PWC Software Robotics

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PwC’s Software Robotics Solution uses smart software to replicate tasks and processes that are performed by humans. This has become popular for transformational programmes because of the following reasons: • Non-Invasive: The software is deployed on the existing technology architecture so underlying systems/applications remain unchanged • Rapid deployment: time to implement is “weeks” and not “months” • Early payback: Return on investment is typically 1 to 2 years (sometimes sooner) depending on type of process and volumes – which is fast when compared t

www.pwc.co.uk
PwC software
robotics
March 2016
PwC software robotics
PwC  1
62%of Finance Leaders either agree or strongly agree that the advancement of
process automation will impact their business in the next 12 – 24 months*. How are you
positioned to adapt to the changing environment?
What is PwC Software Robotics?
PwC’s Software Robotics Solution uses smart software
to replicate tasks and processes that are performed by
humans.
This has become popular for transformational
programmes because of the following reasons:
• Non-Invasive: The software is deployed on the
existing technology architecture so underlying
systems/applications remain unchanged
• Rapid deployment: time to implement is
“weeks” and not “months”
• Early payback: Return on investment is
typically 1 to 2 years (sometimes sooner)
depending on type of process and volumes –
which is fast when compared to automating FTEs
in low cost offshore locations
Software robots reduce the cost of delivery and reduce
error rates by automating rule based, high volume
activities. This has been the ‘mantra’ for the past 15
years in support of outsourcing/offshoring – the
difference now is faster implementation, even lower
costs, without the onshore / offshore debate. All of
which make it a compelling proposition.
What does the market look like?
The rule based market for automation software is
fairly mature with Artificial Intelligence (AI) and
Cognitive very much still evolving.
• At one end of the spectrum you have companies
that automate processes with defined business
rules, structured inputs and outputs e.g. invoice
processing, standard monthly reporting packs etc.
• At the far end you have AI based solutions using
complex algorithms consuming unstructured
inputs and data to produce an output, evolving
and improving their performance through
learning e.g. a cancer research hospital in the US
has deployed IBM’s Watson solution to provide
information and analytics, enabling doctors to
make a decision on the best course of cancer
treatment.
In-between these two points are the hybrid solutions
that combine elements of AI on rule based processing.
PwC’s Software Robotics focuses on rule based
automation – a practical first step towards embarking
on a digital journey.
Source: GenFour
How does Software Robotics
differ from traditional ERP
based automation?
The principle difference is that ERP based automation
is reliant on programming skills, connectivity,
configuration and extensive testing at a
system/application/ERP level vs. Software Robotics
solutions that replicate human interaction with the
system following set business rules.
… Resistance is futile, are
you ready?
PwC software robotics
PwC  2
The Software Robotics route is usually quicker
and lower in cost when compared to ERP
based automation including any maintenance
related changes.
What are the benefits of
Software Robotics?
1. Rapid deployment: 12 – 18 weeks,
subject to process complexity
2. Non-invasive: Deployed on top of your
current systems and applications and
interacts as the user would, only faster
and with near 100% accuracy
3. Deployed on your architecture:
There is no need to change the
underlying systems or technology
4. Highly scalability: An easily
expandable workforce, instantly trained
and deployed; a system that can be
scaled and worked restlessly
5. Available 24/7: Capable of processing
around the clock completing the work
that, up until now, humans have been
doing. Limited only by the availability of
your systems (typically 16 hours/day)
6. Reduced costs: Overall operating
costs are a fraction of an off-shore FTE
7. Increased quality: Quality of outputs
is increased, no reworking required due
to human error
Cost 3:1 Off-shore FTE: Robotic FTE
*Source: Raconteur Media & Blue Prism
35% of current jobs in the UK are at
high risk of computerisation over the
following 20 years …
Source: BBC Survey ‘Will a robot take your job? September
2015
Which finance processes are
typically appropriate for
automation?
The following processes are the most appropriate
candidates for automation using PwC Software
Robotics*:
 Payments/invoice processing
 Supplier simple query management response
 Time and expenses auditing
 Order management
 Periodic credit check through external credit
rating agencies
 Regulatory report production
 Management reporting/Board reporting pack
production
 Performance report production
 Trade processing i.e. Asset Backed Securities
Processing, Asset servicing/Billing
 Data validation checks/Data migration testing
 Master data management
*Before embarking on any process automation all
processes will undergo a diagnostic to assess its feasibility
to be automated.
