1. How Finance is Leading Digital Transformation
Automation First
How Finance is Leading Digital Transformation
Marie Myers
October 24, 2019

2. “DISRUPT OR BE DISRUPTED”
“To compete today, business leaders need a revolution in thinking: a steady stream of disruptive strategies and unexpected solutions to stay ahead of the game.” 
Luke Williams

3. MEGATRENDS Shaping THE FUTURE
Technological breakthrough
Demographic
shifts
Rapid
urbanization
Shift in global economic power
Resource scarcity and climate change
Technological breakthroughs
Automation, robotic and AI are changing the number and nature of jobs
Technology has the power to improve lives
Improvements in living standards, productivity & life span
Economic advantages must be shared equitably
Demographic shifts
Worlds population is ageing
Pressure on business, social institutions and economies
Workers need new skills
Re-tooling will become the norm
Rapid-ageing economies drive need for automation and productivity
Rapid urbanization
By 2030, 4.9 billion people will be urban dwellers
By 2050 the world’s urban population will increase by 72%
Largest cities have GDP’s larger than mid-sized countries
Cities become important agents for job creation
Shift in global economic power
Power shifting between developed and developing countries
Developing countries who attract investment and improve education gain the most
Large-scale automation may erode the middle class, increase wealth disparity and job losses
Resource scarcity and climate change
By 2030 demand for energy and water is forecasted to increase by 40-50%
New jobs in alternative energy, engineering, product design and waste management
Traditional energy industries will see rapid restructuring
Workforce of the future: The competing forces shaping

4. “IF YOU DO NOT DIGITALLY TRANSFORM, SOMEONE WILL DO IT FOR YOU”
Will an average person have more conversations with BOTS than with their significant others by 2020?

5. WHO COMES AFTER GENERATION Z?
Welcome Generation Alpha
anyone born after 2010 the most transformative generation ever
Gen Alpha
doesn't just use technology,
they integrate it into their lives flawlessly
They will grow up with iPads in hand, smartphones, and have the ability to transfer a thought online in seconds
Massive technological changes make GEN ALPHA the most transformative generation ever

6. What is Robotic Process Automation?

7. INTELLIGENT AUTOMATION ENABLING DIGITAL TRANSFORMATION
ALL ABOUT OUTCOMES

8. ACCELERATE EVERYTHING THROUGH AN AUTOMATION FIRST MINDSET
EXPANSION
End-to-End Value-Chain
Automation First Customer Journey
Enterprise-Wide
Intra-Dept
One Robot for Every Person
Dept-Wide
Gigabot
Economy
Robotic Operations Center
RPA
Citizen Developer
5-20 Robots
100 – 500 Robots
10k’s Robots
Robots Learning Skills – Delivering AI to Digital Business Operations
100k’s Robots

9. Optimization of relationship value
THE THREE E’S OF DIGITAL VALUE
Minimisation of cost by optimising resource productivity and eliminating waste
Maximization of business value by aligning services with defined business needs
Optimization of relationship value
for employees, customers
and suppliers
Efficiency
Effectiveness
Experience

10. Where do we start?

11. MACHINES COMPLEMENT HUMAN BRAIN POWER
36% of all use cases were in finance and accounting
HR, IT, Procurement and Contact centers accounted for a further 38%.
Finance and accounting use cases leads are today’s primary RPA target. While the rPa service providers we surveyed reported a mix of use cases spanning all industries, 36% of all use cases were in finance and accounting (see figure 3). Hr, iT, procurement, and contact centers together accounted for a further 38% of the use cases.
AP/AR
Supplier onboarding
Procurement
AI chatbots
Monthly/quarterly close process
Expense Mgmt
Audit
F&A Tasks Machines Can Do

12. AFFECTING “WHERE, HOW, WHAT, WHO”
Where work gets done:
Geography less important
How work gets done:
Embracing the digital workforce
What work is done:
Value creation
Who does the work:
Changing the labor pyramid

13. INVERTING LABOR PYRAMID
CAPABILITIES
CURRENT
FUTURE
IMPACT
Insight delivery
Cognitive & analytics
Data normalization & governance
Foundational & transactional
70% reduction in labor
empowers the workforce focusing on value add
re-imagine the operating model
70% reduction in labor driven by intelligent automation * (Industry view)
Intelligent automation empowers the workforce to add more value at rapid speeds
Organizations must re-imagine their operating model to meet evolving requirements

