salt: intelligent automationsanantonioipt.org/yahoo_site_admin/assets/docs/... · 2018. 3. 28. ·...

SALT: Intelligent automation

2© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International

Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 717255

Agenda

Overview of RPA/digital labor

— Evolution and business implications of modern digital labor

— Digital labor automation spectrum

— Indirect tax examples

— Benefits and themes of RPA

— Solution market demands

— Alteryx overview and indirect tax business cases

— Excel applications for automation

— Summary and questions



Machine intelligence + human intelligence + robotics

Digital labor is no

longer a consideration,

it’s a mandate

Call it what you want

It is no longer a question

of IF, but when, and

where, and how,

and how fast?



Part of a new industrial revolution?

The “4th industrial revolution” (cyber-physical systems) is beginning…and its impact is profound

according to the World Economic Forum founder, Klaus Schwab

Steam, water, mechanical

production equipment

Division of labor,

electricity, mass

production

The Information Age –

Electronics, IT, Mass

Communication, Internet

AI, nanotech, biotech,

cyber-physical systems,

digital labor

1800s 1960s Today1900s



Business implications of digital labor

Cost efficiency

Estimates suggest that a

software robot is

approximately 1/3 of the cost

of an offshore FTE. Digital

labor savings are estimated to

be between three and ten

times the cost of

implementing the automation

Scalability

Software robots scale

instantaneously at digital

speeds to respond to

fluctuating workloads. There

is also no overtime, no hiring

challenges and no training.

Consistency/predictability

Expected reduction in

mistakes, accidents,

regulatory violations and fraud

Quality/reliability

Software do what you tell

them to do – when properly

configured they do not make

mistakes and thereby

eliminate human error

Employee satisfaction

and innovation

Eliminating mundane and

repetitive tasks frees up

human talent to innovate

and create

Productivity/performance

Software robots work 24/7,

and 365 days a year; do not

take vacations; and perform

tasks at digital speeds



Digital labor is a spectrum of automation

Cognitive automationRobotic Process Automation (RPA)

Rules

Automation based on

documented process rules

Digital Labor

Learning

Recognize patterns from unstructured data;

automation based on accuracy ratings

Reasoning

Hypothesis based reasoning; automation

based on confidence ratings

Macro

Based

Unstructured

Data

Natural

Language

Processing

Knowledge

Base

Adaptive

Alteration

Predictive

Analytics

Machine

Learning

Reasoning Large

Processing

Big Data

Analytics

Rules

Engine

Workflow

Macro

Based

Unstructured

Data

Natural

Language

Processing

Knowledge

Base

Adaptive

Alteration

Predictive

Analytics

Machine

Learning

Reasoning Large

Processing

Big Data

Analytics

Rules

Engine

Workflow

Macro

Based

Unstructured

Data

Natural

Language

Processing

Knowledge

Base

Adaptive

Alteration

Predictive

Analytics

Machine

Learning

Reasoning Large

Processing

Big Data

Analytics

Rules

Engine

Workflow



Process automation (Bots)

— Enables employees to devote more of their time to creative, high-value work that increases company agility.

— Enables organization to eliminate mundane manual tasks

— Leverage more data in more ways

Rules

Engine

Screen

Scraping

Work

Flow

Machine

Learning

Large-scale

Processing

Adaptive

Alteration

Artificial

Intelligence

“Big Data”

Analytics

Natural

Language

Processing

Processing of

unstructured data

and base knowledge

01

03

02

Enhanced process

automation

Cognitive automation

Basic process

automation

[ Class 2 ]

[ Class 1 ]

[ Class 3 ]



More than bots!

Robotics

— Generate emails for info requests

— Pull raw apportionment data from ERP systems

— Import into tax software

Data

— Reconcile between ledger totals and raw

apportionment data

— Format property, payroll, sales raw data for load

into tax workpapers or tax software

Visualizations

— Significant apportionment factor changes

year over year

— New state filings

— State ETR analysis

Humans

— Review for reconciling differences

and large swings

— State planning

— Ongoing process improvements

State apportionment



Robotics indirect tax examples

— Data extraction automation

— Facilitate the data manipulation scripts to generate output files for review,

archive them and send email for approval.

— Import processes into compliance software

— Automate any manual processes

— Facilitate the data manipulation scripts to generate audit ready files and archived

— Manage exemption certificate processes

— Many more



Robotic process automation

RPA benefits:

— Provides significant cost savings

— Results in higher quality of data

— Increases efficiency, speed, responsiveness

and productivity

— Increases control over processes and data

— Improved employee morale – reduce mundane

and repetitive tasks freeing up employees to

contribute in more innovative way

Rules based

Repeatable Structured data

RPA criteria

High volume Transactional



Bot themes

Automatic

uploads

Store files for

Audit

Organize

legacy data

Reduce

inaccuracies

Modify

document

char.

