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Accenture Public Service - The Future of Government Back Office Operations

Emerging technologies like cloud, robotics and artificial intelligence can transform the government back office into a center of innovation.

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Accenture Public Service - The Future of Government Back Office Operations

  2. 2. Copyright © 2017 Accenture. All rights reserved. 1 Please advance to next slide to launch video CITIZENS EXPECT MORE FROM GOVERNMENT HOW CAN BACK OFFICES KEEP UP?
  3. 3. 3Copyright 2017 Accenture. All rights reserved. 73% 85% ??? GOOD ENOUGH FOR GOVERNMENT % of citizens that expect the same or higher quality from government digital services as they do from commercial organizations Accenture Public Services Pulse Survey, Digital Expectations 4/2016—Survey of 3,311 of voting citizens 2014 2016 2018 IS NOT GOOD ENOUGH
  5. 5. 5 ARE GOVERNMENT BACK OFFICES READY? CAN THEY SUPPORT DIGITAL CITIZEN SERVICES? By 2020, enterprises that continue to invest in heavily customized, traditional, monolithic ERP solutions will be 75% less effective in supporting digital business strategies. —Gartner Are you investing in large, traditional ERP solutions? OR Are you getting ready for the future so you can support better digital citizen services? Source: Gartner, Government CIOs Should Consider Postmodern ERP to Modernize Legacy Business Applications (pub. May 18, 2017)
  6. 6. 6Copyright 2017 Accenture. All rights reserved. ERP IS TRANSFORMING FROM FOCUS ON ‘CONTROL’ TO ‘VALUE’ 1st Generation Custom ERP Delivered & customized to 1,000s of client requirements Standardized to leading processes Customized only where required Focused on commoditized cloud-based systems Combines digital and human workforce via RPA and AI 2nd Generation Process Led ERP 3rd Generation Platformed Back Office 4th Generation Augmented Back Office The market is here
  7. 7. 7 “It is expected that the service-based approach for IT will become the preferred option over the software-based approach over time, as end- user organizations look to downsize the operation side of their IT portfolios.” —Gartner Source: Gartner, Magic Quadrant for Enterprise Integration Platform as a Service (IPaaS), 30 March 2017
  8. 8. 8Copyright 2017 Accenture. All rights reserved. ERP IN TRANSFORMATION 1Source: Center for Digital Government, Future of ERP Report, 2015 2Source: Gartner, Forecast Overview: ERP Software, Worldwide, 2016 (pub. Oct. 11, 2016) States are investing in Cloud-based systems: 83% implemented or deployed cloud in multiple agencies ─Center for Digital Govt1 Primary examples are content and document management, business intelligence, health applications, and GIS systems By 2020, 50% of ERP spending will be SaaS-based and underpinned by hybrid modernization strategies ─Gartner2 PLATFORMED BACK OFFICE IS GROWING
  9. 9. 9Copyright 2017 Accenture. All rights reserved. WHY MOVE TO PLATFORMED BACK OFFICE? Current • Fixed Costs • Cumbersome • Capital Intensive • High Maintenance and Run Costs • Security Issues • Business Lagging • Out-dated COMPELLING VALUE PROPOSITION Future • Pay by the Drink’ • Agile • Capital Light • 20%+ Lower Maintenance and Run Costs • Managed Security • Business Leading • New Technologies
  10. 10. 10Copyright 2017 Accenture. All rights reserved. PLATFORMED BACK OFFICE Business services, delivered through 3 possible models: WHAT IS IT? Typically chosen when: ON-PREMISE ERP HYBRID MODEL Some, but not all, Cloud Components UNIFIED CLOUD PLATFORM • Current version of ERP software / straightforward upgrades • No business case for ERP transformation • Customizations are necessary or regulated • Adopt best-in-class cloud modules • Core ERP processes with little change • Maintain control over critical data/ functions • Capital investment in On-Premise ERP • Cloud ERP not ready (~12-18 months ago) • Replace multiple legacy systems or new solution • Cloud is “Case for Change” • Employee engagement: mobile, social, collaboration, seamless UX • Recent implementation (<12 months) As-a-Service
  11. 11. 11Copyright 2017 Accenture. All rights reserved. PLATFORMED BACK OFFICE ONE EXAMPLE OF HOW IT MIGHT WORK POTENTIAL BUSINESS SERVICES: On-Premise CORE HR BENEFITS PAYROLL Performance Management Compensation Management Recruiting Learning Management Workforce Analytics ESS MSS Mobility and Collaboration
