automation for the intelligent enterprise ey robotics ......page 4 ey robotics and intelligent...
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Automation for the Intelligent Enterprise
EY Robotics& Intelligent AutomationSIFM Annual Conference
September 2019
EY Robotics and Intelligent AutomationPage 2
Topics for this session…
Overview of Robotic Process Automation and broader Intelligent Automation1
2
3
Application in Finance and across Insurance functions
Challenges in getting it right and how to get started
EY Robotics and Intelligent AutomationPage 3
Several different technologies exist across the automation spectrum
Support humans
Elevate humans
Act like a human
See like a human
Learn like a human
Think like a human
Feel like a human
Traditional Application Automation
Robotic Process Automation
(RPA)
Business Process Management
(BPM)
Cognitive Intelligence
ArtificialIntelligence
• Strategic vendor or proprietary system implementation to address a broad scale business need
• Virtual workforce• Focus on performing
tasks across and process with multiple systems and functions
• Unattended operation
• A software to model and manage an end-to-end business process through workflow
• Improves task coordination and audit trail
• Ability to interpret and utilize unstructured data
• Pattern recognition• Machine learning• Recommendation
engines (next best action)
• Automated decisions
• Natural language processing
• Proactive actions• Ability to mimic
empathy/sympathy
EY Robotics and Intelligent AutomationPage 4
An enterprise-class software automation solution that runs unattended by people:
► Unwinds legacy of people-based quick fixes
► Performs laborious and repetitive tasks reliably
► Scales up and down to match peak loads
► Emulates business user behavior
► Shifts control directly to the business rather than coders
► Delivers ROI in weeks or months through a rapid, agile approach
Virtual workers (robots) perform business tasks similar to users, handling complexity and volume with ease
EY Robotics and Intelligent AutomationPage 5
Let’s see it in action…
SAP Bank reconciliation – for AR process
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What are the benefits of RPA?
Low risk, low cost
extension of
existing technology
Reliability
Audit trail
Consistency
Right shoring
Retention
ROI
Cost savings or
avoidance
Ranging from
20-60% of baseline
FTE cost
Opportunity
focused
Accuracy
RPA often “fills the gaps” between existing systems
Scalability
ProductivityERP EPM
CRM
SCM HRIS
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But, it’s not a silver bullet…picking the right process is key
The process contains a
defined set of tasks
required for execution
Deterministic(Rule-Based)
The data required for the
process can be accessed
electronically
Digitized &
Structured(Electronic)
The process has a limited
number of exceptions; the
majority of the work
follows standardized paths
Standardized(Limited Exceptions)
Page 8 EY Robotics and Intelligent Automation
RPA in Accounting & Finance
Treasury• Cash flow high volume
management• Collateral management/reports• Liquidity monitoring• Monthly analysis
Capital Management and Investment Accounting• Journal entry processing• Asset migration• Data capture
Policy, Controls, Governance and Compliance• Entity updates and master
accounts• Vendor and client on-boarding
General Accounting• Intercompany transfers • Reconciliations • Accruals• Month-end close heavy lifting• Journal entry processing• Bad Debt write-offs• Allocations and adjustments
RPA
Acctg & Finance
Procure to Pay• Data capture• Vendor and client on-boarding
Tax Planning and Accounting• Prepare tax returns and file
electronically• Tax workbooks including tax
schedules• Prepare tax provision by jurisdiction• Bridge provision, financial
statement data for tax compliance
Page 9 EY Robotics and Intelligent Automation
Finance focus Process Pre-RPA Post-RPA Benefits
General
Accounting
Accounting import for
local ledger accounting
► Process Time: 80 hours /
month (4 hours/day)
► No. of FTE involved: 2
► Quality Review Time: 30
minutes / day
► Process Time: 1 hour /
day
► No. of FTE involved: 1
► Quality Review Time: 10
mins / day
► 75% less processing
time
► Process re-design to
daily process (local
regulatory compliance)
General
Accounting
Intercompany transaction
matching
► Process Time: 66 hours /
month
► No. of FTE involved: 6
► Process Time: 6 hours /
month
► No. of FTE involved: 2
► 90% less processing
time
► Improved job
satisfaction
Financial &
External Reporting
Variance report
generation
► Process Time: 40 hours /
month
► No. of FTE involved: 3
► Quality Review Time: 3
hours / month
► Process Time: 100 mins /
month
► No. of FTE involved: 2
► Quality Review Time: 30
mins / month
► 95% decrease in
processing time
► Enhanced controls
ReconciliationsBilling system
reconciliation
► Process Time: 200
hours/month
► No. of FTE involved: 4
► Process Time: 20
hours/month
► No. of FTE involved: 2
► Increased reporting
accuracy
► Reconciliations
performed at a more
detailed level
Sample Finance RPA project examples
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RPA in Operations
Human Resources• New employee set-up and
onboarding communications• Applicant sourcing and processing
candidate • Employee data management
Call Centers• Initial customer contact and inquiry• Ongoing customer engagement &
follow-up• Eligibility checks and form
processing
Policy Administration• Policy Servicing• Endorsement processing• Policy change / endorsement
billing
Underwriting• New business submission• Producer onboarding /
appointment• Underwriting data collection
and aggregationRPA
Operations
Claims• Estimate processing• Vendor bulk invoice payments• Settlement • Quality assurance
Information Technology• Employee onboarding / contractor
onboarding for system access, etc.• Identity and Access Management• Legacy data conversions
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RPA in Actuarial
Experience Monitoring & Analysis• Refresh mortality, morbidity, lapse,
utilization, and premium payments experience studies with established formats.
