Intelligent Automation: The Future of Digitalisation in Organisations
Intelligent Automation: The Future of Digitalisation in Organisations
Thus, with the objective of capturing the role and impact of the digital enterprise, IAMAI’s Digital Transformation
Council, with the help of its knowledge partner PwC India, decided to study the key pillars of digitalisation, the
value of technologies like intelligent automation (IA), the impact of COVID-19 on its adoption, its expected
evolution, its growth drivers, and the skill set requirements.
In the preface to this report, it is important to note that digital transformation is not only the adoption of the
latest technologies – it’s also about data, processes and overall organisational change. It’s about operational,
strategic and cultural transformation. The forecasts suggest that the global market for the internet of things
(IoT) end-user solutions is expected to grow to around USD 1.6 trillion by 2025,2 even though 65% of risk
management leaders believe that risks from transformation adoption and tech will increase in 2021.3
Artificial intelligence (AI)is expected to increase economic growth exponentially over the next few decades.
Research also suggests that 64% of Indian organisations expect to increase demand for cloud computing
as a result of COVID-19 alone.4 The combination of digital and physical technologies like AI, IoT, additive
manufacturing, robotics, cloud computing, and others is expected to disrupt established business models and
challenge the status quo of how organisations operate, what employees and customers expect from them, and
how they compete in the market. Hence, digital transformation is a top strategic objective today.
This study reveals that IA itself has delivered significant benefits, including immediate reduction in operational
costs, rapid return on investment, and shifting priorities of the employee workforce to innovation, strategy,
and other business development activities with speed, agility, resiliency, accuracy, and better regulatory
compliance. It has also introduced increased employee satisfaction through a focus on high-value activities
while driving real-time transactions and many other useful insights.
Digital transformation in an organisation could be powered by automated, intelligent, and transparent initiatives,
ensuring wow customer, employer and supplier experiences. It is our pleasure to share this report with the
hope that it will enable key stakeholders of the digital ecosystem to make an informed choice for the future.
Vinay Kumar
Director, Artificial Intelligence, Azure and Search Partnerships, Microsoft and
Chair – IAMAI’s Digital Transformation Council
1 https://hbr.org/2019/05/the-ups-and-downs-of-indias-digital-transformation
2 https://www.statista.com/statistics/976313/global-iot-market-size/#:~:text=The%20global%20market%20for%20
Internet,around%201.6%20trillion%20by%202025.
3 https://www.pwc.com/us/en/library/risk-management-leader.html
4 https://www.idc.com/getdoc.jsp?containerId=prAP46454420
5 https://www.pwc.com/gx/en/ceo-agenda/ceosurvey/2021/report.html#digital-acceleration
Digitisation
Analytics competency –
1
(volume, velocity, variety, veracity and value)
IA competency –
automation path
analytics path
Standardisation Personalisation
An
on
aly
ati
ics
Au
3
2
4 AI competency
Organisations across sectors and industries are harnessing the as organisations move higher up the digitalisation maturity curve.
potential of digital technologies to gain significant competitive Fast-evolving product capabilities complemented by ease of use
advantage. As per a PwC report, emerging technologies for non-developers are fuelling market growth and enabling citizen-
(augmented reality, drones, virtual reality, IoT, robots, blockchain led innovation in IA adoption.
and AI) are driving rapid cross-functional innovation and making
Furthermore, this exponential increase in the adoption of IA is
organisations smarter.6
driven by the increased capabilities of cognitive technologies
IA is a crucial component of the digitisation agenda. The layering to solve practical challenges and their proven ability to deliver
of automation and intelligent technologies such as smart optical tangible results such as decreasing costs and increasing revenues.
character recognition (OCR), natural language processing (NLP)/ Firms are exploring new avenues of moving up the automation
natural language generation (NLG) and ML enable organisations maturity curve as more competitors adopt IA.
to transform the way they work. IA is fast becoming mainstream
6 https://www.strategyand.pwc.com/gx/en/digital.html
IA combines the capabilities of robotic process automation (RPA) Furthermore, hyperautomation is an increasing trend among
with smart OCR, conversational AI and cognitive intelligence: organisations as IA capabilities evolve and organisational
demand for end-to-end automation grows. Process-mining tools,
RPA: RPA can be defined as technology that configures or
business process management and advanced analytics are being
interacts with computer software to capture and interpret
increasingly used by organisations to expand the scope of IA and
information, thereby enabling transaction processing, data transfer,
realise greater benefits.
data comparison, etc.
• Process mining supports the analysis of data, including diving
Smart OCR: OCR/intelligent character recognition (ICR) is the
deeply into how teams work to show them what to automate.
conversion of images into machine-readable format. Using OCR/
ICR is the first step towards converting images/scanned documents • Business process management automates a complete set of
into editable and searchable data. tasks involved in an end-to-end workflow.
