www.pwc.

com/ng

Looking into the Future

Leveraging the Power of AI and Robotics

S
Femi Osinubi

July 2018
“At least 40% of all businesses will die in the next
10 years… if they don’t figure out how to change
their entire company to accommodate new
technologies.”

— John Chambers, Executive Chairman, Cisco System

2
Digital Disruption:
Business: Top 10 Global Companies by capitalisation (March 2008)
Capitalisation (billion $)

452.5
424
369.6

299.8 298.1
277.2 264.1
231.1 220.1 215.6

ExxonMobil PetroChina General Electric Gazprom China Mobile ICBC Microsoft AT&T Royal Dutch Shell Procter & Gamble

Source: PwC’s Global Top 100 Companies by Market Capitalisation

3
Digital Disruption:
Business: Top 10 Global Companies by capitalisation (March 2018)

Capitalisation (billion $)

851.3

717.4 702.7 700.6

508 492 470.9 464.2

377.4
343.8

Apple Inc. Alphabet Inc. Microsoft Amazon.com Tencent Berkshire Hathaway Alibaba Group Facebook JPMorgan Chase Johnson & Johnson
Source: PwC’s Global Top 100 Companies by Market Capitalisation

4
What makes technological breakthroughs a megatrend?

The top global trends

which CEOs believe
will transform their
business over the
next five years.
Technological And this opens CEOs surveyed as They are also
disruption is up huge and still part of our annual concerned about
transforming largely Global CEO the pace of
markets and untapped Survey identified change.
societies in ways commercial technological
that wouldn’t potential for advances as the
have been domestic and most important
possible even international trend impacting
five years ago. businesses. their business.

5
There are eight emerging technologies leading this trend…

The trends and innovations that will shape the technology industry over the next several years are coming
into sharper focus.

Leveraging the power of Data &

Analytics and Artificial
Intelligence is at the core
capability for emerging
technologies.

Emerging technologies focuses on

the end-to-end digitization of all
physical assets and processes as
well as integration into digital
ecosystems with value chain
partners.

6
Augmented Reality

Addition of This AR is AR-enabled We’re The power of

information “augmentation” distinct from smart glasses currently bringing information
or visuals to of the real Virtual help warehouse seeing to the point of action
the physical world is Reality workers fulfill mainstream in a seamless,
world, via a achieved via (VR); the orders with gaming unobtrusive manner
graphics supplemental latter being precision, examples of is undeniable. This
and/or audio devices that designed airline AR that reach blending of the
overlay, to render and and used to manufacturers across age physical and virtual
improve the display said re-create assemble demographics. world is cracking
user information. reality planes, and open a new realm for
experience within a electrical businesses across the
for a task or a confined workers make board to explore.
product. experience. repairs.

7
What is artificial Intelligence?

9
Why artificial Intelligence?

9
Is Artificial Intelligence a threat or opportunity?

10
The global Artificial Intelligence market

11
Emerging Technologies grouped under the term Artificial
Intelligence

Key focus

12
 “
RPA is the beginning
of AI in the
enterprise.

Emer Ging, PhD

The Artificial Intelligence Institute

PwC | Robotic Process Automation

www.pwc.com

PwC 131414141
 The RPA and AI Technology Continuum

Today Future

The Technology Continuum represents a forward-looking Algorithmic Business

perspective on the evolution of RPA capabilities over time.
The continuum extends from common technologies in use today ▪ Industrialized use of complex
mathematical algorithms to
to potential replacement technologies to be adopted in two to five
years [or more] in the future. Intelligent Process drive improved business decisions or
process automation for competitive
Automation (IPA) differentiation
The continuum is further classified into Current State,
Trending, and Future State technologies along its axis. Aliases: Cognitive Computing, Smart
Workflows How do RPA and IPA differ?
RPA directly mimics human behavior
▪ Combining RPA with artificial
intelligence technologies to
Robotic Process identify patterns, learn over time, Input Program Output
and optimize workflows
Automation (RPA)
▪ Through “supervised” and
“unsupervised” learning, algorithms
Alias: Robotic Desktop Automation make predictions and provide
Business Process (RDA) insights on recognized patterns
IPA learns how to become moreefficient

