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Process analysis Paving the way towards a superior customer experience
Deloitte | Process analysis This document outlines how banks can leverage process analysis and process mining techniques to swiftly identify areas of improvement and work towards becoming a customer-centric organization.
Deloitte | Process analysis
Contents
Introduction Disruption in the
Financial Services
04
Industry
05
Process analysis: A Project examples
stepping-stone for
20
transformation
12
03
Deloitte | Process analysis
Introduction
Banks around the world are embarking This document sheds light on selected key
on a transformation journey to balance approaches used by Deloitte to identify
between cost optimization and customer key pain-points and understand process
experience. inefficiencies, thus enabling banks to
simplify processes, eliminate waste and
With a focus on meeting emerging strive for continuous improvement to
customer needs, particularly after recent meet customer expectations and maintain
disruptions and challenges caused by the business profitability.
COVID-19 pandemic, banks are looking at
thoroughly analyzing their processes to
unearth direct and indirect improvement
opportunities.
04
Deloitte | Process analysis
Disruption in the
Financial Services
Industry
05
Deloitte | Process analysis
Disruption in the Financial Services
Industry
Today, banks are faced with numerous Figure 1: Country-by-country comparison of customer segments
challenges resulting from evolving
Brazil
customer expectations, growing
18% 32% 51%
competition related to digital banking,
United Kingdom
increased pressure to reduce cost,
13% 40% 46%
and most recently, major world-wide
India
disruptions related to the COVID-19 20% 38% 42%
pandemic. Such challenges have forced Australia
banks to adopt new strategies to remain 17% 45% 38%
innovative and deliver new service Mexico
offerings that transform the customer 24% 41% 35%
journey to meet their expectations. To Norway
cater for this transformation, process 12% 53% 35%
improvement approaches, that are holistic Spain
31% 40% 29%
and agile, are crucial to adapt to changes in
Singapore
customer needs, to face the competition,
21% 53% 26%
and to help banks reduce their costs,
Netherlands
improve the customer experience and
11% 63% 26%
tackle market changes.
Canada
28% 47% 25%
In the following sections, we will highlight France
4 key challenges faced by banks today that 41% 35% 25%
can be tackled through end-to-end process United States
improvement methodologies. 38% 39% 23%
Switzerland
1. Evolving customer trends 21% 56% 23%
In order to provide customers with optimal Germany
32% 47% 22%
experience, banks should place the
China
customer at the heart of their business
21% 58% 21%
by implementing customer-centric
Indonesia
approaches. 35% 47% 18%
Japan
To understand the latter, research 75% 17% 7%
conducted by the Deloitte US Center for
Financial Services in May 2019, querying Traditionalists Online embracers Digital adventurers
17,100 banking customers in 17 countries, Note: Percentages may not total 100% due to rounding.
showcased the following distinction Source: Deloitte Center for Financial Services analysis.
between customer preferences across 17
key countries.
06
Deloitte | Process analysis
Online Embracers and Digital Adventurers Although the frequency of digital channel traditional channels over digital channels
(Figure 1), who are more digitally engaged usage is a positive sign, it is important to for complex and advisory services. For
with their banks and prefer online and make the distinction between the quantity instance, in order to get a personal loan,
mobile apps to conduct banking services versus the quality of the interactions. 61% of customers chose ‘visiting the bank
respectively, represent around 70% of In fact, the survey showed that digital branch’ as a preferred channel. This trend
most countries’ populations. On the channels are mostly limited to informal also applies to the process of applying for
other hand, Traditionalists, who prefer and transactional services such as new products, especially loans that require
to do most of their banking in branches, transferring money, checking account multiple verification and documentation
represent less than 30% of the customers balances and updating account details steps.
across most countries. This shows that (Figure 3). Many customers still prefer
it is more likely that bank customers are
Figure 3: Most respondents prefer traditional channels to handle complex or advisory services
heading toward a path where they would
Channels where respondents go to buy new products
conduct most of their transactions via
digital channels whilst expecting a superior Transactional products
Checking account
customer experience that integrates 54% 4% 30% 12%
the benefits of digital and physical Savings account
environments for banking. 54% 5% 30% 11%
Similarly, figure 2 shows how customer- Debit card
49% 6% 33% 12%
bank interactions are continuously
changing over time with a 30% increase in Lending products
digital channel usage from 2013 to 2020 Credit card
44% 7% 38% 11%
(which was already the main used channel
Personal loan
as opposed to physical consultation and 61% 6% 25% 8%
transactions). Mortgage/mortgage refinance
69% 6% 19% 6%
Figure 2: Average monthly banking channel
usage per 100 customers Bank branch Contact center Online banking Mobile banking app
Source: Deloitte Center for Financial Services analysis.
