Contributed on December 12, 2015

940

1.4K

RPA Best Practices in Financial Services

Description

RPA refers to automation which interacts with a computer centric process through the UI of the software which supports that process and RPA is a subset of Business Process Service Delivery Automation (BPSDA).

Transcript

11
RPA Best Practices
in Financial
Services
2
Discussion Topics
1 2 3Technology
Drivers Today
Business
Imperatives
Key Differences
Among Vendors
4 5 6Best Practices
around
implementation
Sample
Processes
RPA
7 8 9RPA CoE Case Studies Closing Thoughts
3
Global IT Consulting & Outsourcing Provider
Virtusa Snapshot
• US Based (Nasdaq:VRTU)
• + $500M Revenue, 7 year CAGR of 23%
• +10,000 Employees Worldwide
• Global Industries: BFS, Insurance, Healthcare, Media, Telco
• 120+ Clients
• Announced $350M Acquisition of Polaris Consulting Group
4
Block Chain
Omni Channel
Big Data
Internet of Things IoT
Gamification
AI and Digital
Assistants
Key Trends Impacting Financial Services Firms
Robotic Process
Automation (RPA)
Transforming
Technology Trends
5
Technology
Improve customer
experience: cross
channel and always
available
Optimize business
processes and cost:
improve productivity
& enhanced
employee
performance
Create new revenue
streams: next-gen
services, leveraging
intelligence of
connected ecosystem
Better Address
Regulatory :
prevent business
issues through real-
time insights
These Trends are driving four key business imperatives
6
Robotic Process Automation
“110-140 million FTE’s could be replaced by automation tools
and software by 2020 ” – Mckinsey
7
How is RPA defined?
ABOUT RPA
• RPA refers to automation which interacts with a computer centric
process through the UI of the software which supports that
process and RPA is a subset of Business Process Service Delivery
Automation (BPSDA)
• Many technologies including artificial intelligence (AI), expert
systems and other process of automation have served
predecessors to RPA but RPA takes AI and expert systems to an
elevated level
• RPA is the use of computer to create a “virtualized FTE or robot”
to manipulate existing application software in the same way that a
person today processes a transaction or completes a process
8
Leading IT robotic automation RPA vendors
RPA MARKET
9
RPA versus Traditional Re-engineering and BPM projects
Aspect RPA Traditional
Business Approach Focuses on replacement of FTEs
with a “virtualworker”; cost
reduction, quality improvement and
more productivity
Re-engineering of the underlying
process to drive efficiency and
create a more consistent
customer experience.
Technology approach To automate processes without
changing, replacing, compromising
or adding maintenance overhead
onto existing applications
Build new application to replace
existing; begin with
requirements definition leading
to design/development/testing
Process Approach Leave processes as it Transform and re-engineer
processes
Flexibility With machine learning can adjust If not defined, then will not be
able to support
Time to market Development and Testing
requirements are on very low end
Typically large scale efforts and
become capital expense efforts
10
RPA–howdowegetstarted
Unemployed Robot
Need Job
Experience with Good
References
11
RPA JOURNEY MAP
Assessing Robotic
Process
Automation
• Gain Understanding of RPA technology, benefits, shortcomings
• Evaluate Product Vendors
• Gain high level business support
• Identify opportunities and conduct several POC
Establish CoE
• Setup a CoE function for at least one LOB
• Provide consulting services to help LOB understand RPA,
benefits case and support deployments
• Establish dev environments and processes
Establish Scale
• Expand CoE to support company wide
• Develop Training programs to help business deploy rapidly
• Create integration frameworks and management dashboards
• Standardize security and release governance models
Embed RPA into
Normal Day to
Day
• RPA becomes part of the operational and technology fabric in
the company
• RPA becomes core to any new product development or project
• Virtual workforce becomes part any of annual planning activity
12
GETTING STARTED – HOW TO IDENTIFY OPPORTUNITIES
