ISACA Presentation – RPA & Beyond

June 6, 2017 Copyright © 2017 Tata Consultancy Services Limited

Agenda

 Introductions

 RPA – what’s it all about?

 Transformation utilizing RPA & the GRC

environment

 Use Cases – Impacts & Implications

 Conclusions

 Open Discussion/Q&A

TCS Confidential 2
 Introductions
Fred Albright – Leads the TCS GRC Intelligent Process Automation Center of Excellence
Over 25 years experience as both a management consultant and a senior executive within Diversified Financial Services &
Insurance. His focus covers the interaction of “NextGen” Intelligent Process Automation (IPA) tools & techniques within
Operations and Technology and the impact and implications within Governance, Risk, and Compliance.
Fred has strategic and tactical experience as a ‘Trusted Advisor’ to numerous Tier-1 global entities by directly leading and also advising on
global initiatives in “NextGen” IPA/digitization, business transformation, forensic analysis, business stabilization, and crisis management, as
well as having an extensive background within practice management and relationship management.
 Fred’s previous experience encompasses both direct Line of Business Management within Diversified Financial Services entities and
Management Consulting at both Big 4 and Boutique firms. Fred developed and led Management Consulting/Advisory practices at KPMG
Consulting/BearingPoint and TowerGroup. Additionally, he also served as the CFO and Executive Committee Member of a Consumer
Finance entity, a Risk Management executive at an international global bank, and held various Audit roles at Deloitte and Bank of America.
 Fred possesses an MBA from Duke University and a BA in Economics from UCLA. Additionally, he is a California CPA (inactive status).

Pran Banerjee – Practice Head, RPA, TCS BPS NA

19+ years of industry experience in Banking and Financial Services functions in areas covering RPA, Process Re-engineering and
Business Transformation
 Has led multiple strategic customer initiatives and set up Transformation frameworks for Banking, Mortgages and Insurance verticals across
Back-end Data processing, Customer Care and Collections
 Has chartered transformation journeys for multiple customers using levers like RPA, Intelligent Process Automation tools and Lean Six Sigma
 Enabled an industry award in 2016 for Digital BPO Innovation, Best Outsourcing Thought Leadership, for transforming a large Mortgage
Service provider in NA
 Is an Engineering graduate, a certified Six Sigma Master Black Belt, COPC RCT, Lead Auditor ISO 9001:2000 and has also worked with
certification bodies like ISO/IEC JTC1 in developing ITeS-BPO Standards

TCS Confidential 3
RPA…what’s it all about?

4
 What’s the opportunity…

Paper Based Broken IT Systems Exceptions Transaction Unstructured

Complex
Transactions and Judgmental Information
Legacy Systems
Decision

Resulting in Repetitive Manual Processes

Verification, validation and Letter Generation

Data Entry Hoping across multiple screens Decision making -
comparison of data across and Email
to read or update relevant customer Rule or Judgment
multiple sources communications
details

TCS Confidential 5
 What is Robotic Process Automation…point of view
• Unstructured • High Judgement • Master data • Data Aggregation Requirement
Machine Cognitive data based process Management • OCR Integrated Data Capture
Learning Capabilities (AI) • Data volatility • Dynamic Case • Back-office • Desktop Automation
• Cognitive Management automation • Front-office automation
intelligence
Natural
Robotic Analytics Language
Processing
• Data Rich High Complexity • Basic Decision
Transformations Decision Making Making • High Volume
• Complex • Low Data • Repetitive tasks
Integrations Transformation
Robotic Cloud Bots Farm

Virtual Personal Virtual Customer CORE RPA FUNCTIONS

Assistants Assistants
CORE IT-BPO FUNCTIONS
CHATBOTS

Technology co-existing
RPA CoE (Distributed – Multiple RPA product Central Governance
RPA As a Service with BPM, Analytics,
Federated – Enterprise) adoption strategy model (Ops & IT Team)
Machine Learning

TCS Confidential 6
 Maximizing automation savings… RPA & beyond
• Digital platform / solutions to enable Straight Through Processing (STP) without
BENEFITS

+ +
LEVEL 3

changes to the core systems 60%

RPA Cognitive
• Reduction in transactions moving to back-office for manual touch points
Digital
Solutions enabled STP • Faster cycle time, enhanced CSAT through digital experience

BENEFITS

+ • Natural Language Processing to read and understand the unstructured messages 40%
LEVEL 2

• Make Judgmental decisions based on training and historical data using cognitive techniques
Machine
RPA
Learning • Handle complex exceptions using Machine Learning Technology

BENEFITS
• Integrated RPA and BPM strategy 25%
LEVEL 1

• Recurring additional maintenance expenses due to large number of robots deployment

RPA • Not amenable to RPA for unstructured or hand-written, requires judgmental decisions, has voice steps and
exception handling

