HfS Webinar - Transforming a Professional Services Firm ......Underpinned by Artificial...
Transcript of HfS Webinar - Transforming a Professional Services Firm ......Underpinned by Artificial...
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
@pfershtWeb:hfsresearch.comBlog:horsesforsources.com
PhilFersht,CEOandChiefAnalyst,HfSResearch
©2017 HfSResearchLtd.
©2017 HfSResearchLtd.
Six Value Levers Driving this Digital Operations Industry
©2017 HfSResearchLtd.
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
©2017 HfSResearchLtd.
TheFutureofOperationsintheRoboticAgeTheOneOfficeTMOrganization
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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.
©2017 HfSResearchLtd.
[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
©2017 HfSResearchLtd.
AI is Hyped, Inflationary, Undefined, yet Starting to Become Pervasive
©2017 HfSResearchLtd.
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
©2017 HfSResearchLtd.
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
©2017 HfSResearchLtd.
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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©2017 HfSResearchLtd.
The journey toward General AI is all about data
Technology,Algorithms
Data
Narrow AI General AI
Agent SubstitutionHuman Agent Agent Augmentation
©2017 HfSResearchLtd.
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
©2017KPMGInternationalCooperative(“KPMGInternational”),aSwissentity.MemberfirmsoftheKPMGnetworkofindependent firmsareaffiliatedwithKPMGInternational.KPMGInternationalprovidesnoclientservices.NomemberfirmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm.Allrightsreserved.
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
©2017KPMGInternationalCooperative(“KPMGInternational”),aSwissentity.MemberfirmsoftheKPMGnetworkofindependent firmsareaffiliatedwithKPMGInternational.KPMGInternationalprovidesnoclientservices.NomemberfirmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm.Allrightsreserved.
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.
©2017KPMGInternationalCooperative(“KPMGInternational”),aSwissentity.MemberfirmsoftheKPMGnetworkofindependent firmsareaffiliatedwithKPMGInternational.KPMGInternationalprovidesnoclientservices.NomemberfirmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm.Allrightsreserved.
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
©2017KPMGInternationalCooperative(“KPMGInternational”),aSwissentity.MemberfirmsoftheKPMGnetworkofindependent firmsareaffiliatedwithKPMGInternational.KPMGInternationalprovidesnoclientservices.NomemberfirmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm.Allrightsreserved.
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