Macros and Scripts Automation (BPA) ▪ Automating labor-intensive, ▪ With IPA, robots can replace manual
repetitive activities across clicks (RPA), interpret text-heavy
Input Program Output

multiple systems and interfaces communications (natural language

by training and/or programming processing), make rule-based
▪ Rules-based automation within ▪ Reengineering existing third-party software to replicate a
business processes by using decisions that don’t have to be Learning
a specific application (e.g., Excel) user’s workflow
software, integrating systems, and pre-programmed (machine
to provide users with a way to
restructuring labor to optimize ▪ Operates at the presentation layer learning), and offer customers
automate a repeatable process with
workflows and minimize costs suggestions (cognitive agents)
highly structured data without the need to change existing
systems
▪ Users intervene to handle exceptions TECHNOLOGY STATE Current State Trending Future State
PwC | Robotic Process Automation as they arise
www.pwc.com

PwC 14
 The RPA and AI Technology Continuum

Business Process Robotic Process Intelligent Process

Macros and Scripts Algorithmic Business
Automation (BPA) Automation (RPA) Automation (IPA)

Example
Providers N/A

Activities that are repeatable Processes that use multiple Labor-intensive repetitive Use of artificial intelligence is Internally developed and
within a specific application systems together with specified activities that need significant increasing in areas where a externally sourced algorithms
(e.g., Excel), providing the user logic e.g. providing customer amount of data processing will vast array of data processing is used in multiple business
Applicability with a way to automate a service by different teams benefit through RPA without the required to make decisions situations – from providing
repeatable process with highly need to change existing while considering the overall customer with customized
structured data systems context products to processing
back-office transactions

Import, manipulation, and Integration of internal business Automating common tasks in Transaction monitoring and Airline yield management
export of customer purchase functions, such as Finance, customer service centers, such fraud prevention by identifying programs constantly monitoring
Use Cases histories to conduct basic HR, and Marketing, to as incident management, billing patterns in behavior that could supply and demand to
analyses streamline operations and queries, user admin and indicate fraudulent payment maximize revenue for a given
reduce cost updating records activity seat inventory

Programming in Excel What Is Business Process What is Robotic Process Intelligent process automation: What Does Algorithmic
(Macros) Automation (And How Can It Automation? The engine at the core of the Business Really Mean,
More Help Your Business)? next-generation operating Anyway?
Information Why robotic process automation model
Business process automation: adoption is on the rise 4 industries that use the
Where it works, and where it AI, Deep Learning, and algorithmic business model
doesn't Robotic process automation: A Machine Learning: A Primer successfully
path to the cognitive enterprise

PwC | Robotic Process Automation

www.pwc.com

PwC 15
Robotic Process Automation
Robotics
Robotics is described as Robotic Process Automation (RPA), Benefits
humanoid robots or virtual agents, which automate, • Automate business • Replace or augment
improve and/or assist human activities. Furthermore they operations humans in jobs where
may analyze applications for processing transactions, • Boost efficiency there are no labour
manipulating data, triggering responses and communicating • Quality and repeatability shortages
with other digital systems. • Free up humans for
higher-value tasks
Robotics can either operate in compliance with a set of
predefined instructions or autonomously. Once viewed as
quite costly, the technology is increasingly affordable and Risks
user-friendly for businesses today. • Lack of expertise and • Regulatory compliance
support • Costs
• Fallout from job losses

Potential Applications
• Manufacturing • Automation of predictable
• Hazardous industries tasks
• Hotels and tourism • Data management
• Service industry

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RPA - In a nutshell

Robots are…

Computer coded software

• Non-invasive, zero change integration on target system and security
• Operate on top of other existing software

