WEBINAR RPA Market Update, Buying Patterns, And Vendor Update

2. WEBINARRPA Market Update, Buying Patterns, And Vendor Update Craig Le Clair, Vice President, Principal Analyst May 4, 2017. Call in at 12:55 p.m. Eastern time

4. Agenda • Robotic process automation (RPA) defined and top use cases • RPA market forecast and relation to AI • RPA key characteristics and product landscape • Operating models for RPA and automation • Closing remarks

5. Agenda • Robotic process automation (RPA) defined and top use cases • RPA market forecast and relation to AI • RPA key characteristics and product landscape • Operating models for RPA and automation • Closing remarks

6. RPA supports operational processes Source: TechRadar™: Digitizing Operational Processes, Q2 2015 Forrester report

7. RPA supports “attended” and “unattended” use cases • Attended RPA is defined as: “Automation that interacts in real time with humans who initiate and control robot tasks, generally associated with front-office, agent-led activities.” • Unattended RPA is defined as: “Automation that replaces a complete human function in a ‘lights-out’ manner, creating a virtual workforce, generally associated with back-office activities.”

8. An alternative to “big IT spend” for typical BPM projects • It does not require invasive integration, changes to underlying systems, or change management. • A “low-touch” approach for process improvement for brittle legacy systems • RPA appearing as workflow queues on BPM process maps and “guardrails” for state transitions in case management

9. Buying patterns Source: Digitization Leaders Share Robotic Process Automation Best Practices Forrester report

10. Finance and accounting is a ripe area High FTE impact Medium FTE impact

11. SAP and Oracle are fertile areas for RPA • ERP systems have modules to manage back-office activities and tasks including F&A applications. • RPA for F&A operations benefits are accuracy, elevated service levels, fraud control, compliance, audit trails, higher staff retention, rapid data extraction and aggregation, and stronger regulatory compliance validations. • Verizon cut manual entries annually by a quarter — to 10,500 from 14,000. It aims to cut another 1,400 manual entries by the end of this year for an overall reduction of 35%. • A tier 1 bank is forecasting elimination of 1,200 of 2,000 jobs in F&A closing operations in three years — only 50 decisions made by humans tasked with data entry.

12. Some large-scale implementations: Telco • 30,000 customer service representatives handle more than 50 million sales and services calls from its customers annually. • 12,000 of its 30,000 sales and customer service representatives have RPA support. • 140 desktop software automations — also uses RPA to move data between databases without human intervention. Citrix environment. • Primarily dealt with data inefficiencies around Siebel. • 33% increase in NPS,* 20% increase in first-call resolution, $10 million annual savings in call-handling time. *Net Promoter and NPS are registered service marks, and Net Promoter Score is a service mark, of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

13. RPA automates employee onboarding • Robots perform a series of checks to onboard new employees, such as capturing and updating employee information, providing access to applications, updating legal paperwork, and notifying their managers through email. • Fetches the automatically assigned user onboarding ticket — reads the ticket details and identifies it as “new user creation.” • Validates whether the requisite data for the new employee is present. Verifies details such as the user first name, last name, email ID, address, and joining date. • Allocates a licensed version of Office 365 to the new user. • HR manager has a view of the onboarding process through the control tower — availability, number of processes being run, processing time against SLAs, and other controls.

14. KYC Deal configuration Closing and fulfillment Credit risk Data gathering Sales engagement Global bank RPA usage in the onboarding process Customer experience Operational experience • Inability to get a holistic view of operational and other data • Connecting with the institution via digital channels • Operational reporting/key performance indicators • Collecting the right information while maintaining customer experience Presenting the right information to clients at the right stage in the process • Multichannel customer service • Poor response and escalation mechanisms for issues Too many inconsistent internal user interfaces and key performance indicators • Re-keying or wasted time coordinating various systems of records, core systems, and packaged apps — each with its own record-keeping needs Account setup/ modifications KYC, PEP, MIFID, and FACTA reporting Risk scoring

15. Agenda • Robotic process automation (RPA) defined and top use cases • RPA market forecast and relation to AI • RPA key characteristics and product landscape • Operating models for RPA and automation • Closing Remarks

16. Despite strong growth, RPA requires more advanced analytics to sustain market growth • Today’s fragmented apps drive RPA — system modernization reduces RPA need. • RPA growth is too dependent on legacy system longevity. • On-demand communications will replace human-driven fulfillment. • Self-service and NLP interfaces will reduce background RPA tasks. • Cloud systems provide better data integration and reduce the need for RPA.

