HfS Webinar - Transforming a Professional Services Firm ......Underpinned by Artificial Intelligence, including technologies provided by IBM Watson, Open Source, Microsoft and others,

November 2017

TRANSFORMING A PROFESSIONAL SERVICES FIRM WITH INTELLIGENT AUTOMATION

©2017 HfSResearchLtd.

Overview:• Industryanalyst,author,speaker,strategist,entrepreneurandblogger• 20years’intheglobalITandbusinessprocessoutsourcingandshared

servicesindustryspanninganalystandconsultingroles• CoinedtheAs-a-ServiceEconomyin2014• CoinedTheDigitalOneOfficeTM in2017• Advisedandon100’sofglobalITservices,BPOandsharedservices

engagements• Overseasthelargestglobalnetworkofenterpriseservicesandoperations

professionals

CareerExperience:• FoundedHfSResearchin2010,overseeinganunprecedentedgrowthstory

intheanalystindustry• PracticeLead,GlobalITServices&BPOResearch,Gartner,Inc• GlobalBPOMarketplaceLeader,DeloitteConsulting• ConsultingPracticeHead,IDCAsia/Pacific• EuropeanITMarketsPracticeLead,IDCEurope

Education:• BSc.HonorsinBusiness&Technology,CoventryUniversity,UK• DiplômeUniversitairedeTechnologieinBusiness&Technology,University

ofGrenoble,France

[email protected]

@pfershtWeb:hfsresearch.comBlog:horsesforsources.com

PhilFersht,CEOandChiefAnalyst,HfSResearch



Six Value Levers Driving this Digital Operations Industry


C-SuitedirectivesonOperationsfocusedonOneOfficeautomation,machinelearningandreal-timedataHowcriticalarethefollowingC-Suite directivestoyouroperationsstrategy?(SVPsandabove)

20%

22%

26%

30%

31%

31%

42%

48%

46%

55%

45%

48%

48%

43%

19%

19%

13%

20%

15%

15%

8%

12%

12%

5%

5%

6%

6%

7%

Invest in cognitive techn and machine learning to reduce reliance on mid/high skilled labor

Invest in process automation and robotics to reduce reliance on low-skilled labor

Improve the quality of operations talent

Accelerate speed to market with new products

Create real-time data that supports predictive, not reactive decisions

Align middle/back office operations to improve customer experiences

Drive down operating costs

Mission Critical Increasingly Important Emerging Not a Directive

Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017” Sample: n=454 Enterprise Buyers


TheFutureofOperationsintheRoboticAgeTheOneOfficeTMOrganization


Automation and AI Business Operations Spend 2016-2021

0.3 0.4 0.6 0.8 1 1.2

4.86.2

7.58.9

10.211.5

0.71.1

1.62.0

2.42.7

0%

5%

10%

15%

20%

25%

30%

35%

0

5

10

15

20

2016 2017 2018 2019 2020 2021

Y-oY

Grow

th(%

)

Expe

nditu

re(U

S$Billions)

RPA IntelligentProcessAutomation AIBusinessOperationsSpend Growth(YoY)

$5.8Bn

$7.7Bn

$9.7Bn

$11.7Bn

$13.6Bn

$15.4Bn

Source:HfSResearch2017

AI refers to the simulation of human thought processes across enterprise operations, where the system makesautonomous decisions, using high-level policies, constantly monitoring and optimizing its performance andautomatically adapting itself to changing conditions and evolving business rules and dynamics. It involves self-learningsystems that use data mining, pattern recognition and natural language processing to mimic the way the human brainworks, without continuous manual intervention.


[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.

PreviousExperience§ 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§ TomhasaPhDinHistoryfromtheUniversityofGöttingen inGermany.