• Advanced analytics helps in unlocking the value of data to
Conversational AI: Conversational AI is a set of technologies
provide deeper insights that enable real-time decision making.
that allows human-like interactions with computers. It enables
computers to understand natural language (including speech and
text) and respond in a manner that mimics human conversation.7
7 https://genietalk.ai/what-is-conversational-ai
Benefits delivered by IA
IA adoption is witnessing continuous growth across organisations. every sector. Moving forward, most organisations will be using IA to
As more organisations understand the value of automation, service drive business growth further and encourage greater productivity,
providers are developing products that are bridging the gap for creativity, leadership and innovation among their employees.
the democratisation of IA. The COVID-19 pandemic has further
9 https://www.pwc.in/assets/pdfs/research-insights/full-potential-revival-and-growth
2019
2018
Impact of COVID-19 on IA adoption
2017 The COVID-19 pandemic has brought about unprecedented
2016
changes in how organisations function. It is the need of the hour
2015
for organisations across the world to re-engineer the ways of doing
2014
business. It is also of utmost importance for organisations to re-
2013
focus on key support functions of businesses that will enable them
2012
to stabilize in this new atmosphere and develop new strategies
2011
for what’s next.13 Organisations need to transform themselves into
Year
2010
2009 modern workplaces that enable the synergy between their human
2008 and machine workforce, with the former assuming responsibilities
2007 for strategic and customer-centric initiatives and the latter
2006 executing repetitive activities.
2005
The pandemic has further increased the adoption of emerging
2004
technologies. As organisations witnessed the impact of a resilient
2003
operating model amidst the pandemic first-hand, COVID-19
2002
has proven to be an opportunity , giving organisations a chance
2001
2000 to repair (emerge from the present crisis), rethink (plan for
transformation) and reconfigure (make fundamental updates to the
0.00 0.50 1.00 1.50 2.00 2.50 3.00 modus operandi and achieve sustainable competitive advantage).
GDP
Source: https://data.worldbank.org/indicator/NY.GDP.MKTP.
CD?locations=IN
Source:
5 Gartner 2020 5 Improving technology infrastructure
9 9 Merger or acquisition
14 https://www.pwc.in/assets/pdfs/data-and-analytics/ai-an-opportunity-amidst-a-crisis.pdf
50.5
44.1
CAGR 14.6%
38.5
33.7
29.4
25.7
22.4
19.6
17.1
13.0 14.9
10.0 11.4
2018 (A) 2019 (A) 2020 (A) 2021 (F) 2022 (F) 2023 (F) 2024 (F) 2025 (F) 2026 (F) 2027 (F) 2028 (F) 2029 (F) 2030 (F)
Source: https://www.analyticsinsight.net/
A comparison between the different sectors that have adopted IA capabilities indicates that the banking, financial services and insurance
(BFSI) sector will lead the race with a CAGR of 16.1% in the next ten years. The BFSI sector is closely followed by the telecommunications
and healthcare sectors, which are predicted to grow at a CAGR of 16% and 15.1% respectively.
15 https://www.analyticsinsight.net/analytics-insight-predicts-north-america-europe-witness-maximum-growth-intelligent-automation-market/
16 Ibid
Demand-side drivers
Proven value of IA: BFSI has been one of the early adopters
of IA. Intelligent adoption has helped the sector to improve the
overall customer experience, enhance security, speed up account
processing, mitigate risk and reduce human hours spent on
addressing repetitive tasks. The visible benefits of IA have led to
growth in demand across industries.
Supply-side drivers
17 https://www.pwc.com/us/en/press-releases/2018/experience-is-everything-heres-how-to-get-it-right.html
Over the past few years, RPA has acted as a driving force that
allowed organisations to slowly experiment with software robotics
for straightforward, low-risk processes and gradually advance
towards cognitive automation technologies. As a non-intrusive,
standardised technology, organisations reaped quick gains from
RPA while also increasing their digital acumen. With the increasing
adoption of cognitive technologies, this line between RPA and IA
seems to be blurring. More and more organisations are skipping the
stepping stone of RPA to directly automate end-to-end processes
and pilot RPA, smart OCR, NLP and predictive analytics in the early
stages of automation technology adoption.
18 https://www.pwc.com/gx/en/ceo-survey/2021/reports/pwc-24th-global-ceo-survey.pdf
One of the major challenges for businesses when using IA to automate their business processes is how to scale up and sustain this
practice. In reality, many businesses are not able to really push their automation projects forward in the business ecosystem, but merely
use the technology in-house to operate a few automated processes. Businesses therefore require a holistic IA practice to deliver consistent
and continuous gains on an ongoing basis.