17. RPA will climb the cognitive scale RPA today Source: The State Of Robotic Process Automation Forrester report

18. Thefutureof work Source: The Future Of White-Collar Work: Sharing Your Cubicle With Robots Forrester report

19. In-person service jobs are relatively safe

20. But maybe not this guy

21. Source: The RPA Market Will Reach $2.9 Billion By 2021 Forrester report

22. RPA market spend depends on cognitive AI enhancement • RPA’s movement from obtuse to percipient will determine market growth. • AI can lift RPA to find new and less-used patterns, memorize those patterns, and support them to handle complex exceptions. • RPA will initially support a higher percentage of digital work in early years. • RPA will remain focused on tactical tasks but get smarter at them. • True AI solutions take on a higher percentage of human work after 2019. • RPA integration with AI will take one of two forms.

23. Source: TechRadar™: Artificial Intelligence Technologies And Solutions, Q1 2017 Forrester report

24. Virtual assistant is a near-term use case 1. Customer gives up on chatbot experience. Advice and transaction handling Engagement capability 4. Active learning points prioritized. 2. Customer hits portal link for human assistance. AI/NLP knowledge base 5. Machine self-adjusted. System orchestration 6. Machine extends support capability. Robotics process automation 3. Human addresses problem — text captured and converted for machine ingestion. Routine production services

25. “I think there is a world market for about five computers.” — Tom Watson, 1943 “Everything that can be invented has been invented.” — Charles H. Duell, Commissioner, US Patent Office, 1899

26. Agenda • Robotic process automation (RPA) defined and top use cases • RPA market forecast and relation to AI • RPA key characteristics and product landscape • Operating models for RPA and automation • Closing remarks

27. RPA evaluation approach Development Control room Analytics Architecture Use case Administration • App integration • UI integration • Attended operation • Skills required • Design and automation engine • Reporting and benchmarks • System management • Work management • Catalog • AI linkage • Desktop analytics • Chatbot/NLP integration • VDI integration • Citrix and global services • Deployment options • Scale options • Attended • Unattended • BPO partnerships • ITSM • F&A • Access control and authentication • RPA governance • Cloud support Innovation Road map Partnerships Market share

28. Source: The Forrester Wave™: Robotic Process Automation, Q1 2017 Forrester report

29. RPA providers begin in different spots Attended solvexia Thoughtonomy ** ** Avande .com ** **Pega contextor ** ** ** Service focused Product focused RAPIDRPA ** ** ** ** arago winautomation assistedge ** Conduent Unattended * RPA specialist ** RPA plus multiple products/services

30. Agenda • Robotic process automation (RPA) defined and top use cases • RPA market forecast and relation to AI • RPA key characteristics and product landscape • Operating models for RPA and automation • Closing remarks

31. Robot management and governance are primary enterprise concerns • Governance basics are being defined as we automate. • Connectivity monitoring • Out-of-the-box version control apps • Centrally controlled rollback capabilities • And testing procedures for application changes • Process knowledge gaps create governance issues. • Keep governance light but effective. • Governance requires a decision-making group. • Involve delivery and engagement team. • Track catalog of ideas. • Develop rules to prioritize — complex or simple — ROI and estimate delivery time. • .

32. RPA operating model to deliver value to customers and stockholders • Technology management • robotics center responsibilities • Training/best practices • Maintain knowledge repository • Catalog reusable robots • Provide access to SMEs (advice) • Maintain automation checklist • Manage procurement of licenses • Vendor management • Manage robot operations • Sandbox environment • Business segment • responsibilities • Drive change management • Robot design and development • Prioritize automation projects • Compliance and ethical review • Develop business case • Maintain automation road maps • Document human process Engagestakeholders • Automation checklist • Process profile review • Security exposures • Agile design approach • Business continuity • Infrastructure • Control tower operations • Testing and audit • Roll back/forward procedures • Coding standards • Scalability Ensure delivery • External BPO providers and consultants • Implementation services • Strategy review and process design • Domain — outsourced functions to robotize

33. Agenda • Robotic process automation (RPA) defined and top use cases • RPA market forecast and relation to AI • RPA key characteristics And product landscape • Operating models for RPA and automation • Closing remarks

34. “ . . . the next 10 years will generate an order of magnitude of more change than the past 10 years.” 2007 to 2016 2017 to 2026 Source: “Will People Really Do That?” Forrester report

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36. Craig Le Clair cleclair@forrester.com