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6 th Annual Texas Build for Change Conference January 26, 2017
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6th AnnualTexas Build for Change
ConferenceJanuary 26, 2017
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Thank you sponsors!
GOLD LEVEL
SILVER LEVEL
BRONZE LEVEL
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Stories of transformation
Texas State Rep. Larry Gonzales
Anna Rigney-PhillipsU.S. Department of Veterans Affairs
Phil DeGuzmanCisco
Kris ValentaTCDRS
Tim LindstromiBridge Group
Mark GoddardPegasystems
Ying ChenPegasystems
Michael CarothersPegasystems
12:00-1:00pmNetworking LunchSponsored by
George A. Love IIIGartner Consulting
10:45-11:00amNetworking BreakSponsored by
1:45-2:15pmNetworking BreakSponsored by
Phil DeGuzmanCisco
Elizabeth Hart & Don ManzanoPegasystems
Don ManzanoPegasystems
Networking BreakfastSponsored by
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Welcome Rep. Larry Gonzales
Serving the VA mission through Digital Transformation, Automation and Customer Service
Introduction
Anna Rigney-Phillips, Chief Financial Customer Support
17 years customer service across multiple industries including 7 years in Federal Government
Focus includes: Strategic Planning and Implementation Account Management Customer Experience Process Improvement/Automation Communication Training and Development Certified Balanced Scorecard Professional
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Organization
Department of Veterans Affairs, Financial Services CenterWho we are Franchise Fund – Non-Appropriated 1,200 Staff (Austin, TX; Waco, TX; Washington, DC)
Who we serve 99% VA Organizations 1% Other Government Agencies
What we do Service Offerings (Payroll, Accounting, Commercial Invoice Processing, Claims
Processing, Travel)Mission: We provide high-quality financial services, exceeding the expectations
of our Federal customers, inspiring their trust and empowering them to focus on their core missions.
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Topic Summary
Digital Transformation, Automation and Customer Service all rely on a sound enterprise strategy focused on what the customer really wants.
Agenda: Strategy
Customer Service
Technology
Automation
Digital Transformation
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Strategy: It all starts here 1/3
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Customer Service without Strategy
Customer Service in the Federal Space Forrester’s Federal CX Index report: 73% of the 15 agencies ranked in
poor/very poor categories
Fail to empower employees to perfect customer interactions
Focus isn’t really on the customer
Technology won’t solve the problem
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Customer Service: Delivering value starts with our people
Do we have the right mix of people, skills and competencies to accomplish our mission?
Do we provide them the tools they need to be successful and deliver an exceptional customer experience?
Delivering value – our people identify areas where we can improve processes and leverage technology to solve problems and gain operational efficiencies and cost savings
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Technology: Tool, not a solution
Develop partnership between IT and Business
Clearly define the problem
Organize processes around evaluating technology
Map decisions to either legislative mandates/requirements or strategy
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FSC solutions utilizing Pega technology
Invoice Payment Processing System (IPPS) 1.4 million annual invoices @ $14 billion In production since 2014 Supports centralized invoice processing Electronic invoicing and approvals Automated workflows
Enterprise Customer Service Identify common needs Scalable Adaptable Agile Integrate front office, back office and self service
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Digital Transformation: Getting past the buzzword
What is it?