People fear change and accepting new technology can be stressful for
People and talent gap them as they may experience shifts in their responsibilities. The new normal
and adoption of digital tools have led to considerable changes in required
skillsets. Implementation of IA with an unstructured and unsustainable
approach leads to chaos and acceptance issues.
Define organisational roles as well as Future organisational design Bots created on demand and
broader changes to support RPA. decisions include embedding sold as a shared capability across
Establish governance, KPIs and digital workforce as an integral part functions/regions
Structure Split work between digital and
support model. of operating teams.
human workforce.
Set up and roll out standardised Showcase automation to the Run strategic automation
approach towards RPA broader organisation. campaigns focused on specific
Process implementation. Gamify the programme and use issues/key business drivers.
(Discover - design - develop - debug - benefit realisation as a measure Analytics-driven demand
deploy - maintain - decommission) for further traction. generation/reporting
To truly convert from a traditional enterprise to an intelligent providing a central library for knowledge management. Governance
enterprise, a robust methodology needs be adopted from the very via a CoE will also methodise tools and frameworks followed
beginning. Below are certain factors that can help businesses to for opportunity identification, process assessment and resource
scale up IA and derive ongoing value across various operations allocation.
and departments:
Assess opportunities: Assessing the technical feasibility and
Incorporate IA into business strategy: Businesses should complexity and identifying process automation opportunities that
implement a top-down approach where the leadership team sets will generate the maximum benefits is crucial for a successful
the stage for incorporating automation into every department. automation transformation journey. At the start, the focus should
To scale up and sustain IA adoption, a three-step approach is be on easily implementable processes which can generate high
required: (1) Define an automation approach that takes into benefits in terms of manual hours saved, cost cutting and improved
account the customer experience, resources, investments and customer experience. In due course, automation decisions should
performance for an end-to-end transformation. (2) Lay out a be aligned with the strategic business objectives while leveraging
roadmap for the automation journey, estimate the value generation reusable or existing technical and operational capabilities.
and define success metrics to track performance. (3) Lock the
commitment towards automation across departments, identify
Enable the workforce: For a successful IA transformation, it is
imperative to build new skill sets that may not be available at the
automation drivers and have an established priority mechanism.
start of the journey. Hence, it is important to set a strong foundation
Establish a robust IA ‘centre of excellence’ (CoE): A robust with specific automation capabilities, workforce and governance to
CoE will act as a central backbone for governance, helping the integrate the IA training and learning programme into the business
business achieve automation transformation at scale. Governance ecosystem. One such way to do that is through the citizen-led
facilitates scale by standardising automation processes and development approach.
The enterprise-led automation approach followed in the past has not been able to achieve the desirable scale. An alternative approach where an
organisation enables infrastructure that allows its people to play a significant role in the digital transformation is called citizen-led development.
Create awareness Train the selected citizens Scale up the upskilling programme
Create a digital hub – a one-stop Provide virtual classroom and hands-on Design elements of governance which can
knowledge portal for details on the training on automation/transformation orchestrate the success of the programme.
programme, use cases, demos and tools.
thought leadership. Enable sharing of automation ideas and
Evaluate the participants through hands- solutions across the organisation through
Help the citizens understand the why- on assessments and offline assignments. a common platform.
what-how of the programme through Provide on-demand support/feedback.
orientation and awareness sessions,
thereby encouraging participation. Distribute badges and certificates of
completion to encourage citizens to keep
innovating.
• Launch and communication • Cover an introduction to the • Design the format of the
programme, art of possible, benefit knowledge-imparting sessions.
• Tracking and monitoring
to the individual and market
overview.
Cohort
Overall programme Orientation Virtual classroom Assignments and
Digital hub structure for
planning workshop sessions Assessments
upskilling
19 https://www.pwc.com/hu/hu/kiadvanyok/assets/pdf/impact_of_automation_on_jobs.pdf
20 https://internetofbusiness.com/robots-ai-creating-more-jobs-in-asia-than-they-destroy-repo
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Gaurav Chopra
[email protected]
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PwC India’s IA practice assists clients in their IA journey from
© 2021 PwC. All rights reserved. strategy through execution. With their extensive experience,
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set-up, implementation and deployment, BOT-managed
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The practice has a wide range of domain professionals and
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and in multiple industries/domains. Further, our team has
Sumit Srivastav strategic partnerships with top-tier market-leading IA vendors
Partner, Intelligent Automation and has considerable experience in integrating bots with niche
[email protected] cognitive automation technologies, including smart OCR and
conversational bots.
Sagar Kothe
Associate Director, Intelligent Automation
[email protected]
Contributors
Surjit Panigrahi
Aadya Sanwal
Piyush Bule
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