The Future of Work

1. © 2018 NTT DATA, Inc. All rights reserved. The Future of Work: Mind-shift from Robots vs. Humans to Robots Empowering Humans Doug Reeder Sr. Director of Innovation, NTT DATA Services InnoTech Dallas May 2, 2018

2. © 2018 NTT DATA, Inc. All rights reserved. 2 1780s- 1870s- 2000+1970-2000 We’re in the midst of the “fourth industrial revolution” A technological, economic, geopolitical, and societal shift that is reshaping our world

4. 4© 2018 NTT DATA, Inc. All rights reserved. Foresight Foresight is knowledge of emerging indicators and trends across the social, technological, environmental, economic, political, legal and demographic landscape. The objective of foresight is to identify future opportunities, challenges, and potential solutions.

8. © 2018 NTT DATA, Inc. All rights reserved. 8 Foresight tools and methods • Media monitoring • Morphological analysis • Paleofuture analysis/Retrofuturism • Patent analysis • Regulatory reviews • Scenario method • Science fiction • Surveys • Social network analysis • SWOT analysis • Systems engineering • Technology road mapping • Trend analysis • Technology forecasting • Anticipatory/Systems Thinking • Backcasting • Black Swan analysis • Causal Layered analysis • Cross-impact analysis • Delphi method • Environmental scanning • Expert Panels • Extrapolation • Janus Cones • Futures workshops • Failure mode and effects analysis • Future history • Futures wheel

9. 9© 2018 NTT DATA, Inc. All rights reserved. “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” Amara’s Law Roy Charles Amara (1925 –2007) American researcher, scientist, futurist and president of the Institute for the Future

13. © 2018 NTT DATA, Inc. All rights reserved. 13 • Grocery cashiers • Farm workers • Dry cleaners • Small real estate brokers • Door-to-door salespeople • Toll booth operators • Bank clerks • Traditional telephone operators • Typists • Secretaries • Art room staff (paste- up, letterer, graph maker, draftsman) • File clerks • "Paper" librarians • Warehouse inventory person • Warehouse packers • Machine loaders • Machinists A few jobs Omni’s Future Almanac (1982) predicted would be outmoded by technology:

14. © 2018 NTT DATA, Inc. All rights reserved. 14 Key Trends and Technologies Crowdfunding& Peer-to-PeerLending Dynamic Pricing Consumerization Urbanization Perfect Information Freelance economy & Hollywood Model Artificial Intelligence Learning Styles & Knowledge Transfer Pervasive Simplification Automation Digital World Internet of Things Augmented Reality Open Innovation & Crowdsourcing Sustainability Advanced Genomics Cryptocurrencies & Distributed Ledger Robotic Process Automation Utility Computing An Old Workforce, a New Workforce Risk & Security Management Prescriptive Analytics Virtual Assistants Machine Learning, Deep Learning

15. © 2018 NTT DATA, Inc. All rights reserved. 15 Areas of Focus Client Experience Optimize IT Internet of Things Intelligent Automation Information Security Data & Intelligence Changing the Nature of Work Key Trends and Technologies What we are hearing from customers

16. © 2018 NTT DATA, Inc. All rights reserved. 16 What does “Digitization” really mean? The use of technologies to: • Automate & optimize business processes • Integrate ecosystems; suppliers, partners, customers • Develop a personalized customer experience to retain loyalty • Create new, disruptive business models

17. © 2018 NTT DATA, Inc. All rights reserved. 17 Automation is the future of IT Outsourcing Issues with chasing low-cost labor around the world: • Labor inflation rates • Transfer costs • Cultural fit – language, time zones • Talent retention • Increased nationalism, repatriation Current and emerging technologies present new opportunities for automation Technology Arbitrage > Labor Arbitrage

18. © 2018 NTT DATA, Inc. All rights reserved. 18 Intelligent Automation Taking the robot out of the human, to let humans do people work 8  Automation can provide: • Autonomics – rules or algorithm based solutions, with no human intervention: 30-45% • RPA - automating all or a portion of tasks: 40-60% • Virtual Agent – automating person to machine interaction: 20-25%  Sustainable automation is not about point solutions, but requires an end-to-end ecosystem  Automation is dramatically impacting the nature of work. You must address the people side of the equation  Along with Automate, you must Eliminate and Simplify  Savings are important, but enhancing and expanding the customer experience is the top priority  Routine task automation is now table stakes, automating non-routine tasks is the new frontier  Businesses are seeking new ways to scale, requiring advanced automation to supercharge their workforce  Machine Learning (ML) Deep Learning (DL), and Cognitive Intelligence (CI) are powering the new “Virtual Workers”