Suitability Analysis
• Functions /
processes viable for
RPA
• Potential savings on
migration
Benefits Analysis
• Quantitative – ROI,
ongoing, initial
costs
• Qualitative Reduced
error, faster
processing, etc.
Roadmap &
Prioritization
• Business priority
• Quick-wins
• POC
• Robotics COE
• Training
• Technology Plan
Cross-business assessment framework to evaluate RPA applicability
13
Analysis – Suitability & Potential Saving
• HC = Headcount
• Most suitable: Low complexity / volatility
and big headcount
• Suitable: low headcount / low complexity
• Potentially suitable: High complexity with a
high headcount
• Not suitable: High complexity and low
headcount
Suitability
Saving Potential
• HC Saving: Complexity factor*HC
• Support team: Volatility factor* HC
• Total HC Saving: HC saving – support team
Additional factors
• Robots work 24 hours/day without breaks
• Robots work faster than humans (2-3
times)
14
ROI (Return on Investment)
Annual ROI = [Gain from investment – cost from investment]
[Cost from investment]
COSTS
ITEM FEES ($ USD)
Robot licenses
Annual licenses for robots. Robot
can work on any process.
$xxxxx
FIXED FEE
Robot training
Training the robot on the
operational tasks
$xx
T&M ESTIMATE
Ongoing training
/support
Training robot for process
changes and support
$xx
T&M ESTIMATE
SAVINGs (Direct/Indirect)
ITEM FEES ($ USD)
Operations staff
Staff members replaced by the
robot or tasks taken up; eliminate
attrition and training costs
$xxxxx
Errors
Reduced errors and cost or
rework
$xx
ESTIMATE
Time to market
Speed of robot reducing in faster
time to market and earlier
revenue recognition
($xxx)
ESTIMATE
15
• Process Alignment
• Collaboration
• Metrics & Measurement
• Track Benefits
• Experienced Team
• Ability to Scale (Partners)
• Management
• Training Academy
• Advocates
• Tools Expertise
• Dev Environment
• Integration Platform
• Process Definition
• Architecture Guidelines
• Templates & Checklists
• Best Practices
RPA Center of Excellence
People Process
Governance Tools/
Technology
Define, Evaluate, Innovate, Monitor and Improve Automation Functions
16
Key CoE Tasks
Define:
• Governance Framework for evaluting proposed processes
• Process Definition and Alignment
• Management Metrics and Dashboard
• Communications Plan
Evaluate, Review and Approve:
• Research (PoCs) & Recommend Tools and Automation Solutions
• Identify Implementation Partners
• Enterprise level Automation Solution Architecture and Integration Approach
• Security Model
• Automation Orchestration and Management Platform & Svc Portfolio
Implement /Innovate
• Maintaining Automation Framework.
• Build Reference Robots and other shell
• Identify Reuse Opportunities
• Internal Utilities to improve Automation Delivery, Deployment, Testing, Maintenance
Support, Consult, Educate:
• Provide Expertise, Documentation and ongoing training
• Evaluate and Recommend latest Automation trends and Technology
• Support Change Management
• Focus on Skills and Competencies
17
Sample Automation Architecture
Core Enterprise
Banking Applications
App 1 App 2 App 4App 3 App 5
Virtual Robot Workforce
Desktop
Existing Ops Team RPA Server
RPA Database
ARCHITECTURE
18
GlobalBankCorporateAccountOpening–Africa
Customer
Requests
Account
Documents
Verified
Base Account
Opened in
Account System
Additional
Account
Information
Currency A/C
Opened in
Payment System
Additional
Information
Added
Manual
Verification of
Process
Account
Completed
Notification
Sent to
Customer
19
LargeGlobalBankPOCApproach–Finance&Operations
Customer Balance Sheet
Report
• Balances grouped on the
basis of products offered to
various customer segments
and performance of various
segments
Financial Balance Sheet
Report
• This is a Statement of
Financial Position for
a reporting date
Scorecard to evaluate the
frontline performance
with various KPI’s for
arriving at incentives
• Sales Acquisition Scorecard
• Individual sales frontline
summary
• Team Leader roll up
Sales Relationship
Manager Scorecard:
• Individual Relationship
Manager Revenue and KPI
Summary
Monthly financial
performance overview:
• Group P&L Summary
• Balance sheet
Summary including RWA