PwC software robotics
PwC  3
The PwC approach
PwC has a tried and tested methodology as part of our
transformation toolkit to provide a comprehensive
solution to our address our client needs. We have
deployed this within our Shared Service centre and is
now integrated into our Global Shared Services and
outsourcing methodology – the diagram below
outlines the key components:
This methodology is for an end to end deployment
for PwC’s robotic software solution, however for
enterprises looking to pilot this technology, we
focus on the ASSESS phase to identify the short list
of processes, technology and business case
for deployment.
Case study: On-boarding process
Client: A leading international Service
Delivery firm delivering back office HR
services through a combination of onshore and
offshore delivery centres.
Client issue: A combination of 200 onshore
and offshore FTEs were managing the end to
end recruitment process for the client for its
US operations and approximately 10-30 FTEs
were handling approximately 19,000 new
joiners/annum. The service delivery centre was
tasked with a ‘do more with the same’
challenge by the governance board. Due to cost
pressures there was no budget available to
increase the size of the team.
Approach:
 Assessment: The PwC team undertook
an assessment of all the key recruitment
processes in terms of volume, complexity,
effort hours to identify a short list of
processes that would benefit from PwC’s
software robotics solution and we agreed
with the client to undertake a ‘Proof of
Concept’ (PoC) for the on-boarding
process.
 Proof of Concept (PoC): A joint team of
client process owners and the PwC
software robotics team worked through
several workshops and the team mapped in
detail the separate activities for the on-
boarding process.
 Solution: The design, build and testing of
the automated solution was performed off-
site within the client’s test environment. It
took a total of 10 weeks elapsed time to
deploying the solution on the client
environment.
Benefits Gained
 Estimated savings of between 10–15 FTEs of
the initial 30 onboarding team members. This
allowed the service delivery centre to focus on
customer facing aspects of the recruitment
process
 Processing quality improved many times over
allowing the team to focus on “exception
handling” and not re-work
 On-boarding costs were reduced (i.e. flights,
training., hotels, IT) due to improved quality of
data accuracy
 Improved reporting through the software tool
enabled the team to identify trends in
exceptions and bottlenecks. This enabled
further successful process improvement
projects
PwC software robotics
PwC  4
PwC’s point of view
Adopting a software robotics solution is the first step
towards embarking on a Digital Finance
transformation – it’s not a question of if but when.
Our observation in the market is as follows:
 We are only at the beginning of the
Software Robotics revolution
Software Robotics has a foothold in Industry, but
we are only at the beginning of a journey to fully
understand its potential. Technology is advancing
at a rapid rate, standing still and not investing in
your systems is not an option, if you don’t move
quickly you will lose competitive advantage.
 Software Robotics is low investment and
quick to realise ROI
This is a business led investment and initiative.
However unlike traditional on-site implementations,
it does not require the extensive investment or time
associated with build, deployment and testing.
Business users can learn how to run, maintain and
deploy Software Robotics in weeks.
 Implement a Pilot programme and trial
the benefits in your business
The market is buoyant across all sectors and there is
an overwhelming desire by our clients to ‘see, touch,
and feel’. Enterprises are embarking on a pilot to
initially comprehend this solution and its applicability
within their business.
 To get the most out of Software Robotics
you have to think holistically
Businesses have experienced a reduction in operating
costs through deployment of Software Robotic
solutions. However enterprises that adopt “best in
class” process characteristics in parallel will
experience enhanced gains across cost and quality
metrics performance.
 Don’t forget about your sourcing
strategy!
If you have an existing SSC infrastructure you should
deploy Software Robotics. If you are considering
sourcing you cannot ignore the robotics approach. For
in-scope processes, the underlying economics of a
robotic solution are radically more compelling vs. a
low cost SSC option
Conclusion
Over the past 20 years various models have evolved
which have challenged how we deliver a quality
service to the business, customers and our employees.
Robotic Process automation is the fresh challenge for
the digital age and it is a compelling one. However,
this is just one step into an even more exciting digital
journey, where deploying Software Robotics/Artificial
Intelligence solutions is at the heart of businesses
beating the competition.
Several organisations are on this journey already. The
question you have to ask is – are you ready?
Contact:
Brian Furness
Partner
T: +44 (0) 7 740 923 515
E: brian.j.furness @uk.pwc.com
www.pwc.com/uk
Anish Shah
Senior Manager,
Finance Transformation
T: +44 (0) 7595 611377
E: Anish.s.shah@uk.pwc.com
www.pwc.com/uk
This publication has been prepared for general guidance on matters of interest only,and doesnot constitute professional advice.