Setting up a framework for success through strategyAvoiding the pitfalls of technology
Gap Assessment
Understanding Capacity
Putting the customer up front and centerUnderstand customer needs/desires
Customer decides how to reach us
Deliver a seamless experience
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Phil DeGuzmanBusiness TechnologistCisco Systems, Global Service Logistics Operations
Approach and OutcomesBuilding an Agile Enterprise
Award-winning global hardware & software supportEssential to keeping networks running at peak performance
135 countries1400+ Depots$10.6B in spare parts inventory1.0M+ parts delivered annually250,000 online service requests quarterly
5+ years average engineering experience180+ countries and 17 languages87% issues solved online4.5M unique support website visitors/month52% mobile app usage growth y/y
HardwareReplacement
Technical Support
Customer
Source Parts
Allocate Parts
DeliverReplacement
RMA ReturnRepair Partner
Cisco Mfg
Field Engineering
What is a Service Supply Chain?Source-to-Stock
Order-to-Return
New Buy Order Allocation
Order
Service Order
Repair Order
iBPM Business Case
Business Objectives The Challenge GSSC VisionMeet Customer SLA’s
2hr, 4hr, Next Business Day
Scalable Business, flat cost 10% YoY RMA growth 6% Revenue Growth
Reduce Time To CapabilityMonths-to-Minutes
ERP maintenance Costly Change is time-bound
Business agility directly linked to systems flexibility
Proactive Service Supply Chain
Real-time visibility to processes
Management by exception
A platform for collaboration
Elements of an informed iBPM Style
Pace Layering Meet in the Middle Business Technologists CoE Business SMEs evolving
applications in real-time Solve Business Problems
Governance Best Practice Reuse / Industrialization
Liberate business process from monolithic ERP
Business and IT working together from day 1
Elements of an Informed iBPM Approach
Systems of Innovation
Systems of Differentiation
Systems of Record
Install Foundation Extend the Platform Reap Rewards
ERP Integration Golden Gate Integration Canonical DB Web service Infrastructure UCS Hosting
Command Center: Order-to-Return
Wrap-and-Renew End-to-End Visibility Sense-And-Respond Incident Management (ITIL) Problem Management (ITIL)
Command Center: Source-to-Stock
Prioritize work
Inventory Availability
Asset Management Branch Workstreams
RMA Demand Management Headless Rules Engine
Field Notices TEFR RMA Simplification
Pega Customer Service
Pega BIX Mobility
Year 2Year 1 Year 3 and beyond
Order Processing Dynamic Receipt
and Disposition Repair Enablement Failure Analysis Vendor
Management
https://www.pega.com/products/pega-7-platform/directly-capture-objectives
• Well defined expectations for business outcome
• Clear delineation of roles and responsibilities for creating DCO artifacts
• Strong alignment between business and technical team members
• Continuously maintained project artifacts
Anatomy of Good DCO
• Traceability• Assurance• Development Efficiency
DCO Objectives
Agile Methodology
https://www.pega.com/insights/resources/delivery-methodology
• Build then build more• Deliver business-value faster• Shorten time-to-capability• Reduce project risk• Prototype >Pilot > Production
Scaled Agile Framework
• Identify Dependencies Pega and Non-Pega
• Share Resources• Reduce project risk• Align priorities
Business Objective
Epic
User Stories
Specification
Rule History
DCO Building Blocks & Scrum
User Stories• Describe how the application will
meet business objectives• From a “user” perspective, but
not just UI
Epics• High level initiatives• Decomposed into
Capabilities and Features
Business Objectives• Goals & business needs• Business Success Criteria• Measurable
Specification• The “what”• Business rules and logic• Map to User Stories and
Implementation Rules Rule History• Detail depiction of intended use
of rules
Product Delivery Heuristics
Go Slow to Go Fast
Tie The Pieces Together
Think Modularly
Playback, Repeat
Don’t DO: Do:
Assume agreement Test (and document) assumptions
Work in isolation Include business, operations, IT in design and playback
Fear failure Allow for tech spikes and mulligans
Front-loaded DCO “Sessions” Iterate and re-calibrate
Let the perfect be the enemy of the good ~ Voltaire
Deliver something of value and learn
Operations Cost
Avoidance
• New tools & processes improve oversight of service delivery
• Business can now “self-serve” tactical process changes
• Eliminated redundant transactions
$ cost avoidance
Increased Agility & Flexibility
Business Enablement Reusable
Assets
• Biz enablement; minimal to no IT support req’d:− ARCH: email config,
SLA & lookups setup
− SORTP: E2E biz rule setup
− DRD: disposition exception setup
Influence Higher Service
Revenue
• Closed legacy loopholes, Backend Contract reconciliation
• Helping enable new service offerings, including:
− NCD ($0.5M to enable in legacy)
− Parts Anywhere
$ invoicingnon-returns
Add to contract
Development Cost
Avoidance
• Remove custom capabilities from Oracle to Pega− ARCH ART
− SORT Resolve SVO Resolve,
Backlog Tool
− DRD RADAR, C3 Disposition Engine
Time to Capability: 130 to <15 days
R12 Migration: $ cost avoidance
Key Benefits
• Business rules have
- enabled reduction in unnecessary RMAs, better troubleshooting vs replacement
- management of on time deliveries
CSATscores > 4.45 goal:
•Phone: 4.63•Email: 4.76
Customer Experience
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Fireside chat: Texas County & District Retirement Systems’ modernization journeyPanelists: Moderator:
Kris ValentaDirector, Strategic ProjectsTexas County & District Retirement System (TCDRS)
Tim LindstromCEOiBridge Group, Inc.