  12. 12. 12Copyright 2017 Accenture. All rights reserved. PLATFORMED BACK OFFICE Identify business process / determine value Keep it internal? Or external service provider? Business process purchased ‘a la carte’ Create an integration platform Business service roll out based on need and value delivered HOW WOULD I DECIDE? 1 2 3 4 5
  13. 13. 13Copyright 2017 Accenture. All rights reserved. NETFLIX FOR ERP, CHOOSE WHAT YOU NEED Australian Financial Institution: • Moved 30 legacy systems to cloud • Virtual P2V migration with minimal service disruption • Pay-as-you-go services AND SEE RESULTS U.S. Department of State: uses flexible and modular system to save time and money • Deployed 4 mobile apps onto PeopleSoft solution to support Mobile Diplomat initiative • Apps scope: motor pool services to order fulfillment— 3 more mobile apps planned for 2016 RESULTS OVER THREE YEARS: $1.5M savings Speed of application server delivery from 13 weeks to 3 days 700 transactions per second for 16m customer accounts at peak times RESULTS: Save 16,000+ data entry hours 1 million sheets of paper annually
  14. 14. 14Copyright 2017 Accenture. All rights reserved. “Unsexy specialties such as contract management, tax compliance and regulatory tools are getting a fresh glitter of promise for what’s possible. That is because the future of machine learning for extracting new data insights and heading off corporate risks could save corporations enormous costs.” —The Wall Street Journal
  15. 15. 15 ERP IN TRANSFORMATION AI FOR BACK OFFICE IS JUST GETTING STARTED More of the IT workforce will focus on AI related functions: By 2019, more than 10% of IT hires in customer service will mostly write scripts for bot interactions. By 2020, 20% of companies will dedicate workers to monitor and guide neural networks.2 Organizations are investing in AI and are seeing positive results: 55% of private sector enterprises plan to invest in AI in the next 12 months 45% of organizations are seeing positive results from their AI projects 50% of organizations who had invested in AI said that the results from their AI investments met or exceeded their expectations.1 1Source: Forrester, Artificial Intelligence: A CIOs Guide to AI’s Promises and Perils, January 9, 2017 2Source: Gartner, Predicts 2017: Artificial Intelligence, 23 November 2016
  16. 16. 16Copyright 2017 Accenture. All rights reserved. AI IS HAVING AN IMPACT, INSIDE AND OUTSIDE OF YOUR ORGANIZATION AI’s impact will be felt throughout the economy. AI has the potential to double the annual economic growth rates by 2035 for developed economies. In the same time frame AI can boost labor productivity by 40 percent. 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 The Economic Impact of AI Baseline AI Steady State Source: Accenture and Frontier EconomicsReal gross value added(GVA) (% Growth)
  17. 17. 17Copyright 2017 Accenture. All rights reserved. AND CONSUMERS ARE GROWING MORE COMFORTABLE WITH USING AI Source: Accenture Digital Consumer Survey 2017 are interested in using a voice-enabled digital assistant in smartphones 1/3 interact through AI- powered live chats or mobile apps on a monthly basis 52% are comfortable with an AI responding to their query. 62% reported that the top benefit of AI advisors over human is they are available anytime. 82%
  18. 18. 18Copyright 2017 Accenture. All rights reserved. AI IS A BROAD CONCEPT AND CAN PERFORM MANY FUNCTIONS IN THE BACK OFFICE Artificial Intelligence is a: Disclaimer: Technologies vs. Applications/ Capabilities are broadly classified here, subjective to individual interpretation Sense Act Applications Technologies Gesture Recognition Biometrics Identity Facial Recognition Computer Vision Audio Processing Sensor Processing Context-Aware Computing Expert Systems Video Analytics Inference Engines Artificial Intelligence Comprehend Natural Language Processing Speech to Text Machine Learning Text Analytics Knowledge Representation Deep Learning Mini Bots Robotic Process Automation Virtual AssistantsSemantics/ Ontology Augmented Reality Reinforcement Learning Recommendation systems System Optimization Source: Accenture Research System that possesses human-like intelligence and learning capabilities Collection of technologies that, together, enable human-like intelligence
