2020 Deloitte Renewable Energy Seminar Renewables for a ...€¦ · Renewables for a sustainable...

2020 Deloitte Renewable Energy SeminarRenewables for a sustainable future SEPTEMBER 24, 2020

Isabelle Bordas, Partner, Deloitte & Touche LLPPatrick O’Regan, Manager, Deloitte & Touche LLPScott Rehns, Senior Manager, Deloitte & Touche LLP

Digital for finance: Digital

controllership

2020 Deloitte Renewable Energy SeminarCopyright © 2020 Deloitte Development LLC. All rights reserved. 4

Digital Controllership opportunities


Automation lifecycle Risks occur during automation

development, testing, deployment, and operation

Business processRisks are present as business processes

are changed due to automationRisks are present in the structure,

committees, and roles & responsibilities for managing automation environments

Governance structure

Key components of a digital strategy

62020 Deloitte Renewable Energy Seminar

Future shift from physical to digital

Accounting Finance business partnering Touchless ecosystemFinance as a

service

Operational finance Business Finance Specialized Finance

Area in focus

Manual process

Disparate systems

Decentral ized organizat ion

Bookkeeping mind-set

Integrated systems

Lean processes

Opt ical character

recognit ion

Business partner ing mind-set

RPA and cognit ive

Mobi l i ty

Real -t ime sel f service

Blockchain

Adde

d Va

lue

Activity focus

Hin

dsig

htCo

nduc

t “re

ar-v

iew

m

irror

” as

sess

men

ts

Fore

sight

Und

erst

and

signa

ls to

sh

ape

the

futu

re

Insig

htU

se d

ata

to d

rive

chan

ges

Areas impacted due to digital transformation…


Intelligent automation spectrum

Robotic Process Automation is now widely adopted as 68% of organizations have begun to implement this technology


Organizations that typically implement automation across enterprise can potentially realize an estimated 10-30% of operational cost savings YoY

Organizations define automation ROI with a focus on both hard and soft benefits

While automation is often used to help organizations achieve cost reduction targets, organizations are also focusing on:

• Freeing up highly skilled resources to focus on activities that provide more value for the organization and reducing the time they spend on mundane manual tasks

• Increasing capacity and scalability of existing resources to handle current and future fluctuations in workload volume

• Reducing errors and improve controls

• Improving cycle times (speed)

24/7 Operations

x2-20 Operational Speed Turn-around-time and service speed improvement

QualityIncreases quality by reducing human errors and focusing on exceptions

AutomationBenefits

Cost Reduction

Capacity and Scalability

Refocusing Highly-Skilled People

Internal Control

Operational cost reduction through internal and third-party labor spend

Capacity can be rapidly increased without long build-up phase

Non-stop performance –no queues at peak

Employees do not waste capacity for routine tasks

Effective IA implementations can drive to positive ROI oftentimes within 6–18 months

Reducing human errors, easily performed central compliance checks with operational audit trial

Short Payback Period


What makes a strong automation candidate?

Capacity Creation

Increases the capacity of business unit measured in time (hours per year)

Process Quality Improvement

Improves reliability and quality of the process; reduces error rate

Cycle Time Improvement

Improves cycle time to complete tasks or processes

Customer Impact

Quantitative and qualitative impacts on GFS end-customers

Other Value Levers

Improvements to other value drivers (e.g., revenue generation, margin improvement, working capital improvement, asset efficiency, reducing audit risk, penalties, better data quality to drive effective decision making, customer complaints)

Data Integrity Degree to which input data is digital, structured, and standardized

Rule-Objectivity Degree to which discrete, non-judgment-based rules govern process completion

Process DeliveryNumber of hand-offs between GFS Business Units or number of hand-offs between different teams/employees

Process Scenarios

Number of exceptions associated with the process or number of ways process execution can error out

Process Simplicity

Number of discrete steps for process completion

Applications Number of applications used by the process

HIGH VALUE HIGH EASE OF IMPLEMENTATION

Low complexity automations are simpler to design, configure, and maintain

High value automations can potentially generate significant value to the business, including:


Intelligent Automation is helping organizations to realize a more centralized Controllership function that is user-friendly, touchless, and operates in real time – helping to improve operational performance, insightfulness, and risk intelligence across the enterprise

Automation opportunities across the traditional Accounting & Controllership functions

