Digitalizing Core Business Processes by RPA Tools

Industry Watch Delivering the priorities and opinions of AIIM’s 155,000 community

“Digitalizing” Core Business Processes

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ABOUT THE RESEARCH As the non-profit association dedicated to nurturing, growing and supporting the information management community, AIIM is proud to provide this research at no charge to our members. In this way, the entire community can leverage the education, thought leadership and direction provided by our work. We would like these research findings to be as widely distributed as possible. Feel free to use individual elements of this research in presentations and publications with the attribution — “© AIIM 2018, www.aiim.org”. Permission is not given for other aggregators to host this report on their own website. Rather than redistribute a copy of this report to your colleagues or clients, we would prefer that you direct them to www.aiim.org/research for a download of their own. Our ability to deliver such high-quality research is partially made possible by underwriters, without whom we would have to use a paid subscription model. For that, we hope you will join us in thanking our underwriters:

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TABLE OF

CONTENTS ABOUT THE RESEARCH................................................................................................................2

PROCESS USED AND SURVEY DEMOGRAPHICS...................................................................................................... 4 ABOUT AIIM........................................................................................................................................................... 4 ABOUT THE AUTHOR.............................................................................................................................................. 4 ABOUT THIS SURVEY............................................................................................................................................... 5

DIGITALIZING CORE BUSINESS PROCESSES..................................................................................6 1. TRUE DIGITAL TRANSFORMATION REQUIRES MORE THAN JUST DIGITIZING BACK END PROCESSES..............................................................................................8 KEY FINDINGS ...................................................................................................................................................... 8

2. MANY ORGANIZATIONS HAVE YET TO DO THE VERY BASIC WORK OF PROCESS AUTOMATION, PUTTING THEM AT A SEVERE DISADVANTAGE IN THEIR EFFORTS TO EMBRACE DIGITAL TRANSFORMATION. DESPITE THE RELATIVE MATURITY OF MANY CORE PROCESS IMPROVEMENT TECHNOLOGIES, THERE IS STILL SIGNIFICANT MARKET OPPORTUNITY HERE FOR SOLUTION PROVIDERS, ALTHOUGH THIS KIND OF BASIC PROCESS STANDARDIZATION SHOULD NOT BE CONFUSED WITH TRUE DIGITAL TRANSFORMATION.........................................................................................................10 KEY FINDINGS....................................................................................................................................................... 10

3. NEW TECHNOLOGIES – LIKE ROBOTIC PROCESS AUTOMATION AND MULTI-CHANNEL INTELLIGENT CAPTURE – OPEN UP OPPORTUNITIES TO NOT ONLY IMPROVE PROCESSES, BUT TO TOTALLY RETHINK THEM..................................................12 KEY FINDINGS....................................................................................................................................................... 12

WHAT’S NEXT?.............................................................................................................................13 Certified Information Professional........................................................................................................................ 13

DEVELOPED IN PARTNERSHIP WITH:..............................................................................................14 KOFAX .................................................................................................................................................................. 14

LOOKING FOR YOUR NEXT STEP?................................................................................................15

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AIIM Industry Watch

Industry Watch Delivering the priorities and opinions of AIIM’s 155,000 community

PROCESS USED AND SURVEY DEMOGRAPHICS About AIIM

Here at AIIM, we believe that information is your most important asset and we want to teach you the skills to manage it. We’ve felt this way since 1943, back when this community was founded. Sure, the technology has come a long way since then and the variety of information we’re managing has changed a lot, but one tenet has remained constant, we’ve always focused on the intersection of people, processes, and information. We help organizations put information to work. AIIM is a non-profit organization that provides independent research, training, and certification for information professionals. Visit us at www.aiim.org.

About the author Bob Larrivee, Vice President/Chief Analyst of Market Intelligence - AIIM

Bob is an internationally recognized subject matter expert and thought leader with over thirty years of experience in the fields of information and process management, and recipient of the Cenadem Brazil — ECM pioneer Award. Bob is an author, lecturer, musician, photographer, and poet. As an avid techie with a focus on process improvement, and the application of advanced technologies to enhance and automate business operations. Bob’s passion is to share his experience and expertise with individuals and business organizations seeking to improve their information and process management practices. © 2018 AIIM

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Core Demographics – Role

ABOUT THIS SURVEY Core Demographics – Role

RM & Archive, 15%

Which op on best describes your role in your organiza on?

Core Demographics – Company Size Other, 17%

Project Management,

LOB - C-Suite,

Approximately how many employees are there in Director, Execu ve,

Which op on best describes your role in your organiza on?

4% • 39% LOB organiza on? We greatly value our objectivity and independence as a non-profit industry association. The results of the survey and the market commentary your made in this report are39% Other, 17% Marke ng • 15% Records & Sales, 6% independent of any bias from the vendor community. • 12% IT Project DM and LOBsurvey - C-Suite, were sent via email to a broad Management, The survey was taken using a web-based tool. Invitations to take the base ofCMnames associated •• <7%10 employees DM & CM, with AIIM and thereby interested Execu ve, Director, 4% 7% • way 39% LOB included 39% in some with information and content management, but not necessarily AIIM members. The link wasnot also posted in a variety of social media outlets. Small, 29% Marke ng • 15% Records • 29% Small Large, 33% & Sales, 6% IT, 12% A total• of 12% 152IT individuals participated in the survey, with demographics as follows: • 30% Medium • 7% DM and CM • 33% Large DM & CM, 7%

RM & Archive, 15%

Core Demographics – Role

Medium, 30% Core Demographics – Company Size

IT, 12%

RM & Archive, 15%

Which op on best describes your role in your organiza on?

