks of Kofax, registered in the United States and/or other countries. All other trademarks are the property of their respective owners.

Work Like Tomorw.