automation for the intelligent enterprise ey robotics ......page 4 ey robotics and intelligent...

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

Page 7 EY Robotics and Intelligent Automation

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

Page 10 EY Robotics and Intelligent Automation

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

Page 11 EY Robotics and Intelligent Automation

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

Page 12 EY Robotics and Intelligent Automation

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

Page 13 EY Robotics and Intelligent Automation

► 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

Page 14 EY Robotics and Intelligent Automation

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

Tim.Williams@ey.com

EY Robotics and Intelligent AutomationPage 16

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