HfS Webinar Slides: The Virtual Workforce - How RPA Liberates People From Robotic Work

Architecting the As-a-Service Economy

The Virtual Workforce

Charles SutherlandChief Research Officer, HfS Research

[email protected]

How RPA Liberates People From Robotic Work

An HfS Webinar Production, 25th February, 2016

Tom ReunerManaging Director, HfS Research

[email protected]

mailto:[email protected]


© 2016 HfS Research Ltd. Proprietary │Page 2

Our Panel For Today’s Webinar

Prof. Leslie WillcocksLondon School of Economics

Charles SutherlandHfS Research

David MossBlue Prism

Tom ReunerHfS Research

Prof. Mary LacityUniversity of Missouri – St Louis


[email protected]

Overview Charles Sutherland is the Chief Research Officer at HfS. Charles is responsible for the overall

research agenda for HfS across the “as a service” economy. He personally covers the areas ofautomation, business platforms, supply chain, procurement and various vertical processes.Since joining HfS in 2013, Charles has had the opportunity to speak at various industryforums including NASSCOM and has had his research covered widely in the business andoutsourcing press as well.

Previous Experience Charles has been in the business services market for 20 years including previous roles as the

Chief Strategy Officer for a BPO service provider and the Managing Director, Growth &Strategy for Accenture’s Operations Growth Platform. In these roles he has had a breadth ofexperience in thought leadership, strategy development, acquisitions, business developmentand long term investment planning in both BPO and ITO.

Charles has also had Growth & Strategy roles for Accenture in Infrastructure Outsourcing andfor the Communications, Media and High Tech Operating Group. Prior to that he was aStrategy Consultant in London for Accenture serving clients in the Media, Communicationsand Consumer Goods industries. If you go even further back in time he was also a MarketingDirector for Olivetti in Canada and Europe.

Education MBA from INSEAD in Fontainebleau, France

Honors BA in Economics and Political Science from the University of Toronto.

Charles SutherlandChief Research Officer, HfS Research – Dallas, TX



Unbridled Opinion… Simply Calling It How It Is

www.horsesforsources.com


…With a More Serious Side Too! www.hfsresearch.com


HfS Research By The Numbers


Reetika

Joshi

Research

Director

Analytics,

Insurance

and Utilities

Charles

Sutherland

Chief Research

Officer

Barbra

McGann

EVP

Business

Ops &

Healthcare

Research

Jamie

Snowdon

EVP

Market

Analysis and

Forecasting

Meet the HfS Research Practice Leaders

Thomas

Reuner

MD, ITO

SaaS,

Automation,

Cognitive

Computing,

Cloud

Hema

Santosh

Principal

Analyst

Finance

Strategies,

BPO, IT

Services

Khalda

de Souza

Principal

Analyst

SaaS

Services

Fred

McClimans

MD

Digital Trust

& Security

John Haworth

Chairman

HfS Sourcing

Executive

Council

Pareekh

Jain

Research

Director

Engineering

Services,

Telecom

Operations

Phil

Fersht

CEO &

Industry

Analyst

Melissa

O’Brien

Research

Director

Contact Ctr.

and Omni-

Channel BPO

Derk

Erbé

MD

Digital

Business,

Energy,

Utilities &

Resources

Mike

Cook

Research

Director

HR-as-a-

Service, HR

Outsourcing


Real-time data from 1000’s of industry

stakeholders

Driving Real Unvarnished

Community Dialog

Blueprint Market Analyses and Best

Practices

Industry-Leading Buyer-led Summits

On-tap Strategy, Analytics and Advice

HfS: Research As-a-Service!


Q1

Analytics in Financial Services

Design Thinking

F&A-as-a-Service

Pharma BPO

SAP SuccessFactorsServices

Supply Chain Management Services

Q2

Banking Operations

Consumer Health Integration

Contact Center Operations

Energy Operations

HR As a Service

Mortgage-as-a-Service

Security-as-a-Cloud

ServiceNow Services

Telecom Operations

Q3

App Testing-as-a-Service

Digital Trust-as-a-Service

Intelligent Automation Services

PLM Services

RPO as-a-Service

Workday Services

Q4

As-a-Service Masters

Healthcare Payer Operations

Health Providers

IoT Transformation Services

Manufacturing-as-a-Service

Omni-Channel Marketing-as-a-Service

P&C Insurance-as-a-Service

Procurement-as-a-Service

Salesforce ServicesSubject to change

HfS Blueprint As-a-Service Publication Schedule, 2016


Fixed Assets Leveraged Assets

2Design

Thinking

3Brokers of Capability

1Write Off

Legacy

4Collaborative Engagement

7Holistic Security

5Intelligent

Automation6

Accessible & Actionable

Data

8Plug & Play

Digital Services

SOLUTIONIdeals

LEGACY

ECONOMY

AS-A-SERVICE

ECONOMYCHANGE MGMTIdeals

Moving into the As-a-Service Economy means changing the nature and focus of engagement between Enterprise Buyers, Service Providers, and Advisors