Reporting

Schedules

Downtime

Multiple

systems

Central

control

Simple or

Complex

Extensions

Federal no

tax due

extensions

State

extensions

Printing

form/create

XML

eFiling

extensions

System updates

Extraction

Verification

PDF

functionality

Write from

Excel to PDF

Rename

PDF’s

PDF

Password

Protect

PDF Portfolio



Process automation solution market demands

— Minimize risk

— Eliminate repetitive tasks

— Enable tax team to work on more strategic value adding activities

— Minimize time spent on manipulating data

— Speed up compliance processing cycles



Alteryx

What is it?

A software platform developed to handle a large

number of data and analytical needs. Many tax

uses include data extraction, transformation and

preparation, and loading.

Where to use it? On any process(es) that

could benefit from:

— Scalable and repeatable data processes

(repetitive calculations or functions in

Excel quarter after quarter/each year/

multiple versions)

— Auditability (unlike Excel, you know exactly

what has been done with the data at every

step and you never actually modify the

original data file)

— Efficiency (significant data manipulation of

data such as combining many or extremely

large files especially if teams are

experiencing frequent Excel crashes)

Example tax use cases:

— Trial balances

— K1 comparison

— Depreciation schedules

— Advanced modeling

— FX conversion

— Sales and use tax

— Individual FBAR reports

Example general use cases:

— Merging and comparing datasets

— Transforming data formats

— Combining multiple files

— Advanced analytic applications



Tools to automate data processes

Alteryx

— Cleanse and join data from different sources

— More tools to build and publish analytic models

— Build data analysis logic

— Compare/Reconcile data sources

NEW VBFA FILE 2

NEW VBFA FILE 2

NEW VBFA FILE 3

VBFA_INPUT_FILE.CSV

#2

#3

#4

#1

VBFA_INPUT_FILE.CSV



Alteryx indirect data scripts examples

— Reconciling data from two different systems

— Merge and transform data from multiple systems for compliance purposes

— Merge and transform data from multiple systems to build a robust data structure

for analysis

— Building logic and formulas to complete data analysis and provide exception reporting

— VAT netting process

— Complete do it yourself analytics on robust data

— Use tax analysis and reversal process



Excel-based applications – Overview

Indirect tax calculation systems

— Interaction with OneSource Indirect Tax Determination (Sabrix) and Vertex O Series.

— Capability to interchange XML tax request and response

— Can act as the primary integration mechanism between the ERP and tax engine

— Ability to perform address validation

RPA

— Fully capable digital labor platform

— Solid interim approach

— Often a preferred alternative under certain business conditions

Data conversion and reporting platform

— Functions as the data conversion/report generation engine

— Ability to operate transparently and fully automated

— Can connect directly to relational databases

— Option to run on a scheduled process basis



Sample screenshots – KPMG Transaction Toolkit (OneSource)

Configurable data

interchange options

Easy to operate

graphical user

interface

Settings that permit

scalability and

personalization



Comprehensive tax

calculation results

Consolidated tax rates

option

Address

validation

module

Sample screenshots – KPMG Transaction Toolkit (OneSource)



KPMG Developed Excel Application – Remote Automation Example

Outside Systems/Processes Excel Application Network Folders/Communications User Groups

Source

System

Input

Data Files

Process

Trigger

Event

Settings

Start

Processing

Import Data

Processing

Engine

Distribute

and Notify

Update

Process

Log

Save and

Close

Output

Data

Files

Email

SMS

SMS

Tax

Admin

Email

Simple remote automation

Thank you

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of

independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

All rights reserved. NDPPS 717255

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular

individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on

such information without appropriate professional advice after a thorough examination of the particular situation.

kpmg.com/socialmedia

Some or all of the services described herein may not be

permissible for KPMG audit clients and their affiliates.

Changing Financial Systems LandscapeOpportunities for Tax

Copyright © 2017 Deloitte Development LLC. All rights reserved. 2

The speed of Digital Transformation depends on the underlying forces driving the

change in each sector: operational improvements, competitive differentiation, or

survival.

Over the last 18 months we have seen dramatic acceleration of investments in Digital Transformation

Logistics | Automotive& Large industrial | Consumer packaged goods

Oil and Gas | Chemicals

Telecom | Insurance & Banking | Retail

Media | Technology

EXPLORING

BEING

DOING

BECOMING

Uber

Airbnb

Amazon

TeslaGoogle

Don’t get stuck here

Health Care

This is a simplified view of the market. In every sector, we will find outliers.


Companies are taking different paths to Digital Transformation but the most

successful organizations display similar traits.