Mark GoddardPublic Sector Practice LeaderPegasystems
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NETWORKING BREAKProvided by
PROGRAM RESUMES AT 11:00AM
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When the only constant is change
How to Achieve Business & IT Agility
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Reality 1:Tech accelerating business disruption
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Amazon’s continuous innovation:
ZDnet
1 New software every
SECOND
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2/3Tech leaders are concerned about being “disrupted”
47%Concerned that this disruption is coming from outside of their industry
Insight Enterprises Intelligent Technology Index
55%Legacy investments as hindrance to threats
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Reality 2:Digital interactions are outpacing traditional channels…
Gartner, “How to Support Customers That Aren't Human” Published: 21 June 2016. Analyst(s): Jenny Sussin, Michael Maoz, Olive Huang
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85% of organizations reported cost & productivity as priority
Pega Customer Survey 2017
Reality 3:Weight of Paper
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80% of IT spend is just to “keep the lights on”
Gartner Symposium/IT Expo
Reality 4:Legacy Investments
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Rip and Replace it!
NEW TECHNOLOGY
SYSTEMS OF
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45%Percent of rip and replace projects fail
60%Percent deliver less value than expected
McKinsey Report
17%Percent of rip and replace projects are catastrophic to organizations
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Throw Agile at it
but still use “code”
Manually CodedJAVA
Manually CodedCOBOL
Traditional Programming Makes it Hard for Business & IT to collaborate
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Throw robots at it!
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Extended, drawn out automation efforts that achieve less than 10% of expected cost savings/productivity (focus on low impact, low productivity item)
Long running automations that still don’t deliver great user experience
Automation of “tasks” or “processes” won’t fix broken
processes
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OUTCOMES
Philips“The collaboration of Philips and Pega is a next step to deliver successful and efficient population health management to unify the silos of personal health and clinical data so every member of a person’s health care team can take advantage of data in the context of the patient’s broader health.”
Jeroen Tas, CEOConnected Care and Health Informatics, Philips
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"I talked about the incarceration issues in America. With great
application software like the Pegaframework, we should be able to do
great things with the processing power we have in front of us now."
- Jack McCarthy, CIO, New Jersey Courts
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“Empowering you to stay connected to your world.No matter where you're headed—OnStar services keep you safe, connected and ready for the road ahead.”
"One of the things that Pega allows you to do in this with the configurations is be able to rapidly change…In our old systems to make a call routing change it had to change in three different systems. It was so gnarly for how it came together that they could only make changes four times a year. Now that came to my team and we make weekly changes in call routing...Again, it's about giving the customer a choice, letting them know what they're opting into and giving them a service that has daily relevance to them.” Travis Bradburn, GM
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PROCESSES
DATA
PEOPLE UX
GOAL
THE CASE
CUSTOMER OUTCOMES
Case Management: Driving to Outcome
Bridge the Gap Between Business and IT with a Common Visual Language
…from modelto outcomes
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The World’s Highest & Longest Glass Bottom Bridge:Zhangjiajie Grand Canyon Bridge
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Wrap & Renew Your Legacy Investments
Suspension bridge originally made of wood
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Drive to the lowest common denominator
Reuse, Scale, and MVP (Minimum Viable Product)
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Unified, Model-Driven Environment
Faster Time to Market Better Quality Apps Improved Collaboration
D
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Reuse
Specialize by Customer, Product, Geography & Channel
Continuously Improve
ENTERPRISE WIDE
NORTH AMERICA EUROPE
UKUS CANADA
US VERSION 2 CANADA VERSION 2
WEST EAST FRENCH
PILOT
PEGA APPLICATIONS & PLATFORM
Layered Architecture: Situational Layer CakeReuse & Specialization
Pega model-driven UI working in concert with a native app
61© 2015 Pegasystems
GO LIVE
IN 10 WEEKS
DEFINEDSCOPE
FIXEDPRICE
REALVALUE
LOWRISK
Pega Rapid ReturnReal Results in <10 Weeks
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twitter.com/pega
linkedin.com/company/pegasystems
Twitter.com/pega
linkedin.com/company/pegasystems
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The Intelligent Robot
Michael CarothersPegasystems
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RobotIntelligent
Everybody wants an ….
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Categorize end-to-end processes into three ideal states:
1. Fully automated2. Partially automated3. ‘Lean’ manual
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Robotic Process Automation (RPA)Robotic Desktop Automation (RDA)
Process Change
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A significant opportunity exists to increase the levels of Efficiency in any Enterprise.
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85 percent of operations, accounting for 80 percent of the current full-time employees (FTEs), could—
theoretically—be at least partially automated
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Robots vs. Humans
Math RapportTrial & Error
RulesMatching
EmpathyRetrievalUnderstanding
SpeechVigilance
24/7
Storing Data
Interpreting ImagesInspireHeuristicsAlgorithms
The Light Bulb Moment – Learning to Identify Robotic Automation Opportunities
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The Results...