You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is
given asto the accuracy or completeness of the information contained in this publication, and, tothe extent permitted by law, PricewaterhouseCoopers LLP, itsmembers,
employ ees and agents donot accept or assume any liability, responsibility or duty of care for any consequences of y ou or any one else acting, or refraining toact, in reliance
on the information contained in this publication or for any decision based on it. ©2016 PricewaterhouseCoopers LLP. All rightsreserved. In this document, "PwC" refers
to the UKmember firm, and may sometimesrefer to the PwC network. Each member firm isa separate legal entity. Please see www.pwc.com/structure for further details.

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PWC Software Robotics

  • 2. PwC software robotics PwC  1 62%of Finance Leaders either agree or strongly agree that the advancement of process automation will impact their business in the next 12 – 24 months*. How are you positioned to adapt to the changing environment? What is PwC Software Robotics? PwC’s Software Robotics Solution uses smart software to replicate tasks and processes that are performed by humans. This has become popular for transformational programmes because of the following reasons: • Non-Invasive: The software is deployed on the existing technology architecture so underlying systems/applications remain unchanged • Rapid deployment: time to implement is “weeks” and not “months” • Early payback: Return on investment is typically 1 to 2 years (sometimes sooner) depending on type of process and volumes – which is fast when compared to automating FTEs in low cost offshore locations Software robots reduce the cost of delivery and reduce error rates by automating rule based, high volume activities. This has been the ‘mantra’ for the past 15 years in support of outsourcing/offshoring – the difference now is faster implementation, even lower costs, without the onshore / offshore debate. All of which make it a compelling proposition. What does the market look like? The rule based market for automation software is fairly mature with Artificial Intelligence (AI) and Cognitive very much still evolving. • At one end of the spectrum you have companies that automate processes with defined business rules, structured inputs and outputs e.g. invoice processing, standard monthly reporting packs etc. • At the far end you have AI based solutions using complex algorithms consuming unstructured inputs and data to produce an output, evolving and improving their performance through learning e.g. a cancer research hospital in the US has deployed IBM’s Watson solution to provide information and analytics, enabling doctors to make a decision on the best course of cancer treatment. In-between these two points are the hybrid solutions that combine elements of AI on rule based processing. PwC’s Software Robotics focuses on rule based automation – a practical first step towards embarking on a digital journey. Source: GenFour How does Software Robotics differ from traditional ERP based automation? The principle difference is that ERP based automation is reliant on programming skills, connectivity, configuration and extensive testing at a system/application/ERP level vs. Software Robotics solutions that replicate human interaction with the system following set business rules. … Resistance is futile, are you ready?
  • 3. PwC software robotics PwC  2 The Software Robotics route is usually quicker and lower in cost when compared to ERP based automation including any maintenance related changes. What are the benefits of Software Robotics? 1. Rapid deployment: 12 – 18 weeks, subject to process complexity 2. Non-invasive: Deployed on top of your current systems and applications and interacts as the user would, only faster and with near 100% accuracy 3. Deployed on your architecture: There is no need to change the underlying systems or technology 4. Highly scalability: An easily expandable workforce, instantly trained and deployed; a system that can be scaled and worked restlessly 5. Available 24/7: Capable of processing around the clock completing the work that, up until now, humans have been doing. Limited only by the availability of your systems (typically 16 hours/day) 6. Reduced costs: Overall operating costs are a fraction of an off-shore FTE 7. Increased quality: Quality of outputs is increased, no reworking required due to human error Cost 3:1 Off-shore FTE: Robotic FTE *Source: Raconteur Media & Blue Prism 35% of current jobs in the UK are at high risk of computerisation over the following 20 years … Source: BBC Survey ‘Will a robot take your job? September 2015 Which finance processes are typically appropriate for automation? The following processes are the most appropriate candidates for automation using PwC Software Robotics*:  Payments/invoice processing  Supplier simple query management response  Time and expenses auditing  Order management  Periodic credit check through external credit rating agencies  Regulatory report production  Management reporting/Board reporting pack production  Performance report production  Trade processing i.e. Asset Backed Securities Processing, Asset servicing/Billing  Data validation checks/Data migration testing  Master data management *Before embarking on any process automation all processes will undergo a diagnostic to assess its feasibility to be automated.
