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EXECUTION• From factories to physicians’ offices,hightechisrevolutionizing routines• Transformingourcapabilitiesso thatclientscanrevolutionizetheirs• WhytalentmattersinIndustry4.0• WhyDeloitte’sleadershipmatters

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Physical, meet digitalFromfactoriestophysician’soffices,hightechisrevolutionizingroutines

Bringing dormant data to life There’sevidencethatanochre-basedpaintfactorymayhaveexistedinanAfricancave100,000yearsago.Bythe12thcentury,Venetianshipswereproducedonanassemblyline.Steamandhydraulicsadvancedmanufacturinginthelate1700s,asdidelectricityacenturylater,andcomputersacenturyafterthat.

Whathasn’tchangedmuchuntilrecently,though,isthesupplychain,whichtraditionallyislinearinnature—design,plan,source,makeanddeliver.But,advancesintechnologyandinnovationallowpreviouslyunconnectedsensors,processes,systems,andinformationacrossthesupplychaintobeeasilyconnectedinrealtime.Theresultisavastlydifferentdigitalsupplynetwork,andit’spoweringtheriseofsmartfactories.

“Thesmartfactoryhasafullyconnectedandflexiblesystem—onethatcanintegratedatafromsystemwidephysical,operationalandhumanassetstodrivemanufacturing,maintenance,inventorytracking,andmanyothertypesofactivitiesacrosstheentiremanufacturingnetwork,”explainsDougGish,DeloitteConsultingLLPprincipalandUSsupplychainleader.“Thosewhoembracethatapproachandarewillingtomaketheinvestmentstandtopotentiallyincreasemarketshare,efficiency,productqualityandcustomersatisfaction.”

DeloitteConsultingLLP(US)ishelpingaclient—aglobalmachinerymanufacturer—connectitsdigitalandphysicalchannelsbydigitizingend-to-endfactoryoperationsfromthepointofmanufacturethroughinspection.Intheprocess,productionstepsthatwerenotvisibleinthepastarelightingup.

Deloitte’scross-functionalteamcreateda“livefactory”usinginternetofthings(IoT)technologybyattachingsensorstomachinery.Movement,location,timespentperstationandqualityeventsweretrackedandrecordedinrealtimeusingGPSandRFIDsensors.“Thisecosystemofbusinessequipmentandsensorsprovideddatathathelpedtheteamdevelopappsanddashboards,effectivelybringinga‘hiddenfactory’ofdormantdataandinsightstolife,”saysAndyDaecher,DeloitteConsultingLLP(US)principalandDeloitteDigitalIoTpracticelead.“Thisishelpingimproveproductquality,reduceproductiontime,allocateresourcesmoreefficientlyanddecreasetheirfinished-goodsinventory.”

EXECUTION

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EXECUTION• From factories to physicians’ offices,hightechisrevolutionizing routines• Transformingourcapabilitiesso thatclientscanrevolutionizetheirs• WhytalentmattersinIndustry4.0• WhyDeloitte’sleadershipmatters

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Newdashboardsfedwithreal-timeinformationshowthepriorityofmachinesinneedofservice,aswellastheamountofreworkrequired.Withthisknowledge,employeesshouldspendlesstimelocatingmachines,theflowofproductioncanbeimproved,andnonconformancewouldbeeasiertomanageandtrack—whichcanexpediteroot-causeanalysisandcorrectiveaction.Theseimprovementsalonecouldimprovetheclient’sreturnoninvestment20percentto30percent.Betterinventory,scrap,andlabormanagementalsoshouldlowercosts.

NowthattheclientseestangiblebenefitsfromintegratingIoTwithitsphysicalassets,itcanexploreexpandingandincrementallyconnectingotherlinesandfactories.“Notonlywouldthatfurtherimproveitsanalyticscapabilities,workflowtransparencyandoverallefficiency,”saysDougBade,principal,DeloitteServicesLP(US),“butitalsowouldhelpimprovetheirinteractionswiththeircustomers,enablingthemtomeetandexceedtheexpectationsthatdigitaltechnologyisdriving.”