19. © 2018 NTT DATA, Inc. All rights reserved. 19 Impact on People You must proactively address the elephant in the room, automation will impact people: • Understand the real number of people who will be impacted, and how • Focus on the increased value of the role, less manual activity, more cognitive activity • Evaluate new roles, around the development and management of the automation tools (Bots, Virtual Agents) • Contemplate a different management approach (call center versus bot management) • Consider different hiring profiles Mind-shift from Robots vs. Humans to Robots Empowering Humans

21. © 2018 NTT DATA, Inc. All rights reserved. 21 Virtual Agents/Assistants Virtual Agent/Assistant that can replace person-interaction, and have the following abilities: • Episodic Memory: Understands what the customer wants in context, and provides immediate answers • Neural Ontology: Allows customers to have a natural conversation with the virtual agent • Emotional Intelligence Ontology: Enables the VA to adapt responses to client’s emotional state • Process Ontology: Executes a process for customers in order to address their needs

22. © 2018 NTT DATA, Inc. All rights reserved. 22 Use Case – Virtual Assistant Virtual Assistants give you insights to improve customer experience: • train human agents more efficiently • real-time monitoring • objective analysis of massive call data Customer Call Voice Log Contact Center Network Manager・Analyst Alerts Key work tracking KPIs Call Analysis Monitoring Agent Support Virtual Assistant • Speech Recognition • Sentiment Analysis • Knowledge Lookup • Response suggestions

23. © 2018 NTT DATA, Inc. All rights reserved. 23 IT Support HR/Finance Sales Customers Use Cases – Virtual Agent • Password reset • Application support questions • Place equipment order • Ticket status • FAQs • System outage notification • Payroll inquires/claims • Holiday requests • Expense status/claims • Benefit requests • Personal data update and management • Job rotation / internal recruitment • Order status • Client data update • Product pricing consultations • Sales commission status • Sales services • Account initiation/activation • New service requests • Member/customer status • Order status • Claim status • Schedule appointments/visits • FAQs

24. © 2018 NTT DATA, Inc. All rights reserved. 24 Automation First Proactive Support Prevent the problem before it occurs End user continues to work while the PC actively stops issues from occurring. Self-Healing Correct the problem when it occurs End user continues on task as the computer self-corrects any issue. Self-Service User solves the problem without calling the service desk End user is empowered with the toolset to take action without help from the service desk. Assisted Service Accelerate the resolution when the user calls End user gains increased satisfaction with less waiting time. Call Elimination Call Deflection Improve Efficiency Problem Resolutions Virtual Agent Virtual agent answers and solves certain problems Virtual agent answers all of the calls, confirms users, and solves a set of the issues. RPA Automate the resolution of certain problems Calls needing multi-system access to make a change are routed to an RPA agent for resolution. Problem Resolutions

25. © 2018 NTT DATA, Inc. All rights reserved. 25 Robotic Process Automation (RPA) • Machine to machine agents which perform process-based tasks • May require multiple system access, data extraction, and interpretation • “BOTS” can act directly, or, act in support of a live agent.

27. © 2018 NTT DATA, Inc. All rights reserved. 27 HR Finance Operations IT Support • Employment validation • Background checking • Personal data update and management • ID management • Payroll consults / claims • Expenses sheet status / claims • Certifications, credentialing • Order status consultation • Procurement • Payment posting • Invoice matching • Accounting • Credit balancing • Charge entry • Vendor invoicing acceptance and input into SAP • Master data management Robotic Process Automation (RPA) use cases • Claims adjudication • Claims processing • Member enrollment • Adjustments • Provider maintenance • Policy issue • Indexing • Medical coding • File management • Password reset (multiple systems) • Application support, that takes entry into multiple systems • ID management workflow and entry • IT procurement • System outage notifications to multiple end points

28. © 2018 NTT DATA, Inc. All rights reserved. 28 Key Services Areas Healthcare Plans (Payers) Healthcare Provider Life Insurance Service Area Service Area Service Area Adjudication Payment Posting Policy Issue Claim Processing Credit Balancing Data Entry Member Enrollment Charge and Demo Entry Indexing Adjustments Medical Coding Policyholder Service Provider Maintenance Accounts Receivable Accounting In-Bound Call File Download Primary Services Areas

