Robotics Process Automation (RPA) - Hands on knowledge

Robotics Process Automation (RPA) - Hands on knowledge

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  ROBOTIC PROCESS AUTOMATION– A Challenge & An Opportunity Julen C. Mohanty Vice President JP Morgan Chase & Co.
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  DISCLAIMERS Any views oropinions showcased in this presentation are solely those of the author and may not necessarily represent those of the JPMorgan Chase & Co. This document is meant for use of Konnect Learning or it’s members. Has to be used within Konnect Learning or it’s members and not to be forwarded to anyone outside Konnect Learning or it’s members. 2
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   RPA MimickingHuman Actions  Why use RPA  Identifying What to automate  RPA implementation best practices  Real Life RPA implementations  Why RPA fails INDEX 3
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  Robotic process automation(RPA) is the  application of technology that can combine  UI recognition and  perform task for  workflow execution and  follow pre-defined path to  interact between systems Action Thinking Robotic process automation (RPA) is a virtual worker which mimics human actions to eliminate the human involvement in repetitive, data driven, not much value adding, common task intensive manual work; allowing human to spend quality time in thought intensive, human interactive, decision making work. Use technology to mimic human actions and automate data entry, data processing, manipulating data, triggering responses and data transfer to other digital systems through rule based processes and algorithms. What is RPA 4
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  a machine capableof carrying out a complex series of actions automatically, especially one programmable by a computer. Clever Machines at Your Service Platform management of smart, autonomous, rule-following technology instances executing routine transactions, and making data-based decisions that replace repetitive human task-based work Object oriented. Reusable library Multiple systems capable Interactive Process exception capable Fully auditable transaction history Up to 90% less costly than offshore labor 80K Onshore 30K Offshore 15K Bot What is RPA Robots follow defined rules Continued…. 5
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  Why RPA  Automationis done, where can we improve next.>? More automation  more head count saving  more reduction in cost  Cost of Employee going higher day by day, need to think of sustainability  Faster Implementation, takes almost same time as setting up a team with complete hiring & training.  Cost of maintenance can be controlled  Difficult to hire & retain people with increase in volume of business  Accuracy of task execution, no operational errors  Real time process measurement 6
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  Robotic Process AutomationValue Profitability and Cost Productivity and Efficiency Accuracy, Compliance and Security Scalability and Flexibility RPA is broader than a 1:1 FTE comparison, cost of a robot is a fraction of human resource, Robots can be up to 5x faster and can work 24/7 Reduction of human error rates. Enhanced compliance and security Robots can easily be replicated and scaled to meet peak or atypical workloads Consistent Quality Quality of delivery is same over time irrespective of work volume Capacity Management Manage high volume, plan for resource capacity Redefining of hiring strategies High Customer & Employee satisfaction Work delivered faster & employee get to do high value work rather than monotonous manual work 7
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  Human Placement BotDeployment Can scale up to the extent the human labor can be scaled Can be scaled to the extent bots can be deployed You can reduce cost up to 10-15% You can reduce cost up to 40-60% No sleep. No food. Always on timeCan work only for 8 working hours. Takes breaks, comes late In your basement and in the clouds Tell no secrets. Full disclosure No country specific data issues Smarter every day So sick day leaves, no holidays Spend a lot of money in real estate Can leak secrets and join competitors Can’t work on certain country data because of regulations Spend huge money in training new brains Unplanned Sick day leaves, festival holidays Robotic Process Automation Value Continued…. 8
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  Processes Best Suitedfor Robotics Process Automation Processes with Low Exception Rate Standardized / Structured Data Fluctuation in Demand / Backlogs Processes with High FTEs Processes with High Cycle Times Rule based/no human judgment Digital trigger & digital data Not frequent changes in process steps/rules High human error likelihood 9
