Crossing the Chasm. Is your community leaving you behind?

Simon RobinsonFounder &

Managing DirectorERPaaS

Ian HerbertDeputy Director

Global Sourcing Research Group

Agenda

Robotics and Artificial Intelligence

- ‘What’s that all about?’

Disruptive technology

- Rethinking the finance strategy

Demonstration

A Transformation in action

What is the prize and how do I get it?

Robotics and Artificial IntelligenceWhat’s that all about?

ERPaaSGlobal Robotic Process Automation 2016-2021

ERPaaSRobotics, Cognitive and Artificial Intelligence

‘We’re Doomed Ah Tell Ye, Doomed’….. or are we?

Doom-laden Carney warns middle classes will be 'hollowed out' by new technology

Mark Carney warned in a speech many jobs would be 'hollowed out‘

Huge technological advances meant roles could be automated instead

Entire professions, such as accountancy, could be pushed to the brink

Hugo Duncan - Deputy Finance Editor For The Daily Mail

6 December 2016

Disruptive technology- rethinking the finance strategy

First, the boring bit…. New Public Management

I’ve heard reports of my death are exaggerated! (Mark Twain)

• 1980s disaggregation, competition, incentivisation *

• 2000s reintegration, needs-based holism, digitisation*

• 2010s shared services, aggregation, marketisation,

• 2020s consumer prolific, lights-out, data driven decisions

Dunleavy, P. and Margetts, H., Bastow, S. and Tinkler, J. (2005) ‘New Public Management Is Dead — Long Live Digital-Era Governance’, pp. 467–494.

Disruptive technology is forcing finance departments to rethink their data strategy around people not systems (or at least beige cabinets!)

• What does lights-out, data driven decision making look like in your organisation?

• Why isn’t your organisation as good as Amazon? - It’s probably been going longer

• What do we mean by the digital divide and cognitive intelligence

• New technologies – new opportunities (reporting to insight x100)

• New challenges – new thinking, new systems, new structures, same data!

• Empowering the digitally-enabled workforce – you probably don’t need to?

• Why public sector organisations need to move to digital self-service

Disruptive technology – what does ‘lights-out, data-driven, decision-making’ look like in your organisation?

Why isn’t your organisation as good as Amazon? -It’s probably been going (a lot) longer!

Why isn’t your organisation as good as Amazon? - It’s probably been going longer

• As CEOs Jeff Bezos and John Mackey look to seal their disruptive supermarket deal, many rival companies' stocks have traded off, some posting double-digit declines on the Amazon-Whole Foods news.

• Big-box retailer Wal-Mart, fell more than 7 percent last Friday, when news of Amazon's proposed partnership broke *.

• But, Whole Foods only control a 1.2 percent stake and thus Amazon only have a 0.2 percent share of the grocery market.

• The real issue is Amazon’s capacity for digital disruption based on digital thinking and total digital empowerment that places their customers in the driving seat.

* http://www.cnbc.com/2017/06/21/

But, it’s not as if they have invented new technology? Yet, Amazon Cloud is the most profitable part of the whole company

https://www.forbes.com/sites/greatspeculations/2016/08/17/amazon-continues-to-gain-share-in-cloud-infrastructure-services-market/#2130092b15b8

Not a lot of people

know that!

Cognitive intelligence – the new back-office combining the cloud and the brain!

DATA

Cognitive intelligence

Programs &Apps

People & problems

Big Data

Enterprise Data

Financial Data

Scale and Complexity of Data

Complexity of

Analysis

The data set is getting bigger

Source: CIMA

What is the basis for finance professionals’ claim to be well placed to help leverage data?

To influence

people

And lead the organisationUse core skills

In business context to bring insight

But, insight, influence and impact requires…

• Inspiration/creativity

• Leading-edge expertise

• Broad views & multidisciplinary collaboration

• Business connectivity & understanding

• Data security

• Intelligent information users

• Interpersonal skills

But, whatever you think about robotics,you’ve probably got it wrong!

• Manufacturing returns to UK

• ‘Clarks Shoes to make 300,000 boots pa with 80 staff mostly technical and management’

Robotic carwash closes

• Augmented autonomy – 1/2 workers

• Now replaced by team of 8

Labour premium is the new model!!

(Neo-) New Public Management?

Demonstration

Maternity/Paternity illustration

• Police Shared Service– 5 weeks

• FTSE 100 Telco HR Shared Service Centre– 5 days

• Cognitive Intelligence integrated with back office– 60 seconds

– How long does your organisation take to do this, what is the cost, and what is the productivity impact?

A Cognitive Intelligence Application in actionWhat have you just seen?

• Personalisation– Interpretation of HR data to determine which business rules to apply to which

user (or organisation) and deployed in a service independent to the back office applications

• Integration– The retrieval of the HR and Payroll data and a real time calculation of

entitlement using business rules without any customisation of the back office applications

• Knowledge automation– Freed up valuable subject matter expertise in back office shared services

• Delivered to any device– Self-service or Shared Service Centre using the same rules and service

• Intuitive User Interface– No training required

A Cognitive Intelligence Application in actionSome questions you may have

• Did you have to implement a Cloud HR, Payroll, Finance or Procurement system to do this?

– No, it links to your existing systems

• Is it secure?

– Yes, it’s your data in your systems

• Is there a huge cost?

– No

• Does it take long to put in?

– Weeks

A transformation in action

Digital Transformation in actionShared Services Organisation

• FTSE100 company

• 22,000 employees

• Highly diverse business– 120 companies, 800 primary accounting codes

• Cultural roots in Public Sector

• Shared Service for HR, Payroll, Finance, Procurement, Legal and IT

• Transformation Programme driven from the top– Objective to reduce operating costs by 20%

– Brought in external transformation expertise

– Technology driven transformation is one of the most significant work-streams

• 1,000 staff sample group

• Absence reduced from 4.9% to 2.4%

• Motivation and morale improvements

• 200,000 additional calls handled

• £750,000 p.a. recurring cashable benefit

– £10m cashable benefit for every 1% reduction in absence across the enterprise

• Went live with 22,000 users in June 2017

Intelligent HRAbsence and Attendance

• Waterfall to agile

• ‘Go lives’ every 4 weeks

• Maximum of 2 workstreams in parallel in each business area

• No big consulting bills and no change controls

DeliveryThe delivery culture change

What is the prize and how do I get it?

What is the Prize?

• Sweat the assets– Capitalise on your existing data, systems, people and

knowledge

• Cost reduction or more for the same?– These technologies enable you to make choices

• Culture change– Moving the organisation and people into the digital age

with tools they use every day