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Automation for the Intelligent Enterprise
Robotic Process Automation's role
in today's tax department
Sharda Cherwoo
Page 2
Disclaimer
► This presentation is provided solely for the purpose of enhancing knowledge on tax matters.
► It does not provide tax advice to any taxpayer because it does not take into account any specific taxpayer’s
► facts and circumstances. These slides are for educational purposes only and are not intended, and should
► not be relied upon, as accounting advice.
► This presentation is © 2017 EYGM Limited. All Rights Reserved.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing we play a critical role in building a better working world for our people, for our clients and
for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms, of Ernst & Young Global Limited, each of which
is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For
more information about our organization, please visit ey.com.
Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.
Page 3
RPA for Finance
…What if it meant
25% to 40%+ sustainable
cost savings?
…AND improved
accuracy?
Robotic
Process Automation1 Overview of RPA
• What is Robotic Process Automation (RPA)?
• RPA reinventing productivity
• A quick demo
2 Tax hotspots for RPA
3 EY’s RPA experience and lessons learned
4 How to get started
5 Open discussion
Contents
Page 5
Disrupt or be disrupted?Headlines capturing the attention of the C-Suite
30%–40%of existing business process
services are likely to be impacted
by RPA
Gartner
Cost reduction of
35%–65% for onshore
operations and 10%-30% for
offshore operations
Institute for Robotic Process Automation
RPA is estimated to lead to
30%–35% reduction in
entry-level roles and increase mid-
level roles
Everest Group
Estimated that 85% of a typical
firm’s 900+ processes can be
automated; 110m to 140m FTE
capacity could be released by
2025
McKinsey & Company
Page 6
“We are going to move from people to things," explained Jane Fraser, CEO of Citigroup's Latin America
business”…We are expecting 500 billion objects…connected to the internet…automation will hollow out middle and
working class jobs…Technology is replacing these jobs."
Source: http://fortune.com/2016/10/17/human-workforce-ai/ /
Source: https://hbr.org/2017/02/25-percent-of-ceos-time-is-spent-on-tasks-machines-could-do
Source: http://fortune.com/2016/10/17/human-workforce-ai/ / Source: https://thenextweb.com/artificial-intelligence/2017/01/06/japanese-firm-ai-artificial-intelligence/
Automation: Challenging the nature of work, and the future of employment
Page 7
RPA is being focused primarily on back office operations, shared services and bringing outsourced work back in-house
Source: http://blogs.wsj.com/cfo/2015/05/05/the-new-bookkeeper-is-a-robot/
“A computer “robot”—basically software—automates these
tasks…Robots are taking over corporate finance
departments, performing work that often required whole
teams of people.”
Source: http://blogs.wsj.com/cfo/2015/05/05/the-new-bookkeeper-is-a-robot/
“Demand for RPA tools is growing quickly, at about 20
percent to 30 percent each quarter, according to Gartner.”
Page 8
Pattern-based machine learningStatisticalOptimized process
through automation
Improved workflow
Cognitive intelligence(CI)
Semi-cognitive
Robotic Process Automation
Structured data interaction
Incre
men
tal
valu
e
Mimics human actions
Augments human intelligence
Mimics human intelligence
Robotic Process Automation (RPA)
RPA is the application of software “robots”, not physical robots, that mimics human action and connects multiple
systems through automation without changing the existing IT landscape
What is Robotic Process Automation (RPA)?
Page 9
Low riskNon-invasive
technologyOverlaid on existing systems and
integrated with existing data
minimizing disruption to IT strategy
and architecture. RPA technology
can begin with simple rules based
tasks and scale to more
sophisticated algorithms and
machine-learning functions as the
organization matures.
ConsistencyIdentical processes and tasks,
eliminating output variations
AccuracyDouble digit reductions in error
rates
Cost savings
Business led transformation under IT governanceWhat are the benefits of RPA?
ReliabilityNo sick days, services
are provided 365 days a year
Audit trailFully maintained logs essential for
compliance
ScalabilityInstant ramp up and down to
match demand peaks and
troughs
RetentionShifts human effort toward more
stimulating tasks
ProductivityFreed up human resources for
higher value-added tasks.