“As-a-Service” unleashes people talent to drive new value through smarter technology and automation

Journey to the As-a-Service Economy


[email protected]

Tom ReunerManaging Director for IT Outsourcing Research, HfS Research – London, England

Overview Tom Reuner is Managing Director for IT Outsourcing Research at HfS. Tom is responsible for

driving the HfS research agenda for the “As-a-Service Economy" across SaaS applications, cloudeco-systems and IT . Together with his HfS colleagues Tom continues to develop groundbreaking research around process automation and cognitive computing in both IT and businessprocesses. A central theme for all of his research is the increasing linkages betweentechnological 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 wherehis responsibilities ranged from research and consulting to business development. He hasalways been involved in advising clients on the formulation of strategies, guiding them throughmethodologies and analytical data and working with clients to develop impactful andactionable 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.



HfS sees Intelligent Automation as a Continuum Today

HFS INTELLIGENT AUTOMATION CONTINUUM

Data Center

Automation:

Runbook

Scripting

Scheduling

Job control

Workload

automation

Process

orchestration

SOA

Virtualization

Cloud services

RPAAutonomic

Platforms

True

Artificial

Intelligence

BPM

Business process automation

Workflow

trigger based rules based

dynamic language

rules based

standardized language

Structured

Characteristic of data/information

Unstructured without patternsUnstructured patterned

Cognitive

Computing

© 2015 HfS Research Proprietary │Page 13

The State of Play in Intelligent Automation

Nascent state of market development – service providers are not (yet) educating the stakeholders

Lack of understanding of impact on revenue models as well as fear of transparency likely reason for this highly unusual reluctance

Deals are typically client specific and often on sub-process level

Narrative is shifting from narrow cost, FTE replacement focus toward transformation and business agility – akin cloud discussion

Perception is dominated by RPA – Autonomics or broader impact of Cognitive Computing largely not discussed

Direction of travel is toward unstructured data, less will defined processes and broad notions of Cognitive Computing and AI


Lessons from the RPA Trenches

RPA can be confused as process transformation, many a times it is reworktransformation or a more efficient way of running a bad process.

It's easy to create a software robot. It's hard to industrialize them to deliver significant benefits.

Position RPA into the IT roadmap - is RPA a short-term fix while major technology refreshes come on stream

Lack of standardization continues to be an automation bottleneck(e.g., requests received by email with subjective instructions)

Accessing applications through the UI, especially via Citrix can be

challenging and fragile. See if you can use web services and APIs.

Use an agile implementation approach but do not take on too many

parallel projects. Start small and simple and build momentum.


Human augmentation throughautomation will be mainstream

Change management will be

critical success factor

Notion of a bot store is emerging

Scaling up of deployments

Transparency in communicationwith employees essential

Enterprise level governance &

control paramount

Virtual

Workforce

We need to retool our education

systems and philosophies

How is the Virtual Workforce Evolving?


Prof. Leslie WillcocksLondon School of Economics

Overview Dr. Leslie P. Willcocks is Professor of Technology Work and Globalization and Director of the

Outsourcing Unit at the London School of Economics and Political Science, UK.

He is known for his work on global sourcing, information management, IT evaluation andorganizational transformation as well as for his practitioner contributions to many corporationsand government agencies.

He has been Editor-in-Chief of the Journal of Information Technology for the last twenty yearsand has co-authored more than 35 books including the most recent, Service Automation:Robots And The Future of Work together with Professor Lacity.

He has published over 220 refereed papers in journals such as Harvard Business Review, SloanManagement Review, MIS Quarterly, MISQ Executive, Journal of Management Studies,Communications of the ACM, and Journal of Strategic Information Systems.

HfS Research is proud to have Prof. Willcocks as a speaker at our March 2016 European ServiceBuyers Summit: Avoiding The Race To Irrelevance.