Mimic interactions of users

• Record and automate user interactions with one or more software applications
• Interact with the user interface (UI) of existing applications in the same way that an everyday
user would

Work cross-functional and cross-applications

• Are entirely technology agnostic and can be used with any application (e.g. ERP, DB, MS Suite,
ASCII file, structured PDF, thin clients such as Citrix)
• Use a central repository for easy management of automation scripts and processes

Enable the automation of repetitive, rule-based processes

• Build workflows with dynamic decision/branch points and loops for scaling (up/down)
• Ability to granulize processes into smaller components to allow reusability

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Technological breakthroughs and automation will
significantly change our work life
Automation will significantly change today’s jobs

Technological
15 million U.K. jobs are
breakthroughs - The 53% in danger of being taken over by
impacts of digital disruption are of all occupations are estimated to robots (Bank of England)
now so pervasive that no business be replaced by digital technology
in any sector is immune from within the coming twenty years.
them (PwC) That is almost 300 million jobs
within the OECD-region (Swedish
Foundation for Strat. Research)

About 35% of current jobs in

“In the near future, managed services
the UK are at high risk of
offerings leveraging autonomics and
computerization over the next 20
cognitive platforms will permanently
year (BBC)
remove head count to drive a 60%
reduction in the cost of services (Gartner)
Eighty million U.S.
jobs at risk from automation Oxford University predicts that
(US Central bank) 45% of jobs will be automated
by 2030

19
Understanding RPA

What can it do? What does it need?

• Match invoices to PO’s • Electronic documents

• ‘Read’ contracts • Structured Data

• Continuously check if transactions are • Rules-based processes

still ‘in compliance’

• Send and receive messages • Reprogramming when circumstances

change

• Compare records or tables across • User access rights across applications

multiple applications

• ‘Learn’ how to respond to events or • Programming on how to deal with

occurrences events or occurrences

• Automate activities across an end-to- • Re-engineering of processes to

end process efficiently apply the ‘bot’

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Global market statistics and value proposition

21
 Global RPA and AI Market Statistics

Breakneck RPA growth is expected... … but it’s only the tip of the iceberg.

Global RPA Market RPA as Portion of Total Cubicle AI Spend

Global
$48.5B
organizations 44% CAGR
$8.8B RPA is the first step
adopting RPA**
of using AI in the
2016: 10% Enterprise

Opportunity
2020: 40% AI Market
$29.2B

RPA Market

63% CAGR
$2.9B $12.6B

$2.9B
$250M $0.6B $1B $1.7B $2.4B $2.9B
2016 2021 2024* 2017 2018 2019 2020 2021

PwC | Robotic Process Automation Source: Forrester, February 2017

www.pwc.com *Source: Grandview, October 2016
** Source: Gartner, December 2016

PwC 22
RPA shows significant cost savings and business
benefits
Benefits of Robotic Process Automation

$ Cost saving potential

Onshore costs
$100k/year
Productivity - 24/7 with high-speed

Accuracy - Improve quality with 100% accuracy on

automated cases
Offshore costs
$36k/year
Scalability –scalable automations, with the ability to
handle increased volumes at marginal cost

Compliance – Robots follow defined rules Robot

and have same rights as humans cost
$12k/year

Security – data protection and audit trail proved

23
RPA has some distinctive value propositions
compared to other automation solutions
The case for RPA

• Short-term realization of efficiencies

• Interim solution for quick fixes and improvements
• No requirements for business case and expertise of large ERP changes and/or existing IT landscape

RPA value proposition

• Easy and fast to implement

• Low investment required (compared with large ERP/system initiatives)
• Fast go-live (weeks rather than months)
• Less effort to design the robot (about 1 week)
• IT landscape agnostic
• Non-invasive - no changes or additional coded interfaces in existing IT landscape/apps (on-top layer)
• Cross-functional applicability
• Interaction between multiple systems, apps and communication tools
• Short payback
• Between 12-18 months

