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What we’ll cover today! Market context - the latest HFS research examining RPA and intelligent automation adoption trends and

challenges

! Deutsche Telekom’s automation journey – discussion of the why, what and how of its automation program

! Actionable recommendations – lessons learned from the front lines for scaling and sustaining automation programs

! Q&A

Drive revenue growth

Accelerate ability to leverage data analysis

Improve business and operational insights

Create a new business / operating model

Respond to what the competition is doing

Improve product and service innovation

Attract/retain talent

Improve product/service speed to market

Improve customer experience

Develop new market opportunities(segmentation/growth)

24%

18%

18%

12%

7%

7%

5%

5%

3%

1%

What are the key strategic objectives/goals for your company's Intelligent

Automation (IA) strategy?

4 © 2018, HFS Research Ltd Source: HFS Research in Conjunction with KPMG, State of Intelligent Automation, 2018 Sample = 590 Business Leaders including 100 C-level executives

Enterprises are looking at IA to drive top line growth, not reduce FTEs

Improve customer service quality and quality of interactions

Streamline customer service delivery model front office effectiveness

Improve back-office and middle office efficiencies

Improve employee morale and efficiency

Improve data security

Cope with the regulatory/risk environment

Eliminate headcount

30%

23%

17%

12%

10%

8%

<1%

What are the key operational objectives for your company's Intelligent

Automation (IA) strategy?

The state of intelligent automation adoption

5 © 2018, HFS Research Ltd Source: HFS Research in Conjunction with KPMG, State of Intelligent Automation, 2018 Sample = 590 Business Leaders including 100 C-level executives

Only 20-30% enterprises are not considering or are unsure about IA

Smart Analytics

Computer Vision

Machine Learning (ML)

Natural Language Processing (NLP)

Artificial Intelligence (AI)

Cognitive/Smart Virtual Assistants (Chatbots++)

Robotic Process Automation (RPA)

Unsure

5%

5%

5%

6%

4%

6%

5%

Adoption patterns across the IA technology spectrum is similar. 17% average for scaled and industrialized

No plans Piloting right now Moving to production Scaled-up andindustrialized

14%

23%

17%

23%

16%

20%

20%

28%

25%

31%

31%

36%

30%

34%

30%

28%

30%

24%

28%

29%

27%

23%

19%

17%

15%

15%

15%

13%

What is the current state of adoption of the following Intelligent Automation (IA) technologies in your organization?

Scale is the biggest inhibitor to IA success

© 2018, HFS Research Ltd

1%

2%

2%

12%

14%

3%

3%

7%

10%

3%

13%

14%

16%

1%

2%

5%

5%

6%

8%

8%

10%

10%

14%

10%

10%

12%

4%

7%

11%

5%

3%

12%

13%

7%

6%

11%

7%

7%

6%

Lack of end-to-end processes

Lack of senior management mandate and vision to deploy IA

Lack of current of as-a-service options for RPA and Cognitive/AI

Deficiency in overall data quality

Lack of in-house talent to support IA

Non-standard or incomplete end-to-end processes

Understanding the need and resources to train cognitive systems

Lack of quantifiable benefits/inability to build strong business case

Concerns about changes in governance and risk management

Change management concerns over the effect on employees

Lack of organizational clarity and accountability for driving IA agenda

Uncertainty about the financial investment needed in IA

Need more scale with IA to achieve objectives

Rank 1

Rank 2

Rank 3

What are the top three inhibitors that are holding you back from achieving strategic AND operational goals?

Source: HFS Research in Conjunction with KPMG, State of Intelligent Automation, 2018

Sample = 590 Business Leaders including 100 C-level executives

Deutsche Telekom in Facts and Figures

7

Telekom Deutschland Deutsche Telekom Service

Service – Facts and Figures

>100 M customer contacts

> 30,000 employees

20 m

Letters/faxes

E-mails

Every year

70 m

Calls per

year

1.2 m

Contacts via

social media

Text-chat

Appscallsmart video

share

facebookSupport-videos

digital assistants

chatbots

video-chat

twitter

Facts & Figures 20181

21.9 B € revenue

8.1 B € EBITDA

63,872 employees in segment TDG

100,335 employees in Germany

KPI Q2/20181

43.0 M Mobile Customers

13.4 M Broadband Connections

97.6% LTE Coverage

1Datenbasis Finanzzahlen: DT Konzern-Zwischenbericht erstes Halbjahr 2018

When RPA wasn‘t even called RPA - our first steps

8

Project start ¡PoC finished¡ Infrastructure provided¡Programming of first

process started

01/2

015

07/2

015

10/2

015

Start automation¡Automation of first

processes¡Platform established¡Creation of

“automation“ Team

Progress¡First 3 processes rolled out¡30 + processes in the

pipeline¡E2E process model created¡Steering established

Innovation ¡6 processes live¡100 FTE workload

reduction through bots¡25 processes in

development¡Field Service App PoC¡“Proaktiver Service

Bestport”