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  Search for RPACandidates  Data entered in three or more applications; more than two duplicate data entry steps  Dedicated FTES With or higher administrative time for one process cycle  The percentage of manual decision is higher than 15%  Less than 5 automatic validations System Attributes  People need to manually fulfil one or more documents  People print or sign more than three documents; capture one or more  People make three or more handoffs; and two or more back office tasks to complete Human Attributes  project the RPA customer self-service effect and What's in it for the customer?  Describe potential RPA scenarios that may offend the customer  Determine the experience that keeps a customer from other channels, e.g., humans  Prioritize the top three processes based on the number Of customer complaints Customer Attributes Policies & Regulatory compliance Active Learning for future Cognitive integration Data Entry Admin Job Account/ Financial accounting Routine Clerical Checker Tester 10
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  Invoice Processing Fixed Asset Acct Reports Billing Order Management Payments Collections Query Management Cash AppsVendor Management Journal Entries Recon Simple Complex LowRoboticsHighRobotics Low RoboticsHigh Robotics Structured Unstructured Data Structure Rule Complexity KYC/AML Tax Calculation Loan write off Customer Support Aspects to be considered 11
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  Strategy Assessment Proof Of Concept RPATool & Implementation Align & Develop strategy on corporate or functional level • Q&A • Outsourcing • Staff development • Roadmap (Development) • Digital strategy Assessment of RPA potential and organizational maturity • Process and IT assessment • HR assessment • Organizational assessment • Strategy assessment • Location assessment • Process development Implementation of RPA and continuous support and development • Vendor selection • RPA Pilot • Implement RPA • Continuous improvements of RPA • Education • Process development • IT development • Best practice Deploying RPA on specified processes and/or tasks • Implement RPA test installation and validation of business case and RPA potential Implementation Approach 12
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  Ideal Implementation ApproachSponsorship Management Process Implementation People Management IdentifyScope UNDERSTAND Explore  Identify key stakeholders and processes  Create as-is process maps  Understand user pain points and process inefficiencies  Share pre-requisite for robot implementation (process and IT) Deliverable - Start Update Business Case  Identify opportunities for automation and innovation  Ideate on possible solutions  Prioritize solution ideas Deliverable – Update Business Case (ROI / Benefit, list of Processes for Prototype, As Is & To be maps, process steps & cycle time, Success criteria)  Create (Design Document) and a working prototype  Perform process walkthrough  Perform system integration analysis  Develop functional prototype Deliverable – Working prototype & deploy for test PROTOTYPE TEST  Test with sponsor users  Playback test results and synthesize learning  Iterate on prototype as needed Build & Evaluate POC  Set up production environment and release robot to production  Bug fixing if required  Validate Robot performance IMPLEMENT & TEST MATURING Train Users Define Govern ance Process Senior Management Awareness Define Stakeholders by Functions (LOB, Finance) Sponsors to agree on processes to be automated  Track usage of RPA by users for identified processes  Gather data & report to management & sponsors  Mature the way of using RPA  Recalibrate processes for better effectiveness DEPLOY & MAINTAIN Provide implementat ion sign-off and proceed for new RPA Use bots and maintain process GO / No Go GO / No Go GO / No Go 13
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  Business Case Considerations •Workload / number FTE performing the process • Related labor / fully loaded cost per FTE • % that can be automated (net taking into account any potential new activities required to enable RPA) • Number of exceptions requiring human interaction >> reducing the automation benefits • RPA automation costs such as development and implementation (OTC) and recurring run costs 14
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  PEOPLE PEOPLE WITH BASIC TOOL PEOPLEWITH ADVANCED TOOL AUTONOMIC COGNITIVE PROCESS Unskilled / basic skilled worker nominal Increase in productivity / skilled worker Increase in productivity / Automation/ Better skilled worker Transformational productivity / Automation + Awareness + Adoption/ Expertise worker Natural language Understanding & production / Pattern recognition & understanding/ Self Aware system & Conceptual Expertise Evolution & Future of RPA 15
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  Desktop Automation RoboticProcess Automation Autonomic Process Automation Cognitive Automation  ERP Scripting  Workflow  Macros  Screen scraper  Auto eMailer  Extensible and adaptive pre-built process object libraries  Global robotics command center and dedicated SMEs  Extension of RPA capabilities by addressing common obstacles of unstructured data and complex rules  unstructured data processing enabled automation for complex rules  Autonomous decision- making (“reasoning and remembering”)  New insights and data discovery (“learning”)  Personal and interactive support (“engagement”)  e.g. Cognitive Buy Assistant Simple Transactional Data Structured Data/ Simple Rules Unstructured Data/ Complex Rules RPA with Cognitive Computing Evolution & Future of RPA Continued…. 16