Approximately how many employees are there in your organiza on?

Other, 17%

Core Demographics – Company Size • • • • • • • •

39% LOB 15% Records 12% IT 7% DM and CM < 10 employees not included 29% Small 30% Medium 33% Large

Project Management, 4% Approximately how many

LOB - C-Suite, Execu ve, employees are there in Director, 39%

your organiza on?

Marke ng & Sales, 6%

DM & CM, 7%

IT, 12%

Large, 33%

Small, 29%

RM & Archive, 15%

Medium, 30% Core Demographics – Company Size

Core Demographics – Geography •

• • •

< 10 employees not included 29% Small 30% Medium 33% Large

In which country or region are you located?

Large, 33% ROW 10%

Nearly 1/3 of our respondents are from outside of North America

EMEA 21% Medium, 30% North America 69%

Core Demographics – Geography

Approximately how many employees are there in your organiza on?

• • •

< 10 employees not included 29% Small 30% Medium 33% Large

In which country or region are you located?

Core Demographics – Industry Segment

Core Demographics – Geography •

ROW 10% Which of the following best describes your industry sector?

In which country or region are you located?

Small, 29%

Large, 33%

ROW 10%

Nearly 1/3 of our respondents are from outside of North America

EMEA 21%

Medium, 30% North America 69%

Core Demographics – Geography

Nearly 1/3 of our respondents are from outside of North America Largest percentage of segment respondents are from: – Technology – Government & Educa on – Professional Services

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AIIM Industry Watch

Other EMEA 13%

21%

Manufacturing 3%

Technology 26%

North America 69%

Professional Services 17%

Oil & Gas, & U li es 7%

Government & Educa on 20%

Financial Services

Which of the14% following best describes your industry sector? Other 13%

Core Demographics – Industry Segment ROW

10% Which of the following best describes your industry sector?

Other EMEA 13%

Core Demographics – Industry Segment

In which country or region are you located?

5 page

Small, 29%

Manufacturing 3%

Largest percentage of segment respondents are from:

Professional Services

Technology 26%

ABOUT THIS SURVEY Digitalizing Core Business Processes In “The State of Intelligent Information Management: Getting Ahead of the Digital Transformation Curve,” AIIM made the case that every organization is on — or should be on! — a Digital Transformation journey. The heart of this Transformation journey is understanding, anticipating, and redefining internal and external customer experiences. AIIM believes that Digital Transformation effectiveness is imperiled by a rising tide of information chaos and confusion, and that rising tide of information chaos and confusion is creating a demand for new information management practices that extend beyond traditional Enterprise Content Management. How organizations describe these new information management practices is still evolving. AIIM believes that four key Intelligent Information Management practices or methodologies — and an associated set of modular and configurable technology building blocks — are critical to Digital Transformation success:

Practice area #1 — Digitalizing core organizational processes n Robotic process automation n Business process management n Multi-channel intelligent capture n High-volume process optimization/transactional ECM

Practice area #4 — Leveraging analytics & machine learning n Artificial intelligence, content analytics & semantics n Data recognition, extraction & standardization n Metadata & taxonomy management n Document classification & personal information identification Our research in the State of the Industry report identified Digitalizing Core Organizational Processes as currently the most important of the 4 practice areas for organizations relative to achieving their Digital Transformation goals, and so our objective in this Industry Watch was to probe more deeply into how organizations view process automation and to determine whether the reality of their current efforts is enough to achieve true Digital Transformation.

Looking out over the next 12 months, please rank the rela ve importance of each of the following broad IIM prac ces and methdologies to your Digital Transforma on goals (1 = "most important" and 4 = "least important") Leveraging analy cs & machine learning. Automa ng compliance & governance. Digitalizing core organiza onal processes. Modernizing the informa on toolkit.

16% 17% 21%

25%

27%

30%

43% 21%

42% 22%

32% 29% 1

17% 8%

29% 2

22% 4

Practice area #2 — Modernizing the information toolkit n Cloud content management n Internal & external collaboration platforms n Low-code and “self-service” development platforms n Content integration & migration tools

Practice area #3 — Automating compliance & governance n Records management & digital preservation n eDiscovery & legal n Industry & geographic specific compliance n Blockchain

Our research leads to these three core findings: 1 — True Digital Transformation requires more than just digitizing back end processes. 2 — Many organizations have yet to do the very basic work of process automation, putting them at a severe disadvantage in their efforts to embrace Digital Transformation. Despite the relative maturity of many core process improvement technologies, there is still significant market opportunity here for solution providers, although this kind of basic process standardization should not be confused with true Digital Transformation. 3 — New technologies — like Robotic Process Automation, Blockchain, Low and No-code Process Engines, and Intelligent Capture — open up opportunities to not only improve process, but to totally rethink them.

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Terminology – Digitalizing Core Business Processes

“DIGITALIZING” CORE BUSINESS PROCESSES On a scale of 1 ("don't like it") to 5 ("great") do you think the term "digitalizing core business processes" is a good descrip on of the broad process challenges that lie ahead? (All Respondents) Great

The majority of those polled (82%) overall, are comfortable with the term Digitalizing Core Business Processes.

21% 34%

Good

27%

Terminology – Digitalizing Core Business Processes 9% Can live with it

Don't like it

“We are a work in progress and that has taught us to learn along the way.”