Tom Reuner, SVP, HfS Research


AI is Hyped, Inflationary, Undefined, yet Starting to Become Pervasive


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


Move toward AI will bring mega-ISVs to the fore

AI

Data

Algorithms

Platform

Compute

GoogleTensorProcessingUnit

NVIDIAVolta

SAPLeonardo

SalesforceEinstein

GoogleNeuralMachineTranslations

GoogleWaveNet

GoogleTensorFlow

AmazonMachineLearning

GoogleCloudMachineLearning

MicrosoftCognitiveServices

OracleDataCloud

OracleAdaptiveApps

IBMWatsonDataInsights

IBMWatsonAPIExplorer

HIROKnowledgeCore

HIROEngine

WiproHolmes

TCSignioIBMWatson

KnowledgeStudio

GoogleDeepMind

Celaton Instream

LoopAI

CortanaIntelligentServices

AzureMachineLearningSAP

DataHubAWSPublicDatasets

InforColeman

AmazonRekognition

AmazonLex

IBMWatsonVirtualAgents

IntelMovidius

AmazonConnect

FujitsuDLU

AMD/GloFlo

OracleIntelligentBots

IntelLoihi

AdobeSensei


User Journey from Unstructured Request to Execution

Customerrequests VirtualAgent Standard

transactionsSelf-service

formsDynamicCaseFlowMgt.

• 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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The journey toward General AI is all about data

Technology,Algorithms

Data

Narrow AI General AI

Agent SubstitutionHuman Agent Agent Augmentation


Today’s Panel

CliffJusticePrincipal,Innovation&EnterpriseSolutionsKPMG

USleaderofKPMG'scognitivetechnology,automationanddigitallaborinitiatives

Vinodh SwaminathanPrincipal,IntelligentAutomation,Cognitive&AISolutionsKPMG

DigitallytransformingindustriesandclientsthroughIntelligentAutomation;Empoweringpeople,Re-imaginingworkflowsandEnablingplatformbusinessmodelswithintheEnterprise

©2017KPMGInternationalCooperative(“KPMGInternational”),aSwissentity.MemberfirmsoftheKPMGnetworkofindependent firmsareaffiliatedwithKPMGInternational.KPMGInternationalprovidesnoclientservices.NomemberfirmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm.Allrightsreserved.

KPMG’s 21st Century Enterprise Framework


IA-enabled tax, audit, advisory services, are revolutionizing our organization and the industry

ThroughourinvestmentsinIntelligentAutomation,wearebreakinggroundusingcuttingedgeapproachestodigitallytransformourownorganizationtolowercosts,improvequalityandenableourprofessionalstodeliverhighervaluetoclientsanddomorerewardingwork.

UnderpinnedbyArtificialIntelligence,includingtechnologiesprovidedbyIBMWatson,OpenSource,Microsoftandothers,wearedevelopingsolutionsthatenable:

• Betterauditquality

• Broader,deeperviewsintoacompany’sdataandperformance

• Richer,moreinformedperspectivesonbusinessrisksaswellasreportingandoperationalissues

• Acceleratedinsight-drivendecisionmaking

• Greatercoverageandanalyticaldepth


Transformingaprofessionalservicesfirmwithintelligentautomation

OurchallengeTechnologyenabledbysoftwareandcutting-edgeplatformsisgettingsmarter,continuallylearningfromourinteractionsanddecisions,evenanticipatingourneeds.Asaleadingprofessional-servicesfirm,weunderstoodearlythatintelligentautomationtechnologieswouldcreatemajordisruptionsinourfieldandforclientsinthemanyindustriesweserveeveryday.

Ourbenefits— Intelligentautomationsystemscananalyzemassiveamountsofdatatosolve

businesschallenges.

— KPMGprofessionalsandourclientscanfocusonvalue-addingactivitiesinsteadofmoretime- andlabor-intensive routinework.

— Wecanteachthetooltodrawconclusionsandcometoconfidence-basedoutcomes.

— ThesetechnologiescanprovideKPMGandourclientswithtransformationalbusinessstrategiestomeetourandourclientsneeds.

