© 2018 Consider Solutions All rights reserved

© 2018 Consider Solutions All rights reserved1

Presenting Your Speakers

Susie West

CEO

sharedserviceslink

Dan French

CEO

Consider Solutions


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Agenda

• Context for the day

• Introductions

• Setting the scene – where are we with RPA

• Hype and Reality

• Challenges on the Road to Intelligent Automation

• Driving Sustainable Process Improvement

• Critical Factors for Success

• Summary & Re-cap


Context

• RPA and Intelligent Automation have had a lot of coverage in the last 18

months, and the conversation has moved from vision to execution.

• Now it’s time for a reality check.

• There is now enough experience to diagnose some of the key challenges

and identify root causes that are impacting the success of RPA.

• Let’s take a look!


This Session

Introductions

Setting the scene – where are we with RPA

Hype and Reality

Challenges on the Road to Intelligent Automation

Driving Sustainable Process Improvement

Critical Factors for Success

Summary & Re-cap

6 © 2018 Consider Solutions All rights reserved

Context & Perspective



Global Influences

Setting the scene

Where are we with RPA?

Poll Question 1

Where are you today with RPA?

‐ Researching

‐ Pilot

‐ Rollout

‐ Extending

‐ Advising



The Shifting Sands of World Class Finance

Business Focus

Revenue growth through the “Uber-ization” of business through delivery of new/innovative products/services

Continue to drive down operating costs

Re-engineer / Optimize core processes for efficiency, effectiveness and strategic flexibility

Enable faster cycle decision making and course-correction

Find, attract and retain talent globally


Shared Services Imperative

Look beyond the SSC – it’s not just about efficiency within, but effectiveness beyond

Empower the GPO – provide the tools, resources, accountability and authority

Embrace Robotics and AI – explore, learn, strategize and exploit new ways of adding value

Drive Analytics – Just Do It!

Focus on Talent – what skills do we

need to acquire/retain for the future



Top 2018 organizational priorities KPMG Global Insights Pulse - January 2018

1. Continue to drive down operating costs

2. Invest in new/improved traditional & emerging IT

3. Invest more in robotic process automation

4. Optimize processes and functions to best exploit automation efforts

5. Optimize global service delivery channels; excel at GBS

6. Redesign/re-engineer core business processes

7. Invest more in artificial intelligence/cognitive computing

8. Deliver new/innovative products/services into the market

9. Find, attract and retain talent globally

10. Bring outsourced work back in-house; swap digital labour for outsourced services


“Robotics, RPA, AI, Machine Learning, Intelligent Automation, Cognitive, Augmented . . .”


Robotics & Process Automation (RPA)

Software (robots) which allow enterprises to automate high-volume, repeatable tasks on top of existing applications for processing a transaction, manipulating data, triggering responses and communicating with other systems.

‐ Basic process automation, Enhanced process automation

‐ “Cognitive” process automation, Intelligent Automation

Powerful rules-based automation – but not AI, and for good reason!

RPA, as a strategy, competes with outsourcing to drive lower operating costs, decreased cycle times and increased employee productivity

RPA software is especially useful for organizations that have multiple systems and data sources that need to interact together to achieve task outcomes

Simplification, Standardisation & Automation are strategic priorities to achieve sustainable efficiency, effectiveness and strategic flexibility

Buzzwords & Reality

“RPA is about fixing the potholes in the road. Do not confuse it with building the new highway”

Steve Gordon, VP Global Service Operations – BD

" Don't trade the entire toolbox for one screwdriver“

Sanjay Srivastava, Chief Digital Office – GENPACT

Smart Finance Leaders are signing-up to innovation

1. To deliver superior performance

2. To attract and retain the best talent

3. To ensure the entire business thrives

• 35% see innovation as relatively small steps in automation and integration rather than wholesale change to something completely new.

• 20% see innovation as the implementation of a new ERP system

• 19% see it as analytical applications that deliver better insight.

Source - Innovation in the Finance Function Survey 2018 (FSN)


RPA – Hype & Reality

“2018 is certain to be the year of RPA / intelligent automation, though a large gap will remain between expectations and readiness and capabilities”

Global Insights Pulse

KPMG


Poll Question 2

Which process are you currently focussing on for RPA?