24
Existing PwC business development and services

28
 Sample RPA Business Development and Services

Transactional Problem Documents & Customer Workflow Customer Desktop Form Data Document Fraud
resolution record Service management relationship consolidation Capture formatting/a detection
management support management utomation

HR services
On boarding Personnel Compliance Payroll Recruitment Leave Data entry Education Time & Benefits
administration reporting Management & learning attendance administration
management
Areas that PwC is
executing on

Common in the
market but PwC is not
executing on
IT
Installation QA testing File Emailrelated Folder Batch FTP download/ Application Server Access
Opportunities for management tasks synchronising processing upload and monitoring monitoring management
consideration backup

Finance &
Accounting
Record – to - Claims / Collections Sales orders Fixed Trend Inventory & Procure – to Order – t0 - General ledger Reconciliation
report invoice mgmt assets tracking stock mgmt pay cash updates

Supply Chain
Supply Inventory Contract Quote Work order Freight Return
planning management management management management management processing

PwC | Robotic Process Automation Examples - not exhaustive

www.pwc.com

PwC 26
 Existing PwC RPA Business Development and Services
Offered

To date, PwC has sold 75 RPA projects with estimated revenues of $8-15M

% of Projects and Opportunities in the Global Pipeline by Service Area

71%

51%
Sold
Pipeline

20% 8%
11% 4% 5% 13% 0% 0%
10% 8%
Strategy Assess Design Construct Implement Operate
RPA Process RPA Op Model, Process Vendor Selection, RPA Transformation, Operate and Manage
Services Strategy Assessment Re-Engineering, Bot Development RPA Training Bot Workforce
COE, PoC**
Deep skills in COE
Pros Base skillset. Tool / partnership
Strong PwC skillset Common PwC skillset Experience with PoC Transformation is XLOS Large opportunity area
specific
(58% of work to date)

Cons Pricey - no A lot of competition in this Race to the bottom - offshore We do not have any
Little to no skillset
value based pricing space. Expensive integrators will excel here quals we can leverage

PwC | Robotic Process Automation Source: Global Pipeline

www.pwc.com ** 50% of total pipeline is PoC Pipeline information was self-reported and not validated

PwC 27
Automation focus areas and examples

31
 Automation Focus Areas - Horizontal

Attributes of good process Customer

automation candidates: Customer service
support CRM
Customer
onboarding

● Combine steps across multiple

software applications that are Finance
not integrated (“swivel chair”
Procure – to pay Month end/
processes) Order - to cash
Quarterlyclosing
Trend analysis

● Are highly standardized and

rules-based with limited IT
complexity and exceptions Data archival, Software upgrades Network
backup and recovery and patching administration
● Require a high degree of
consistency and quality
HR
● Have a high volume, requiring Employee Benefits Compliance
Payroll
large commitment of time or onboarding administration reporting

people to repetitively execute

Supply Chain
Demand & supply Contract Freight
planning management management
Examples - not exhaustive

PwC | Robotic Process Automation

www.pwc.com

PwC 29
 Automation Focus Areas - Vertical

Attributes of good process HIA

automation candidates: Patient data
extractionand Reporting for doctors
Onboarding and
patient referral process
migration
● Processes where there is a
defined workflow with manual Banking
inputs that can be replaced with
Payments and funds Payment and loan
digitization Client onboarding
management
KYC / AML
checks processing

● Processes where more than 10

FTEs are performing the same TELCO
activity Service activation Create a single view of incident management
customer across multiple and service request
● Stable IT systems that are not accounts

expected to change in the Insurance

mid-long term
Product Lead management Claim notifications
Fraud detection for
Administration
claims

Retail & Consumer

Inventory and stock Manage and address Sales reporting across
management customer complaints multiple systems
Examples - not exhaustive

PwC | Robotic Process Automation

www.pwc.com

PwC 30
Accounts Payable Example
Look for activities that are : labor-intensive, require accessing multiple
RPA
systems, are repetitive or can be audited for compliance periodically

Create, send out, ask for

Update vendor Trigger receipt by
shipment confirmation,
information sending reminder
update planning sheets

