Copyright © 2015 Aecus Ltd. All rights reserved. 1
Copyright © 2015 Aecus Ltd. All rights reserved.
Sourcing RPA
Making the next generation of automation
work for you
Copyright © 2015 Aecus Ltd. All rights reserved. 2
e.g. Analytics
Sourcing Strategy
Benchmarking
Outsource RFP / Deal Advice
Shared Services Design / Build
Transition / Operations Support
Vendor Management
Programme Management
Interim Management
Dispute Resolution/Expert Witness
Location Assessments
Exp
ert
ise
an
d d
ata
By process:
Digital/Customer
Industry-specific
Clinical
Procurement
HR / Payroll
Finance
Applications
IT
By sourcing model:
Shared services
Outsourcing
By topic:
e.g. Cloud
e.g. Innovation
e.g. Robotics Ho
w w
e w
ork
wit
h y
ou
End-to-end support
Access to data
Workshops / briefings
QA and governance
Targeted projects
Aecus advises across the sourcing spectrum - including new challengesSe
rvic
e /
Lif
ecy
cle
Copyright © 2015 Aecus Ltd. All rights reserved. 3
Paul Morrison
Paul is a Partner at Aecus and the head of the BPO and Shared Services Practice. Paul is an expert in sourcing strategy, benchmarking and innovation in outsourcing. Paul runs the Aecus Innovation Programme, including the Innovation Awards, [email protected] / @MorrisonPaul1
Kulpreet Singh
Kulpreet is an expert in business process sourcing, analytics and automation. He is supporting a FTSE 100 General Insurer in adopting RPA across its back office processes. Kulpreet has over a decade of experience in outsourcing & [email protected]
The Aecus RPA team
Piyush Sodhi
Piyush has over 15 years of experience in advising on sourcing and technology. Hespecialises in shaping global sourcing deals, and tackling the challenges ofovercoming the challenges of legacy systems. He recently advised a number oforganisations on where to pilot RPA in their back office [email protected]
Copyright © 2015 Aecus Ltd. All rights reserved. 4
Robotic and Cognitive Automation: The appetite is strong and growing
A recent Aecus survey of technology decision-makers show RPA as the tool that they are most likely to use to adopt in the next 3 years
Source: Aecus Survey
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Desktop Automation
Robotic Process Automation
Cognitive Automation
Simple tools to record and
repeat tasks. ‘Macros’.
Software that uses pattern
recognition and machine
learning, potentially combined
with natural language / ‘human’
interface
Software that acts as a ‘virtual
person’, operating existing
applications and systems. Rapid but
scalable task automation.
Note: Illustrative automation vendors
Pote
ntial V
alu
eThe spectrum of smart automationRPA is the latest wave of automation software reaching maturity
Evolution
Copyright © 2015 Aecus Ltd. All rights reserved. 6
RPA: What the users say
The result has been impressiveand a complete success. We havesignificantly improved our abilityto respond to customers andachieved flexibility and scalabilitywhilst reducing costs
Without deploying this technology we could nothave managed the increased managed servicesbusiness without significantly increasing the size ofour operations workforce. Even then it is unlikely wecould drive the same consistent, high quality ofdelivery with increased profitability
Cognitive is now a fundamental part ofour process and we are already planningto expand its use to deal with otherunstructured processes
It has allowed us to utilise the skills andpassion of our permanent staff moreeffectively which has enabled us to create,implement and drive a sustainable longterm strategy.
Faster, more personalresponse to passengers
32 man hours of processper day reduced to 4
Rather than employ temporary staff,we can cope with sudden demandsfollowing large scale delays ordisruption
50% reduction in operational costs
Copyright © 2015 Aecus Ltd. All rights reserved. 7
RPA: Key benefits
The result has been impressiveand a complete success. We havesignificantly improved our abilityto respond to customers andachieved flexibility and scalabilitywhilst reducing costs
Without deploying this technology we could nothave managed the increased managed servicesbusiness without significantly increasing the size ofour operations workforce. Even then it is unlikely wecould drive the same consistent, high quality ofdelivery with increased profitability
Cognitive is now a fundamental part ofour process and we are already planningto expand its use to deal with otherunstructured processes
It has allowed us to utilise the skills andpassion of our permanent staff moreeffectively which has enabled us to create,implement and drive a sustainable longterm strategy.
Faster, more personalresponse to passengers
32 man hours of processper day reduced to 4
Rather than employ temporary staff,we can cope with sudden demandsfollowing large scale delays ordisruption
50% reduction in operational costs
Major operational benefits for each in scope task / process:
• 24/7 availability
• Flexibility to handle peaks and troughs
• 40-80% reduction in FTE costs
• 80% reduction in cycle time / TAT
• 90% reduction in error rates
Non-linear benefits to the business
• Refocusing the business away from high scale, low value work
• Compliance and auditability
• Analytics and insights from previously analogue / ad hoc work
Much shorter implementation time than typical IT builds
• 8-12 weeks for initial go-lives
Copyright © 2015 Aecus Ltd. All rights reserved. 8
However RPA presents 10 major new challenges
Orientation• What is RPA? How does it differ from other
automation? Is it relevant for us? • What could the benefits be? What risks?