On a scale of 1 ("don't like it") to 5 ("great") do you thinkcare the term "digitalizing core business processes" No opinion/don't 6% is a good descrip on of the broad process challenges that lie ahead? (All Respondents)

Percep ons – Effec veness Managing Processes Great

The majority of those polled (82%) overall, are comfortable with the term Digitalizing Core Business Processes.

Looking across all sizes of organiza ons, we see that the majority of respondents feel their organiza ons are doing a good job in managing their business processes effec vely.

21%

34%

Good

On a scale of 1 (TERRIBLE) to 10 (EXCELLENT), please rate the OK overall effec veness of your 27% organiza on in automa ng, managing, monitoring, and controlling yourit core business processes. (All Respondents) Can live with 9% 18% 16%

Don't like it

14%

No opinion/don't care

16%

15%

14%

17%

12% 10%

11%

6% Percep ons – Effec veness 4% Managing Processes

Using a weighted average calcula on, we find the average to be 6.35%

Looking across all sizes of organiza ons, we see that the majority of respondents feel their organiza ons are doing a good job in managing their business processes effec vely.

“Digitalization is perceived too much as a move from paper to digital.” 7%

6% 4%

On a scale of 1 (TERRIBLE) to 10 (EXCELLENT), please 0% rate the overall effec veness of your organiza on in 1 - Terrible 2 3 4 5 monitoring, 6 7 and 8 controlling 9 10 - Excellent automa ng, managing, your core business processes. (All Respondents) 18% 16%

16%

15%

17%

14% Percep ons – Importance of Process Automa on

Process automa on is a must do in the business models of 75% of respondents; making it more of a requirement than a nice-to-have.

12%

11% 10%On a scale of 1 (very important) to 4 (not important at all), please rate 8% 7% organiza on. 8% the overall importance of process automa on to your 6% 6%70% 4% 4% Very2% Important, 58% 2%60% 0% 50% 1 - Terrible

Axis Title

Using a weighted average calcula on, we find the average to be 6.35%

14%

10 - Excellent

40% 30%

Important,[VALUE] Percep ons – Importance of Process Automa on Important, 17% 20% Somewhat

Not important at all, On 10%a scale of 1 (very important) to 4 (not important at all), please rate 3% the overall importance of process automa on to your organiza on. 0% 70% 60%

Very Important, 58%

Percep ons –isProfitability of the Organiza on Process automa on a must 50% Axis Title

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do in the business models of 40% about a typical bell curve, how would you rate the overall PROFITABILITY (or Thinking 75% of respondents; making if you're a non-profit or government agency) of your organiza on © AIIM 2018 www.aiim.orgEFFECTIVENESS, AIIM Industry Watch it more of a requirement compared to others in your industry or peer group? 30% Somewhat than a nice-to-have. Important,[VALUE]

“DIGITALIZING” CORE BUSINESS PROCESSES 1. True Digital Transformation requires more than just digitizing back end processes. Most organizations and departments have a mandate to continuously improve operations. A conventional change agenda involves better tools and technology, better behaviors, and better processes, all focused on generating better efficiencies and improved productivity. In disruptive times, process efficiency is a necessary but not sufficient condition for Digital Transformation. Ultimately, AIIM believes Digital Transformation is more than conventional change. Digital Transformation is about doing things differently — and doing different things as well. And different not just for the sake of being different, but in support of the key strategic objectives facing every organization in the age of digital disruption. That’s why we believe the core IIM process challenge for organizations as digitalizing core business processes rather than just digitizing them. Digitization of manual and paper-intensive processes has long been shown to increase efficiency. Digitalization goes beyond digitizing the steps in a workflow and is all about redesigning the business as a digital business, not just improving what you currently have. The best approach in addressing this transformation is to view it as a journey from the current ways of doing business to a new digital state, based on intelligent information management (IIM) practices that integrate people, process, information and technology in support of achieving greater operational efficiency, meeting regulatory and legal compliance, enabling more agility to change, and enhancing the customer experience.

Key Findings n 82% of organizations are comfortable with the term “Digitalizing Core Business Processes” as a description of the broad process challenges that lie ahead. n 75% of organizations view process automation as “important” or “very important” to their organization.

AIIM Industry Watch

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(82%) overall, are comfortable Percep ons – Impact of Technology

which for 12% of respondents, 15% Percep ons –7.Progress of DT Journey equates to more than

34%

Good

“DIGITALIZING” CORE BUSINESS PROCESSES with the term Digitalizing Core Business Processes.

27%

Can live with it

Modernizing their IM strategy is on the scope for 82% of respondents

39% report having between 2 and 3 systems or suppliers in house Nearly one-third of respondents say they are 75% or more of the way there with the automa on of back end processes.

Agree or Disagree

20%

40%

60%

80%

100%

Don't like it 7% My organiza on has embraced RPA and is moving to implement RPA in several areas of our organiza on. No opinion/don't care 6% My organiza on sees RPA as a strategic advantage for the future.

My organiza on is aware of and understands what Robo c Process Automa on (RPA) means.

Percep ons – Effec veness Managing Processes Looking across all sizes of organiza ons, we see that the majority of respondents feel their organiza ons are doing a good job in managing their business processes effec vely.

My organiza on is concerned that we could face serious disrup on of our businessOn model in the of next12(TERRIBLE) years. a scale

to 10 (EXCELLENT), please

Our informa on ratemanagement the overallstrategy effec veness of your organiza on in needsautoma ng, to be modernizedmanaging, to meet monitoring, and controlling modern problems.

your core business processes. (All Respondents)

16% 14%

say they are 75% or more of the way there with the automa on of back end processes.