03/2

016

9/20

16

Established¡82% success rate on average¡200 FTE workload reduction¡Professional run team

established¡Field Service App live

9

Key factors when growing big

Projektleiter

Identifikation/

DesignTest & Betrieb

Daniel Münch

PMO

Kai Mutzel

Projektsponsor

Matthias

Schümann

Jens SchmittSebastian Zeiss/

Daniel Münch

GLTS

Prozess 1

Prozess 2

Prozess n

ASP Betriebe

1 ASP/ Betrieb

Infrastruktur

RSS

Qu

er-

sch

nit

t

Sozialpartne

r-

management

FC Datenschutz Reporting

N.

HornkampS. Link S. Link N.N.

M. Gideon/

F. Kunitz

PP

bei BedarfJörg

HammerG. Kasper

AS

P

Be

trie

be CCC

H.-J.

Wältermann

CCN

K.

Kowalewitsc

h

CCS

N.N.

FS

W.

Trollmann

SD

S. Zeiss

WFM IT RSS

Team & COE

Governance Model

Infrastructure Roles & Basics

Infrastruktur

Betrieb

Prozess-entwicklung

Projektleitung

Support

Rahmen-parameter

Rahmenverträge IT / Datenschutz

Räumlichkeiten /

Infrastruktur vor OrtFEA Client Hardware Server Hardware

Betrieb Clients Betrieb Server Betrieb Prozesse /

Qualitätsmanage.

RC Management

Kennungsmanagment / Kennungsbereitstellung

Partner Abrechnung Reporting

Prozess Identifikation Prozess(Re)Design / Entwicklung Abnahme

Projektmanagement Konzeptionelle Weiterentwicklung

FEA Partnerentwicklung

Process PipelinePlan Build Go Live

Identifikation geeigneter ProzessLead : Automatisierungs Spez.

Beteiligt: Automatisierungs Spez. , PP

Initial Workshop

Lead : Automatisierungs Spez.

Beteiligt: Operative Einheit, PP

Steckbrief Erstellung / GrobkonzeptLead : Automatisierungs Spez.

Beteiligt: Operative Einheit, PP

Auswahl Hersteller / Initial Abstimmung Lead : Automatisierungs Spez.

Beteiligt: -

Projektplanung Build / Go LiveLead : Automatisierungs Spez.

Beteiligt: PP, Operative Einheit, Prozess Pate

Vor Ort Prozessaufnahme Lead : Automatisierungs Spez.

Beteiligt: Operative Einheit, PP

Prozessoptimierung / Anpassung

Lead : Automatisierungs Spez.

Beteiligt: Operative Einheit, PP

Programmierung Robot Lead : Hersteller

Beteiligt: Operative Einheit, Automat. Spez.

Schaffen Rahmenbedingungen (Sozialpartner, Prozessebeschreibung ,Kennungen )Lead : Automatisierungs Spez.

Beteiligt: PP, Kennungsmanagement, HR, Ops

Change Konzept / KommunikationLead : Projekt Pate

Beteiligt: Ops, Automatisierungs Spez.

TestingLead : Robot Betrieb / Hersteller

Beteiligt: Operative Einheit, Automat. Spez

Rollout

Lead : Automatisierungs Speziallist

Beteiligt: Operative Einheit, Projekt Pate, PP

Rollout Begleitung / Bug Fixing Lead : Hersteller / Robot Betrieb

Beteiligt: Operative Einheit, Automat. Spez.

Projekt Setup Prozessautoma

tisierung

Automat. Spezialist

Projekt Lead

Fach Experte(n)

Operations

Prozess Experte

PP

Robot Betrieb

Betrieb

Prozess Pate

Operations

BC

Finance

Business Model

Enablement

Expert Career

Opportunities

Indam @ AM

Robotics @Deutsche Telekom Service: Current state of affairs

20,000,00035,000,000

2017 2018

Transactions**

2017

1,300

2018

2,300

Bots

Process Mining

Agile Development

APPS

RPA*

§ Robotic Process Automation (RPA), Intelligent Analytics, Apps, Intelligent Robotics, Process Mining, AI …

§ Technologies enable incremental and disruptive improvements § Focus on fast and pragmatic solutions