• Refresh studies more frequently and produce flash reports
Reporting & Analysis• Perform routine, manual
administrative processes such as monthly billing, claims settlement, death claims, and error checking
• Monitor performance of reinsurance deals
Model Conversion & Maintenance• Automated data conversion• Perform integration and
regression tests• Supporting independent re-
calculations/testing
Modeling & Forecasting• Updating inforce data and
populations• Validation and data integrity
checks• Reporting and analytics RPA
Actuarial
Product Development & Pricing• Perform routine market review
and rate setting processes
Valuation• Facilitate quarterly valuation,
which includes automated "wrapper" processes (i.e. extract data from admin system, perform initial runs") and manual processes
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Automation efforts should be business-led and
owned, and IT enabled1Develop a business case for each process,
with targets and accountability developed and
communicated up front2
Do not underestimate what happens after
processes have been automated3Early on, consider whether you are automating
a series of independent, unrelated tasks or
creating an end-to-end comprehensive change
management program. Plan accordingly
4
Understand which automation tool is the right
one to use for a given process so that you
avoid targeting inappropriate candidates5 Be mindful to use an appropriate delivery
methodology.6
Be efficient in architecting your solution. Avoid
automating sub processes that will derail your
business case7
Work closely with IT. The success of the
automation program depends on coordinating
with IT on infrastructure and application
upgrades and patch schedules
8Don’t assume that any one automation tool
alone can replace the efforts of a person.
Meaningful ROI may require more than one
automation tool
9Don’t assume that the skills needed for a PoC
are good enough for production automation –
Production applications are typically much
more complex.
10
Top 10 lessons learned during our intelligent automation experiences
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► Strong Business & IT partnership
► Rigorous governance across the automation lifecycle, including ongoing production management
► Skilled and empowered resources
► Segregation of benefits tracking for cost-reduction, propositional change, and compliance
► Tightly manage capacity release, to ensure savings are realized
► Leverage existing enterprise process taxonomies and standards
► Develop framework for RPA testing and deployment
Addressing the pitfalls
► Clear communication of RPA value at all levels
► Effective change management tools and deployment methods to secure commitment to success
Stakeholder engagement
Process prioritization Operating model Benefits realization
The keys to delivering tangible results fast
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Way Forward…Companies typically start with an RPA Pilot and go on to build scale
• Start with Pilot process• Start Process identification
process to build pipeline• Layout the foundations for
RPA Center of Excellence (CoE)
• Start awareness and education around RPA across different functional groups
• Develop a prioritized pipeline of use cases
• Consider automating a small number of simple and medium complexity processes
• Build internal capability for RPA development and operations (CoE)
• Consider COE adoption as production scale increases
• Create roadmap of processes to automate
• Monitor and measure progress for long term sustainability
• Explore ML/AI options to improve business outcomes in addition to RPA
Crawl
Within 3 months
Walk
Within 3 -6 months
Run
Within 6-12 months
Page 15 EY Robotics and Intelligent Automation
Thank you!
Tim WilliamsPrincipal, EY
Robotics & Intelligent Automation, Financial Services
980-263-0118
EY Robotics and Intelligent AutomationPage 16
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