Up to seventy - five percent say they are less than 70% of the way there with understanding, an cipa ng and redefining internal and external customer experiences.

12%

67% report having less than half of their processes automated. Only 3% are showing they have reached the 90% plus level.

8% 7% 6% 6% Think about your organiza on's own digital transforma on journey, and the specific core4% processes that support them, and where you would LIKE to be by 2020. How far 4% along are you from where you would LIKE to be? 2% 2% 8%

10 - Excellent

Improved op miza on of internal and external collabora on efforts.

Percep ons – Importance of Process Automa on

Be er than 1/3 feel they are above average (27%) to excellent (11%) when addressing compliance errors.

Increased automa on of back-end processes.

Understanding, an cipa ng, and redefining internal external experiences. to 4 (not important at all), please rate On aand scale of 1customer (very important)

the overall importance of process automa on to your organiza on. We don't care about this 50% There

60%

Process automa on is a must

Very Important, 58%

Planning but haven't started 75% There

For the most part, the majority of our respondents feel they are on par with their peers when it comes to resolving business process issues.

Axis Title

Response outliers 10%

Compliance errors

Thinking aboutrou ng a typical bell curve, how would you rate the overall PROFITABILITY (or Sub-op mum EFFECTIVENESS, if you're a non-profit or government agency) of your organiza on compared to others in your industry or peer group? Process failure rates Average

30%

25% Targets – Process Improvement

Excellent

10%

organiza on in resolving the following business process issues? On a scale of 1 (TERRIBLE) to 5 (EXCELLENT)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Response outliers 0% 10% 20% 30% Irregulari es

40% 50%

60% 70%

80%

90% Don’t know

Stuck in-process delays Process comple on mes are extensive Compliance errors Sub-op mum rou ng

Below Average

Average

Above Average

27%

Records and document management

10%

20%

30%

40%

50% 60%

10%

48% 36%

10%

20%

30%

Excellent

40%

50% 60%

70%

61%

While back-end opera ons is cited 34% Sales proposals and contracts 0% as prime target for process 32%Below average Much below Customer be ercorrespondence, Be er Industry thanhelpdesk SlightlyWatch be er Slightly below improvement, the2018 greatest www.aiim.org Much © AIIM AIIM than average average than average average average customer facing benefits can be 29% Finance (accounts payables and receivables) gained by improving and Case management 26%

70%

61% 48% 36%

Internal HR processes (applicants, mesheets, etc.)

34% 32%

Sales proposals and contracts Customer correspondence, helpdesk

29%

Finance (accounts payables and receivables)

26%

Case management

25%

Research and development Customer on-boarding and new account opening

23% 23%

Supplier contracts and procurement Facili es management and maintenance

15%

Claims processing (insurance, healthcare, gov’t)

15%

Logis cs (deliveries, manifests, etc.) Manufacturing and warehousing

for improvement in your organiza on?

Internal processes like reviews andapprovals, etc. 5% Internal HR processes (applicants, mesheets, etc.)

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Above Average

20% 20% Which core business processes do you feel are the most likely candidates 15%

6% In rela on to your opera onal processes, how would you posi on your

Internal processes like reviews andapprovals, etc.

While back-end opera ons is cited as prime target for process improvement, the greatest customer facing benefits can be gained by improving and automa ng processes related to sales, customer correspondence, on-boarding, and case management.

Be er than 1/3 feel– they are Percep ons Profitability of the Organiza on

While the majority of respondents (52%) feel they are be er to much be er than average in profitability, compared to their industry peers, as shown previously,

12%

Records and document management

Not important at all, 3%

Irregulari es 0% Stuck in-process delays

Below Average 32%

14%

Important,[VALUE] 0% 10%Important, 20% 30%17% 40% 50% 60% 70% 80% 90% 100%

Terrible

25% There We're there!

Which core business processes do you feel are the most likely candidates for improvement in your organiza on?

In rela on to your opera onal processes, how would you posi on your organiza on in resolving the following business process issues? On a 30% Somewhat scale of 1 (TERRIBLE) to 5 (EXCELLENT)

35%

Planning but haven't started 75% There

Targets – Process Improvement

40%

Process comple on mes are extensive

above average (27%) to excellent (11%) when addressing compliance errors.

We don't care about this 50% There

Terrible

50%

20%

18%

Process failure rates

25% There We're there!

do in the business of Resolu on – models Business Process Issues 75% of respondents; making it more of a requirement than a nice-to-have.

Increased automa on of back-end processes.

What propor on (an es mate is OK!) of your core business Understanding, an cipa ng, and redefining processes would you say are automated today? internal and external customer experiences.

For the most part, the majority of our respondents feel they are on par with their peers when it comes to resolving business process issues.

Automa on of our compliance and governance prac ces.

70%

Automa on of our compliance and governance prac ces. Improved op miza on of internal and external collabora on efforts.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Leveraging analy cs and machine 1 learning - Terrible 2 business 3 4insights. 5 for greater

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

None 01 02 03 04 05 06 07-10 > 10 system systems systems systems systems systems systems Leveraging analy cssystems and machine learning for greater business insights.