TCS Confidential 7
 RPA Suitability Assessment…

Technology Considerations

PROCESS RISK & COMPLIANCE EVALUATION

• Static Business Rules

Technical Complexity of Implementation

Cognitive
• # of Systems, IT Subsystems involved

High
Statistical Model
Adaptable Systems
(Not a RPA Candidate)
• Stability of the Current systems (RPA Evolution)

• % of exception handling
• Level of process documentation Business Rules Complex Workflows

Medium
• Faulty systems – Downtimes Analysis or & &
Judgment Based Analysis Based Data Process based
Entry Validations
Business Considerations
• # of Transactions
Simple Data Entry Dynamic Business

Low
• # of Process steps / FTEs involved Limited Business Rule
Straight Thru Rule Based Data
Based Data Entry
• AHT/TAT for the Process Processing Entry
• Upfront Investment
• Maintenance cost Low Medium High
• Cost per Transaction
Process Complexity

TCS Confidential 8
 Types of Bots…

Front-office Automation Back-office Automation

Description • Also called as “Attended” / “Assisted” / “Desktop” • Also called as “Virtual Workforce”
automation • Use techniques like workflow, prioritization and scheduling to
• Involves mashups or reskinning applications for real-time process large volumes of work securely
Execution of work • Partial automation, involving human to intervene • Straight-thru processing with no human intervention
• Runs on each associate’s desktop • Runs on servers and not on associate’s desktop
Decision Making • Non-judgmental, rule-based, assisted by human where • Non-judgmental, rule-based, minimal to human intervention
needed
Benefits • Increases efficiency of existing workers • Large-scale unattended processing without human intervention
• Helps to consolidate information and provide consistent • Secure, reliable and scalable, and can’t be interrupted by
customer experience human staff
Products

TCS Confidential 9
RPA implementation…
impacts & implications

10
 RPA Transformation – Typical Service Approach
Assess | Suitability Analysis | Attribute & Sample Assessment | Financial Benefit Analysis Typical Assessment Framework

RPA Deployment Topology vs. Controls Prioritize | Criteria & Framework

Roadmap | Criteria Sample Process Selection – Scoring Methodology

TCS Confidential 11
 Typical Assessment Framework
1 Process Heat Map 2 Extract Details 3 Decision Matrix 4 Automation Levers
Screen
Rule Based Rule based Cognitive
hopping and Calculation
data read
validation decision RPA
Receive L4 Activity Name
/ML
Verify Information
Physical
completeness L5 Task Name Document/
Application Data Entry Judgmental
L5 Task Type Letter Data Entry
(From Image) Decision
L6 Steps Generation
Time and Motion
Send images &
physical docs to
Enter
predefined Daily Volume
Free Free Digital Analytics
back office codes Investigation Formatted Formatted File Upload
Text Read Text Write
Scanned Scanned
Verify Manual
completeness
Voice Image Read Image Read
Workflow
(Typed) (Handwritten)

6 Assessment Report 5 Opportunity Buckets

8 RPA Roadmap 7 RPA PoC

RPA Amenable

TCS Confidential 12
 RPA Transformation – Typical Service Approach
Assess | Suitability Analysis | Attribute & Sample Assessment | Financial Benefit Analysis Typical Assessment Framework

RPA Deployment Topology vs. Controls Prioritize | Criteria & Framework

Roadmap | Criteria Sample Process Selection – Scoring Methodology

Mandatory GRC Involvement

Throughout Every Aspect!
TCS Confidential 13
 Related News…
The Economist – Quote from May 6, 2017 Special Report on
Banking, Ten Years On :
The number of people working directly on “controls” at JPMorgan Chase,
America’s biggest bank, jumped from 24,000 in 2011 (the year after
the Dodd-Frank act, the biggest reform to financial regulation since
the 1930s) to 43,000 in 2015. That works out at one employee in six.

Banks’ AI plans threaten thousands of jobs

HSBC's much-touted voice recognition software, used by half a million customers
Financial Times January 25, 2017 by: Martin Arnold, Banking
to verify their identity and secure their bank accounts, has successfully been Editor
duped by the brother of one of its customers….After seven repeated attempts
to mimic his brother's voice print, the bank granted him access on his Automated compliance systems set to wipe out post-crisis
eighth try. regulatory roles