Connecting with patients Themergingofthephysicalanddigitalworldsseemstoalsobehelpinghealthcareproviders,caregivers,pharmaceuticalcompanies,payersandothercareteammembersunderstandtheirpatientsbettersotheycanprovidetailoredsupportthatdelivershealthieroutcomes.DeloitteConsultingLLP’s(US)ConvergeHEALTHPatientConnect™platformprovideslifesciencescompanieswithtoolsandinsightstohelpbuildeffectiverelationshipsbetweenpatientsandtheirextendedcareteams.

“PatientConnectisdesignedtoimprovehumaninteractionandenablemore-personalizedserviceusingavarietyofdigitalchannelsandanadvancedandflexiblecloudsoftwareplatform,”explainsChrisZant,principal,DeloitteConsultingLLP(US).“Patientswanttobeinformedandengaged,andpharmaceuticalcompanieswantcloserconnectionstotheirpatients.Ourplatformcandobothwhilehopefullyimprovingthecoordinationof,andadherenceto,careprogramsandotherpatient-supportinitiatives.”DatacollectedbyPatientConnectacrossawidepatientpopulation—informationthatremainssecureandprivate—alsofeedsresearchanddevelopmentefforts,creatingopportunitiesforinnovationandimprovedoutcomes.

Inadditiontonewprocessesthatimprovespecialtypharmacyreferrals,patientintake,documentmanagement,datasharingandmore,PatientConnectcontinuestointegrateprepackagedsolutionsfromitsecosystemassociates.Onegivescaregiversandpatientstheabilitytosigndocumentselectronically,whichcanspeeduptheprocessesofgettingconsent,verifyingbenefitsandsubmittingprescriptions.Anotherusespowerfultelephonyandcloudcontactcentercapabilitiessothatwhenapatientcalls,careteammembersandcustomerserviceagentshaveallrelevanthistoricalinformationattheirfingertips.PatientConnectwasalsoapprovedtobedeliveredexclusivelythroughSalesforceAppExchange,makingiteasiertoimplementthanmanycompetitors’patient-engagementsolutions.

“Theseenhancementshavesignificantlyimprovedthepatientexperienceandstreamlinedprocessesforproviders,”Zantsays.“There’slessphysicalpaperwork,lesshassleandlesstimewasted—whichshouldleadtolessfrustrationforpatients,lowercostsforprovidersandmore-personalizedcare.”

Integrating AI into hospital care Operationalprocesseswithinhospitalsarealsoundergoingfundamentalchange.AsuiteofsolutionsintroducedbyDeloitteAustraliaishelpingdrivethatchange,covering“classicpinchpoints”fromadmissionsandoutpatientschedulingtointensive-careunitutilization,andthedischargeprocess.

OneofthosesolutionsisD.Assist,alean,enhancedpatient-to-nursecommunicationsystemthataugmentstheexistingcall-bellsysteminplaceinmosthospitalsandaged-carefacilities.“Throughtheinnovativeuseofleadingtechnology,D.Assistimprovesthepatientexperience,releasesnursingtimetocareforpatients,andprovidesarichsourceofdataforhospitaladministratorstoactontooptimizepatientcareoutcomes,”saysNickWhite,ConsultingprincipalandRoboticsandCognitiveAutomationteamleaderforDeloitteAustralia.“Italsoprovidesnursesandthemedicalteamcriticalinformationneededtoeffectivelyrespondtopatients.”

D.Assistcapturesaspokenrequestforassistanceinthepatient’sroom,whichisunderstoodbythesystemandconvertedtotext.Themessageisthenassessedusingartificialintelligenceservicesandprocessedtoidentifythepatient’srequestandhowbesttorespond.

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Inmanycases,D.Assistisabletorespondtothepatientfromadatabaseoffrequentlyaskedquestions,relievingworkloadfromnurses.Thesolutioncanevenbecombinedwithintelligentroomautomationtoenablesmartcontrolsofthepatientenvironment.

“Deloitteisworkingwithanumberofhospitalsaroundtheworldtoimplementthisandarangeofcomplementarysolutionsacrossthepatientpathway,”Whitesays.“Byprovidingthesecognitivesolutionstothemarket,wearetransformingDeloitte’sroleinthehealthcareindustryglobally.”

Building a digital insurer EconomicalInsurancewasfoundedin1871byagroupofCanadiancitizenswhopooledtheirresourcestoprotectoneanother.Itwasasimpleconceptforasimplertime.ThroughitsSonnetInsurancesubsidiary,Economical—withDeloitteCanada’shelp—ismakinginsuranceuncomplicatedagain.