Resolu on – Business10% Process Issues 8%

11%

10%

16%

Completely agree Somewhat agree No opinion 17% Completely disagree Somewhat disagree 16% 15% 14%

18%

Think about your organiza on's own digital transforma on journey, and the specific core processes that support them, and where you would LIKE to be by 2020. How far along are you from where you would LIKE to be?

Automa on – Process Management

Percep ons – Progress of DT Journey Using a weighted average calcula on, we find the Nearly one-third of respondents average to be 6.35%

Up to seventy - five percent say they are less than 70% of the way there with understanding, an cipa ng and redefining internal and external customer experiences.

10%

16% 7%

“DIGITALIZING” CORE BUSINESS PROCESSES 2. Many organizations have yet to do the very basic work of process automation, putting them at a severe disadvantage in their efforts to embrace Digital Transformation. Despite the relative maturity of many core process improvement technologies, there is still significant market opportunity here for solution providers, although this kind of basic process standardization should not be confused with true Digital Transformation.

“There is a strategy in place to improve internal and external processes and collaboration.”

Key Findings n Only 35% of organizations would rank their organizations as an 8, 9, or 10 on a ten-point scale measuring their overall effectiveness in automating, monitoring, and controlling their core business processes. The average self-assessment is 6.35. n 67% of organizations report that less than half of their processes are automated. n Those that embraced the first wave of process technologies did a good job of attacking many core process problems; less than 30% of organizations rank their organizations as below average relative to such core process metrics as: response outliers, irregularities, stuck-in-process delays, process completion times, compliance errors, sub-optimum routing and process failure rates. n Fairly traditional back-end operations are cited as the prime targets for process improvement. These include processes like internal reviews and approvals (48%), HR processes (36%), sales processes and contracts (34%), customer correspondence (32%), and finance (29%).

AIIM Industry Watch

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“DIGITALIZING” CORE BUSINESS PROCESSES Ac on – Technology Focus on Process Automa on Automa on – Perceived Benefits Looking out over the next 12 months, please evaluate the importance to

Percep ons – Robo c Process Automa on (RPA) Ac on – Technology Focus on Process Automa on Automa on MY ORGANIZATION SEES RPA AS A STRATEGIC ADVANTAGE FOR THE FUTURE.

Looking Looking out out over over the the next next 12 12 months, months,please pleaseevaluate evaluatethe theimportance importanceto to your your your your organiza on organiza on of of each eachof ofthe thefollowing following44technologies technologies ed edto to digitalizing 9% business 13% digitalizingcore core businessprocesses. processes. 0% 0%

RPA is seen as a strategic advantage for 40% Looking at RPA, RPA, 20% of say they they Looking at 20% say respondents have solu onoverall. already while while have aa solu on already nearly 30% 30% indicate indicate they they could could nearly care less less about about it. it. care

High-volume High-volume process process op miza on/ op miza on/ transac onal transac onal ECM ECM

20% 20%12%40% 40%

60% 60%

80% 80%

100% 100%

Mul -channel Mul -channel Intelligent Intelligent Capture 31% Capture Business Business Process Process Management Management (BPM) (BPM) Robo c Robo c Process Process Automa on Automa on (RPA) (RPA) We have a solu on

35%

Looking out over the next 12 months, please iden fy the most important benefit your your organiza on of each ofyou thehope following technologies ed to of process automa on solu ons to gain4 for your business digitalizing core business processes.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

The top 4 benefits organiza ons hope to gain from process automa on include: Looking at RPA, 20% say they a)have Gaining greateralready visibilitywhile a solu on of informa on as early nearly 30% indicate theyascould possible in a process. care less about it. b) Lowering processing costs. c) Be er monitoring, using analy cs.

Talking to vendors

Ac vely researching

We have aAGREE solu onCompletely Talking to vendors Completely DISAGREE No opinionAc vely researching Need to get startedSomewhat Don'tDISAGREE care/not on our radar screen Somewhat AGREE Need to get started Don't care/not on our radar screen

d) Use of rules engines to help in decision making.

Visibility to informa on/content 0% sooner in the business process High-volume process op miza on/ Lower the costs of processing

20%

40%

60%

80%

100%

transac onal ECM

Gain more insight through analy cs

Rules-based workflows/automated Mul -channeldecision Intelligent Capture making Solve failures in the process

Business Process Management

Rou ng to and between processes (BPM) Decreased review and Process approval Automa on cycles Robo c

Rou ng to and between individuals (RPA) Expanded customer and partner interac ons Improved regulatory, legal,aand We have solu on industry compliance get started Rou ng to archive orNeed otherto systems Automated workflows with parallel processing

Talking to vendors

Ac vely researching

Don't care/not on our radar screen

Shared work queues

Func onality – Process Automa on Automa on Percep ons –– Suppliers Impact of Technology How important are the following features/technologies

Future Direc ons – Deployment Op ons Func onality –– Process Process Automa on Func onality Automa on

in mee ng your process automa on goals? 0% process 10% automa on 20% 30%solu on? 40% 50% Where will you look for your

How important are the following features/technologies How important are the features/technologies IN GENERAL, ininwhich direc on arefollowing your organiza on's delivery/deployment mee ng your process automa on goals? inprocess mee ngautoma on your process automa on goals? methods for next 50% 12 months? 0% 10%changing 20% over 30% the 40% 60% 0%

35% of businesses are taking a

The ranking of both morehigh pragma c when it The high rankingview of both process comes toanaly cs changingand a business process analy cs and model, using a hybrid approach real- me business ac vity real- me business ac vity with cloud,reflect rather the than on-premise repor ng repor ng reflect the only applica ons and systems. importance of insight into importance of insight into business opera ons. business opera ons.