62
118 87
Figure 4: Respondents used mobile and online channels most frequently
106 98
Bank branch 2%
56 14% 61% 21% 3%
ATM
1170 14% 33% 38% 9% 6%
1557
Contact center 2%
1364
22% 67% 8%
1%
Online banking
18% 18% 29% 13% 22%
2020 2016 2013 Mobile banking app
29% 18% 21% 11% 22%
Digital channel Physical consultation
Never Less than once a month 2-5 times per month
Physical transaction
6-9 times per month 10 or more times per month
Source: Deloitte France Survey, April 2020.
Source: Deloitte Center for Financial Services analysis.
07
Deloitte | Process analysis
2. Increased Competition for high-tech personalized services that reinvent the Further, with the continuous change in
services customer experience and attract new customer preferences, competition from
Customer expectations for digital services customers from all segments. Digital Fintech startups and changing regulations,
are continuously being shaped by superior banks are capable of rolling out new and banks in the Middle East have also
experiences provided by tech giants such enhanced money management, savings, been forced to innovate through digital
as Google, Apple, Facebook and Amazon. investment and lending products, at much platforms. In particular, banks in the United
Such companies set the bar high for digital lower costs than their traditional rivals. Top Arab Emirates (UAE), Saudi Arabia, and
experiences and therefore customers tier banks have worked hard to keep pace other GCC countries including Bahrain are
expect similar experiences from their with their own investments in Fintech, app- emerging as leading their transformation
financial services providers. While digitally based banking and acquisitions; however, by undertaking numerous digital banking
savvy millennials are responsible for the to compete on efficiency or experience initiatives and producing real-time digital
enhanced service expectations, it is by no they will need to embrace a transformation solutions to meet their customers’ banking
means restricted to them. The widespread journey in which they either replace needs.
use of digital technologies across various their legacy systems or adopt massive
industries has led the different generations simplification supported with intelligent A major step towards transforming the
to adopt these digital trends, therefore automation to complement their legacy financial services industry in the region is
making it imperative for banks to be on top systems. open banking, which would enable greater
of their digital service delivery. transparency and inclusivity through open
“Singapore-based Bank, OCBC, has
A major step towards data. Bahrain is the first in the region
to adopt open banking regulations, and
started allowing voice-based commands transforming the financial Saudi Arabia is moving more aggressively
for iPhone users, enabling them to do
basic transactions such as checking bank
services industry in the towards similar regulations within the
next two years. According to research
accounts, credit card details and making region is open banking, by Finastra in June 2020, 88% of UAE
e-payments via Apple’s virtual assistant
Siri. The transactions are authenticated
which would enable banks expect to enable open banking
and open API capabilities in the next 12
using biometrics such as facial-recognition greater transparency and months. Other examples of Middle East
and fingerprints, thus providing a great
customer experience”
inclusivity through open banks embracing digitization trends are as
follows:
data.
