Business

Process
Automation
Re-imagine your workforce

KPMG in Malta

kpmg.com.mt
 Contents
3 4
Changing the way Embrace the
we do business - change (and
moving to a harvest the
digital workforce benefits)

6 The spectrum of
automation
8 Delivery
Methodology -
Lifecycle

10 12
A case in point:
Using RPA to
facilitate AML Testimonials
screening

14 15
Dedicated to a
A network of
multidisciplinary
expertise across
approach and
the globe
absolute integrity

16 18
Key considerations Nine must-have
before jumping factors in the
on the automation RPA proposition
bandwagon to the board
2
Changing the way we do business -
moving to a digital workforce
We are living in challenging, yet exciting times packed with opportunities. Digital workforce, the term given
to the continuum of technologies ranging from automating swivel-chair activities such as copying and pasting
content from one system to another, right up to cognitive solutions that can think, learn and reason like
humans, is no longer a consideration but a mandate. In specific situations, this has merely become a means for
survival.

Success in today’s complex global markets requires unprecedented levels of speed, accuracy and cost
efficiency beyond what a human workforce can achieve. As technology improves, sophisticated tasks can
be automated to be carried out much faster and efficiently than the human workforce’s capacity can handle.
Hence, the reason why organisations are turning to automation technology to transform their businesses.

In this brochure, we look at what’s behind these bold statements. We also explore some of the benefits that
automation technology holds, including the ability to digest and analyse huge amounts of data. Finally, we
present nine factors you should consider before implementing an automation strategy.

We strongly believe that robotic and cognitive automation is the wave of the future for organisations. For
most organisations, it is no longer a question of ‘if’, but more about when, where and how fast they can apply
digital workforce as a differentiator. Answers to those questions often rely on understanding the financial
investments required and setting expectations on the timing and magnitude of the associated returns. It’s
crucial that you explore what you can do today to position yourself for success tomorrow.

We welcome your feedback on this topic and invite you to contact our specialists for further discussion.

Marco Vassallo
Partner
Digital Solutions
marcovassallo@kpmg.com.mt
+356 2563 1140

3
 Embrace the change
(and harvest the benefits)
Automation has been driving the economy since the first Industrial Revolution.
The concept has always been in pursuit of the simplification of tasks and
achieving higher productivity - and from vehicles to manufacturing processes,
automation has created a dramatic change to the downstream economy
and spawned a whole new wave of industries and jobs that were previously
inexistent.
Today, we are in the midst of what some call the Fourth Industrial Revolution,
which leverages digital technologies to augment or automate the tasks
undertaken by knowledge workers in business, enabling a digital workforce.
Digital workforce, a term that encompasses Robotic Process Automation (RPA),
is the application of software technology to automate business processes
ranging from transactional swivel-chair activities to more complex strategic
undertakings, in a non-invasive manner. As automation increasingly penetrates
Digital workforce means the tasks that are manual in nature, it is poised to dramatically transform the way
work is traditionally done. Its significance is that it enables data to be collected,
“the automation of labour analysed or calculated at a speed and scale far greater than a human or team of
by leveraging digital humans could manage.
While the common perception of ‘robotics’ may be a robot or piece of machinery
technologies to augment that automates a packing process in a factory, robotics is equally applicable to
or automate the tasks business processes within myriads of industries. Our deliverable - the ‘Bot’,
replicates processes by automating tasks which are repetitive, time-consuming
undertaken by knowledge and prone to errors, directly within the user’s interface. This indicates that no
changes are required to be made to any existing applications, as the bot can
workers in business” interact directly with any interface in the same way a human would.
RPA acts less as a replacer of employees and more as an assistant, allowing
people to do their jobs faster, more thoroughly and more accurately—enabling
the workforce to spend more time to focus on higher-value work. The digital
workforce is not so much a threat to the human workforce; in reality it is the next
evolutionary step toward ever smarter, productive and innovative employees.
The Digital workforce era is here. Automation’s entry into the workforce can
be incremental, but it will be fast. How quickly you transition from a workforce-
centric to a technology-centric business process model will help determine
where you rank among tomorrow’s winners. Are you ready to embrace
automation to break transformation barriers and make every employee an
4
innovator?
Significant cost savings
Productivity/Performance Auditability
Software robots work 24/7, and Bots keep the perfect audit trail via
365 days a year; do not take the log file, which is built by the
vacations, get sick, suffer from software that documents every
work/life balance issues; and action the bot would have taken and
perform tasks at digital speeds. the corresponding resulting outcome.

Employee Satisfaction Quality/Predictability

Eliminating the mundane repetitive Software robots always do what you
tasks allows employees to focus on tell them to do – when properly
strategic initiatives, thereby enhancing configured they do not make
the business in a more profound way mistakes and thereby eliminate
and enabling more job satisfaction. human error.