14. GLOBAL CASH APPLICATION PROCESS – ROBOTIC AUTOMATION
Achieve 100% accuracy
OPPORTUNITIES
DIGITAL TRANSFORMATION
BENEFITS

Automation
Robotics;
Natural Language Programming
Sizable # of
Bank
accounts
Significant # of
Countries $B
Cash applied
$M+
Payment M+
Invoices
100%
Accuracy
Bank statement
90%+
Automation rate
Payment to GL
30% FTE
Capacity created
Generic mailboxes
Remittance formats
6 times faster processing
Invoice to payment
Unstructured
Structured data

15. OPERATIONS MGMT – DIGITAL WORKFORCE
GLOBAL CASH PROCESS
Before RPA *
(48 Hours)
After RPA*
(8 Hours)
Start
Download bank statements & process payments
Investigate with banks and collections
Post payment & send report
Apply cash (posting/ processing)
Prepare details for processing
Other requests
(refund, write off, proforma, queries)
Send confirmation
End
Apply cash (posting/ processing)
Start
Download
bank statements & process payments
Post payment
& send report
Send
confirmation
End
Global cash apps process improvements
Majority of process operations were either fully or partially manual
Processing went from 48 hours to less than 8 hours
Benefits include real time info, live streaming dashboards and digital audit trails
Improved accuracy (Error avoidance) to 100% (It translates to $31M for $39B Cash Applied)
Robust Governance/Monitoring – Live Kibana dashboard
24/7 availability meaning no backlog
Optimal utilization – real time faster ability to Scale – Ramp up/down robots based on volumes during QEC/MEC
*High-level simplified view
Partially automated/ Manual
Automated

16. OPERATIONS MGMT – DIGITAL WORKFORCE
GLOBAL CASH ORGANIZATION *
Supervisor
Subject Matter Expert
Before RPA
Production Lead
Processor
After RPA
Supervisor
BOT Explorer
Analytics Wizard
BOT
Global cash apps org improvements
Connecting technology with humans for process and systems
Redeployment of 23 FTE from redundant/repetitive tasks to value added activities
Rebuilding capabilities for skills of the future
Individual employees proud to be a part of the future
* Organization size illustrative

17. ASC 606 Fair Value Analysis
The Solution
The Challenge
Benefits
Reduce ~$188 million of net revenue exposure to a residual ~$2 million, below materiality threshold
Effective net revenue exposure is zero
Accounting regulation ASC 606 requires company to analyze and make revenue decisions at a granular level.
million transactions bi-annually; ~$18-23 billion in net revenues.
Construct a model, using algorithms to minimize revenue exposure
UiPath RPA software, SQL database, Statistical simulation and optimization algorithm, in-house development, R- coding
Actions to take today:
Assess where Internal Audit stands with its tech-enabled foundation
Is your organization using or does it plan to use any emerging technologies such as Block.chain, AI, or robotics?
Does your internal audit function have access to the skills needed to provide risk and controls advice with regard to those emerging technologies?
Is your internal audit function taking advantage of collaboration, data extraction, analytics, and visualization tools?
Does your internal audit function have a technology skills and tools roadmap as part of its strategic plan?
Innovate and be revolutionary whenever possible.
Rethink how things could be done versus making incremental improvements.
Find ways to share or leverage others' technologies and talents to leap forward.
Remember that today's issue is not tomorrow's; engage with the organization's innovation agenda to ensure that Internal Audit keeps pace.
Fuse technology and talent into a single strategy.
the technology skills needed for tomorrow. Let the objectives you are trying to accomplish direct the company's technology and talent investments.
Invest smartly today for tomorrow's needs.
Assess the digital skills available to Internal Audit.
Develop and source