29. © 2018 NTT DATA, Inc. All rights reserved. 29 Ongoing Investment in RPA Framework and Intelligent Automation Evolution Machine learning NLP – Context processor Object recognition Self-learning & healingWorkflow / Macro based Rule based Platform based • Configurable e2e • Quicker deployment • Built-in analytical capability • Complete governance • Suggestion models • Best practices Yesterday3-4 Years ago Today & tomorrow Basic Automation Secured Bots Outsourcing & Process Maturity AI-powered Compliance Bots Reusable Scalable Bots RPA Maturity Path • End-to-end • Handles more than one task Platform Specific Workflow Based End-to-End Configurable Cognitive

30. © 2018 NTT DATA, Inc. All rights reserved. 30 Client - Applications Identify whether Indexing required for processing the GD. Data Check Artificial Intelligence - Search engine Use Case – RPA Extractor Posting Bot CRM Auto Engine Parser Rule Analyzer CRM NDB External Sources QA Bot Extractor Bot: Download required data from required sources Then the automation engine does document analysis. Capable of using OCR and NLP technology OCR : Optical Character Recognition NLP : Natural Language Processing Rule Analyzer Bots: • Specialty Verification • Credentialing Verification • Group & Product Verification Analyze the GD and identify routing requirements if any. On Success: Would move to Validator Bots On Mismatch : Would send to Agent Posting Bots : Would connect to the Phycon for posting the required data through various screen navigation as per process guidelines. Indexing Agent AFTE Command Center AFTE Command Center Integrated e2e work flow Use Cases – Robotic Process Automation (RPA)

31. © 2018 NTT DATA, Inc. All rights reserved. 31 Build your own bot Run book AFTE Requirement AFTE Analytics AI & Machine Learning AFTE Components & Libraries Web Automation Remote Operations Terminal Connect Desktop Operations Text Operations Exception Libraries Mouse Simulation Keyboard Simulation Folder Operations File Handler Business Rule Library Clipboard Handler Control Libraries Cognitive Libraries Database Functions AFTEConfigurator AFTEDeployment AFTE Ground Station AFTE Scheduler Remote Administration Alerts & Notification

32. © 2018 NTT DATA, Inc. All rights reserved. 32 A Comprehensive Approach to managing RPA bots, virtual agents and human labor RPA Command Center Dynamic Business Process Management Solution (DBPMS) Bot Development & Configuration RUN & Maintenance Security & Compliance •Process Atoms (re-usable Configurations) •AFTE Generator provides drag and drop feature to create and configure Bots, using libraries •Configured Bot goes through Unit Testing, System Test (Client) and UAT (NTT) •Automated programs across bots for different processes using scheduling, bot profile creation and dynamic task allocations Bot Development & Configuration •Centralized Scheduling, running and real-time monitoring of bots through Command Center for smooth business delivery •RPaaS & AFTE teams monitor and oversee the Bot operations to mitigate adverse scenarios •AFTE consultants support AFTE outages, technical support till maturity and stability is achieved RUN & Maintenance •6 stage Security Framework that provides end to end enterprise security •Compliance BOT for Bot Governance. Incase of deviation, the AFTE Bot gets halted •Regular validation of Published Bots against Server, Database, logs and Security standards of the infrastructure checklist. Security & Compliance Grow your business Increase enterprise innovation Improve your IT efficiency Save Costs Ensure superior customer service Increase enterprise agility and scalability AFTE

36. © 2018 NTT DATA, Inc. All rights reserved. 36 Putting it all together - Success factors for making automation work Data & Intelligence Framework, teams and solutions Customer Experience vs. Savings FTE (Live, Robotic & Virtual) People Management & Measurement ITSM enabled, dashboards DevOps, optimized for automation End-to-end Solution

37. © 2018 NTT DATA, Inc. All rights reserved. 37 • Put the Robot vs. Human sensational and cataclysmic reports in context • Automation is the new outsourcing creating new value and abundance • Foresight tools like Paleofuturism and Retrofuturism help identify the context in which new technologies, products and service are used • Data and Intelligence is at the center of Automation • Intelligent Automation, including Virtual Agents and RPA are rapidly advancing and are a powerful combination • Robots are not taking jobs, they are relieving us of mundane tasks and supercharging the workforce! Key Takeaways

The Future of Work

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The Future of Work

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