Service Automation: Robots and the Future of Work

The Book is available via [email protected] or http://stevebrookes.com/service_automation.html


http://stevebrookes.com/service_automation.html


Prof. Mary Lacity

University of Missouri – St Louis

Overview Dr. Mary Lacity is Curators’ Professor of Information Systems and an International Business

Fellow at the University of Missouri-St. Louis. She is also Visiting Professor at the London Schoolof Economics, a Certified Outsourcing Professional ®, Co-Chair of the IAOP Midwest Chapter,Industry Advisor for the Outsourcing Angels, Co-editor of the Palgrave Series: Work, Technology,and Globalization, and on the Editorial Boards for Journal of Information Technology, MISQuarterly Executive, IEEE Transactions on Engineering Management, Journal of StrategicInformation Systems, and Strategic Outsourcing: An International Journal.

Her research focuses on global outsourcing of business and IT services. She has conducted casestudies and surveys of hundreds of organizations on their outsourcing and managementpractices. She has given executive seminars world-wide and has served as an expert witness forthe US Congress.

She has published more than 20 books including the newly published Service Automation:Robots And The Future of Work together with Professor Willcocks. Her publications haveappeared in the Harvard Business Review, Sloan Management Review, MIS Quarterly, IEEEComputer, Communications of the ACM, and many other academic and practitioner outlets.

HfS Research is proud to have Prof. Lacity as a speaker at our May 2016 San Francisco ServiceBuyers Summit: Vision 2020 For Intelligent Operations.

[email protected]

Service Automation: Robots and the Future of Work

The Book is available via [email protected] or http://stevebrookes.com/service_automation.html



http://stevebrookes.com/service_automation.html

Proprietary │Page 18

Copyright © Lacity and Willcocks 2016

So far we have seen RPA client adoptions in mostly

business operations…



Common Business Outcomes for RPA

FTE savings resulting in high ROIBetter service qualityFaster deployment of new servicesHigher complianceIncreased scalabilityMore flexible workforceHappier, more productive employees



Three Case Studies of a Virtual Workforce

# processes

automated

# RPA

transactions

per month

Business

Value ROI

35% of back

office

(15 core

processes)

400,000 to

500,000

Faster delivery

Better service

quality

Higher

compliance

Unbeatable

scalability

Strategic

enablement

FTE avoidance

FTE

redeployment

FTE savings

650% to

800% 3-

YR

35% of back

office 3 million200% 1-

YR

14 core

processes120,000

30% per

process



RPA…Taking the Robot out of the Human

Submit LPAN

Structure submissions

Find errors

Add more data from

Systems of Record

Create Official LPAN

Add to Insurance

Market Repository

Deal with

exceptions



How was Success Achieved?

Strategy:

6 practices

Launch:

6 practices

Mature

Enterprise

Capability:

8 practices

Change

Management:

5 practices

Service

Automation

Outcomes

25 practices



Cultural Adoption by the C-Suite

Motto is “Technology at our core”Robotics is part of corporate strategy and feature in 2014 annual report



Bring IT On Board Early

Comply with IT security, auditability, and change managementIT can help with infrastructure configuration & scalabilityPrevent shadow IT and proliferation of RPA islandsIT will benefit—RPA reduces backlog of business operations requests High volumes

24


Business

UnitsService Automation

Center of Excellence

(housed in business

operations)

1. Requests for Automation Feasibility

Reviews

2. Approved Automation Projects

AUTOMATION DEVELOPMENT

Define Design Configure Verify

AUTOMATION CONTROLLERS

Schedule Monitor Handle

Exceptions

3. Automated Processgoes “live”

4. Quality Assurance and Continuous ImprovementCycles

Automation

Component

Library

IT Infrastructure

& GovernanceCopyright © Lacity and Willcocks 2016

Create A Mature Enterprise Capability


No internal layoffs; FTEs redeployed or natural attrition.

Telefónica O2 and UTILITY used service automation to reduce FTE headcounts in the outsourcing provider firms by a few hundred people.

Xchanging automated in Indian delivery center and kept automation offshore


Effects on Jobs & Outsourcing


[email protected]

David MossCTO & Co-Founder, Blue Prism

Overview David Moss is CTO and Co-founder of Blue Prism, a company launched in 2001 to pursue the

founders’ dream of delivering the vision of robotics into the office environment.