Scalability Cost Efficiency

Bots scale instantaneously at digital Digital workforce savings are estimated
speeds to respond to fluctuating to be between three to ten times the
workloads. There is also no overtime, cost of implementing the automation.
no hiring challenges, no training, and
no severance.

«Quicker, cost-effective implementation»

5
 The spectrum of automation
Rules Learning Reasoning
Basic Process Automation Enhanced Automation Cognitive Automation

Robotic process automation The next level uses built-in knowledge Cognitive automation is the most recent
technologies address simpler and natural language processing entry into the intelligent automation
processes that follow very explicit capable of recognising patterns from space and should be used when
‘rule-based’ documented manual unstructured data and automating confident with evidence-based rationale.
steps, often leveraging multiple based on accuracy ratings. This often It includes machine learning, artificial
systems (e.g. order entry). These includes starter automations right intelligence, natural language processing
automation tools often reside on the out of the box for activities such as IT and big data analytics, which are used to
desktop resulting in shorter integration operations and finance. create sophisticated technologies that
times and a faster path to automation. think and learn like humans.

Examples Examples Examples

• Data collection (scraping) • Data query (unstructured • AI, Language recognition and
data) processing
• Data query (structured data)
• Answer queries utilising • Self-optimisation of algorithms
• Data processing
knowledge base
• Big Data processing
• Logins to multiple systems
• Analytics provided through
• Projection based analyses and
human intervention
atomisation of decision-making

RPA Enhanced Automation Cognitive Technologies

Algorithms known as smart bots that Machine learning and adaptive technologies that
Automation of transactional, rule-based
execute judgment and reasoning- oriented understand context, infer probabilistic answers,
repeatable processes
6 tasks and extract valuable insights from Big Data
Can all processes be automated?
RPA is not a one-size blanket to drape over every single business process. Just because a process could be automated does not mean it should be. You
don’t want to spend the time and effort to optimise a process if it’s not critical to your business, if you’re not going to get reasonable ROI as a result.

A checklist of criteria for activities best suited for automation points us to processes that fall under the categories below:

Simple Intensively Manual High Volume

Structurally Low Exception High Likelihood for

Repetitive Volume Human Error

“Intelligently applying — or not applying — automation is how to produce better business outcomes and end-user experiences. Identifying processes
fit for automation is initiated with an analysis of business processes against feasibility standards. Shortlisted candidates should align with the criteria
defined above. Automation initiatives should be designed carefully to ensure utmost value, enabling sustained benefits, economies of scale, security
and resilience. Desired benefits and outcomes are achieved in the most cost-effective manner. When mentioning cost, RPA return on investment (ROI)
can generally be recouped within a few months

«RPA offers customised solutions»

7
Delivery Methodology - Lifecycle
Solution Design
Captures the existing business
processes and quantifies the
benefits of automation.

Idea Process Scan Mapping Development

The initial Process Process Process

idea Matrix documentation automation

Functional Proof of Concep

4 to 6 weeks (Imple

8
 Continuous Support
Assistance throughout the
whole journey, including
monitoring, reporting,
incident resolution and
change management
requests.

Migration Test Production

Migration Test automated Assisted Process in

to test process Go-live production

2
Technical Deployment
Includes the design, build,
acceptance testing and
deployment of the Bot.

pt of Medium complexity
ementation Time)

9
 A case in point: Using RPA
to facilitate reconciliations
Finance Specific

Reconciliation is a key part of the account closure process and integral to

ensuring tight financial control and compliance. However, the mundane
process of reconciliation is regularly performed manually, monopolising the
finance team’s time while risking inaccuracies. This entails a considerable
number of hours invested in such reconciliation activity where multiple
individuals focus on manually retrieving and matching transactions between
digital or non-digital documents and the business’ financial system. This
results in an ever-growing number of transactions, sub-ledgers and external
systems, all of which increase the chances of errors, duplicated entries and
inaccurate information.

To tackle this common concern, KPMG has created a solution that focuses
on automated matching and reconciliation of transactions, based on a set
of pre-defined criteria. Essentially, RPA aims at extracting the required data
transactions from bank files, internal systems and the like, and performs
checks to identify any discrepancies during the account reconciliation
process. The main objective of automating this process is to enable the
respective process owners to focus on higher-value, more creative and
increasingly rewarding tasks.

10
Advantages of Automation

The following benefits were achieved by automating the screening process:

• Improving data accuracy as the risk of human error is scaled down,

thereby providing a vital layer of control in supporting corporate
governance and regulatory compliance.

• Diminishing operating costs and possible subsequent audit costs.

• Increasing productivity and faster closure of accounts

• Automated reconciliation leads to improved accounting overall. Decision

makers have access to deeper insights in less time, which is a huge
asset when trying to secure and sustain growth.

