Monthly Archives: Oct 2018

Mihir Shukla and Alastair Bathgate in the Battle for the Robotic Billions... only at HFS FORA

October 12, 2018 | Phil Fersht

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After all the fun and games we sparked with our recent blog "Seven deadly misnomers why these billion dollar RPA valuations are insane" we thought we'd give the CEOs of the leading two RPA firms (see the new HFS TOP 10 RPA report), Automation Anywhere (Mihir Shukla) and Blue Prism (Alastair Bathgate) a chance to face/off on stage to thrash out why their firms' valuations are on such an exciting trajectory - and engage with the HFS FORA crowd to debate where the hell this space is really going and how we need to prepare for an intelligently automated future.

Yes, people, this year's HFS FORA Summit in New York from December 11-12 is shaping up to be at our boldest, most brazen and brash best.  Ever!

If you're looking to up your RPA game and see who comes out on top, sign up to reserve your seat now, or forever hold your peace.

I look forward to seeing you in New York,

Cheers!

Phil

Posted in: Digital OneOfficeRobotic Process AutomationIntelligent Automation

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RPA is the gateway drug. AI is the drug...

October 10, 2018 | Phil Fersht

Anyone failing to escape the swirl of intense hype threatening to destroy everything great about RPA is probably thinking that these cute products are going to solve all their artificial intelligence needs and deliver them with a "digital workforce" that will go way beyond scraping screens, producing scripts and running unattended recorded process loops.

Now, don't get me wrong - I LOVE RPA... jeez, I bloody helped create the space when I first wrote about it in 2012.  I don't want to toot my own horn, but this space probably never have would have got off the ground if we hadn't been curious enough to get deep into it and articulate its value to the world.  And no one's paid me a billion dollars (well not yet, anyway).

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RPA creates a genuine experience, where the underlying fabric of decades-old processes can finally be altered

When we released the first "Intelligent Automation Continuum" in 2015,  we made it very clear that RPA was clearly the first step in a much broader roadmap to achieve beautifully-automated intelligence across your enterprise.  And today, this gateway philosophy has never been closer to reality.  RPA, when executed well, delivers a digitally-transformative experience to business operations executives, where they can - for the first time - fundamentally change how a process is designed to process data much, much faster.  Suddenly, firms have the chance to make fundamental changes to how they design workflows, instead of persisting with doing things the same old way, but with lower cost people and more efficient delivery models. Isn't that enough for now?  Why does the hype take it to a place where it's only going to disappoint?  If IBM's leadership already thinks these firms are massively overpriced, are there really others out there which will take the plunge?

When I see executives who previously stared at excel sheets all day (while beating up BPO providers for overcharging for insurance clerks in Delhi) actually getting trained to redesign workflows using scripts and GUIs, it warms the soul.  We are actually trying to do thing better... not just cheaper!  So why can't we be content with making this actually work before we get too carried away?

Time for a reality check:  RPA is firmly on the radar, but let's see it become properly industrialized and scaled before we get too carried away

The vast majority of these initiatives are project-based, not scaled - only 13% of RPA adopters are currently scaled up and industrialized, according to new data from 590 enterprises worldwide.  Most RPA adopters are still tinkering with projects and not rushing towards enterprise scale adoption:

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Suddenly, the whole RPA value proposition, which has carefully matured from the "Oh my God, a robot's going to take my job" to "OK, I get it now, RPA actually frees up time and fixes process breakages and staves off costly investments" has been injected with some serious hype-steroids, where suddenly these firms are worth billions of dollars, some are actually declaring they are going to deliver their own consulting services (really) and quickly move up the continuum to offer real cognitive and AI capabilities.  I'm sorry, but when were the RPA firms going to compete with Google and Microsoft? Am I missing something here? 

The Bottom-Line: Enjoy that RPA high a bit longer before you graduate onto the harder stuff...

The real data shows just how not-ready we are to declare some kind of robo-victory - executives must evaluate how all intelligent automation technologies can work together to take us to the promised land. RPA provides a terrific first stop for executives to make real underlying changes to their processes.  Once processes are digitized, there is so much more we can do with the data being produced, which is where other automation and AI tech comes into play, such as Machine Learning and predictive analytics and sophisticated cognitive computing.

Now it's always critical to focus on the "what next", and in the case of RPA the possibilities are limitless, but only when you have mastered how to digitize your underlying mess that has plagued your organization since before the days COBOL was the next big thing.  Then it's about how you reel in the analytics and AI possibilities that truly take your business to a new level of data heaven.  But let's get past the gateway first... let's not get ahead of reality and mess this one up, folks.

Posted in: Robotic Process AutomationIntelligent Automation

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Tiger burns even brighter as Genpact makes its instinctive move

October 06, 2018 | Phil Fersht

One firm that's kept driving consistent growth above the industry average, despite the cries of "commodotization" and "cannibalization" in the business process management arena, is Genpact.  This firm blitzed the offshore-centric BPO industry in the mid 2000's, with its focus on the "virtual captive", its obsession with process excellence (emanating from its GE roots) and the willingness of enterprise operations leaders to invest in its energetic culture. 

As times evolved and other aggressive outsourcers rolled up their sleeves, Genpact has increased investments in higher-end process and operations management expertise to maintain its early tranche of enterprise customers, while focusing on the next wave. Making a concerted focus on building a Design Thinking competency out of its LEAN roots, while adding skills in AI-enabling and digitizing processes, Genpact has not been afraid to stay ahead of industry disruption. In fact, its process roots have often bolstered the firm's credibility when driving industry narrative, as it understands the real changes enterprise need to make at the process and cultural level, if they are genuinely serious about a OneOffice Framework.  

The one major constant behind these phases of change has been CEO Tiger Tyaragarajan, who've I've personally known for more than 15 years, when he was the North American market-maker for the firm, before becoming CEO in 2011.  Today, Tiger talks a lot about the Instinctive Enterprise, which is very similar to our view of the OneOffice Framework, so I thought it time to reconnect before he joins us at our December FORA Summit in New York...

Phil Fersht, CEO and Chief Analyst, HFS Research: It’s great catching up again, Tiger. We’re looking at a lot of serious tinkering and experimentation with new technologies in the business process management (BPM) space. How has a company like Genpact evolved over the last 18 months, and where do you think things are going in the next couple of years? 

Tiger Tyagarajan, President and CEO, Genpact: Phil, thank you for the opportunity to spend some time talking with you.

I like the word you used—evolution—and the period that you applied it to—18 months. In the world we are in, evolution is the way to think about things. I distinguish that from revolution, which is to drop everything that you’re doing and go after something new.

In our business, we think about many of our journeys as evolutions. We’ve always had depth and process; we understand how to bring the science of process to problems and how to generate value. We’ve always looked at process outcomes as important metrics to improve, and we’ve used methodologies like Lean and Six Sigma enough that we’re effective with them.

We’ve added new capabilities that didn’t exist six years, four years, and 18 months ago. Six years ago, we had nothing on digital; four years ago, we started building out our capabilities; 18 months ago we started scaling those capabilities and continue to scale them.

In the last three years,  we’ve made nine acquisitions. Of the nine acquisitions, seven were in consulting and digital, and two were in deep domain areas, such as supply chain and insurance. We continue to add domain, but the ratio includes much more digital, analytics,

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Posted in: Digital OneOffice

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