Banks previously used to personalize
customer interactions through the “NatWest, one of the leading UK banks,
branches; however, as digital banking launched “Mettle”, an innovative digital
has become more popular, banks had platform that allows small and medium
to identify other means to maintain that size enterprises to open a business current
personal touch. With the use of predictive account in minutes, forecast their business United Arab Emirates
analytics, artificial intelligence and machine performance, create invoices from their Emirates NBD launched Liv., a digital
learning, they will increasingly personalize mobile phone and provide reminders for banking proposition for millennials; Abu
their offering for customers. chasing payments.” Dhabi Islamic Bank (ADIB) partnered
with Fidor Bank to launch the Middle
“Standard Chartered Bank has an Challenger banks, often starting from East’s first community-based digital bank,
interactive, location-enabled mobile scratch, have been able to base their Commercial Bank of Dubai launched
application that prompts users with real- services on powerful, predictive and secure CBD NOW, also targeting millennials and
time and personalized offers from nearby ecosystems that cloud-based technologies digitally connected customers with a
retailers” offer. This has left traditional banks at a mobile proposition, and Mashreq Bank
significant competitive disadvantage due to launched Mashreq Neo, its full-service
Today, top tier banks are competing with their owned IT infrastructure, data centers, digital bank. Emirates NBD recently
“challenger banks” which operate on full legacy hardware maintenance and costly launched a contactless export trade
digital capacity and focus on delivering payrolls. collections capability – a new digital feature
08
Deloitte | Process analysis
that will support smartTRADE clients with customers, with instant credit transfers,
business continuity through the COVID-19 e-invoicing and billing, real-time payment
pandemic. Emirates NBD’s smartTRADE acknowledgement, remittances, bulk
clients can access smartCollections from payments and peer-to-peer money
the safety of their homes or offices, to transfers.
submit an export collections request.
Egypt
Documents can be safely uploaded on the
Emirates NBD Egypt launched a
trade finance portal, with real-time updates
MasterCard World Switch Card for the
on transaction status, thus completely
first time in the Middle East, enabling
avoiding the need to visit a bank counter.
customers to switch from Debit to Credit
ADCB partnered with Silicon Valley’s Plug
at the touch of a button embedded in the
and Play, known for connecting the best Bahrain
card.
technology startups with the world’s SADAD Bahrain launched its latest
largest corporations to boost digital technology-driven service, ‘Sadded’, a
transformation programs. The partnership new online invoicing system that provides
Banks in the Middle East are likely to
comes at an exciting time for the UAE’s businesses and their customers with a
look at more sophisticated ways in which
financial services industry when technology convenient payment solution through
costs can be managed through the use of
like artificial intelligence, robotics, machine a secured payment channel (via SMS
robotics, analytics and Fintech amongst
learning and data analytics offer many new or email, with a URL/link to process the
others.
opportunities. payments).
According to a survey conducted
by YouGov that took place at GITEX
Technology Week, “businesses in the
GCC are expected to place a high priority
on customer experience in 2020”, with
80% of respondents depicting customer
Jordan
experience as “very important”.
Saudi Arabia The Central Bank of Jordan launched a
Al Rajhi Bank and Samba Bank launched bill payment service “eFAWATEERcom”
With the recent introduction of new
digital customer onboarding experiences available through Jordanian banks’ mobile
payment processes and technologies
this year whereby banks are able to start and internet banking platforms. With this
to the financial industry along with a
new relationships with customers and service, customers have the ability to make
millennial population making one third
create current accounts while requiring inquiries and payments to a wide range
to half of the total population in the GCC
minimal customer input by using customer of billers on the spot. Customers can also
region, banks are now being pushed to
information automatically extracted create their own profile and manage their
develop strategies on where to play and
through the integration with Absher and bills accordingly.
how to adapt to the wider competition
Saudi Post. Al Rajhi Bank also launched
of Fintech startups that are “expected to
the Digital Document Signature service,
attract $2 billion in private funding over
which allows customers who applied for
the next ten years in the Middle East
personal financing to digitally approve the
region”. Banks that continue to adhere
promissory note through an electronic
to traditional business models are at
platform for the Ministry of Justice (Nafith)
imminent risk of becoming obsolete.
without the need to physically visit the Lebanon
branch. Saudi Payments, a fully owned Fransabank-Lebanon launched a biometric
subsidiary of SAMA, has teamed up credit card, which has an embedded
with a MasterCard company, Vocalink, fingerprint sensor that eliminates the need
to enable instant payments between for cardholders to rely on their pin code or
financial institutions, businesses and signatures to complete a purchase.
