the future of government back office operations | …€¦ · transforming to improve citizen...

TRANSFORMING TO IMPROVE CITIZEN SERVICES

THE FUTURE OF GOVERNMENT BACK OFFICE OPERATIONS

2Copyright 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


SEVEN IN TEN CITIZENS FEEL THAT PUBLIC AGENCIES COULD PROVIDE A BETTER CUSTOMER EXPERIENCE BY USING THE LATEST TECHNOLOGIES

Source: Accenture

4

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.

—GartnerAre you investing in large, traditional ERP solutions?

ORAre 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)


ERP IS TRANSFORMINGFROM 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 GenerationProcess Led ERP

3rd GenerationPlatformed Back

Office

4th GenerationAugmented Back

Office

The market is here

6

“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


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 Govt1Primary 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


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


PLATFORMED BACK OFFICE

Business services, delivered through 3 possible models:

WHAT IS IT?

Typically chosen when:

ON-PREMISE ERP HYBRID MODELSome, 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


PLATFORMED BACK OFFICEONE EXAMPLE OF HOW IT MIGHT WORKPOTENTIAL BUSINESS SERVICES:

On-Premise

CORE HR BENEFITS

PAYROLL

Performance Management

CompensationManagement

Recruiting

LearningManagement

Workforce Analytics

ESS

MSS

Mobility and Collaboration


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


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 RESULTSU.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


“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

14

ERP IN TRANSFORMATIONAI FOR BACK OFFICE IS JUST GETTING STARTED

More of the IT workforce willfocus 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


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)

https://www.accenture.com/us-en/insight-artificial-intelligence-future-growth


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

1/3interact 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%

https://www.accenture.com/us-en/insight-dynamic-consumers?src=SOMS


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

https://www.accenture.com/t20170614T050454__w__/us-en/_acnmedia/Accenture/next-gen-5/event-g20-yea-summit/pdfs/Accenture-Boost-Your-AIQ.pdf


AI FOR GOVERNMENT BACK OFFICE A SIMPLER WAY TO THINK ABOUT APPLYING THE TECH

• Standardized rigid processes

• Manual entry and monitoring of repetitive tasks

StandardizedProcesses

• RPA perform repetitive actions efficiently

• Minimal oversight • Requires no decision

making.

Robotic ProcessAutomation

• AI for decision making, orchestration, or communication

• Works through learned behaviour. • Capable to “run-the-show”• Calls RPA to perform tactical

actions.

AI-poweredAutomation

• 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


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 UNDERSTANDTHE 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


Ticket resolved by agent75%

Increased users satisfaction65%

Decreased operator tasks55%










M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

PROJECT IMPLEMENTATION3 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


AN OPPORTUNITY FOR TRANSFORMATIONAI CAN BE USED AT ANY ERP MATURITY LEVELAI 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 ERPProcess Led ERP

Platformed ERPAI Driven ERP

AI


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: PlatformedBack Office

4: Augmented Back OfficeOn premise ERP

with major vendor

Current State Future State


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 ResearchCheckpoint


SECURITY MUST BE “DESIGNED IN” FOR EVERYTHING-AS-A-SERVICETHE 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 enterpriseenvironments

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

MYTHS SURROUND SECURITY OF THE CLOUDKNOW 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:


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, 20172Source: Accenture Research Survey, Accenture Pulse Survey—Public Service Talent Jan 2016—Sample of 3046 US Voting age citizens

AI CREATES AN OPPORTUNITY TO RESKILLTHE CURRENT WORKFORCE

AI WILL CHANGE THE GOVERNMENT WORKFORCE

http://slge.org/wp-content/uploads/2017/06/State-and-Local-Government-Workforce-2017-Trends.pdf


…AND THE IMPACT OUTSIDE OF GOVERNMENT MUST ALSO BE CONSIDEREDThe 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.

https://www.weforum.org/agenda/2016/10/top-10-ethical-issues-in-artificial-intelligence/


QUESTIONS

MARK HOWARDGlobal Public Administration Lead CLICK HERE

TO LEARN MORE ABOUT BACK OFFICE [email protected]

https://twitter.com/markhoward_co?lang=en

https://www.linkedin.com/in/markhowardco

https://www.accenture.com/us-en/insight-back-office-gov-innovation?c=psv_hpsbrbkfy17_10000001&n=otc_0317



mailto:[email protected]




mailto:[email protected]


Copyright © 2017 Accenture. All rights reserved. 29

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.

the future of government back office operations | …€¦ · transforming to improve citizen...

Documents