Post on 04-Apr-2019
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Document Classification: KPMG Confidential
What is RPA?
Definition Application
Combination of technologies such as rules engines, workflow, and screen scraping
Used in concert to automate processes and operations traditionally done by humans
It is essentially a type of digital labour and the software supplied as part of a RPA solution is known as a robot or “bot”.
Basic RPA is recommended for scenarios that:
- Seeks rapid enablement of automation for human tasks without costly system integration
- Requires repetitive, structured transactional processes
- Requires interaction with multiple applications in a “non-invasive” manner
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Document Classification: KPMG Confidential
The state of RPA Hong Kong
A survey was conducted in the fourth quarter of 2017, focusing on RPA take-up in Hong Kong
388 responses from C-level executives, as well as finance and accounting professionals.
The respondents were drawn from a diverse range of sectors: including finance and banking, professional services, manufacturing, real estate; retail, IT and telecoms
Joint KPMG & ACCA Survey on RPA Adoption in Hong Kong
5%
5%
7%
9%
7%
8%13%
18%28%
Finance and banking
Insurance
Manufacturing
Real estate Others
Government and publicadministration
IT and telecommunications
Professional services
Retail
Source: Joint KPMG and ACCA survey
Survey Background
Breakdown of Respondents by Industry
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Document Classification: KPMG Confidential
Relatively low RPA awareness & commitment in Hong Kong
Source: Joint KPMG and ACCA survey
No, I am not aware of it and my organisation isnot looking toexplore.
30%
13%20%
37% 31%43%
There is a yearly budget set aside to drive
roboticsor automationDon’tknow
7%18%
Survey findings – RPA Awareness in Hong Kong Survey Findings – RPA Commitment in Hong Kong
Yes, I am aware of it, but my organisation is not
planning to adopt it
No, I am not aware of it, but I am willing to learn more about it
I am well aware of it and myorganisation is investing or
planning to adopt it
No budgethasbeen allocated
There is somebudget for specific initiatives and solutions
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Document Classification: KPMG Confidential
Key hurdles for RPA adoption in Hong Kong
23%Perceivedbenefits do not outweigh
the costs
Others
15%18%No knowledge
of robotics solutions
* Percentages do not total 100 due to rounding**Respondents were asked to select all that apply Source: Joint KPMG and ACCA survey
Sufficient manpowerto covermanual
or routine work
14% 10%11%Interested, but do not
knowwhere or how to
start
8%
Insufficient Don’tknow governmentsupportand promotion
Companies have yet to fully understand what RPA is and what it can do
Lack of knowledge / awareness often translates into “automation anxiety”
Companies do not know where and to start, and consequently fears its impacts on the organization
Citing sufficient manpower – executives have yet to fully understand the full potential of RPA
Staff anxiety – staff might worry that their jobs will be replaced by technology solutions
Survey findings – Key hurdles for adoption Comments
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Document Classification: KPMG Confidential
RPA should not be view only as automation
Basic robotics processautomation
Rules engine
Screen scraping
Work flow
Adaptive alteratiaon
Machine Learning
Large-scale processing
Big data analytics
Natural language
processing
Artificial intelligence
Cognitive automation
Enhanced process automation/ machinelearning
• Macro-basedapplets• Screen-level data collection• Workflow automation• Vision-type building blocks• Processmapping• Business process management
• Built-in knowledge repository• Learningcapabilities• Ability to workwith
unstructured data• Pattern recognition• Reading source datamanuals• Natural languageprocessing
• Artificial intelligence• Natural language recognitionand
processing• Self-optimisation/self-learning• Digestion of super datasets• Predictive analytics/hypothesis
generation• Evidence-based learning
RPA goes beyond automation…
Processing of unstructured data and
base knowledge
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Document Classification: KPMG Confidential
It is a part of the wider digital ecosystem
© 2018 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Customers
DistributorsDelivery
InventoryLogistics
Analytics
Sales forecasting
Supply Chain
Suppliers
Stock management
FinanceReconciliation
Payables & receivables
Sales
Sourcing
Management Reporting
Illustration – how a digital operating model impacts the business model
Enables matching between inventory and customer demand
Eliminates over / under selling
Improves inventory cycle Eliminates under / over stocking Better route planning for logistics
Automated data transformation eliminates need for manual consolidation
Integrated data for data analysis, predictive analysis/ forecasting and reporting
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Document Classification: KPMG Confidential
Focus on your people for effective adoption
Put the employee at the centre and use technology toaugment what they do. It's not justabout automating existing, inefficient processes.
Start with the end user
Address automation anxiety in your workforce. Carefully manage redesigned roles and the change process. Culture is key to a successful transformation.
Start small
Manage expectations
Start with specific tasks or activities where automation could be implemented quickly and easily.Adapt goals as you go along. Recognisethat this is an ongoing journey, not destination.
Employees need to fully understand the shift as tasks are automatedand boundaries between roles blurred.
Redesign boundaries
Test things out in smaller areas and learn as you go. Decide early what assurances to give to employees.
Experiment
Encourage employees to develop new skill sets as job descriptions and career expectationschange.
Cultivate a learning culture
Workforce shapingDigital organisations must plan for multiple scenarios and shape their workforce accordingly. Traditional workforce planning must become more adaptive and continuous.
It is essential for a person, team or function to take ownership of the changeprocess.
Lead the change
CommunicateEnsure all digital discussions with the workforce and other stakeholders are framed in a consistent and clear manner.
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© 2018 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
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Document Classification: KPMG Confidential
Key takeaways
The development and application of robotics automation in Hong Kong is still at a very early stage.
There is a general lack of awareness of what existing technologies can offer in terms of cost savings, improved efficiencies, and better resource allocation.
It is only a matter of time before the majority of the corporate sector starts incorporating automation solutions into their finance functions
And when they do, all businesses are not immune to this phenomenon; and will have to digitize to enable greater connection in the business world.
Your people are the forefront of your digital journey A long-term training programme will be required to ensure companies have a constant
pool of talent with the necessary digital capabilities
© 2018 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Thank you!Irene ChuPartner, Head of New Economy & Life Sciences, Hong Kong
E:irene.chu@kpmg.com T: +852 2978 8151
Document Classification: KPMG Confidential
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