• Performance by Client,
Product and by Geography
• Metrics including – Returns,
Cohort analysis etc.
Balance Sheet Report
Preparation
Sales Scorecard
preparation
Global Finance Report
preparation
20
ClientOnboarding withRPA–eliminatessteps
Client Lifecycle Management – Automation and robotics
Client
RM/Front
office
Robotics/
Autoamtion
Client
Services
Due
diligence
Start
Client data
check, Data
entry
Risk Scoring
KYC, PEP, MIFID
& FATCA
summary view
Credit pre check,
legal pre – checks
Account –
Setup/
modifications
Close
1 2 3 4 5
Additional
Details ?
Approve ?
Approve
Additional
Services
Provide
additional
details
Off-Boarding
Request of
new client/
Additional
details
requested
Review data
entry
Review
additional
client details
Compliance
credit, Legal
Reviews
21
Loan Processing
Trade Finance Operations
Opportunity is big – everyone will want one
Account Closure
Preparing for the Robot Revolution
Balance Sheet Reporting
Settlement Instructions
Account Opening
Client Reporting
Account Ownership Change
22
Loan Processing
Trade Finance Operations
Or Maybe This one
Account Closure
Preparing for the Robot Revolution
Balance Sheet Reporting
Settlement Instructions
Account Opening
Client Reporting
Account Ownership Change
23
Phase 1 – Execution Approach (Indicative)
Automation COE
• Identify Requirements
for Automation
Orchestration and
Management Platform
• Identify the key
layers/components of
the Automation
Platform
• Prioritize required
Components
• Evaluate Third party
Mgmt Solutions
Inputs from Stake Holders
Product Backlog with
RPA Processes
Sprint
Backlog
Create & Design RPA
Process List
• Design catalogue of
automation API’s to
interact with the
components / layers.
• Design Components and
size effort
Develop Robot Processes
• Build reference implementation
for API with sample Robot code.
• Implement High Priority
Components of the Automation
Orchestration and Management
Platform
• Integrate reference Automation
Robots with Platform
• Implement Robots in Framework
Sprints
(2 weeks per
Sprint)
Design &
Develop
Deploy
Monitor
• Identify process changes
• Re-train Robot on changes
─ Use Predictive Analytics
─ Use Adaptive Analytics
Move to further Phases
1. Pick top 3-5 automation initiatives and evaluate.
2. Improve and deploy
3. Measure
4. Create jump start kit for new dev
24
© 2015 Virtusa Corporation. All rights reserved. Virtusa and all other related logos are either
registered trademarks or trademarks of Virtusa Corporation in the United States, the European
Union, and/or India. All other company and service names are the property of their respective holders
and may be registered trademarks or trademarks in the United States and/or other countries.
Thank You
25
© 2015 Virtusa Corporation. All rights reserved. Virtusa and all other related logos are either
registered trademarks or trademarks of Virtusa Corporation in the United States, the European
Union, and/or India. All other company and service names are the property of their respective holders
and may be registered trademarks or trademarks in the United States and/or other countries.
Thank You
Bob Graham
SVP Virtusa
Bgraham@virtusa.com
@Bobgraham87
26
Phase 1 – Execution Approach (Indicative)
AUTOMATION COE
Plan for future to avoid re-engineering later
Objective
RPA
Approach
Mgmt. &
Analytics
Process
Maturity
Tech
Roadmap
Standardizati
on & reuse
Innovation
Application
Level:
Isolated
robots
typically
Replace FTE Individual
Robots
Adhoc
Monitoring
Automate
Process as-is
typically
Assisted
Desktop/
Citrix based
use cases
Adhoc Static
Robots
with
Manual
Changes
Organization
level:
Tethered
Robots,
centrally
controlled
Augment
Specialists
Orchestrate
d Robots
Systemic
Data
Collection
Parameteriz
e Existing
Processes
End to End
Workflow
based
automation
Basic
Program
Reuse and
sharing
Flexible &
Configurabl
e Robots
Enterprise /
Advance
level:
Intellient
Robots
Adaptive
Learning
Robot
Farms.
Expand on
demand
Real time
monitoring
with
Dashboard
Configurable
& Reusable
Processes
Integrated
workflow
based
across
systems
Up to date
Catalogue of
Services
Maturity
Level
Data from Nasscom BPM Summit 2014: Keynote
S
t
r
a
t
e
g
i
c
T
a
c
t
i
c
a
l