‐ P2P – Purchase to Pay, Source to Pay, Source to Settle

‐ O2C – Order to Cash, Customer to Cash

‐ R2R – Record to Report, General Accounting, Financial Close

‐ Multiple

‐ Undecided


RPA Pilot Activity


Source: The Hackett Group 2018

RPA Projections


Source: The Hackett Group 2018

“Bot Plaudits”

Potential massive percentage efficiency gains

Reduced cycle times for “swivel chair” tasks

Bots don’t get bored, tired or lose concentration!

Massive reduction in data entry/transposition errors

Consistent task execution data helps improve processes

Improved auditability for compliance related tasks

Rapid implementation / Ease of development

Eliminates frustrating tasks from valuable people

Refocus talent on higher value work

Makes the workplace more appealing to hire into


“Bot Kicking”

“Bot-Sitting” control, oversight and governance – who is looking after the bots?

Bot-development still needs governance, control and process

Bots have no judgement and will repeat errors at scale if bot rules are not well designed and monitored

Powerful rules-based automation – but not AI, and for good reason!

If you don’t have detailed, task level, standard operating instructions (SOP), don’t bother with RPA

“Automation makes bad worse, faster”

The higher the percentage productivity benefit claimed, the smaller the task

Scaling RPA benefits from task to process is challenging


“Bot Insights”

“RPA is about fixing the potholes in the road. Do not confuse it with building the new highway”

RPA does not replace traditional IT, but it helps close the gap in the ‘last mile’ of processing

“The best automation is elimination”

“It’s not about the task, it’s about process outcomes”

Getting it right with RPA, “engage IT, CISO, Audit early, as well as the business process stakeholders”

Team structure and placement for RPA is crucial, balanced set of business process skills with logic, data and systems skills

“Understand, Simplify, Harmonise/Standardise”

GIGO – it was ever thus . . .


Poll Question 3

How many tasks have you successfully applied RPA to?

‐ None yet

‐ In progress

‐ 1

‐ 2-10

‐ 10+



Observations and Impact from the early movers

“There is no centre of gravity around the ERP anymore”

“RPA needs extremely well documented ‘keystroke’ level procedures like you have never had before”

“Key criteria for RPA ready tasks are REPETITIVE, ROUTINE, RULES-BASED”

Need to understand impact on risk and internal controls, Segregation of Duties for example . . .

38% of RPA implementations FAIL to achieve expected benefits

28% RPA will impact decision to renew BPO contracts


Culture & Change Management

87% of executives are positive about robotics and RPA whilst only 17% of transactional workers are on board. Need to improve the communication of the outcome.

Bot “sabotage” is big challenge in culture and change management

17% see RPA impacting talent management / HR strategy

“Avoid confusion. It’s not RPA, it is Robotic Task Automation”


“Bot Naming” – Drive attention, interest & support


The Road to “Fail to Scale”

End-to-End Business Process understanding

Choice of RPA target tasks to automate – business analysis

Technical knowledge, talent and skills

Creating reusable designs/templates

Governance of bots

Addressing master data / input data quality prior to RPA

Detailing bot rules, standardisation & understanding exceptions

Organisation implications in RPA itself, CoE etc

Organisational impact in business: roles, talent, change, acceptance

Impact of upgrades/maintenance/changes to source systems (ERP)

Apparent reduced dependency on IT is misleading . . .

Managing expectations and risk of future ‘legacy’


Standardisation & “The Rules” Challenge


Robotic Task Automation & The Big Prize

RPA can drive positive change at a fraction of the cost of ERP developments – embrace it

But . . .

‐ Process vs task optimisation

‐ Perception of low-cost simplicity

‐ The RPA process governance challenge

‐ Driving performance improvement at scale

‐ Be prepared to surf the waves of change


36

Technology can help . . .

© 2018 Consider Solutions All rights reserved


But is not effective alone . . .


There is a delicate balance to be made


Action

Insight

Where is the lowest hanging fruit?


Where are our Performance Gaps?


Peer Group Benchmark

Where are the Process Exceptions?



Where are the Process Cycle variations?

Smart Data Analytics provides Key Insight

Up to 76% of POs are created by some form of RPA

Up to 20% of POs created automatically are subsequently deleted or unused

11% of vendor master is duplicated or erroneous

0.4% of supplier invoices still slip through as duplicates

1.3% of supplier invoices are entered /processed late

16% of POs are high vendor frequency (within a week)

24% of POs have a value below £1000

Up to 92% touchless invoices

Up to 60% early payment discount capture

80% of payment terms rarely used

Surprisingly improperly segregated duties (requestors/approvers)


Poll Question 4

How do you identify the areas for process improvement?