  19. 19. 19Copyright 2017 Accenture. All rights reserved. AI FOR GOVERNMENT BACK OFFICE A SIMPLER WAY TO THINK ABOUT APPLYING THE TECH • Standardized rigid processes • Manual entry and monitoring of repetitive tasks Standardized Processes • RPA perform repetitive actions efficiently • Minimal oversight • Requires no decision making. Robotic Process Automation • AI for decision making, orchestration, or communication • Works through learned behaviour. • Capable to “run-the-show” • Calls RPA to perform tactical actions. AI-powered Automation • Expanded capabilities • AI + RPA + Data leads to the Digital Workforce • capable of augmenting human counterparts. Digital Worker CURRENT STATE SIMPLE MEDIUM COMPLEX Remove redundant low level tasks from your workforce Enable resources to be used much more effectively and valuably Increase engagement with your citizens and employees LOWER WORK TEDIUM LABOR REALIGNMENT INNOVATION BENEFITS
  20. 20. 20Copyright 2017 Accenture. All rights reserved. ONE GOVERNMENT IS USING AI TO TRANSFORM THEIR MODEL OF CUSTOMER SERVICE HELP DESK EMPLOYEES WERE SPENDING THE MAJORITY OF TIME ON ROUTINE CUSTOMER QUERIES ACCENTURE PROPOSED AUTOMATING THE PROCESS WITH AI VA IS ALSO ABLE TO UNDERSTAND THE CONTEXT IN CUSTOMER REQUESTS Client wanted to reduce the time, cost and effort of repetitive tasks so employees focused on complex tasks Virtual Agent (VA): • Understands / process natural language • Autonomously handles calls / webchat using cognitive-semantic analysis and machine-learning algorithms. VA can: • Extract what customers are looking for • Support decision making process with variables • Customers receive answers by querying data / documents in natural language or a form through voice, assisted by agent
  21. 21. 21Copyright 2017 Accenture. All rights reserved. Ticket resolved by agent 75% Increased users satisfaction 65% Decreased operator tasks 55% Ticket resolved by agent 95% Increased users satisfaction 85% Decreased operator tasks 85% Ticket resolved by agent 52% Increased users satisfaction 55% Decreased operator tasks 20% Ticket resolved by agent 35% Increased users satisfaction 45% Decreased operator tasks 15% M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 PROJECT IMPLEMENTATION 3 Months - 2 FTE to Analyze and Build the Virtual Assistant 1 Months - 1,5 FTE to train the Virtual Assistant AI HELPED DECREASE TASKS FOR THE FIRST LEVEL OPERATOR BY ~85% WHILE INCREASING CUSTOMER SATISFACTION
  22. 22. 22Copyright 2017 Accenture. All rights reserved. AN OPPORTUNITY FOR TRANSFORMATION AI CAN BE USED AT ANY ERP MATURITY LEVEL AI can by used independently, extending the life and functionality of legacy systems and enhancing the capabilities of major and platformed ERPs All types of systems can bring greater value when augmented with AI Custom ERP Process Led ERP Platformed ERP AI Driven ERP AI
  23. 23. 23Copyright 2017 Accenture. All rights reserved. AN OPPORTUNITY FOR TRANSFORMATION ‘LEAPFROGGING’ IS POSSIBLE ERPs can continue moving up the maturity scale On legacy system, no plans to move On legacy system, considering move to major ERP 3: Platformed Back Office 4: Augmented Back OfficeOn premise ERP with major vendor Current State Future State
  24. 24. 24Copyright 2017 Accenture. All rights reserved. A HIGH LEVEL OF SECURITY WILL BE KEY TO NEW TECHNOLOGIES’ SUCCESS Eight in ten citizens expressed concern about the privacy and security of their personal data Three-quarters lack confidence in the government’s ability to safeguard their information. Unknown malware is downloaded in enterprises every 34 seconds. Source: Accenture Research Checkpoint
  25. 25. 25Copyright 2017 Accenture. All rights reserved. SECURITY MUST BE “DESIGNED IN” FOR EVERYTHING-AS-A-SERVICE THE NEW NORM Increase proper IT & security governance to maintain control Leverage Security as a Service for coverage and business benefits Establish a shared responsibility security model and strategy Design, implement, extend existing security capabilities to cloud Develop consistent security ops across cloud and enterprise environments Security Considerations Cloud adoption challenges: Security • Lack of Expertise • Governance and Control • Compliance • Integration with Legacy Systems • Multiple Cloud Services Management • SLAs Broad Network Access Rapid Scalability and Elasticity Measured service On-demand self-service Resource Pooling
