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How to Model Human Behavior in Digitization

Digital Transformation: How to Model Human Behavior in Digitization

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Page 1: Digital Transformation: How to Model Human Behavior in Digitization

How to Model Human

Behavior in Digitization

Page 2: Digital Transformation: How to Model Human Behavior in Digitization

Today’s speakers

Frank Beyer,

Former BPM Manager

Kyocera

Gerhard Unger,

General Manager DACH

Bizagi

Page 3: Digital Transformation: How to Model Human Behavior in Digitization

We help organizations to

transform into digital businesses

Page 4: Digital Transformation: How to Model Human Behavior in Digitization

Global customers and partners

PARTNERS

Page 5: Digital Transformation: How to Model Human Behavior in Digitization

Brief Introduction to Bizagi

Transformation Story: How to Model Human Behavior

in Digitization in Kyocera

Q&A – Your Chance to Ask Questions

Quick run through of what we’ll be talking about

Today’s session

Page 6: Digital Transformation: How to Model Human Behavior in Digitization

Transformation Story:

Kyocera

Page 7: Digital Transformation: How to Model Human Behavior in Digitization

Kyocera

Manufacturing

Page 8: Digital Transformation: How to Model Human Behavior in Digitization

The digital transformation universe

Digital Processes

Definition

Digital transformation is the change associated with the application of digital technology in all aspects of human society.

For businesses, it is about creating a competitive edge by digitizing operations for greater efficiency, intelligence and agility.

Digital Organisation

Page 9: Digital Transformation: How to Model Human Behavior in Digitization

Levels of process automation

Ditigizinghuman

activities

ConnectingSystems

e.g.IoT

Digitizing DataPaperless, OCR, Scanning, etc.

Artificialintelligence

Robotics PA

Cognitivetechnologies

Data-drivendecisions

High

Digitizing human

activities amplifies

all other

automation

efforts

Page 10: Digital Transformation: How to Model Human Behavior in Digitization

Types of human actions(requiring cognitive skills)

Source:

http://www.rubrics4assessment.net/bloom.htm

Example of processes requiring higher-level cognitive skills

(analysis, synthesis and evaluation):

• All industries:

• responding to RFQs (request for special price quotation)

• fraud detection and risk management.

• marketing campaigns (dispatch of information to micro

segments)

• Entertainment: uses machine learning to predict which

movies a customer will like.

• Transportation: efficiently matches demand with supply.

• eCommerce: leverages machine learning technology to

enhance the speed, accuracy and relevance of search

Page 11: Digital Transformation: How to Model Human Behavior in Digitization

Special price approval (SPA) process

Key Account Mgr submitsSPA request

Customer requests

special price

Sales Department evaluates and

approves

VP /

CEO

Use Bizagi Studio to:

• Go paperless and/or remove Excel files.

• Control the approval process.

• Facilitate communication and reporting.

• Connect to other systems, e.g. local sales

systems.

But:

• How to fully automate the

process including evaluation

and decision making?

• How to break the cognitive

barrier?

?

Page 12: Digital Transformation: How to Model Human Behavior in Digitization

Breaking the cognitive barrier: scoring scheme

Evaluation criteria (simplified):

• Total sales (€)

• Profit (€ and/or €)

• Discount (%)

• Strategic importance

Score

Key Account Mgr submitsSPA request

Customer requests

special price

Example: special price requestProduct Quantity

(pcs)

Special

Price

Normal

Price

Discount

P1 50 350 € 500 € 30%

P2 100 200 € 300 € 33%

P3 200 100 € 160 € 38%

P4 30 90 € 110 € 18%

Total

Sales 60.200 €

Total

Discount 33%

Page 13: Digital Transformation: How to Model Human Behavior in Digitization

How to design a flexible scoring scheme

Discrete -> Discrete Analogue -> Discrete

1. Define min and

max value per

criterion.

2. Use intermediate

score ranging

from 0 to 10.

3. Convert to final

score (see next

slide).

1. Introduce a discrete

rating of analogue value.

2. Define min and max

value per criterion.

3. Use intermediate score

ranging from 0 to 10.

4. Convert to final score

(see next slide).

Final

Score

Intermedi

ate ScoreValue

25,00 10 Very high

18,75 7,5 High

12,50 5,0 Medium

6,25 2,5 Low

0,00 0,0 Very low

Strategic

Importance

To automate the evaluation of analogue values like

strategic importance advanced cognitive technologies such

as natural language processing are required.