  • 4. PwC software robotics PwC  3 The PwC approach PwC has a tried and tested methodology as part of our transformation toolkit to provide a comprehensive solution to our address our client needs. We have deployed this within our Shared Service centre and is now integrated into our Global Shared Services and outsourcing methodology – the diagram below outlines the key components: This methodology is for an end to end deployment for PwC’s robotic software solution, however for enterprises looking to pilot this technology, we focus on the ASSESS phase to identify the short list of processes, technology and business case for deployment. Case study: On-boarding process Client: A leading international Service Delivery firm delivering back office HR services through a combination of onshore and offshore delivery centres. Client issue: A combination of 200 onshore and offshore FTEs were managing the end to end recruitment process for the client for its US operations and approximately 10-30 FTEs were handling approximately 19,000 new joiners/annum. The service delivery centre was tasked with a ‘do more with the same’ challenge by the governance board. Due to cost pressures there was no budget available to increase the size of the team. Approach:  Assessment: The PwC team undertook an assessment of all the key recruitment processes in terms of volume, complexity, effort hours to identify a short list of processes that would benefit from PwC’s software robotics solution and we agreed with the client to undertake a ‘Proof of Concept’ (PoC) for the on-boarding process.  Proof of Concept (PoC): A joint team of client process owners and the PwC software robotics team worked through several workshops and the team mapped in detail the separate activities for the on- boarding process.  Solution: The design, build and testing of the automated solution was performed off- site within the client’s test environment. It took a total of 10 weeks elapsed time to deploying the solution on the client environment. Benefits Gained  Estimated savings of between 10–15 FTEs of the initial 30 onboarding team members. This allowed the service delivery centre to focus on customer facing aspects of the recruitment process  Processing quality improved many times over allowing the team to focus on “exception handling” and not re-work  On-boarding costs were reduced (i.e. flights, training., hotels, IT) due to improved quality of data accuracy  Improved reporting through the software tool enabled the team to identify trends in exceptions and bottlenecks. This enabled further successful process improvement projects
  • 5. PwC software robotics PwC  4 PwC’s point of view Adopting a software robotics solution is the first step towards embarking on a Digital Finance transformation – it’s not a question of if but when. Our observation in the market is as follows:  We are only at the beginning of the Software Robotics revolution Software Robotics has a foothold in Industry, but we are only at the beginning of a journey to fully understand its potential. Technology is advancing at a rapid rate, standing still and not investing in your systems is not an option, if you don’t move quickly you will lose competitive advantage.  Software Robotics is low investment and quick to realise ROI This is a business led investment and initiative. However unlike traditional on-site implementations, it does not require the extensive investment or time associated with build, deployment and testing. Business users can learn how to run, maintain and deploy Software Robotics in weeks.  Implement a Pilot programme and trial the benefits in your business The market is buoyant across all sectors and there is an overwhelming desire by our clients to ‘see, touch, and feel’. Enterprises are embarking on a pilot to initially comprehend this solution and its applicability within their business.  To get the most out of Software Robotics you have to think holistically Businesses have experienced a reduction in operating costs through deployment of Software Robotic solutions. However enterprises that adopt “best in class” process characteristics in parallel will experience enhanced gains across cost and quality metrics performance.  Don’t forget about your sourcing strategy! If you have an existing SSC infrastructure you should deploy Software Robotics. If you are considering sourcing you cannot ignore the robotics approach. For in-scope processes, the underlying economics of a robotic solution are radically more compelling vs. a low cost SSC option Conclusion Over the past 20 years various models have evolved which have challenged how we deliver a quality service to the business, customers and our employees. Robotic Process automation is the fresh challenge for the digital age and it is a compelling one. However, this is just one step into an even more exciting digital journey, where deploying Software Robotics/Artificial Intelligence solutions is at the heart of businesses beating the competition. Several organisations are on this journey already. The question you have to ask is – are you ready? Contact: Brian Furness Partner T: +44 (0) 7 740 923 515 E: brian.j.furness @uk.pwc.com www.pwc.com/uk Anish Shah Senior Manager, Finance Transformation T: +44 (0) 7595 611377 E: Anish.s.shah@uk.pwc.com www.pwc.com/uk
  • 6. This publication has been prepared for general guidance on matters of interest only,and doesnot constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given asto the accuracy or completeness of the information contained in this publication, and, tothe extent permitted by law, PricewaterhouseCoopers LLP, itsmembers, employ ees and agents donot accept or assume any liability, responsibility or duty of care for any consequences of y ou or any one else acting, or refraining toact, in reliance on the information contained in this publication or for any decision based on it. ©2016 PricewaterhouseCoopers LLP. All rightsreserved. In this document, "PwC" refers to the UKmember firm, and may sometimesrefer to the PwC network. Each member firm isa separate legal entity. Please see www.pwc.com/structure for further details.