2017 FORRESTER REPRODUCTION PROHIBITED WEBINAR RPA Market Update

WEBINAR RPA 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 © 2017 FORRESTER. REPRODUCTION PROHIBITED.

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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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 5

RPA supports operational processes Source: Tech. Radar™: Digitizing Operational Processes, Q 2 2015 Forrester

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 backoffice activities. ” © 2017 FORRESTER. REPRODUCTION PROHIBITED. 7

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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 8

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

Finance and accounting is a ripe area Closing, consolidating, and reporting General ledger Inquiry management Reporting Purchaseto-pay Order-tocash Tax planning Monthly/ quarterly close Entity Statutory Purchasing Order entry Reconciliation Benefits Management Regulatory Partner credentials Collections Consolidations Fixed asset Performance Payment processing Billing High FTE impact Medium FTE impact © 2017 FORRESTER. REPRODUCTION PROHIBITED. 10

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. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 11

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. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 12

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. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 13

Global bank RPA usage in the onboarding process Customer experience Sales engagement Inability to get a holistic view of operational and other data Data gathering Operational experience KYC Re-keying or Collecting the right wasted time information coordinating while various maintaining systems of Connecting customer records, core with the experience systems, and institution via packaged apps digital — each with its KYC, PEP, channels own record. MIFID, and keeping needs FACTA Operational reporting/key performance indicators © 2017 FORRESTER. REPRODUCTION PROHIBITED. Deal configuration Credit risk Closing and fulfillment Presenting the Multichannel Too many right customer inconsistent information to service internal user clients at the interfaces and Poor response right stage in key and escalation the process performance mechanisms indicators for issues Risk scoring Account setup/ modifications 14

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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 15

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. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 16

RPA will climb the cognitive scale RPA today Source: The State Of Robotic Process

The future of work Source: The Future Of White-Collar Work: Sharing Your Cubicle With

In-person service jobs are relatively safe © 2017 FORRESTER. REPRODUCTION PROHIBITED. 19

But maybe not this guy © 2017 FORRESTER. REPRODUCTION PROHIBITED. 20

Source: The RPA Market Will Reach $2. 9 Billion By 2021 Forrester report ©

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. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 22

Source: Tech. Radar™: Artificial Intelligence Technologies And Solutions, Q 1 2017 Forrester report ©

Virtual assistant is a near-term use case Advice and transaction handling 4. Active learning points prioritized. 5. Machine selfadjusted. Robotics process automation 6. Machine extends support capability. System orchestration AI/NLP knowledge base Engagement capability Routine production services © 2017 FORRESTER. REPRODUCTION PROHIBITED. 1. Customer gives up on chatbot experience. 2. Customer hits portal link for human assistance. 3. Human addresses problem — text captured and converted for machine ingestion. 24

“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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 25

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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 26

RPA evaluation approach Development • App integration • UI integration • Attended operation • Skills required • Design and Control room • Reporting and benchmarks • System management • Work management • Catalog Analytics • AI linkage • Desktop analytics • Chatbot/NLP integration Architecture • VDI integration • Citrix and global services • Deployment options Use case • Attended • Unattended • BPO partnerships • ITSM • F&A Administration • Access control and authentication • RPA governance • Cloud support • Scale options automation engine Innovation Road map Partnerships Market share © 2017 FORRESTER. REPRODUCTION PROHIBITED. 27

Source: The Forrester Wave™: Robotic Process Automation, Q 1 2017 Forrester report © 2017

RPA providers begin in different spots Attended ** Thoughtonomy ** **Pega ** contextor ** ** ** Product focused RAPIDRPA ** winautomation ** arago assistedge Unattended Service focused ** ** Avande ** Conduent * RPA specialist ** RPA plus multiple products/services © 2017 FORRESTER. REPRODUCTION PROHIBITED. 29

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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 30

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. ›. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 31

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 Ensure delivery Engage stakeholders 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 Automation checklist 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process profile review Security exposures Agile design approach Business continuity Infrastructure Control tower operations Testing and audit Roll back/forward procedures Coding standards Scalability External BPO providers and consultants • • • © 2017 FORRESTER. REPRODUCTION PROHIBITED. Implementation services Strategy review and process design Domain — outsourced functions to robotize 32

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 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 33

“. . . 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. REPRODUCTION People Really Do That? ” Forrester report © 2017 FORRESTER. PROHIBITED. 34

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