Capture Financial Datato GL

Analytics

ReportingManagement &

Statutory Reporting

• Order to Cash

• Purchase to Pay

• Manage Fixed Assets

• Research & Development

• Manage Inventory

• Plant, Equipment & Facilities

• Human Resources & Payroll

• Manage IT

• General Accounting

Validation

• Reconciliations• Re-Class Entries• IFRS/ International

accounting• Top side entries• Base Erosion & Profit

Shifting

Consolidations

• Intercompany

Eliminations

• Currency Valuation

• Accruals & Prepaids

• Allocations

• Chart of Accounts

Mapping• Fluctuation / Variances• Forecasting• Continuous Monitoring

CONSOLIDATED• Income statement• Balance sheet• Cash flows

Segment Reporting• Management

Discussion & Analysis• Footnotes• Disclosures

Regulatory & Convergence Standards

• IFRS• Revenue Recognition• Cash Flow Reporting

• Lease Accounting• XBRL• Base Erosion & Profit

Shifting

Financial Governance, Policy and Internal Controls

Process Transactions Close and Consolidate Report

GL

GL

GL

GL

GL

GL

Nor

th A

mer

ica,

Asia

-Pac

ific,

Eur

ope,

Afr

ica

&

Mid

dle

East

, Lat

in A

mer

ica

Entity Close

• Asset depreciation

• Revenue accounting

• Currency valuation

• IC Reconciliation

• Allocations

• Accruals

• Manual Postings

“Last Mile” of Finance

Public filingsAnnual

Quarterly MD&A

Earnings

Analyst presentations

Tax & regulatory reporting

Deloitte’s Controllership Continuum

Significant Automation opportunities exist across these core Close,

Consolidate, and Report functions

Accounting & Controllership automation opportunities

Process Area Opportunity

Month-end AccrualsAnalysts gather data from multiple sources, compile and perform calculations and validations on a spreadsheet, and develop accrual adjusting journal entries. Botscan perform the data gathering and accrual calculation activities, particularly for large, cumbersome accruals that are time sensitive during the period-end closeprocess.

Period-end Accounting Close and Consolidation

Analysts manually track and update close tasks list to manage and coordinate close activities. Analysts also manually track entity ledger submissions, perform edit checks and validations, and put data into spreadsheets to load into consolidation solution. Bots can be leveraged to introduce automation into many of the manual close and consolidation activities, including the significant volume of email communications to gather/share data and monitor close activities, providing improved end-to-end process visibility while also executing manual data gathering and calculation activities.

Management Reporting

Analysts gather data together into a spreadsheet or other reporting suites from multiple sources (GL, data warehouses, offline sources), clean data and fix discrepancies, and perform necessary calculations for trending and analysis. They then move data from spreadsheets to presentations complete with analysis and commentary to create periodic management reporting slide decks. Bots can streamline and automate this process, and also execute the overall management reporting process more frequently. There is significant value and opportunity even where Data Lakes and dashboarding tools are currently being utilized.

Intercompany Accounting

Intercompany accounting can be a very complex process, with many manual steps required to reconcile, price, and settle intercompany transactions even whensystems are used to manage intercompany transactions. Bots can be used to drive a more consistent and timely process across Intercompany Pricing,Intercompany Data Management, Transaction Management, Netting & Settlement, and Reconciliation & Elimination.

Account Reconciliation An analyst pulls data from ERP, extracts it into an spreadsheet, and reconciles beginning and ending balances with monthly transaction data to internal (sub-ledger) or external (bank statement) sources. Completed reconciliations are reviewed and approved and uploaded to Account Reconciliation tool. Bots can be used to prepare initial a monthly reconciliation spreadsheets, perform reconciliations, upload to account reconciliation tool, and manage/monitor reconciliation processcompletion.


Strategy development


While there are lots of moving parts in running a successful automation initiative, Deloitte has found there are four key aspects of the program that can drive true achievement of transformation through automation.

Transforming through automation

2. Identifying a “healthy” list of processes that are solid

candidates for gaining value from automation

3. Implementing a factory-centric capability for

development (expertise, flexible capacity)

4. Extending from RPA into more advanced digital

capabilities (Cognitive, AI, Blockchain, Data Science, etc.)

1. Running an automation program, not just building

“bots”


Every automation effort should have a multi-disciplinary journey that focuses on aligning the processes, tools, and people with new ways of technology-enabled working. We recommend tackling this dynamic journey through the combination of a strong program foundation, a scalable technology infrastructure, and a clear roadmap and business case.