Robot Readiness Analysis• What does it mean for our existing outsourcing
relationships / shared services? Do our current activities need to be changed to be ‘robot-ready?’
Sourcing Strategy• How do we source RPA? Internally, via Specialist RPA
provider, or via outsourcing partner?
Supplier Selection• Who are the leaders in RPA?• Who is the right provider for us?
Feasibility and scoping• What are the best opportunities? • What is the potential impact?• Where should we start?
Governance and Capability• How should we run and evolve our RPA / Cognitive
activities? What skills / organisation are required? How do we build on / reuse our experience?
Commercials• What is the right pricing for RPA / Cognitive? • What is the right price structure? License? Price per
robot? How should it impact our existing deal?
Implementation• How should we implement RPA / Cognitive? What is
the right approach to transition, transformation and change? How do we manage the cultural change
Solution Design• What should the RPA solution look like?• Integration with other systems?
Specification / RFP• Precisely what services do we need? What is the
scope? What other specifications are important?
Copyright © 2015 Aecus Ltd. All rights reserved. 9
Building an RPA approachSuccess with RPA requires many elements to be in place
RPA Model
Operating Model
Implement
Platform and technology
SupplierCommercials
Governance
Scope and spec
• Managed Service
• Inhouse CoE
• Hybrid
• Process scope
• Complexity analysis
• Fit with current baseline
• Exceptions clarity
• Tool / platform selection
• Supporting technologies
• Digitisation / scanning
• Specialist RPA provider
• ITO
• BPO
• Internal skills
• Transition
• Transformation
• Change
• Risk
• Licence
• Pay as you go
• Transaction based
• Outcome based
• Leadership
• Fit with existing forums
• RPA-specific roles
Copyright © 2015 Aecus Ltd. All rights reserved. 10
Aecus supports RPA clients with a range of sourcing needs
1. Greenfield outsourceKey issues
• How do you design outsourcing from the start with RPA built-in?
• Who is the right supplier?
• How do you make sure you get a fair, sustainable share of RPA savings?
2. Inflight outsourceKey issues
• What needs to change in the current deal? Do we have the right supplier?
• How do we incentivise RPA, given that it will cannibalise incumbent FTE revenue?
• How do we avoid ‘Supplier RPA by stealth’?
3. Shared ServicesKey issues
• How to identify RPA opportunities and lead RPA change?
• What RPA skills and experience do we need to invest in now?
• How do we manage the RPA change journey in our organisation?
Copyright © 2015 Aecus Ltd. All rights reserved. 11
Aecus RPA Services – From idea to implementation
Intro
Briefing
Process
Scan
Market
ScanStrategy /
Business
CaseImpact
Analysis
Pilot
RFP
Process
Contract
Rollout
Scale and
Optimise
Copyright © 2015 Aecus Ltd. All rights reserved. 12
Aecus RPA Services – From idea to implementation
Stage Aecus Activities Duration
Intro briefing • Demystify, define, educate; describe benefits, costs, timings, process• Vision: What will happen to the RPA / outsourcing marketplace?• Scenarios: What could the impact be on your existing arrangements?
½ day
Process Scan • High level opportunity scan – which processes are suited / what are outcomes?• Identify and rank pilot opportunities
2 weeks
Market Scan • Review long list of providers• Meet 5-10 providers for 2 hour workshops• Carry out RFI to assess vendor and service provider offerings• Select shortlist of 3-4 providers. Rapid 1-2 week ‘cook off’ between strong candidates.
2 weeks
Strategy and business case
• Outline business case and price benchmarking• Draft engagement model – role of suppliers / internal provision
2 weeks
Impact analysis • Assess impact on current outsourcing and shared services arrangements; worked examples• Check change control and contractual mechanisms• Assess scope for gainshare and other mechanisms to share automation gains• Consider viability of early exit – fees v. benefits
2 weeks
Pilot • Run task-level project to serve as proof of concept 1-2 months
RFP process • Support gathering of full requirements specification; Validate with SMEs and IT• Run RFP selection process including supplier workshops, pricing analysis, response review and scoring,
engagement with shortlisted suppliers
3 months
Contracting • Support negotiation and drafting of contract 1-2 months
Rollout • Implement automation rollout with selected provider• Support development and implementation of transition plans• Support change and comms
-
Scale and optimise • Set up / enhance RPA governance and organisation -
Copyright © 2015 Aecus Ltd. All rights reserved. 13
Aecus RPA Team Experience
Insurance Client: Robotic RFP Process and Implementation
• Orientation on art of the possible
• Strategy guidance• RFI process• Pilot design• Provider shortlisting• RFP development• QA
Private Bank Client: Robotic Feasibility Study and Analysis
• Intro briefing and orientation
• Development of feasibility plan / process selection
• Business case development
Manufacturing Client: Robotic
Feasibility Review
• Orientation training for 50 service managers
• Review of F&A process for RPA suitability
• Identification of high potential priorities
• Impact analysis for inflight deal
Aecus Innovation Awards on Robotics and Cognitive – Awarded to:
Retail Bank Client: Robotic Process Review / Q&A
• Review of Bank’s draft feasibility paper for RPA rollout
• Guidance on commercials
• Market scan / supplier shortlisting