HowwediditWepilotedseveralprojectsutilizingIBMWatsontobetterunderstandtheimpactthesenewcapabilitieswouldhaveonourfirm— anddiscoveredaworldofpossibilities:

— Aprojectintheauditareashowedhowcognitivetechnologiescanprovidemoredetailedevidenceforevaluation.

— Intelligentautomationisbolsteringourstrategicaccountmanagementteamswith

multi-dimensionalinsightsandwillhelpusengagewithclientsbetter.

— We’rebuildinganalways-learning,cumulativerepositoryofKPMGtaxknowledge.

— WecreatedaCognitiveAutomationLabstaffedwithspecialistsinartificialintelligence,cognitivetechnology,computationallinguistics,andnaturallanguageprocessing.

WhatwelearnedStartnow: Intelligentautomationwillhaveanimpactonyourbusinessnowandinthefuture.Don’twaittogetstarted.Ifplannedandexecutedcorrectly,thisjourneywillyieldtangiblebenefitsalongtheway.

LeverageTrustedData: Startdigitizingyourorganizationnowsoyoucanaccessthatdatathatwillenabletheseadvancedtechnologiesandcapabilities.

Teamuponexperimentation:Startmovingtowardintelligentautomationwithaportfolioofprojects.Getcomfortablemanagingtheportfolioinanenvironmentwith“knownunknowns”and“unknownunknowns.”Createtheportfoliosoeachprojectteamlearnsfromeveryexperiment.

Buildself-reliance:Intelligentautomationwillbeaprocessofcontinuousevolution.Tosucceedonthisjourney,enterprisesshouldbuildasupportnetworkoffirmsthatcanhelpthemgettheirjourneyunderway,assistinthetransformation,stayuptodateonthelatestinnovationsandworktowardagoalofbecomingself-reliant.

Showcourage:Transformationandchangecanbehard,anditrequiresleadershipandcouragetotakeafirststepwhenothersarecomfortablewiththestatusquo.Toachievethis,startwithproofofvalueratherthanproofoftechnology.Expectajourneyandthatcourageandleadershipwillbeacriticalelementofprogressandsuccess.


A differentkindofleveragemodel…Newvaluecreationopportunities

Intelligent automationispoisedtoremoveconstraintsonpeopletime,andcapitalthroughouttheenterprise

Casual expertà Skilledexpert Acceleratetime toemployeeproficiencyInexperiencedemployeeà Seasonedveteran

Speedandresponsiveness

Value throughnewinsights Augmentdecision makingReducerisk

Consistencyofoutput

Pursuitofadjacencies ScaleexpertisewithintheenterpriseRevenueGrowth– without theproportionalgrowthinheadcount

These technologies disrupt the audit leverage model and value proposition


Key aspects of a cognitive technology-enabled audit

The right platforms & tools to meet the needs of specialists and auditors

and the overall requirements of the audit and the business

Access to quality data within secure

environments based on clearly

defined governance models and policies

Flow of information from those enabled to access insights from processes to key decision makers

Proven audit methodology and effective governance to drive quality andenable team member engagement and empowerment Innovation

&Security

InsightLeverage

QualityandTeam

Engagement

Whynow?

Humanexperienceandknowledgesharedfreelyontheinternetalongwithbillionsofconnecteddevicesarecreatingexplosive,exponentialgrowthofdigitaldata

Exponentialimprovementintechnologyacceleratesatmoremeaningfulbaselines,beyondMoore’sLaw

Frictionlessaccesstotechnology(mobile,cloud)

Advancementsinmachinelearning,analyticsandcognitivetechnology

Globaldemographicshifts- reductioninworkingagepopulationandneedfortalent

Documents

HfS Webinar - Transforming a Professional Services Firm ......Underpinned by Artificial Intelligence, including technologies provided by IBM Watson, Open Source, Microsoft and others,