David is a technologist and thought leader in the Robotic Process Automation movement and apioneer in the creation of the Virtual Workforce concept. His recent TEDx UCL talk on the topicof the benefits of automation in service industries – “White Collar Robots: The VirtualWorkforce” – can be viewed on YouTube https://www.youtube.com/watch?v=1SximAg9t4w

Prior to Blue Prism, David worked as a software architect for Lynx Financial Systems, providingpackaged and bespoke large-scale enterprise software solutions to major names in FinancialServices.

David holds a BSc (Hons) in Mathematics from Leeds University.


https://www.youtube.com/watch?v=1SximAg9t4w


Different Approaches to RPA

Desktop Recorded AutomationSpeed

Short, tactical automations rapidly built on the desktop

IT ProjectSoftware Development

Ops ProjectDesktop Recorded Automations

IT Support, Operational Control – Virtual Workforce

Software Development Kits (SDK)Solutioning

Provides a “virtual API” to assist IT projects where interfaces don’t exist

Technology Division

Operations

IT Support, Operational Control – Virtual Workforce

Enterprise Virtual Workforce

Security and Scalability

Configuration & Control

Enterprise strength, scalable, server-based capabilities delivering strategic benefit


The 7 Pillars of Successful Enterprise RPA

Platform Architecture

Deployment model

Management

Control

Ability to Scale

Management Overhead

Operating Architecture

Design architecture

Operating model

Runtime platform

State Management

Methodology

Process architecture

Development approach, atomicity

Design methodology

Testing methodology

Security

Security model

Penetration Testing -Security

hardening

Logical access management

Segregation of Duties

Resilience

Resilience

Redundancy model

Failover Design

Disaster Recovery

Load Balancing

Governance

Compliance

Governance

Accountability

Activity Monitoring

Data Classification &

Retention

Risk Management

Operational Risk

Management

System & Change

Management

Security Risk Management

Internal Fraud Prevention

IT Supported Enterprise Infrastructure

Operationally Led Centre of Excellence

Demand Management Business BenefitOperations

30

Building a Mature RPA Capability

OperationalAssurance

Data and Pattern Analysis

Controlled by the Operation

Flexible Pipeline Management

Supported and Hosted by IT

Enterprise Infrastructure

Regulatory Compliance

Supported Platform

Secured Environment

Scalable Deployment

Ease of Demand Management

Autonomic Work Allocation

Scalable Change Model - TCO

Business Benefit Measurement

Powered by

Software Robots

Virtual Workforce


Audience Questions?


About HfS Research

HfS Research is the leading analyst authority and global network for IT and business services, with specific focus on global businessservices, digital transformation and outsourcing. HfS serves the research, governance and services strategy needs of business operationsand IT leaders across finance, supply chain, human resources, marketing, and core industry functions. The firm provides insightful andmeaningful analyst coverage of best business practices and innovations that impact successful business outcomes, such as the digitaltransformation of operations, cloud-based business platforms, services talent development strategies, process automation andoutsourcing, mobility, analytics and social collaboration. HfS applies its acclaimed Blueprint Methodology to evaluate the performance ofservice and technology in terms of innovating and executing against those business outcomes.

HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currentlycomprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Executive Council, the acclaimed elite group ofsourcing practitioners from leading organizations that meets bi-annually to share the future direction of the global services industry and todiscuss the future enterprise operations framework. HfS provides sourcing executive council members with the HfS Governance Academyand Certification Program to help its clients improve the governance of their global business services and vendor relationships.

In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named “Analyst of the Year” by the International Institute of AnalystRelations (IIAR), the premier body of analyst-facing professionals and achieved the distinctive award of being voted the research analystindustry's Most Innovative Analyst Firm in 2012.

In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out ofthe 44 leading industry analyst firms in the 2013 Analyst Value Index.

Now in its seventh year of publication, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the most widely-readand revered destination for unfettered collective insight, research and open debate about sourcing industry issues and developments.Horses for Sources today receives over a million web visits a year.

To learn more about HfS Research, please email [email protected].

http://www.hfsresearch.com/

http://www.hfsresearch.com/uploads/downloads/HfS_Services_Sourcing-Executive-Council.pdf

http://www.horsesforsources.com/


Architecting the As-a-Service Economy

The Virtual Workforce

Charles SutherlandChief Research Officer, HfS Research

[email protected]

How RPA Liberates People From Robotic Work

An HfS Webinar Production, 25th February, 2016

Tom ReunerManaging Director, HfS Research

[email protected]



Date post:	07-Jan-2017
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