Final

Score

Intermedi

ate ScoreValue

25,00 10 250.000

22,50 9 200.000

20,00 8 150.000

17,50 7 100.000

15,00 6 50.000

12,50 5 0

10,00 4 -50.000

7,50 3 -100.000

5,00 2 -150.000

2,50 1 -200.000

0,00 0 -250.000

Profit €

Page 14: Digital Transformation: How to Model Human Behavior in Digitization

Final

score

Intermedi

ate ScoreValue Final

Score

Intermedi

ate ScoreValue Final

Score

Intermedia

te ScoreValue Final

Score

Intermedi

ate ScoreValue

25,00 10 2.000.000 25,00 10 250.000 25,00 10 0% 25,00 10 Very high

22,50 9 1.800.000 22,50 9 200.000 22,50 9 5% 18,75 7,5 High

20,00 8 1.600.000 20,00 8 150.000 20,00 8 10% 12,50 5,0 Medium

17,50 7 1.400.000 17,50 7 100.000 17,50 7 15% 6,25 2,5 Low

15,00 6 1.200.000 15,00 6 50.000 15,00 6 20% 0,00 0,0 Very low

12,50 5 1.000.000 12,50 5 0 12,50 5 25%

10,00 4 800.000 10,00 4 -50.000 10,00 4 30%

7,50 3 600.000 7,50 3 -100.000 7,50 3 35%

5,00 2 400.000 5,00 2 -150.000 5,00 2 40%

2,50 1 200.000 2,50 1 -200.000 2,50 1 45%

0,00 0 0 0,00 0 -250.000 0,00 0 50%

Total Sales € Profit € Strategic

Importance

Discount %

How to design a flexible scoring scheme – cont’d

Synthesis

Analysis

Evaluation

Page 15: Digital Transformation: How to Model Human Behavior in Digitization

Steps to digitise human activities (=RPA)

• ..the business rules.

• ..the (tacit) knowledge

applied to these rules.

• ..conditions for

exceptions.

• ..the data used thereby

differentiating between

discrete and analogue.

• ..the sources of data.

• ..the type of output.

• …business rules into logical

expressions (e.g. IF-THEN

statements).

• Verify them.

• Simulate scenario’s and test

the rules / the logical

expressions.

• Select processes

suitable for digitisation.

Source: https://dupress.deloitte.com/dup-us-en/deloitte-

review/issue-16/cognitive-technologies-business-

applications.html

Page 16: Digital Transformation: How to Model Human Behavior in Digitization

Impact of digitisation on the degree of automation

• Standard cases are fully

automated, e.g. through

implementation of a scoring

scheme.

• Only exceptions still require

human activities -> focus ->

quality.

• Majority of cases are

handled as exceptions due

to a lack of clear business

rules.

• Only a few cases are

processed in a standard way

following business rules.

Exceptions

Standard

Exceptions

Standard

Exceptions

AutomatedObserveIdentify

Translate

• Business rules are

established and apply to

the majority of cases.

• Still all cases require

human activities.

Digitized & Imple-

mented

Page 17: Digital Transformation: How to Model Human Behavior in Digitization

• Tacit knowledge becomes transparent and validated

(a hidden benefit, but one of the biggest).

• Reduced heterogeneity (remove bias and individual,

undocumented and unofficial business rules).

• Clarity of data needed, i.e. brings structure into

unstructured (big) data.

Benefits of digitising human/ cognitive activities

Page 18: Digital Transformation: How to Model Human Behavior in Digitization

Implementing logical expressions in Bizagi

Page 19: Digital Transformation: How to Model Human Behavior in Digitization

Summary

• The cognitive barrier preventing

companies to fully automate processes.

• How to break through by digitising

human activities.

• Observe -> Identify -> Translate.

• How to digitise cognitive activities such as

analysis, synthesis and evaluation through a

scoring scheme using Bizagi.

• Significant hidden benefits.

• A simple but effective way to embark on

RPA.

Page 20: Digital Transformation: How to Model Human Behavior in Digitization

Frank Beyer

[email protected]

Thank You

Page 21: Digital Transformation: How to Model Human Behavior in Digitization

WhitepapersCase Studies

For more information visitwww.bizagi.com

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Page 22: Digital Transformation: How to Model Human Behavior in Digitization

Thank you