40% Process analy cs and repor ng Process analy cs and repor ng 35% User defined process mapping process mapping modifica on 30%User defined and and modifica on Integra on/interoperability across Integra on/interoperability 25% on-premises and cloudacross apps and cloud apps Real- meon-premises and report-based business 20% and Real- me report-based ac vity monitoringbusiness (BAM) ac vity monitoring (BAM) 15% Process modeling and simula on Process modeling and simula on 10% Process discovery Process discovery 5% Integra on/interoperability with Integra on/interoperability with on-premises and cloud repositories on-premises and cloud repositories 0% Alerts and no fica ons More towards More towards Alerts and no fica ons the cloud on-premise Process registry Process registry Producing an executable file Producing an executable file

10%

20%

30%

40%

50%

More towards a hybrid of cloud and on-premise

More towards More towards outsourcing outsourcing and in-house

Which coreWhat business processes do you feel thetechnologies are your spending plans forare these most likely candidates for RPA in yourplans organiza on? What are your for these technologies in spending the next 18-24 months? 0% 5% 10% 15% 20% in the next 18-24 months?25% 30% 35% 40%

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0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Internal processes like reviews and approvals, 0% etc. 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%38% General purpose suite General purpose Recordssingle-vendor and document management 37% single-vendor suite General purpose single-vendor Internal HR processes (applicants, mesheets, etc.) 32% suite plus third party add-ons General purpose single-vendor correspondence, 26% suiteCustomer plus third party add-onshelpdesk Single-vendorfile-share-and-sync /collabora on Single-vendorfile-share-and-sync Finance (accounts payables and receivables) 25% /collabora on Integratedand setnew of best-ofCustomer on-boarding account opening 22% breedset components Integrated of best-ofCase management 21% breed General purpose suitecomponents specifically forspecifically our needs Logis cs (deliveries, manifests, etc.) Generalcustomized purpose suite 21% customized our needs General purpose suite(insurance, withfor produc zed Claims processing healthcare, gov’t) 19% customiza on ourwith industry sector General purpose for suite produc zed and development 18% customiza on for ourResearch industry sector Sector-specific solu on Sales proposals and contracts 17% Sector-specific solu on In-houseSupplier developed solu on set contracts and procurement 17% In-house developed solu on set Manufacturing and warehousing 13% A lot more More Facili es management and maintenance A lot more13% More

Future Spend – Services Ac on Spend – Technology Focus on Governance Future – Services What are your spending plans for these process

What are your spending plans for these process

the next 18-24 months? Looking out over the related next 12services months,inplease evaluate the importance to your © AIIM 2018 www.aiim.org Industry Watch related in the next16% 18-24 months? organiza on of each 0% ofAIIM the technologies ed compliance 2% following 4% services 6% 8%410% 12% 14% 18% to 20%automa ng 22% 24% In-bound Capture

0% 2%

30%

The high ranking of both processconsumers analy cs and Where will real- me business look for their solu on is Modernizing their ac vity repor ng the broken outreflect fairly strategy is onevenly, the IM with in-house importance ofresources insight into scope for 82% of and BPM providers business opera ons. respondents topping the list.

Future Spend Spend Technology Targets – Robo c Process Automa on (RPA) Future –– Technology

Looking at those respondents RPA candidates cited closely align Looking respondents who planattothose spend more or withplan the process improvement who towe spend more or atargets, lot more, find emphasis yet the greatest returns aislot more, we find emphasis being placed on in-house can be found in processes related isdevelopment, being placedand on in-house best-of-breed to Finance, Case management, development, and best-of-breed products for increased spending. and on-boarding. products for increased spending.

Agree or Disagree

60%

and10% governance. 4% 6% 8% 12% 14% 16% 18% 20% 22% 24%

Process analy cs and repor ng0%

20%

40%

60%

80%

100%

User defined process mapping My organiza on has embraced modifica on RPA and is moving to and implement RPA 25% inIntegra on/interoperability several areas of our organiza on. across on-premises and cloud apps My organiza on sees RPA as a Real- me and report-based business 20% strategic ac vity advantage for the future. monitoring (BAM) Process andis simula on My modeling organiza on aware of 15% and understands what Robo c Process Process Automa on (RPA)discovery means. Integra on/interoperability with 10% My organiza on is concerned that on-premises clouddisrup on repositories we could faceand serious of our business model in the next 2 years. Alerts and no fica ons 5% Our informa on management strategy Processtoregistry needs to be modernized meet modern problems. 0% Producing an executable file

BPM provider

In-house Value Businessagree Systems ECM Third-party Completely Somewhat agree No opinion provider solu on service Integrator Added Somewhat disagree Reseller Completely disagree provider

Future Spend – Technology Percep ons – Progress of DT Journey Purchase – Role

What are your spending plans for these technologies in the next 18-24 months? Think about your organiza on's own digital transforma on journey, and the specific WHAT IS YOUR ROLE WHEN BUYING NEW SOLUTIONS?