  26. 26. MYTHS SURROUND SECURITY OF THE CLOUD KNOW THE REALITIES 1Source: 20 of the Greatest Myths of Cloud Security, CIO.com May 13 2015. There are More Breaches in the Cloud Physical Control of Data on Premises Implies Security Cloud Security Tools & Capabilities Are Not Ready Cloud Security is Far Too Difficult to Maintain REALITY: “When the correct security policies for preventing attacks and detecting them are implemented, attacks are no more threatening to the cloud than any other piece of infrastructure.” REALITY: “The various high profile security breaches over the past few months have served to highlight that the physical location of the data matters less than the access and associated controls.” REALITY: “There are now tools and capabilities that allow IT to enable cloud securely in any number of environments specific to unique requirements’ needs thanks to the ubiquitous nature of APIs.” REALITY: “The same standardization applied to on premise security management can be applied to cloud security management.” Cloud is Inherently Insecure REALITY: “A multi-tenant cloud may actually be more secure because it makes it difficult to target a particular company or data set.'” Significant improvements have been made to overcome security concerns associated with cloud adoption1 MYTH 1: MYTH 2: MYTH 3: MYTH 4: MYTH 5:
  27. 27. 27Copyright 2017 Accenture. All rights reserved. GOVERNMENTS HAVE AN OPPORTUNITY TO ELEVATE THE SKILLS OF THEIR CURRENT WORKFORCE Less time on routine tasks, more time making a difference • 63% said developing talent within the organization would increase satisfaction • 60% said it would increase attractiveness of public sector.2 AI will require new jobs, roles, and skills. • 17% of government leaders said they had a hard time filling IT roles • 1/3 said wages were not competitive with the labor market.1 1Source: Center for State and Local Government Excellence: Survey findings state and local government workforce, 2017 2Source: Accenture Research Survey, Accenture Pulse Survey—Public Service Talent Jan 2016—Sample of 3046 US Voting age citizens AI CREATES AN OPPORTUNITY TO RESKILL THE CURRENT WORKFORCE AI WILL CHANGE THE GOVERNMENT WORKFORCE
  28. 28. 28Copyright 2017 Accenture. All rights reserved. …AND THE IMPACT OUTSIDE OF GOVERNMENT MUST ALSO BE CONSIDERED The increase in AI will not only raise ethical questions and challenges within government agencies, but government will also be asked to provide regulation and policy guidance for the use of AI throughout the private sector. The World Economic Forum and others identify key areas of concern: Source: World Economic Forum: https://www.weforum.org/agenda/2016/10/top-10-ethical-issues-in-artificial-intelligence/ Unemployment and Job Displacement: Components of many jobs will be automated and workers will be displaced. Governments will need to consider how to reskill their workforce and the broader workforce. Inequality: As companies become more automated they will require fewer people to produce the same amount, wealth will be increasingly concentrated with fewer people. AI can learn bias: AI systems are created by humans and learn from human habits. Thus they are subject to the same biases that humans have. Any citizen facing system will have to protect against these biases. Security: AI systems are faster and more capable than humans and could cause damage if hacked and maliciously used. This makes cybersecurity incredible important. Unintended Consequences: AI can be used and hacked for nefarious purposes. Furthermore the machines themselves could ‘turn against us.’ By not understanding the full human context the results that AI machines arrive at may be the most efficient but could create harm.
  29. 29. 29Copyright 2017 Accenture. All rights reserved. QUESTIONS MARK HOWARD Global Public Administration Lead CLICK HERE TO LEARN MORE ABOUT BACK OFFICE TRANSFORMATIONmark.h.howard@accenture.com https://twitter.com/markhoward_co?lang=en https://www.linkedin.com/in/markhowardco
  30. 30. Copyright © 2017 Accenture. All rights reserved. 30 ABOUT ACCENTURE Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 384,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. This document is produced by Accenture as general information on the subject. It is not intended to provide advice on your specific circumstances.
  31. 31. Copyright © 2017 Accenture. All rights reserved. 31