An organization’s digital initiatives are multiple times more likely to be successful when the organization:

Customer/user end-to-end experience, platforms and data are the building blocks for value creation

Superior end-to-end experience

Quality and structured data / information

Unique source of truth available

anytime anywhere

The world is changing at a very fast pace, speed, flexibility and ownership are critical when driving transformation initiatives

Platform

CustomerUser

Data

2x

3x

COMMITSSufficient time, energy, & resources

PROVIDESEmployees opportunities to develop

LEADERSHave vision

More likely to be successful

More likely to be successful

3xMore likely to be successful

MIT Sloan / Deloitte survey

Cloud Tax footprints

A variety of solutions and benefits in the Cloud


Tax Benefits of switching to a Cloud-based ERP

Tax opportunities of cloud-based ERP

• Ability to drill down to transactional data

• Less time spent gathering and validating data

• Reduced reconciliation effort

• Capture key attributes through extensions to the code block

• Gain efficiency through redesign of business processes

• Automation of intercompany processes, insightful analytics, and transfer pricing automation

• Higher flexibility in reporting and analysis

Stability

Logisticsdocument

Sub-modules (AP, AR, Assets)

General ledgerTotals & Indices

Financial Accounting

Totals & Indices ManagementAccount

Legacy ERP Stability

Processing

Analytics

Universal Journal Entry

Flexibility

Aggregation on the fly

via views

Flexibility

Pre-Defined Aggregates

Single repository acrossapplications

Logistics document

Cloud-based ERP

Processing

Analytics


Cloud-based ERPs offer a variety of solutions to fit your company’s most stringent tax requirements.

Understanding Cloud-based ERP and Tax

Partner Tax Integrations

Reporting ToolsIndustry Considerations

ERP Tax Functionality

Cloud-based ERP

Apps DashboardingAnalytical reporting

Reporting directly from the source

• Intercompany

• Transfer Pricing

• Revenue Recognition

Tax Features of Cloud-

based ERP

SAP – S/4 & CentralFinance

Role of Tax is shifting


Tax landscape with S/4HANA

Financial systems Tax compliance and assurance workflow Reporting and filings

Tax Center of Excellence

Tax process management

Analysis, calculation, adjustments

Reporting and Analytics Models

Indirect tax engine

Main ERP

Apportionment

SAP HANA reporting and analytics

Load

Tra

nsfo

rmExtra

ct

Reporting and filings

Ad hocreports

Auditreports

Tax forms

Source data

• Source data will be tax sensitized

Reporting

• Real-time reporting down to the detailed level

• Enhanced user interfaces for reporting like SAP Fiori, Analysis for Office, HANA Live and BPC.

• Flexibility in reporting without pre-defined aggregates

Tax software systems

• Tax rules/in-country engines

• Leverage third-party maintenance

Reporting

• Global reports

• Standard reports by licensed software

• Ad hoc by user

S/4 HANA

ONESOURCE

or Vertex

SAP Fiori

Analysis for Office

HANA Live

BPC

Tax Provision Software

Tax Return Software


The role of the tax function is changing

As clients move to the Cloud, what are the expectations for tax?

Planning

Reduce global tax burden and enhance

cash flow

Managing

Within an appropriate risk

framework

Reporting

Comply with reporting

obligations

Optimizing the tax function

for greater impact

Strategic partnering across the

organization

Process, technology, and data

Tax has insufficient knowledge of how to leverage process and technology to access data for efficiency and effectiveness

People

Tax resources are viewed as overpriced and under-deployed; Tax has inadequate succession planning compared with the rest of the finance organization

Sustainability and efficiency

Constantly work to drive down the cost of the client’s global tax function

Business partnering

Build relationships across the organization to understand and gain alignment with the overall business strategy

Clear communication

Articulation of tax strategy and the value of tax concepts to a non-tax audience is a key skill for the Tax Executive

Leading strategic initiatives

Lead projects across functions that align with the company’s vision, while maintaining line of sight throughout the organization

Tax & finance profile

Traditional role Emerging additional expectations

Derived from Deloitte stakeholder interviews, including over 50 CFOs, in preparation for Deloitte Tax Executive Transition Labs.


Quantitative and qualitative benefits for tax

Driving tax value with S/4HANA

Cash tax savings achieved by identifying new opportunities or sustaining current tax positions

Increase efficiencyin tax complianceand reporting through automation and process standardization

Mitigate financial statement and audit risk by increasing transparency, enhancing controls and supporting tax positions

Tax

Strategy

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2017 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

http://www.deloitte.com/about

http://www.deloitte.com/us/about

salt: intelligent automationsanantonioipt.org/yahoo_site_admin/assets/docs/... · 2018. 3. 28. ·...

Documents