Right shoringGeographical independence
reduces need to offshore jobs
while still delivering cost savings
Cross-industryAcross industries, since it follows
procedures in use
ROITypical RPA projects include
multiple functional “pilots” but the
program is completed in 9 to12
months with an ROI < 1 year
Ranging from
20-60% of baseline
FTE cost
RPA often “fills the gaps”
between existing systems
Page 10
RPA survey: Companies are focusing on quality, predictability and speed as key components of intelligent automation
What do you believe to be the most important components of the value proposition for Robotic
Process Automation? (Choose Top 3)
3%
18%
21%
24%
29%
32%
35%
38%
50%
65%
Gaining a competitive advantage in my industry
Increasing control/visibility of end-to-end processes
Eliminating staff positions
Enabling us to move business-outcomes vs. FTE…
Increasing the standardization of processes
Creating more reliable data sets for analytics
Reducing cost on the continual basis, beyond the…
Freeing up staff to move to different projects
Speeding up the time to complete the process
Driving more predictability and higher quality in the…
Source HfS survey of 800 C suite executives 2015
Page 11
The value proposition: ~10X ROI coupled with ~50X less difficult to implement
Key: Relative ROI %, Relative difficulty/time to
implement
Robotics
Task specificity
Frequency of
tasks
ERP, CRM
BPMS
1X
50X
2X
10X
10X
1X
low
low
high
high
Hardest, Consuming
Big, Risky
Scalable, Fast
Illustrative automation horizon
Page 12
Robotic process automation (RPA)
A software solution that runs unattended, working like a virtual employee with legacy applications performing repetitive tasks reliably at the User Interface level
Current workforce
Taking the robot out of the human allows your employees to focus on driving growth in the top line, reducing costs, and focusing on value added activities
Systems upgrades/rollouts
Analyzing data
Tax planning/issue resolution
Completion of auditable activity logs
Entering data into a system
Composing and sending emails
Rules-based processing and decision
making
Comparing data sets
Reading, copying, aggregating data
Automation of clicks, data entry
Develop customer relationships
Landed cost reductions
Management decisions
Interaction with the business units
5
Strategy
Managing exceptions
Bot management
Reinventing productivity: Taking the robot out of the human
Page 14
With robotic automation, the virtual software bot has authorized access
rights to perform the activities undertaken by a human, by moving through
and across the relevant applications.
Process characteristics to consider for RPA
Activities typically performed by RPA
Multiple tasks to perform the
process
High manual data entry
Multiple systems to perform a task
High, repetitive transaction
volume
Data entry and validation
User interface navigation
Automated formatting
Copy/paste operations
Login/logout of applications/emailing
Bot Bot Bot
XML and
e-file return
Populate
returns
and do
cross
checks
Consolidate reports,
supporting
worksheets and
reconcileEmail
Process characteristics to consider for tax
Page 15
efiling
Automation
hot spots
1
2
3
4
6
7
8
9
10
5
High volume Repetitive Timing
Extracting information from systems
Automation hotspots for Business Tax Compliance Common areas where bots help to drive value
Formatting and work paper creation
Data validations and roll-
forwards
Inputting data into tax systems
and forms
Generating reports
Saving work papers and tax returns
Mailing and printing
Disclosures and attachments
Reconciliations
Page 16
Case study: tax provision reporting
Link to video
HumanRobot
Log-into
ONESOURCE tax
provision application
Combine and format
reports into a single Excel
provision workbook
Review provision
workbook
Generate tax provision
reports from OTP
Notify user via email
once workbook is posted
to document
repository and ready for
review
The challenge
► Numerous tax provision reports
generated from ONESOURCE Tax
Provision (OTP) are used by the tax
departments during the period close
cycle.
► Data frequently changes, so the
reports must be re-run. Delay in
getting the reports to the department
has adverse effect on meeting the
critical close cycle deadline.
What we did
► Used Blue Prism RPA tool to
generate tax provision reports from
ONESOURCE Tax Provision.
► The key steps below:
Why automation
► During critical quarterly and annual
close periods, tax professionals
constantly need to run and format
reports during the review of the
provision, interim provision and
estimated payment data.
► This is time-consuming and the
reports are prone to errors, if they are
done manually.