09
Deloitte | Evolving Technology Trends
3. Cost reduction initiatives Figure 5: Branch density continues to decline globally
Amid the low interest earnings, which
Average number of bank branches per 100,000 adults
have persisted for a long period, as well
as the recent market and economic 60 2008 global average: 27.4 bank branches 2016 global average:
uncertainties, banks are under constant 22.9 bank branches
pressure to find innovative ways to 50
increase earnings and significantly reduce
cost. To achieve this, banks need the 40
right balance between short-term tactical
cost decreases, such as headcount 30
reductions, and longer-term strategic
20
cost initiatives, such as streamlining
processes or outsourcing certain non-
10
core functions without compromising the
quality of service delivered. Accordingly, 0 2008 2014
2009 2010 2011 2012 2013 2015 2016 2017
banks are re-evaluating the traditional
role of back-office operations to strive for
Australia France Germany India Japan Netherlands
cost optimization while improving both
back-end and front-end service quality Norway Singapore Switzerland United States
and speed. The traditional function of the
back-office, which is to improve efficiency, Source: World Development Indicators, World Bank.
will be positively impacted by technologies
such as robotic process automation This trend is balancing the voice of the and customer safety versus financial
(RPA) to reduce the dependency on customer (VOC) and the voice of the strength and growth. ‘Work from home’
manual processes. With rapidly evolving business (VOB) as it is bringing benefits for policies have resulted in significant
technologies, major improvements and both the banks and their customers; these business resilience challenges with
efficiencies in operational processes are include enabling banks to rid themselves additional risks of operating as well as less
expected to lead to significant cost savings of a significant cost, increase their direct visibility on operational processes
for banks. performance, and simplify their operations, and performance. At the same time, the
as well as preserve a high quality and pandemic has created huge surges in
“BNY Mellon has deployed 220 bots persistent customer experience. demand for mortgage or payment loan
developed by Blue Prism to handle holidays and debt management operations
repetitive tasks such as data requests from 4. COVID-19 Accelerating Digital that cannot be met by increased full time
external auditors and correcting formatting Transformation equivalent (FTE) capacity. Amongst some
and data mistakes for fund transfers, With the many challenges that 2020 of the rapid changes that banks have
leading to $300K in annual savings” has sprung upon our communities and implemented globally and in the region
organizations; from decreasing bond yields, is the evolution towards direct sales, self-
The decline in use of physical branches by oil and equity prices and the COVID-19 service, digital advice, and digital payments.
customers and the high costs of branches pandemic, comes a large uncertainty that
are pushing banks to take real steps has driven banking institutions to come Responses of banks have been particularly
towards following the trend of shrinking up with rapid business continuity and noteworthy with each bank prioritizing
their branch networks (see Figure 5) and resilience measures. Banks are figuring out their ability to help their customers get
embracing the digital era. As shown by how to enhance the customer experience through this difficult period; here are some
the World Bank’s graph, between 2008 through automation and the integration of examples:
and 2016 the branch density of banks a digital paradigm shift in their day-to-day • Natwest in the UK launched a donation-
decreased globally from 27.4 branches operations. matching program of £5m for a National
per 100,000 adults to 22.9 branches Emergencies trust from donations made
per 100,000 adults; representing an With the pandemic and social distancing by its Reward customer scheme and paid
approximate decrease of 19.65 percent. measures, banks are pushed to full salaries to staff who took time out to
temporarily close branches, and are faced look after their families.
with a dilemma of prioritizing employee
10Deloitte | Process analysis
• ABN Amro in the Netherlands has COVID-19 restrictions are pushing Banque Saudi Fransi (BSF) selected TCS
offered an automatic six-month deferral customers towards digital channels for BaNCS™ Global Banking Platform to
on payments from commercial clients services and sales (Figure 6). Radical provide seamless and contextual customer
with a credit facility of up to €50 million. changes in customer behavior have been experiences.