11
Testimonials
RPA 7-Day Training

KPMG provided RPA training services

to our internal IT team. The sessions
were interactive and contained a
number of practical tasks which
Bank Reconciliation
allowed more hands-on exposure.
The training was customised to suit KPMG assisted our team by automating a
our requirements and targeted the specific part of our manual process. The
applications which we use internally, project started by the automation team
this gave us the opportunity to begin getting to know and understand into detail
building a proof of concept. the whole process we had in place. This
enabled the team to better understand
- Izola Bank our requirements and to come up with
a solution that best suits our needs.

We worked hand in hand to design and

implement the automatic process into our
system. The team is a dynamic and
pro-active team that puts their client first
ensuring the development of the best
possible solution.

- Accounting Team

12
 Automatic creation of
purchase orders

Suspicious Transactions Report Generation KPMG managed to integrate RPA

seamlessly within our environment. By
KPMG’s automation bot has nicely automating the creating of purchase
complemented our compliance processes, orders, we managed to free up one
automating much of the mundane repetitive week worth of time that one of our
activities our compliance team have previously accountants usually allocated to carry
been burdened with. Our team can now focus out this repetitive task, and which the
their time and attention on analysing data bot managed to carry out in about an
instead of collating it. We are truly pleased with hour.
the operational efficiencies resulting from this
automation project. - Local Gaming Operator

- Local Gaming Operator

13
Dedicated to a multidisciplinary
approach and absolute integrity
Our three functions: Audit, Tax and Advisory stand for a wide variety of services provided by our highly qualified employees, all with
extensive expertise, experience and a high level of commitment. Our services create added value for our clients. This added value
depends not only on the skills of the individual team members, but also, and above all, on their ability to work together as high-performing
multidisciplinary teams. We are committed to this approach as the best way to satisfy our own high-quality standards as well as those of our
clients and the wider public.
KPMG’s technology professionals understand this changing and challenging environment. We combine industry knowledge with technical
experience to provide insights that help technology leaders deal with their complex business models. Our professionals go beyond today’s

What KPMG brings

challenges to anticipate the potential long and short-term consequences of shifting business, financial and technology strategies. We also
help clients explore potential obstacles to change and collaborate on critical decisions that can deliver real value to their businesses.

Our differentiators:
• Objectivity as advisers
• Beginning-to-end experience
Subject Change
• Functional breadth
matter management
• Industry-specific experience expertise expertise
• Technology end services
• Extensive date end analytics capabilities
AI In
Control
• Proprietary research, tools and framework
intellectualproperty
• Industry relationships
Risk Data science
• Integrated competencies end services management expertise
expertise and assets

14
A network of expertise
across the globe
Working collaboratively and pragmatically alongside our client. KPMG helps organisations improve service delivery models, reduce support costs
and drive specific business outcomes in order to achieve sustainable continuous improvements, and competitive advantage. We are also an
industry leader in applying intelligent automation, robotics and cognitive technologies to business operations and services. The map below shows
our global network of expertise:

Malta
• RPA Centre of Excellence
• Digital Solutions team

15
Key considerations before jumping
on the automation bandwagon
Now it is time to take action and realise your share of the automation savings. For those eager to take advantage of automation,
we suggest a three-step approach. Any team about to embark on an automation project should have clear answers to the following
questions:

Raise awareness, Assess initial opportunities Evaluate PoC results, define

align functions and conduct a proof of your framework and build
and expectations concept (PoC) an automation adoption
roadmap
Who are the key stakeholders? Have you identified and prioritised Is the implementation reflected in
areas for automation? a realistic, detailed and costed IT
Verify the right executives are
roadmap?
committed for a unified approach to Create a matrix for assessing and
automation. prioritising automation activities. This Thanks to the advances in RPA and as-
will help you identify quick wins and a-service delivery, you can potentially
deliver value early using predefined shed much of your back office and rent
Have you documented the business’
prioritization criteria. it from service providers. Alternatively,
requirements in detail and how
you could choose to build your own
automation will help you meet them?
infrastructure to support automation.
Implement a high-level automation Have you identified the tools or
governance plan focused on results, technologies that you need? Do you
Do you have a governance framework
not restrictions. Get IT, risk and security need support from providers and
around automation projects?
involved as soon as possible. partners?
As your automation efforts blossom
Choose an experienced, well
and demonstrate success, be prepared
established vendor that meets the
for the onslaught of requests. Have
current and expected needs, as well as
a clear approach to prioritising
gives you scalability and accelerated
opportunities across the enterprise.
integration across different products.