“Themanagementteamhadavisiontobuildadirect-to-consumer,digitalinsurancecompanythatcouldgivepeopleanaccuratequoteiftheyansweredjustthreequestions,”saysAliceKeung,EconomicalInsurancechieftransformationofficer.“Thatwasastretchgoal,butwesuccessfullycreatedasitewherecustomerscouldeasilybuyinsurancefortheircarsorhomesinfiveminutes.”

ThesecrettoSonnet’sspeedisthewayDeloitteCanadaintegratedreal-timeanalytics,asophisticatedITinfrastructureandthird-partysoftwaretosimplifythepurchaseexperienceandhelpSonnet’scustomersmakeinformeddecisions.“Attheoutset,weconductedethnographicresearch—whichshowshowpeopleactuallybehaveversushowtheysaytheybehave—tobuildthiscompanyfromthegroundup,”saysDanielShum,DeloitteCanadaleadengagementpartnerforSonnetInsurance.“Basedonwhatwelearned,together,wecameupwithacustomerexperiencethatissimple,easytounderstandandgivescustomersconfidenceSonnetwillbethereforthem.Thisisbackedwithfastandreliabletechnologythatdrasticallystreamlinesthequoting,sales,servicingandrenewalprocesses.”

SonnetiscurrentlytheonlysolutioninCanadathatallowscustomerstofullypurchaseandservicetheirinsurancepoliciesdirectlyonline.

Smart transactions Inthepastfewyears,blockchainhasevolvedfromawordthatoftenrequireddefinitiontoacommoncomponentofclientsolutionsacrossDeloitte’sbusinesses.OnesuchtoolisTradeChain,asystemdevelopedbyDeloitteTaxLLP(US)thatbringsconsensus,consistencyandaccuracytointercompanyagreements.

Transactionsbetweendifferentunitsofmultinationalcompaniescanbechallengingfromacompliancestandpoint.Therealsoaremanyadministrativelagsandmanualprocessestypicallyneededtoimplementpricingagreementsbetweenrelatedparties.TradeChainisdesignedtoaddresstheseissuesbyusingaprivateblockchainandsmartcontract-likeautomationthatenablestheexecutionoftransfer-pricingagreements.

“Mostintercompanyagreementsarehardtoformulate,difficulttoregulateandtoughtoexecutebecausethepartiesoftenareworkingwithincompleteinformationspreadacrossmanysystems,”explainsRobMassey,partner,DeloitteTaxLLP(US).“So,transactionsoftenendupwitherrors,deadlinesgetmissedandriskincreases.”

WithTradeChain,technology-enabledcontractsaretriggeredbybothinternalandexternalbusinessactivities,interfacinginrealtimewithpeopleintax,treasury,legalandaccounting.Theblockchainvalidatestransactions.Futureversionsareexpectedtousecognitivetechnologiestodriveadvancedpredictiveanalyticsanddecisionmaking.

SamKapreilian,DeloitteGlobalTax&Legalchieftechnologyofficer,says,“SoonafterTradeChainwasintroducedandclientsbeganseeingit,itdidn’ttakelongtoseehowitscognitiveandadvancedanalyticstechnologiescansystematicallyimprovequality,decisionmakingandoutcomes.”

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EXECUTION• From factories to physicians’ offices,hightechisrevolutionizing routines• Transformingourcapabilitiesso thatclientscanrevolutionizetheirs• WhytalentmattersinIndustry4.0• WhyDeloitte’sleadershipmatters

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The art of the possibleTransformingourcapabilitiessothatclientscanrevolutionizetheirs

Elevating the audit Historyislitteredwithinnovationsthatwitheredfromneglectbecausetheycosttoomuchorbecausefewunderstoodtheirpracticaluses—evidencethatfewinstitutionalskillsaremorevaluablethanbeingabletograsptheartofthepossible.

“Helpingclientsvisualizethebenefitsofinvestinginexponentialtechnologies—andthenworkingwiththemtomakethosevisionsreality—drivesbusinessprogressandadvancessociety,”saysAndrewVaz,DeloitteGlobalchiefinnovationofficer.“That’swhywealsocontinuallyadvanceourowncapabilitiesandreinventourselvesinthecontextofwhatispossible.”