• Robot optimization delivered at business speed– Rapid desktop visibility within 30 days (minimal configuration)– Rapid robotic automation development and deployment (no coding, 10x faster)– Rapid return on investment (months vs. years)
… without changing any underlying applications
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Faster Intelligent Automation = Rapid Results
Workforce Intelligence
• Connect desktop activity monitoring to cloud-based analytics for insights about your people, process and technology
Robotic Desktop Automation• Automate routine tasks to
simplify the employee experience and improve the customer experience
Robotic Process Automation• Fully automate business
processes to reduce costs, accelerate productivity and decrease errors
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Replace Algorithmic WorkRPA – Robots executing end-to-end processes
Extend applicationsService enablementRobots providing API
IntelligenceUnderstand People, Process and Technology
Assist WorkersRDA – Robots assisting workers
Enterprise Robotics – One technology stack for all use cases
Understand
Assist
Replace
Extend
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Workforce Intelligence Get Value Today -While Improving Tomorrow
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Workforce Intelligence – Desktop Virtual Consultant
Big data application for understanding People, Process and Technology
Worker
Applications
Improvements
A day in the life view ofyour workforce
Application insights that impact production
Cross application visibility for
improvements
Obtain insights into how workers and applications interact with each other
Transform and aggregate worker actions into process improvements
Understand and Influence where workers spend their day.
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Enterprise Worker
Production WorkOn and off computer time focused on the completion of production work
Non-WorkBreaks, Idle time and on computer time spent on non - production work
Other WorkOn and off computer time directed by the company, but not related to completion of production work
Employee Focus:Maximize time spent performing production work
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Capture and Improve … where employees spend their time
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Workforce Intelligence = Intelligent Guidance
• Actionable insights across all Workforce Intelligence Levels
• Auto-detect target areas for process improvement• Quantify business value of improvement efforts
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Who Cares?
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Who Cares?• Operational Leader
– Operational efficiency by getting the most out of existing employees– Increased visibility into desktop drives ongoing improvements
• IT Leader– Quantification of business use of all applications– Visibility into user experience of application / screen response times
• Continuous Improvement Leader– Provides for basis of truth for all improvement projects– Identification of improvements via Opportunity Finder
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RoboticsRobotic Process Automation (RPA)Robotic Desktop Automation (RDA)
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Pega Robotic Desktop Automation (RDA)
• Solves the problem of the “messy desktop”
• Personal Robot for every employee• Accelerated time to value/ROI with out of
the box automations • 10-20% improvement across large groups
of employees
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Pega Robotic Process Automation (RPA)
• Robotic Automation Studio• Deploy robotic automations to automate high-
volume, rules-based tasks• Centralized Management Console• Add BPM to manage those tasks throughout the
overall business processes.
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Case Management and Robotic Automation
• Robots and Humans Collaborate on Business Processes– Case Management Provides Rules and Decisioning– Robots Perform Legacy Integration and Manual Tasks– Humans Review and Approve Decisions
• Complete Process Management
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What makes Pega Robotic Automation Enterprise Class?
• Event-driven robotic automation is faster, more resilient and Fast
• Deploy robots for RPA, RDA, Case Management and Digital TransformationFlexible
• Manage robotics at scale across the entire enterprise with the Pega Robotic ConsoleScalable
• Automatically discover robotic automation opportunities with Pega Workforce IntelligenceIntelligent
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Iterative Transformation
Transform Discovery
Optimize Intelligence
… into how your workforce spends their time
… with actionable insights into people, process and technology
… worker performance
through Robotic Automation
… the enterprise one iteration at a
time
… at scale on every desktop84
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Questions?
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LUNCHProvided by
PROGRAM RESUMES AT 1:00 PM
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Pega Express Demonstration
Don ManzanoLead Architect, Pegasystems Public Sector
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twitter.com/pega
linkedin.com/company/pegasystems
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5 Reasons To Attend PegaWorld 2017 Content is king. At PW the top global brands speak
for themselves. Our presenters are the best in their business. See, touch and experience the technology behind
the top brands. Join the movement. Network with the PW Community. Walk away with the toolkit to kick-start change.
"An incredible event at an incredible location. I learned more in those few days than any training course could provide.”
2016 Attendee
www.pegaworld2017.com
CALL FOR PRESENTATIONSOUR CUSTOMERS. THEIR JOURNEYS.More than 100 customer heroes from 40+ global brands take the stage to share their journey to success
Visit www.pegaworld.com to view full agenda
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