‐ Requirements workshops/discussion with process stakeholders

‐ Industry standard KPIs and benchmarks

‐ Internal Audit

‐ Relevant case studies

‐ Process Analytics


Data is the new Strategic Building Block


Lessons Learned - Critical Factors for Success

Critical Factors for RPA Success

1. Selecting the Right Target for RPA

‐ Analyse your end to end process (P2P, O2C, R2R, H2R)

‐ Identify end to end process performance gaps

‐ Decompose end to end process to identify RPA friendly tasks

Transposing data between applications

Extracting, entering, transposing from files and spreadsheets

Processing and updating forms

Merging, consolidating, archiving data

Tracking and monitoring tasks and data

Formatting and reporting

File (Excel) management, downloading, updating, uploading

Repetitive calculations on data





Demand Sourcing Contracting Ordering Fulfilment Settlement

Source to Contract Purchase to Pay

Source to Pay




Identify the manual, repetitive, routine, rules based tasks

Demand Sourcing Contracting Ordering Fulfilment Settlement

Source to Contract Purchase to Pay

Source to Pay

Supplier details registrationSupplier onboardingContract terms captureSupplier data validation

Purchase Request ApprovalPurchase Order CreationPurchase Order ApprovalSupplier Order ManagementSupplier Queries

Invoice CaptureInvoice MatchingReceipt ConfirmationInvoice ApprovalPayment Scheduling


2. Planning the Journey

‐ Engage Stakeholders and agree business outcomes

‐ Agree realistic measures of success and milestones

‐ Build the team with an eye to the future

‐ Agree your RPA process /operating model

‐ Central/Local/Remote?

‐ Select the right tool for the use-case

Linear task, task orchestration, ERP integration

‐ Work out how you will get/develop the skills

‐ Decide rollout/iteration/business value confirmation model

Surprise? It’s a human change challenge



Critical Factors for RPA Success 2. Planning the Journey

Stakeholder Management

Measuring & Communicating

Progress

Program Organisation &

Governance

Process Design

Business Service

Management

Skills & Capability

Automation & Enabling

Technology

ProcessManagement

Process Placement, Sourcing & Operation

Defining Outcomes

Monitor

Driving Sustainable

Change


3. Building the RPA Centre of Excellence

‐ The RPA Strategy & Process

‐ Roles & Responsibilities

‐ Relationship Management & Service Level Management

‐ Business Process Knowledge & Business Analysis skills

‐ RPA Readiness Assessment

‐ Change Management, Governance

‐ Audit Readiness – risk and control

‐ RPA Tool skills & Reusable Components

‐ IT Impact & System Incident Planning & Management


Task vs Process Balancing Priorities in Time & Investment



Future of Intelligent / Smart Automation

Transactional Work

Decision Work

Knowledge Work

ADAPT

“Sequence & Execute”

SENSE

“Gather & Evaluate”

ERPProcess SuitesRPA

AnalyticsSearchAI

ChoicesAuthorisationRisk Taking

Automation Augmentation

Interpretation

Platforms for Success – e2e Process

System of Record (ERP)

Augmented Process Suites (P2P, O2C, R2R)

Task Automation/Integration (RPA +)

Performance Management (AI +)

End to End Process Ownership & Governance (GPO)


Action & Insight in Balance

57

Increased Contract Compliance

Increased spend visibility

Bring more spend under control

Pay on time

P2P Efficiency

By implementing P2P Standardisation we will:

➢ Increase contract compliance

➢ Increase spend visibility

➢ Pay suppliers on time

➢ Increase the efficiency of the P2P process

➢ Increase reach of the P2P compliant solution; and

➢ Reduce risk by bringing more spend under control

When “JFDI” created un-intended consequences


When Action and Insight are in Harmony


Summary & Re-cap

This Session

Introductions

Setting the scene – where are we with RPA

Hype and Reality



Critical Factors for Success

Summary & Re-cap



“I skate to where the puck is going to be, not where it has been.”

Wayne Gretzky

Reputedly the greatest ice-hockey player ever

Questions, Comments, Feedback? [email protected]

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