Maintain Vendor Raise requisition / Receive goods Receive and

Database purchase order and acknowledge load Invoice

Review contract Confirm tiered Resolution of typical

terms pricing applied discrepancies

Establish date for Resolve price/qty Resolve initial Match invoice to PO

payment discrepancies discrepancies and goods received

Check for
Credit balance
duplicate/incorrect Bank reconciliations
reminders
payments

Approve invoice for Payment run /

Prepare payment Update general ledger
payment Issue checks

34
Accounts Receivable Example
Look for activities that are : labor-intensive, require accessing multiple
RPA
systems, are repetitive or can be audited for compliance periodically

Document AR
Review customer Maintain customer Update customer
policies and
credit master files data
procedures

Review ERP data Calculate and

Run periodic credit
against contract Order entry generate customer
checks
terms invoice

Capture customer Bill / credit

Sales agreement Credit Check
order request customer

Aged invoice write- Special aging Generate and send

Sales Tax recovery Cash Application
off reporting dunning email

Match payment to Collect customer

Bad debt provision Update AR
outstanding AR payment

Bad debt reminder Resolve queries

32
General Accounting Example
Look for activities that are : labor-intensive, require accessing multiple
RPA
systems, are repetitive or can be audited for compliance periodically

Document rules for

Document Policies Maintain Chart of
accruals and other
and Procedures Accounts
journal entries

Automatic Journal Intercompany Auto-accrual of

Data entry
Entry generation reconciliation unpaid invoices

Prepare non- Enter

Perform period
recurring journal accrual/recurring
close
entries journal entries

Develop forecasts by Automate any

Account Account
pulling data from manually generated
reconciliations reconciliations
multiples systems report

Post to General Review and approve Perform account

Reporting
Ledger account statements reconciliations

33
Emerging technologies are shaking things up across the enterprise…

Strategy Operations Customer Engagement

These technologies are already reshaping almost
These technologies are opening Artificial intelligence, robots, drones,
every dimension of companies’ interactions with
up a slew of new opportunities and 3D printing can all improve
their customers, from sales and marketing to
and corresponding operational efficiency and provide
billing and after-sales support.
considerations. significant competitive advantage

Compliance People and Talent

This is an often overlooked aspect of the business model. We
The eight technologies are creating brand-new job
believe these emerging technologies will see many companies
categories, but a worrying consequence may be slower
scrambling to adapt to - and trying to influence - the resulting
job growth. Concurrently, new technologies beget new
regulatory landscapes. The regulators themselves are likely to be
companies and new job categories.
in a catch-up mode for a while.

34
Benefits of Emerging Technologies Adoption

Reduced costs Increased Productivity

Using data to truly understand the Resources can now focus on more
business and leveraging value-added tasks as RPA can take
automation to drive efficiency up the time-consuming and
across business processes. repetitive tasks

Increased quality Increased Compliance

Leveraging the power of RPA, is RPA tool provides full audit trail of
the best way to go, when you have processes performed and are rule-
to get it right every time. based

Available 24/7 Non-invasive Technology

Capable of processing around the There is no need to change the
clock completing the work that, up, underlying systems or technology
until now, humans have been as RPA is deployed on top of the
doing systems and applications

Insights and Analytics

High scalability Insights to drive and transform the
An easily expandable workforce, business can be generated from the
instantly trained and deployed increasing data footprints both
internally & externally.

35
The future of work video

36
Conclusion

The winning formula

Strategy formulation Implementation Quality Assurance

Knowing where to apply RPA and D&A Having a laid out plan is just the To ensure you realize the benefits of your

is the key to success. beginning of the journey. digital strategy.

This starts with formulating an Next is to develop & implement the Assurance that current RPA

enterprise-wide strategy, develop a Analytics & Digital strategy. initiatives/projects are carried out in

roadmap and governance line with best practices to achieve

framework. management’s expectations is also very

key.

37
Thank you

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