Components to launching the automation journey

Stand-Up

PrepareB

A

Core Automation Journey ComponentsStand-up Creation of Automation Program Vision and design principles

High-level operating model

Stakeholder socialization

CoE Design

A

PilotD

Scale & SupportE

Prioritizec

B

C

Pilot Develop and Deploy Design for automation

Build, test, & deploy

Value capture and adoption

CoE RefinementPlan, Support, and Scale

Operate CoE

Execute Ongoing Development Factory

Support & Ongoing Maintenance

Train and Develop Capabilities

E

D

PrioritizeDefinition of the Business Case Process identification & evaluation

Process prioritization

Implementation options

Roadmap and business case

PrepareArchitecture & Infrastructure Vendor selection

Infrastructure and tech readiness

Licensing and solution architecture


We believe the following guiding principles are critical to help shaping an organization’s automation agenda as you move forward:

Intelligent automation program guiding principles

Select the right operating model for your automation journey

Build the right processes and methodology to ensure consistent delivery

Staff automation CoE with the right skills and involve all relevant stakeholders to ensure success

Identify the right opportunities for automation

Monitor, track, and capture value during the automation journey

Automation program strategy is closely tied to operating model, requiring careful consideration of tradeoffs and scalability

Select the right program operating model for automation journey

17

Function 3

Function 2

Function 1

IA IA

IA Governance

Function 1 Function 2 Function 2

IA Center of Excellence

• Decentralized approach allows groups to fail fast, learn fast and achieve quick wins, at the cost of inefficiency at scale

• Functions identify, design, deploy, and manage highest-value automations

• Function-specific IA Governance and Program Management

• No centralized IA governance, infrastructure, or maintenance support

• Hybrid approach provides the benefits of standardization while still enabling functional ownership of bots

• Functions identify and define highest-value automations while leveraging a shared technical pool for development and support

• IA policies and governance approach standardized across functions

• Effective balance between centralized and decentralized model

• Greatest degree of control

• Functions may identify processes, but CoEtypically manages design, deployment, andmaintenance of automations

• Requires cross functional buy in on prioritization of work rules

• Decreased flexibility to adjust to specific functional needs

• IA guiding principles span multiple functions and infrastructure is shared

F EDERAT ED/ H Y B R I DDEC EN T RAL I Z ED C EN T RAL I Z ED

IA Governance

Function 1

IA

Function 2

IA

Function 3

IA

Often the fastest means of implementingdiscrete, function-specific automations

Lacks scalability required for end-to-end, industrialized automations

Standardization of policy, procedure and and governance.Ability to foster engagement and support of functional areas.

Coordination challenges and resource requirements from functions

Scalability enables Industrialized IA, but also suitable for addressing discrete automation plays

Often involves additional investmentrequiring high value creation

IAO

PER

AT

ING

M

OD

E L

PR

OG

RA

M

STR

ATE

GY

IM

PA

CT

Analyze Implement OperateEstablish IA Strategy, Identify Processes, and

Define Operating Model

Determine roadmap of

processes in Establish

Determine alignment with IA

software operational operating

vendor(s) excellence model

Design Architecture, Build Automations, Test for Accuracy, and Initiate Hypercare

Implement Scale developmentsinitial process

Monitor and Report on Bots Metrics, Establish Transition Plan, and Implement Improvements

Review andenhance operating OptimizeIA

model to througheffectively manage monitoring IA

at scale

Mobilizeorganization

Establish IA strategy in coordination with operationaland technology initiatives

Define governance and operating model

Select vendor(s) to meet IA aspirations acrossthe Automation & AI spectrum (RPA, IA, AI)

Select the right processes that deliver business case value

Recognize steep learning curve from pilot phase

Scale implementations in an exponential manner

Measure outcomes vs. original business cases and challenge pipeline of processes

Capitalize on the insights IA is providing (digital exhaust)

Embrace agile methodologies and recognize R&IA is meant to be more nimble than traditional technology

Continued business and technologycoordination at alllevels

Address change management impactand opportunities

Organizations generally approach their IA programs over a three-phase journey (Analyze, Implement, and Operate) to develop program capabilities and establish effective processes and methodologies across the end-to-end IA lifecycle

Establish suitable processes and methodology to ensure consistent delivery

18

AnalyzeEstablish IA Strategy, Identify Processes, and

Define Operating Model

ImplementDesign Architecture, Build Automations, Test for

Accuracy, and Initiate Hypercare

OperateMonitor and Report on Bots Metrics, Establish Transition Plan, and Implement Improvements

Staffing CoEs with the right skills and involving critical stakeholders to ensure success

Identifying and staffing the right roles is imperative for the success of an automation program.