*) RPA = Robotic Process Automation **) Items processed by robots

Using Innovative Technologies as Lever Selected Use Cases

Wholesale problem solving§ E2E automation of wholesale problem

solving process§ 70% workforce reduction§ Significantly improved SLA and quality

KPIs

Automatic Email Processing§ Automatic categorization and processing

of email requests§ Recognition of relevant content via AI

followed by processing by robot

Trassen Defender§ Enables construction companies to

conveniently report damages to DT infrastructure via app

§ Faster troubleshooting and therefore shorter connectivity disruptions for customers

ML & AI

APPS

RPA*

APPS

RPA*

RPA*

ML & AI

Field Service “MessApp”: the technicians’ swiss army knife

11

¡ The “MessApp“ is the personal assistant for our field service technicians¡ It allows the technicians to control bots that can fulfill several tasks for them¡ The app gets new features based on customer (technician) request

Login Select repair Select customer Result

Reskilling and creating new jobs

12

FEA operational support

Development

Business Analysis

Squad Leader

Coordination

5 FTE

2 FTE

25 FTE

6 FTE

3 FTE

ü Out of ca. 40 programme participants, ca. 30 employees developed from agent to RPA Digitalizer

ü Ca. 10 employees developed to Business Analysts

ü Already >20 processes digitalized

ü Equals work of rd. 30 FTEü Further 19 processes on the

Development Roadmap ü Good acceptance from

unions/workforce representatives

NEW JOBS IN DIGITALIZATION

Just do it: there is the right solution for every challenge

13

Process Digitization

Human/ Machine Interaction

Mach. Learning.

Partial Automation

Workforce Support (RDA)

Artificial Intelligence

Digitization

Our Smart Digitization Approach

14

Analytics

Agility Process optimization

Test Lab / Innovation

¡ Experimenting with new technologies &

methods

¡ Rapid prototyping

Interdisciplinary Teams

¡ Optimization and redesign of

processes

¡ Focusing on the needs of our

customers & E2E optimization

¡ Reacting flexible & proactive to

changing conditions

¡ Iterative ways of working & agile

methods, e.g. Design Thinking

¡ Using technologies like RPA and AI

to reinvent and optimize processes

and tasks

¡ Bringing the right people together

¡ Disruptive thinking & quick action

Smart

Digitization¡ Analytics-driven identification of

problems and optimization potentials

¡ E.g. Big Data, Waste Walks,

Benchmarking

Recommendations for achieving and sustaining automation at scale

• Court initial and ongoing executive sponsorship• Do not mandate automation. Instead mandate business targets – businesses can decide

how to achieve them• Plan for scale from inception – build the business case holistically not in small projects or

silos• Build a team and expect the team to grow. More automation actually does require more

support.• Get people on board – inclusion, opportunity development, education, reskilling – these

all help mitigate fear, build advocates, and create an automation mindset• Don’t look for things to automate. Look for problems to solve. • Find the right partner and tools for the job. • Ensure speed and nimbleness

15

16

Q&A and related HFS research

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• RPA will reach $2.3bn next year and $4.3bn by 2022... as we revise our forecast upwards

• The cocktail of SAP (ERP), Qualtrics (UX), and Contextor (RPA): Tastes like the OneOffice, but lacks one critical ingredient -RPA experience

• RPA is the gateway drug. AI is the drug... • Seven deadly misnomers why these billion dollar RPA

valuations are insane • 1. #AutomationAnywhere, 2. #BluePrism, and 3. #UiPath make

up the top three in the inaugural HFS Top 10• Tinker, experiment, explore, then disrupt: The Hyper-

Connected Enterprise will be driven by Intelligent Automation© 2018, HFS Research Ltd

• RPA’S TICKING TIME BOMB: ENTERPRISES AND SERVICE PROVIDERS MUST MAKE RPA TALENT THEIR TOP PRIORITY TO AVOID DISASTER

• HOW THE NHS COULD SAVE $650M USING RPA TO COMBAT COMPLEXITY, SAVE MONEY, AND BRING ADMIN STAFF BACK FROM THE EDGE

• HFS TOP 10 RPA SERVICE PROVIDERS 2018• AIB EMBRACED RPA TO DRIVE ITS DIGITAL TRANSFORMATION

AGENDA• MAKING SENSE OF NONSENSICAL RPA SOFTWARE PRICING• HFS TOP 10 RPA PRODUCTS 2018• CASE STUDY: HARNESSING THE TRIPLE-A TRIFECTA TO HIT

DIGITAL ONEOFFICE™ GOLD

Thank you

17 © 2018, HFS Research Ltd