Intheauditandassuranceworld,possibilityisfastbecomingreality.Substantialportionsofpublicandprivatecompanyaudits—alreadyenhancedbyautomationandanalytics—willbeincreasinglyaugmentedbycognitivetechnologies.“Deloitte’sinvestmentsintransformingtheauditareenrichingtheexperienceandrelationshipbetweentheauditor,clients,capitalmarketsandbroaderecosystem—elevatingtheauditfromanobligationtoanopportunity,”saysPanosKakoullis,DeloitteGlobalAudit&Assurancemanagingprincipal.“Intheprocess,theseinvestmentsareelevatingauditqualityandconsistency.”

Deloittehasbegunusingcognitivetechnologyinauditstoreviewcontractterms,leases,electronicdocumentsandmore.“Therapidreviewsenabledbycognitivetechnologyallowauditorstoreviewandassesslargersamples,orevenreview100percentofthecontracts,”explainsJonRaphael,partnerandchiefinnovationofficer,Deloitte&ToucheLLP(US).“Thereviewscanalsoincorporatesegmentationofdocuments,suchasseparatingcontractsthatincludeescalationclausesfromthosethatdonot.Wecanthenaddvisualizationcapabilitiestoeasilyshow,asanexample,whichdocumentsdifferfromwhatisexpected.”

CognitiveapplicationsarejustpartofDeloitte’snext-genaudittechnologyplatform,whichwillbecloud-basedanddata-driven.“Wehaveanumberofseparatetoolstoday—capabilitiesthatalreadyaredifferentiatingus,”saysMikeSchmidt,DeloitteGlobalAudit&Assurancechieftechnologyofficer.“Ourfocusnowisonseamlesslyintegratingalldata,tools,analytics,methodologiesandprojectmanagementfunctionalitiesintoasingleplatformtoperformconsistentauditsaroundtheglobe.”

SchmidtpointstoDeloitteConnect—asecure,onlinecollaborationsitethatfacilitatestwo-waydialoguebetweenauditteamsandclientteams—asjustoneexampleofhowDeloitteissettingitselfapartinthemarketplace.“Alotofpeoplearetalkingaboutholistic

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strategiesandbuildingforthefuture,butwe’reactuallydoingit,”hesays.“Insteadofdippingatoeinthewater,wedoveinthedeependandareputtinginnovativesolutionsinthehandsofourprofessionalsaroundtheworld.”SchmidtaddsthatAudit&AssurancealsoisexperimentingwithWeb-basedroboticprocessautomation(RPA)toolsthatexpeditepreparationandreviewofstandardauditprocessesandtasks.

Solutionsindevelopmentincludeasuiteofbig-datatoolsthatcancreatecustomizedauditproceduresusingpredictiveanalyticsandregressionanalysis.Thesetoolsenableauditorstodelivermorevalue,enhanceriskidentification,andidentifypatternsandtrendsthatcanleadtoaccounting,operationalandcontrolinsights.Deloittealsohasintroducedcollaborationtoolsthatprovidetransparencyacrossmultiplestakeholdersinprocessesusedforconfirmingbalancesandcountinginventories.

Inaddition,Deloitteisusingnewdiagnosticscapabilitiestomonitorliveauditengagements.“Wecancreatereportsbasedonmorethan160,000liveauditengagementsthatgiveusnew,strategicperspectivesintotheAudit&Assurancepracticeandareallowingustotransformthewayauditqualityismonitored,”explainsCalBuss,DeloitteGlobalAudit&Assurancequalityleader.“Thesecapabilitiesprovideanunprecedentedlevelofinsightandtransparencyforourleaderssotheycanbetteraddresswhatismeaningfulforourstakeholders.”

Launching an internal startup AnexampleofDeloitte’sdedicationtotransformationalinnovationisAuvenir,afirst-of-its-kindstartupventureestablishedtoradicallychangethefinancialauditspace.“Deloittebroughttogetherentrepreneurswithvariedbackgroundsandchallengedthemtodisrupttheauditbusiness,”explainsChrisThatcher,DeloitteGlobalAudit&Assuranceinnovationleader.“TheyweregivenasmuchleewayaspossiblewhileprovidingaccesstoDeloitte’scapabilities.”

Auvenir’sautonomousstructureenablesittoquicklydevelopandtestproductsbasedonreal-timemarketfeedback.Thisflexiblesolutionappliesthelatesttechnologies—includingcloud-basedstorage,machinelearningandartificialintelligence—tostreamlineandimprovethequalityoftheworkflowbetweenauditorsandtheirclients.

