NASSCOM BPM Summit 2014 : Key note Robotics Process Automation : - Charles Sutherland, Executive VP, Hfs Research

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

[email protected]

© 2014 HfS Research Ltd. Proprietary │Page 2

[email protected]

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.

mailto:[email protected]


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


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


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


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?”


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


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


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


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)