Outcome
► Significant time savings, increased
speed, accuracy and efficiency (less
manual keying of data)
► Teams spent more time on review
and less time on preparation (better
leverage of knowledge worker skills)
► Reduced labor cost
► Reduced human errors
Page 18
EY has the experience to reinvent productivityOur 18 month RPA journey
► Implemented 160+ bots in 18 months
► Blue Prism & Automation Anywhere , RPA
tools
► 100,000+ annual tax filings
► Applied RPA to over 200 processes, 14
practices
► RPA has been a catalyst for process improvement
– 100+ process improvements
► Sustained business impact – driving value for
our clients and our people24/7
Quality: Significant increase in accuracy with
on-time delivery
Agility: Increased capacity to handle high
transaction volume
Compliance: Fully maintained audit trail for
compliance; enhanced controls and tracking
Talent retention: More intellectually
challenging work, leveraging potential of people
Value and insights: Improved accuracy,
responsiveness and on-time delivery while
gaining deeper insights into processes
Flexibility and reliability: Automated solution;
24/7 operations
Reinventing productivity… with scale in
mind
Page 19
Top 10 lessons learned during our RPA experiences
1 Not considering RPA as business-led, as
opposed to IT-led 2Not having RPA business case, postponing
planning until after proof-of-concepts (POCs) or
pilots
3 Underestimating what happens after processes
have been automated 4Treating robotics as a series of independent,
unrelated automation actions vs. an end-to-end a
comprehensive change management program
5 Targeting RPA at the wrong processes 6 Applying traditional delivery methodologies (not
agile)
7 Automating too much of a process and not
optimizing for RPA 8 Forgetting about IT infrastructure
9 Assuming RPA is all that is needed to achieve
great ROI 10 Assuming skills needed for a PoC are good
enough for production automation
Page 21
1. Business engagement
2. Business readiness
3. Business adoption
4. Rapid and sustainable benefits
realization
Visioning
Leadership alignment Stakeholder engagement
Change impact
and readiness
assessments
Training & performance
supportPerformance
monitoringImplementation
Business case
Current state
assessment
Organization and talent
realignment
How will RPA
enables our sub-
service line to
achieve Vision
2020 and our long
term business
strategy?
How do we prioritize by
modelling out the practices
and processes in scope for
RPA?
What will be our key
success metrics –
cost savings,
efficiency, improved
client service,
compliance so that
we can
communicate them
to our people?
Have we identified
leaders that need
to be aligned and
are they aligned
on the vision ?
Defined their
roles?
What stakeholder
groups do we need to
engage and in what
sequence to manage
the changes triggered
by RPA?
How will RPA impact roles and
responsibilities? Career
paths? What are there internal
mobility options that should be
articulated to our stakeholder
groups?
Do we need to realign the
organization, roles and
responsibilities for maximum
value from RPA?
What training and support
do our people need to be
successful?
How do we monitor performance
and embed IA goals in
performance management to
ensure value?
How do we implement and
communicate RPA successes
to drive support?
A four prong approach to deliver sustainable value through intelligent automation
Page 23
EY Thought Leadership
A Digital Optimist’s Guide to Aligning People, Robots and Transformative Processes
“With AI programs doing more of the what, our professionals can focus on the why—getting us to the critical components of a solution much faster”
How to Win Friends and Influence Robots
“Robots don’t kill jobs, they free up talent human beings to focus on higher-value work.”
Tech fashion update: Robotic Process Automation is “the new black”
“RPA is the tip of a large iceberg of change; ironically, process automation teaches us that technology evolution itself is a process.”
Disrupt or Be Disrupted: 3 Important Lessons On Prevailing in Times of Great Change
“Never get complacent, consider convergent business strategies to be more agile and foster a culture of innovation…”
Effectively Incorporating AI in Professional Services: Path to First Mover Status
“To understand AI, think what it takes to be a thoughtful, analytical and decisive human.”
RPA: The quest to free-up our professionals for more challenging and rewarding work
“Drone work is an innovation killer. My job is to inspire creativity and liberate entrepreneurism.”
Embracing Automation for the Potential It Unleashes
“New roles are evolving that require ‘upskilling’ and re-training to meet new expectations…we see a transition toward the skills of tomorrow.”
Home hunting for your collaborative robots: Farm, cloud or back-office closet?
“RPA is probably the best example of how RPA takes the robot out of the human.”
EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we
deliver help build trust and confidence in the capital
markets and in economies the world over. We develop
outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing, we play
a critical role in building a better working world for our
people, for our clients and for our communities.
EY refers to the global organization, and may refer to
one or more, of the member firms of Ernst & Young
Global Limited, each of which is a separate legal entity.
Ernst & Young Global Limited, a UK company limited by
guarantee, does not provide services to clients. For more
information about our organization, please visit ey.com.
Ernst & Young LLP is a client-serving member firm of
Ernst & Young Global Limited operating in the US.
© 2017 Ernst & Young LLP.
All Rights Reserved.
1701-2156777
ED None
This material has been prepared for general informational purposes
only and is not intended to be relied upon as accounting, tax or other
professional advice. Please refer to your advisors for specific advice.
ey.com