Robots Help in Banking at The Swiss Bank - Credit Suisse, Thousands of jobs will be put at risk as the world’s biggest banks
Reuters Up, dated: May 2, 2017 harness artificial intelligence systems to the wave of roles created
in recent years to meet ever-growing regulatory demands, industry
Credit Suisse AG has deployed 20 robots within the bank, some of which are helping experts have warned.
employees answer basic compliance questions, the Swiss bank's global markets chief
executive, Brian Chin, said on Monday. The technology may help reduce the number of New technologies mean that banks could make vast savings in
calls coming into the bank's compliance call centre by as much as 50 percent. compliance, according to Richard Lumb, head of financial services at
Accenture, who estimated that “thousands of roles” in the banks’
The technology works like Amazon.com Inc's Alexa voice system."You ask it questions internal policing could be replaced by automated systems.
and it spits out the appropriate regulation, rather than going to a manual or a
“We are seeing work with clients today which is very much around big
website," Chin said. Although technology has allowed Credit Suisse to cut back and
data and robotic process automation, where in compliance — take anti-
middle office staff, headcount has remained flat because the bank has hired a large money laundering — you can take out thousands of roles,” Mr. Lumb told
number of programmers. the Financial Times at last week’s World Economic Forum in Davos.
“That is coming quite quickly now and that will sweep across the industry.
TCS Confidential 14
 Best Practices…
The success of RPA depends on an
Never automate a broken process institutionalized Sponsor
• Ensure the process is stable and mature • RPA needs an institutionalized Robotic Team
before automation is applied. led by a Sponsor - who initiates the idea of
RPA should always sit with the Process owner automation, underwrites resources and
protects progress into business adoption
• Run by Business stakeholders with support from IT
• Grow in house RPA CoE of a mixture of Operations Bring IT, Risk and Information Security
onboard early
and IT people.
• RPA deployment has an impact on Infra,
Involve GRC throughout the entire process Security, Business Continuity and Disaster
• RPA will impact the entire Internal Control Recovery.
environment along with the dynamic • RPA must comply with the technology
interaction across all 3 Lines of Defense function’s governance and architecture
policies.
RPA is not a project. RPA is a journey Communicate, Communicate, Communicate!

• Don’t be tempted of quick wins by • Engage a dedicated team of Change and

deploying RPA in siloed units Communication for awareness in the
• Use pilots to remove roadblocks and business of the benefits of automation
align RPA strategy to business objectives • Keep all stakeholders up to speed with
• Multi-skill the robots the progress of the automation journey

TCS Confidential 15
RPA Architecture…the Control Room
Data Desktop PDFs, Scanned
Web App Mainframe Database MS Outlook MS Excel
Sources App Images

*BOT commands
BOT Creator (BOT Development Client System) BOT Runners (Runtime System)
Create BOT 1 BOT 2 BOT 3 BOT n
Edit BOT
BOT
VM / Desktop (Windows OS) VM / Desktop (Windows OS)

APIs (HTTPS / HTTP) APIs

Control Room

Work Load Operations BOT

Dashboard User Mgmt. Audit Trail **BOT Farm Reports
Manager Room Scheduler

Company
*** RPA DB
Database

* BOT commands – Object Recorder, Database command, excel command, app integration command, OCR command etc.
** BOT Farm – View of all bots with user, IP address, application path and schedule credentials
*** RPA (Robotic Process Automation) Database for audit trail and reporting
TCS Confidential 16
Use Cases

17
Current Process Use Case: Reimagining Operational Risk Controls Testing via RPA

Deliverable requirements Automation deployed as Business Control

Test procedure review Test Execution Documentation

Go-To Process

Business Transactions Automated Control Execution Exception reporting for Manual controls

100% Business population

Eliminates Manual Review Cost Reduction
coverage

TCS Confidential 18
Use Case: Intelligent Process Automation (IPA) applied to KYC AML

Brining together various NextGen enabling tools & techniques & applying them in novel ways

TCS Confidential 19
Broader GRC Impacts & Implications…

Stage III
Transform … providing increased collaboration
(Reimagine) and knowledge sharing amongst
3 LOD involved stakeholders - namely:
Operations, Technology, Risk,
Compliance, Internal Audit, Business &
Sr. Management, and Executive &
Board-level committees

Stage II
Leverage RPA
These same tools & techniques
within Risk & are being applied directly within
Control the Risk & Control environment
Environment - planning, assessment,
monitoring, and reporting
become the logical progression
in the evolution of GRC
Stage I
RPA
The utilization of intelligent
introduction
Process Automation tools
within Ops & and techniques in
Tech Operations and Technology
is well underway…

Communicate Coordinate Collaborate

TCS Confidential 20
Conclusion…

TCS Confidential 21
Waves of technology revolutions…

TCS Confidential 22
 Q & A ?!

“The future is already here; it’s just not

evenly distributed.” - William Gibson,
science fiction writer

23
Thank You
Pran Banerjee Frederick C. Albright
Robotic Process Automation GRC Intelligent Process Automation
Banking & Financial Services, NA Center of Excellence
Tata Consultancy Services Banking & Financial Services, NA
Tata Consultancy Services
Ph: +1 972 832 4973
[email protected] Ph: +1 973 307 8217
[email protected]

TCS Confidential 24