Auto

mat

ion

Life

cycl

eEx

ecut

ion

Role

sPr

ogra

m E

nabl

ersa

ndRo

les

• Demand and Intake Lead • Automation Architect

• Automation Developer/Lead

• Automation Analyst

• Automation Tester

• PM and Value Tracking Lead

• Operate/Service Manager

• Automation Controller

• Automation Support

Strategy and ProgramManagement

Program Director PM and Value Tracking Analyst

Technology Management

Vendor Management Lead Infrastructure Lead Infrastructure License Analyst

Risk, Compliance, and Standards

19

Automation Tech Lead Risk and Compliance Lead Information Security Lead

Org and Change Management

HR Lead Change, Training, and Comm. Analyst

Identify the right opportunities for automation

20

As automation ideas surface, a systematic approach toward opportunity evaluation, prioritization, and selection is critical

Identifying IA Process Opportunities Steps of Execution

Process for IA Implementation

Step 3: Prioritize based on Business Case Framework

Step 2: Apply Suitability Criteria Framework

Step 1: Identify Potential Process Candidates (large

volume)

Step 1

Gather process information and assess initial process candidates for IA adoption

Process owners identify initial set of processes – this will include:- Optimal processes, candidate processes, and outliers

Collect information about identified processes and relevant system information

Conduct working sessions with process owners to understand key process metrics

Step 2

Prioritize processes based on Suitability and Business Case Framework

Shortlist processes by adopting Suitability Assessment framework

Apply IA Business Case framework to categorize processes as automation candidates

Regroup with process owners and align on selection criteria and prioritized processes

Step 3

Redesign prioritized processes and socialize results

Conduct workshops to review and redesign process candidates for IA adoption

Document process future-state and recommendedenhancements

Socialize benefit (value and savings) according to business case

SupplyChainMDM

HRFinance

Monitor, track, and capture value during the automation journey

21

Post deployment of automation, it is imperative to have a process in place to monitor and sustain them to ensure ongoing benefit realization and tracking

Automation Maintenance

Process Insights& Improvement

Bot Stabilization and MonitoringSchedule automation processes in the production environment and ensureexceptions are routedappropriately

Automation SupportNon-discretionary maintenance of automationsincluding the resolution of incidents (“break-fix”maintenance) and incident management

Enhancements and ChangesManagement of the automation hosting platform including installation, configuration, and testing of releases andlicenses

Automation Software MaintenanceStandard processes and methods for efficient handling of all changes to reduce the impact of change-related incidents

Functional Process SupportEvaluation of business rules logic,assess process designs, and review scalability and performance of digital workforce, regardless of volume levels

Reporting & InsightsReport and visual dashboards generation utilizing data output from automations to improve business outcomes andautomation performance

Digital Process EnhancementCognitive capabilities identification in process improvement for upstream and downstream enhancements impactedby automations


In our experience, companies that focus on bot development alone are often unable to achieve the results they seek; true value and impact are driven by defining the right operating model and effectively managing the process, operations, and employees that are tied to the automation

It’s not just about bot development

Barrier to Realizing

Value

Value

Improved Quality & Accuracy

Resource Shift To Higher Value Work

Efficiency

Automation

Governance

Building a Business Case Ongoing Support

Operating Model

Change Management

Key Decisions, Impacts, & Considerations

Bot Development

Only Approach

Leading Practice Approach to IA

Programs

Automation


Governance model and framework


2

Governance decision domain overviewEach governing body owns decision rights over specific governance domains

AUTOMATION GOVERNANCE

DOMAINS

Strategy & Program

Management

Intake & Prioritization

Org & Change

Management

Operations & Business Needs

Implementation

Risk, Compliance & Standards

Technology Management

Steering Committee

Service Management

Deployment Management

Executive Sponsor(s)


Automation (CoE) governance frameworkThe CoE should have a robust governance structure to address the financial and operational risks.

Robotics Governance Framework

1 Adherence to Risk, Compliance and Regulatory Boundaries Ensure assessment and deployment of bots adheres to risk and compliance limits

Conduct reviews and chart impact of bot deployment and necessary controls for monitoring

4 Bot Integration & Data Handling Maintain client confidentiality through data protection, and

privacy incident management

CI protocols as leading practices during and after RPA program

2 Define & Enforce Policies, Procedures and Controls Define comprehensive policies at global business & function-

specific levels

Operationalize policies into procedural documents to support the RPA program rollout

Document technical standards for security architecture & deployment

5 Maintenance and Upgrade Cycles As processes change due to regulation, introduction of new

systems, etc., the bots need to be maintained and reprogrammed

A mechanism should be put in place to ensure changes are monitored proactively and change management processes are followed

3 Active Trigger Monitoring & Reporting Define a monitoring structure for the portfolio of bots that are to be

deployed

Setup triggers to alert deviated bot behavior along with performance indicators and reporting processes


Connect with us

Isabelle BordasPartnerDeloitte & Touche [email protected]

Patrick O’ReganManagerDeloitte & Touche [email protected]

Scott RehnsSenior ManagerDeloitte & Touche [email protected]

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.

No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.

About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

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2020 Deloitte Renewable Energy Seminar Renewables for a ...€¦ · Renewables for a sustainable...

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