18. INTERNAL AUDIT USE CASE RPA AND NLP AUDIT DELIVERY
ACHIEVE 85% ACCURACY IMPROVEMENT AND 54K HOURS SAVED
OPPORTUNITIES
DIGITAL TRANSFORMATION
BENEFITS
Footing and cross-footing
85%
Accuracy Improvement
Automation
Robotics;
Natural Language Programming
Internal consistency
~45%
Automation rate
recalculating balance sheets
A global audit, tax, and advisory consultancy firm’s delivery center performs the quarterly and annual audits for their end customers. The audit process is a complex one, covering multiple sub-processes including running footing and cross-footing, checking internal consistency, recalculating balance sheets, and performing previous year closeouts. The work required was initially manually driven and very time-consuming. What’s more is that the processing logic was purely judgment based, with pre-defined rules applying across the input financial reports.
UiPath’s Enterprise RPA Platform now automates many of the activities required for audit delivery, including monitoring 10 Ks and 10 Qs, footing and cross-footing, checking internal consistency, recalculating the balance sheet and previous year tie-outs. Using Stanford's natural language processing (NLP) capability, UiPath robots contribute to the automation of financial reports by standardizing the business process logic and validating data in tables and in the narrative. The robots process textual contents, extract tables utilizing a PDF extraction engine, and perform validation of the original balance sheet and other financial data.
85% accuracy improvement
54,000 hours of work saved
Through this combined RPA-AI solution, the global consultancy firm was able to save 54,000 hours of work annually, achieve 45% automation of the audit process, and reach 85% accuracy improvement in comparison to the 25% improvements the company had previously managed to attain using IBM Watson.
THE CHALLENGE
KPMG GDC performs audit of the financial reports (Quarterly and Annual) for their end customers. The process has multiple sub-processes including Footing, Cross Footing, checking internal consistency, re-calculation of balance sheets and PY tie outs. The processes need to be performed across the Quarterly and Annual Reports for thousands of customers. It is complex, manual, repetitive and time-consuming, with a logic purely based on judgment. There are no predefined rules that apply across all the input financial reports.
THE SOLUTION
UiPath provided automation across financial reports standardizing the business process logic and validating data in tables and in the narrative. UiPath applied Stanford NLP – Cognitive Natural Language Processing of textual contents, extraction of tables using PDF extraction engine and then performed validation of the primary balance sheets and other financial data.
THE BENEFITS
up to 85% accuracy improvement
54,000 hours saved annually
45% of the audit process was automated
54K
Hours annually
previous year closeouts

Processing logic judgment based,
with pre-defined rules
Standardizing the business process logic and validating data
Standardizing the business process logic and validating data
Manually driven and time-consuming

19. F&A DIGITAL TRANSFORMATION
IMPACTS FOR THE Finance and Accounting PROFESSIONAL
Disruption
Not a distant future state 
Embrace changes 
Challenges and future direction 
Agility
Embrace and proactively respond 
Forward looking mind-set 
Opportunities and challenges  -
Design and controls
 Develop technologically enabled processes
Involve experimentation
Dialogue with regulators as new techniques emerge
Skills
Accounting, and tech literate
Analytical capability
Recruit in a non-traditional way
IA must embrace and proactively respond to the opportunities and challenges that digital transformation brings. Some of the biggest hurdles will be around responding in an agile way and having a forward looking mind-set.
Technology disruption is not a distant future state - it is here and now. If the profession is going to remain relevant it needs to embrace these changes.
Invest in developing increasingly technologically enabled audits. This needs to involve some experimentation and an active ongoing dialogue with regulators as new techniques emerge.
Auditors will need to validate the design and controls around new and emerging platforms and interpret the complex data sets that arise.
Need people with accounting skills, and also extremely tech literate. Analytical capability, coding and work with a range of new technologies. To meet this opportunity audit must recruit in a broader way.
The auditor of the future will use data analytics to check data of much larger sets of information from a wide variety of agencies.
Auditors' focus on risk, the aim is to free auditors from mechanical tasks so they can concentrate on auditing.

20. THE DIGITAL REVOLUTION
“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”
THE DIGITAL REVOLUTION
- Charles Darwin

21. Imagine the Power: One Robot for Employee!
Imagine one intelligent robot for every accountant. This will allow accountants to reduce their mundane tasks and focus on more intelligent fulfilling work. These technologies will help the accountants to do more client facing tasks and take on more advisory roles. It also will help accountants achieve work life balance and make them happier in their workplace. This is closer to reality than we think.