Nearly one-third of respondents say they are 75% or more of the way there the Looking at those respondents The majority ofwith respondents automa on back end who plan to of spend have influence overmore the or processes. a lot more, findsolu on, emphasis purchase ofwe a new is being placed on in-house are involved in- five developing Up to seventy percent say development, and70% best-of-breed the requirements, and write they are less than of the the business cases for their products increased spending. way therefor with understanding, organiza ons. an cipa ng and redefining internal and external customer experiences.

core processes that support them, and be by 2020. How far18% 20% 0%where 2% you 4% would 6% LIKE 8% to 10% 12% 14% 16% along are you from where you would LIKE to be? General purpose single-vendor suite 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% single-vendor General purpose Leveraging and add-ons machine suite plusanaly cs third party learning for greater business insights. 26% Influence decisions Single-vendorfile-share-and-sync Automa on of/collabora on our compliance Iden fy opportuni es 10% and governance prac ces. Integrated set of best-ofWrite business case breed components Improved op miza on of internal

and external collabora on efforts. General purpose suite specifically 2% customized our needs Increased for automa on of processes. General purpose suiteback-end with produc zed customiza on for our industry sector Understanding, an cipa ng, and redefining

internal and external customer experiences.

17%Sector-specific solu on

We don'tsolu on care about In-house developed setthis 50% There

13%

Determine requirements Procure a solu on Implement the solu on

19%

All of these

None of these Planning but haven't started 25% There 75% There We're there!

A lot more

Resolu on – Business Process Issues Future –Spend – Services Robots Concerns In rela on to your opera onal processes, how would your What are your spending plansyou forposi on these process organiza on in resolvingrelated the following business issues? On a services in the process next 18-24 months? scalefor of fun—When 1 (TERRIBLE)you to 5think (EXCELLENT) And a ques on just about their long-term 0% 2%the 4%following 6% 8% 10% 12% 14% 16% 18% 20% are 22% 24% impact on society,0% which environments 10%of20% 30% 40% robo c 50% 60% 70% 80% 90% 100% you most worried about, if any? And why?

We have a solu on

Talking to vendors

Need to get started

Don't care/not on our radar screen

Ac vely researching

“DIGITALIZING” CORE BUSINESS PROCESSES Func onality – Process Automa on How important are the following features/technologies in mee ng your process automa on goals?

3. New technologies — like Robotic Process Automation and Multi-Channel Intelligent The high ranking of both Capture — open up opportunities to not process analy cs and real- me business ac vity only improve processes, but to totally repor ng reflect the importance of insight into rethink them. business opera ons. 0%

10%

20%

30%

40%

50%

60%

Process analy cs and repor ng

User defined process mapping and modifica on Integra on/interoperability across on-premises and cloud apps Real- me and report-based business ac vity monitoring (BAM)

Process modeling and simula on Process discovery

Integra on/interoperability with on-premises and cloud repositories Alerts and no fica ons

Process registry Organizations have yet to fully grasp the potential impact of the new wave Producing an executable file of process technologies. It is growing increasingly clear that while new technologies become available, and terms like multi-channel intelligent capture and RPA are bantered about by consumers and evangelized by Future there Spend – Technology suppliers, will not be widespread adoption in a short period of time unless the operational value of the technologies align the goals and vision of the Whatwith are your spending plans for these technologies in the next 18-24 months? organization.

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

General purpose Understanding of the potential transformative impact of RPA and intelligent single-vendor suite General purpose single-vendor capture technologies is still in its very early stages, indicating a need for basic Looking at those respondents suite plus third party add-ons industry education and development of use cases to Single-vendorfile-share-and-sync who plan to spend moreon or the technologies /collabora on a lot understand more, we find emphasis better its content-specific applications. Integrated set of best-of-

is being placed on in-house breed components development, and best-of-breed General purpose suite specifically In order to gain consumer acceptance and grow their confidence, education customized for our needs products for increased on spending. must be provided both the technology and the benefit they deliver to General purpose suite with produc zed customiza on for our industry sector

the organization as a whole and theSector-specific groups solu on and individuals impacted by its introduction. An important question to answer is how the technology will In-house developed solu on set support information security, operational efficiency, regulatory compliance, A lot more More and improving the customer experience.

Future Spend – Services What are your spending plans for these process related services in the next 18-24 months? 0% 2%

4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24%

In-bound Capture and rou ng

Looking at those respondent ci ng they will spend more to a lot more, we find that customer communica on management (CCM) and email management top the list for increased services spending.

Key Findings n The relative importance placed on the four core technology building blocks tied to Digitalizing Core Organizational Processes reflect a legacy focus that needs to evolve in the years ahead. Over 40% of survey participants either already have an ECM or BPM solution or are actively looking at one. The corresponding lower percentages for multi-channel intelligent capture and RPA indicate a set of technologies that are not yet mainstream but offer a significant set of capabilities for moving from tactical process improvement to strategic process transformation. n When asked about the most important benefit they hope to achieve over the next 12 months from process automation, organizations reflect the dichotomy between the traditional process management focus on cost reduction (42% = “lower the costs of processing”) and a more transformative goal of value creation (46% = “visibility to information sooner in the business process” and 36% = “gain more insight through analytics”) n The top two priorities for new process automation capabilities — “process analytics and reporting” and “user defined process mapping and modification” — reflect a desire to move process improvement to a more strategic level and to better democratize its capabilities. n Opportunities abound for RPA, but it is still in the very early stages of adoption, particularly among those with a “content” focus. Less than 50% of organizations are aware and understand RPA; Only 30% have actively embraced RPA and are moving to implement RPA. Potential desired RPA targets closely align with current points of process pain — internal reviews and approvals, HR processes, sales processes and contracts, customer correspondence, and finance. n Increased spending plans over the next 18-24 months indicate a degree of confusion about process management platforms (should be investing in in-house capabilities or focus on leveraging best of breed?).