16
Despite the clear line-of-sight between RPA and the benefits brought about, some organisations still struggle to implement
automation and reap the benefits. Every corporation has its own unique dynamics and therefore its own key challenges in
introducing automation. However, some of the major reasons for such difficulties do not stem from a technology point-of-view, but
rather from non-technical barriers. In our experience, critical success factors include:

Knowledge of what to automate Knowledge of how to automate Budget and/or CFO approval
It is widely agreed that the greatest Companies need to identify the In KPMG’s CEO Outlook 2019, Lisa
benefit of automation arises when solutions that address their key issues. Heneghan, Chief Digital Officer at
applied to high-volume, low-value It is likely that a number of functions KPMG UK, observed:
tasks. Quality and consistency are across a business will need to be
other significant drivers of introducing
new technologies in these areas. Any
consulted with before finalising which
solution(s) to implement. We discuss
“Ultimately a CEO’s or CFO’s
tasks which currently do not meet the
organisation’s aspirational quality and
this further in the upcoming section
“Nine must have factors in the RPA
decision to invest in tech wil
consistency thresholds could be ripe
for automation.
proposition to the board”. be based on ROI”
Are you able to make a compelling ROI
case for automation in the financial
reporting function? Some of the key
benefits such as efficiency gains may
have a clear financial value that can
be attached. Others however, such as
improving quality, might be difficult to
quantify -but the more clearly you can
assign a value to them, the stronger
your case will be. Part of this will come
from gaining a thorough understanding
yourself/as a team of the issues and
potential upsides. Highlighting the
benefits and forecasted ROI then
becomes more straightforward.

17
Nine must have factors in the RPA
proposition to the board
One question that is often asked by executives of the organisations is whether investing in RPA and cognitive automation is right
for their organisation. According to Marco Vassallo, who leads the Intelligent Automation stream at KPMG in Malta, this is not the
right question to ask. “At this point in time, it’s not a question of whether you adopt RPA or not,” he declares. “In today’s world, an
organisation that does not seriously consider automation, would be risking remaining relevant.”

Where would RPA work best?

01
• Start with the areas that are the most labour-intensive or involve repetitive, rules-driven
work.
• This may include, for example, jobs that require a large number of relatively low-skilled
employees with high turnover.

What is the quality and accuracy of the data you currently receive? Have you measured

02
error rates?
• Determine how digital labour can help you harness and analyse data for better decision making
(in terms of strategy, operations and product development) and reporting.
• Project the potential savings that will result from reduced errors and increased speed.
• Consider the potential benefits of improved data analytics guidance (e.g. to achieve a profile of
your most profitable customers; to determine which customers require closer risk monitoring).

What is the status of your existing technology systems?

03
• Calculate the technology debt you have on your balance sheet.
• Assess the skills/talents you have in targeted technologies.
• Determine whether existing products used in the front office can be applied to middle
and back office tasks.

Are you facing escalating cyber threats to your operations and the security of your

04
account information?
• A properly designed and operated digital labour solution should allow for better risk
control.
• Consider creating a public and private cloud strategy.
18 • Assess the sophistication of your data retention/deletion policy.
 How much market-share erosion have you experienced as a result of new entrants and

05
increased competition from traditional competitors? How are you reacting to it?
• Determine how customer experience can be enhanced by improved automation, including
straight-through processing.
• Assess whether an AI-driven data analytics program can help you spot trends that will
inform your business strategy.

What are your customers demanding in terms of service, speed and mobility? Are you

06
keeping up?
• By spotting trends and analysing preferences, RPA and AI could help your firm attract and
better service customers or clients.
• Map out any new offerings you will be able to provide to your customers as a result of
enhanced robotics.

07
Is your business being impacted by macroeconomic issues and geopolitical
developments, including new and increased regulation?
• Consider how RPA and cognitive automation will enhance regulatory compliance in
terms of speed, accuracy and reduced headcount.

08
What is your talent acquisition strategy to meet new technology needs?
• Determine whether you will need to hire new employees, retrain current staff, or contract
with third parties to operate and/or oversee the machines.

09
What is your strategy for communicating your plan to transition to RPA and AI
innovations?
• Clear communication of any innovation effort of this nature – for example, how it will be
accomplished and its goals – is the first step on the road to a successful programme.
• It’s essential that lines of business understand their roles and responsibilities in this effort.

19
RPA Experts

Marco Vassallo Alexia Anastasi

Partner Senior Business Analyst
Digital Solutions Digital Solutions
marcovassallo@kpmg.com.mt alexiaanastasi@kpmg.com.mt
+356 2563 1140 +356 2563 1086

Charlene Seychell
Business Analyst
Digital Solutions
charleneseychell@kpmg.com.mt
+356 2563 1753

Industry Experts

Russell Mifsud Mark Curmi

Director Director
Gaming Services Banking and Fintech Advisory Services
russellmifsud@kpmg.com.mt markcurmi@kpmg.com.mt
+356 2563 1044 +356 2563 1048

www.kpmg.com.mt

Follow KPMG in Malta:

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 endeavour 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.

© 2020 KPMG, a Maltese civil partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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

Printed in Malta.