“TheAuvenirbusinessmodelisverydifferentbecause—whilethetechnologyplatformisspecificallydesignedtoaddresstheunmetneedsofsmallerengagements—itisfocusedonbuildingtoolsthatcanbeusedbyallaccountingfirms,bigandsmall,andnotjustforinternalDeloitteuse,”explainsAuvenirCEOPeteMyers.“Asthetoolsareusedmoreanddataflowingthroughtheplatformincreases,ourunderlyingmachinelearningtechnologykicksinandenablestheplatformtobecomesmarterovertime.Byopeningtheplatformsobroadly,wecanstrengthentheentireindustry.”

AuvenirwillsoonemergefrombetatestingconductedwithseveralsmallauditfirmsinCanada.“Weselectedfirmswhocannimblytestnewtechnologiestoprovidefeedbackthatdrivesrapiddevelopment,”Myerssays.“ThisapproachallowsAuvenirtoworkcollaborativelywithauditorsontoolsthatautomatemuchoftheaudit,whichwillfreethemuptobuildstrongerrelationshipswiththeirclientsandprovidedeeperbusinessinsights.”

Investing in exponentials Deloitteisalsoaggressivelyintegratingtransformationaltechnologiesanddataanalyticsintoitsnonauditsolutionsandservices.

OurFinancialAdvisorybusiness,forexample,isadoptingmultipleplatformstosupportclientswithnewlevelsofinsightandexperiencetohelpthemsolvecomplexbusinessproblems.Amongthem:

• AsophisticatedforensicdigitalplatformthatbuildsonDeloitte’spioneeringuseofanalyticsandtechnologytohelpclientsidentifyinefficiencies,anomaliesandissuesintheirsystems—andprovideproactivesolutionstoaddressthem.Theplatformenhancesourprofessionals’abilitytoquicklyandeffectivelyrespondtoacriticalfinancialcrimeevent,giveadeeperandmorecompleteunderstandingoftheissuesleadingtothatevent,andprovidestrategiestopreventfutureproblems.

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• ValueDandiDealareanalyticsplatformsthatallowDeloitte’sMergersandAcquisitionspractitionersinmanycountriestoquicklyunderstandtheirclients’complexsituations.Inadditiontovisualizingdatainrealtime,theseplatformsprovideadvancedinsightsonmultiplelevels,includingindustrybenchmarks.

DeloitteCyberIntelligenceCentersaroundtheworldprovidefullycustomizablesolutionstohelporganizationsproactivelydetect,respondandrecoverfromsecurityevents—makingthemmoresecure,vigilantandresilient.TheseCyberIntelligenceCentersoperatearoundtheclock,providingadvancedsecurityeventmonitoring,threatanalytics,cyberthreatmanagementandincidentresponsetohelporganizationsstrengthentheircybersecurityposture.ForacloserlookintoDeloitteCyberIntelligenceCenters,duringFY2017,GlobalRiskAdvisoryhaslaunchedtheuseofvirtualreality“tours”toprovideclientswithanimmersiveexperienceandabehind-the-scenesviewofCyberIntelligenceCentersinaction.

Tax&LegalexpandeditsecosysteminFY2017throughsixallianceswithautomation,cognitiveandblockchaincompanies.Additionally,ourBusinessProcessSolutions(BPS)andTaxpracticeshaveformedfivestrategicagreementswithroboticprocessautomation(RPA)vendorsandcreatedanRPAcenterofexcellence.DeloitteTax&Legalpracticesalsoenhancedclientconnectivitybyintroducinginnovativetechnology-enabledsolutionsacrossallserviceareasthroughanewdigitalrelationshipplatform.

Amongthemanytech-enabledinitiativesthatwillimpactDeloitteConsultingpracticesaroundtheglobeistheCenterfortheLongView,whichspecializesinlong-rangescenarioplanning.TheMonitorDeloitteunit,locatedinGermany,hasdevelopedartificialintelligenceandonlinecollaborationtoolsthatdramaticallyincreasethequalityofscenarioswhilereducingprojectcosts.ItultimatelycouldserveasaprototypeforthecomprehensivedigitalizationofDeloitte’sconsultancyservicesaroundtheworld.