Email management Customer Communica on Management (CCM) HR/Payroll Tech Support/Help Desk

n Increased spending plans over the next 18-24 months for specific processes indicate rich opportunity for RPA and Intelligent Capture solution providers — all of the targets would benefit from these next generation capabilities.

Customer billing Data entry Payment processing A lot more

AIIM Industry Watch

page 12

“DIGITALIZING” CORE BUSINESS PROCESSES

What’s Next?

AIIM’s Certified Information Professional (CIP) program

Many of the organizations responding to our survey have a fair sense of where they are today and future opportunities for digitalizing their core processes. Digitalization of processes is not just the application of technology, it is the improvement of those processes, governance over how the processes function, updating current and implementing new technologies to meet the growing and changing business demands, and educating the user community in the new ways-of-working. AIIM believes that four key Intelligent Information Management practices or methodologies — and an associated set of modular and configurable technology building blocks — are critical to Digital Transformation success: n n n n

Modernizing the information toolkit. Digitalizing core organizational processes. Automating compliance & governance. Leveraging analytics & machine learning.

Digitalizing your core business and organizational processes, shown here as one element of IIM, requires actions in each of the four practice areas in order to be successful. When digitalizing processes is not just about automating the steps in the process, it is changing the way the business functions. Digitalizing processes focuses on goals to improve responsiveness, increase organizational agility to transform and compete in the changing business landscape, and enhance the customer experience to drive adoption, establish loyalty, and increase satisfaction.

It is time to move your organization forward in the automation and transformation journey. AIIM can help. Become a leader in your organization and your market space through AIIM’s Certified Information Professional (CIP) program. AIIM worked with industry experts and focus groups to define the body of knowledge necessary for information professionals to understand core IIM practice areas and methodologies, built a certification and test based upon this body of knowledge that is available at locations around the world, and created a set of training courses and materials to help information professionals prepare for the examination. The path to CIP should be fairly simple for information practitioners who already have expertise and work experience. AIIM has a number of resources that can help practitioners at all levels prepare to become a Certified Information Professional:

n CIP Data Sheet

n Online CIP Prep Course

n CIP Exam Outline

n In-Person CIP Prep Classes

n CIP Study Guide (free to professional

n Practice Exam

members; non-member fee is $60 USD)

n AIIM Training Courses CIPs reflect a more integrated, more holistic view of information and process management. Changes in one process, technology, or practice invariably affect others in the organization. CIPs are able to see both the forest, and the trees, and understand and plan for these outcomes. Because of this, CIPs will identify and understand changes that could cause compliance issues, thereby reducing liability. Organizations that manage their information and processes more effectively enjoy reduced costs, faster time to market, increased revenues and cash flow, and increased business agility. CIPs are uniquely positioned to help organizations achieve these benefits because they understand the interactions between different information intensive processes and activities. We thank you for your interest in Digitalizing Core Organizational Processes, AIIM, and our research. We also thank our underwriters, without whom we would not be able to conduct and share our research in the ways we do today.

13 page

AIIM Industry Watch

DEVELOPED IN PARTNERSHIP WITH:

Kofax Kofax is a leading supplier of software and solutions to automate and digitally transform human and information intensive processes across front and back office operations. These can dramatically improve customer engagement, greatly reduce operating costs, mitigate compliance risk and increase competitiveness, growth and profitability. Its broad range of software and solutions can be deployed in the cloud or on premise, and include robotic process automation, business process management, multichannel capture and other critically important capabilities. These provide a rapid return on investment to over 20,000 Kofax customers in financial services, insurance, government, healthcare, supply chain, business process outsourcing and other markets. Kofax delivers its software and solutions through its direct sales and services organization and more than 650 indirect channel partners in more than 60 countries throughout the Americas, EMEA and Asia Pacific. For more information, visit kofax.com. About Kofax Digital Transformation Solutions Kofax accelerates the customer journey in any industry, such as the onboarding of new customers at a bank, the processing of applications at an insurance company, or the provisioning of services from a government agency. Through its TotalAgility® digital transformation platform, Kofax digitizes customer onboarding and the entire legacy of physical operations, whether manual, paper or otherwise non-digital individual touchpoints, to drive better customer experiences and operational efficiencies. With its “adopt and extend” model, customers can transition to digital at a pace that aligns with their overall transformation goals. Kofax end-to-end digital transformation capabilities: • Information capture, encompassing both document and electronic data capture and aggregation • Process management, to drive momentum in customer journeys • Robotic process automation, to automate routine, manual human tasks • Analytics, to provide visibility and insight to customers, employees and business partners • Customer communications, to provide timely updates and information • E-signature, to enable documents of evidential weight without the need for ‘wet signing’

For more information visit:

AIIM Industry Watch

page 14

LOOKING

FOR

YOUR

NEXT STEP? Do you have a question about this research? Would you like to discuss these findings with other members of AIIM? CLICK HERE TO JOIN THE ONLINE DISCUSSION

Here at AIIM, we believe that information is your most important asset and we want to teach you the skills to manage it. We’ve felt this way since 1943, back when this community was founded. Sure, the technology has come a long way since then and the variety of information we’re managing has changed a lot, but one tenet has remained constant. We’ve always focused on the intersection of people, processes, and information. We help organizations put information to work. AIIM is a non-profit organization that provides independent research, training, and certification for information professionals.

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Digitalizing Core Business Processes

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Digitalizing Core Business Processes