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  Opportunities for RPAin BFSI • New account entry across systems – moving data and doing multiple entries • Account reconciliation – duplicating and moving data • Report generation across systems and generated • eform extraction – taking data from forms and making systems entries • Accrual support – making and updating entries • Mortgage approval – moving data place to place and making calculations • Refinancing entries – making entries and updating records • Notification of delinquent loans – emails and letters to clients • Processing of credit card orders – from web form to mainframe BANKING • Tax reporting • Audit support and validation • Fixed asset amortization • FX accounting and write-offs • Cost accounting and Purchase Orders • Bad debt write-offs • Month end close heavy lifting • Credit note accounting entry • Accrual booking • Pricing reviews – performing calculations &entries • Fraud detection – by tracking account activity • Account cleansing – purging known old data 17
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  • Client onboarding •Compliance, legal, credit and identification checks • Operational set-up of account in trading, collateral and settlement systems • Consistent data mapping between source and downstream systems • KYC/AML authentication: collection and analysis of basic identity information (CIP); name matching against lists of known parties (such as PEP) • Fraud detection - determination of the customer's risk in terms of propensity to commit money laundering, terrorist finance, or identity theft • Reconciliation - user defined rules to generate alerts on chargeback, retrieval request and response • Automated scheduling of reconciliation activity • Force match option facility to manually settle un-reconciled entries • Multi-level reconciliation that supports international & domestic networks across multiple delivery channels • Entitlement engine - providing timely, accurate distributions of dividends and interest • Simplifies/Enforces the management of complex entitlement policies CAPITAL MARKETSOpportunities for RPA in BFSI 18
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  • Product Administration- update systems and produce client details for sales of new products • Policy Document Data Transfer from legacy system to new Applications, Systems, 3rd Parties. • Products Sales Support - customer data gathering, adherence to compliance and rules of sale • Unallocated Cash Report - works a report and writes off any cash discrepancy under a certain value. • Deceased Notification - processing of insurance policies following notification of a death. • Compliance Reporting Automation - automated preparation of reports for the PRA • Credit Card Rejections - report of rejected card payments & over a period notify customer before cancelling the insurance. • Credit Card Unmatched - retrieves cases to work from a report and, if required, writes off any cash discrepancy. • Redemptions Processing - cross checking to multiple systems for Compliance assurance • Right of Set-Off and Debt Recovery • Funds Transfer – from multiple legacy policies/system into a more modern, flexible system • Amend Standing Order, Direct Debit, Address details across multiple systems • Accounts Data Mismatches across disparate systems. INSURANCEOpportunities for RPA in BFSI 19
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   List ofpolicies to be comply with  Scrutinize employees activities for non compliance Policy Staff Activity  Company with 10,000 employees if 20% do activity  Every month scrutiny of 2000 employee activities by 15-20Process after RPA Bots in real work Compliance process 20
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  On-boarding & ApprovalProcess Automate the data input for easy processing..?? Regular Process Process after RPA Bots in real work 21
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  These RPA shortcomingsare as follows:  Capturing inputs from diverse formats  Processing unstructured content  Frequent changes in business rules and operating procedures  communication between operations and IT for continuous improvements  company engagement and departmental collaboration  Initial Investments  Staff oppose for redundancy & technical inability  Choosing the wrong process for automation  No governance Major Cause of fallouts of RPA 22
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   RPA MimickingHuman Actions  Why use RPA  Identifying What to automate  RPA implementation best practices  Real Life RPA implementations  Why RPA fails We Discussed.. 23
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  Speaker Name: JulenC Mohanty Email ID: julenmohanty@yahoo.co.uk Julen Mohanty