• UniCredit in Italy has put in place an witnessed throughout; customers who
extension of credit for imported goods of were initially reluctant to adopt digital Abu Dhabi Islamic Bank (ADIB) partnered
up to 120 days to support working capital interactions have gained more interest with Etisalat to launch new covered
management. and comfort in using such methods out cards called ADIB Smiles. Through these
• Bank of Georgia in the UK closed its of necessity due to limited alternatives. cards, ADIB aims to provide savings to its
customer service support in express Such interactions include using contactless members via various rewards.
branches while keeping the self-service cards or digital payments instead of
terminals and ATM areas open. The cash, and online/mobile banking and Oman’s Bank Nizwa has rolled-out
bank’s main branches remain open but investments instead of paper-based/ additional features on its e-wallet solution
under strict safety guidelines in-branch transactions. Some banks (e.g. to encourage contactless payments. The
• America bank in Armenia immediately Canadian banks) have been effective in e-wallet is a digital extension to its Islamic
put its business continuity program into leveraging existing technology investments solutions and allows instant fund transfers.
place when COVID-19 broke out in the (e.g. AI, RPA) to drive responsiveness and
country. The bank was the first in the improve the quality and control over their The COVID-19 pandemic has created a
country to offer a two-month “credit data (e.g., to improve authentication, know dynamic shift in customer expectations
vacation” for its individual clients and your customer (KYC). In addition, there and therefore instigated a live test to the
for legal entities in the more vulnerable have been enterprise-level investments existing digital platforms, omni-channel
sectors to defer principal payments for that will likely accelerate to ensure greater functionalities and mobile capabilities.
three to six months. reach and consistency of key technologies The exact shape of the future is still
• Center Credit Bank (BCC) in Kazakhstan across lines of business and operating uncertain, and mainly depends the
joined the response efforts as soon as units (e.g. workforce management, digital severity and pattern of progression
COVID-19 began to spike in the country. interfaces). of the pandemic. The expectation is
The bank set up a platform so that people that banks will continue to aggressively
could open online accounts that allow Further, banks in the Middle East region pursue technological advancement and
them to stay at home and still receive are partnering with technology companies use revamped business platforms (e.g.
social financing support. to offer digital platforms and services to robotics, AI, analytics) partnering with
enhance the customer experience: various Fintech firms to transform and
In Saudi Arabia, the Saudi Arabian In June 2020, UAE’s Mashreq Bank venture into the new age of digital banking.
Monetary Authority (SAMA) announced a launched the Middle East’s first AI-powered
set of measures and guidelines for banks digital engagement banking bot to make
to limit the negative impact of the crisis. banking easy for Mashreq customers.
SAMA unveiled a package to allow banks
Figure 6: Multi-channel presence – electric channels are accounting for a greater share of
to defer loan payments for six months and
bank’s transcations
instructed commercial banks to support
businesses and individuals affected by
the crisis through restructuring loans Branches BC channel
without charges and reviewing various
fees to adjust to the drop in interest rates.
Call center Internet
SAMA also launched a serious of circulars
requesting banks to enhance different
aspects of their customer service, such as ATMs Channels Digital banking
the automatic update of expired IDs and
customer addresses through integrating Mobile banking Phone banking
with the governmental platform to alleviate
branch workloads, as we as initiatives that
promote cashless payments. Point of sale App
Traditional Electronic
Source: Banking of the future: Vision 2020 | CII – Deloitte.
11Deloitte | Process analysis Process analysis: A stepping-stone for transformation 12
Deloitte | Process analysis
Process Analysis: A stepping-stone
for transformation
With so many industry challenges and data-driven, place the customer at automation to strive for operational
to contend with, banks must strive the heart of the transformation journey. excellence, increase customer satisfaction
to fundamentally transform the way Some approaches rely more on hands-on and drive cost reduction.
they operate through embracing new process analysis and improvements such
technologies and process automation as the Value Stream Improvement Method Key benefits for organizations following
initiatives to maintain their competitive (VSIM), while others rely more on process the implementation of VSIM include the
advantage and market leadership. and task mining such as the Deloitte Digital following:
From using artificial intelligence to optimize Discovery Approach. Below we will detail • Cost and TAT (turnaround time)
credit decisions, and automating manual each of these two approaches as applied reduction, as VSIM uncovers hidden
processes that previously required by Deloitte. inefficiencies, bottlenecks, and process
human intervention, to using chatbots wastes that can be eliminated or
for revamping the customer experience, 1. What is VSIM and how can it help automated
process automation is becoming a real uncover automation opportunities? • Streamlined and standardized processes
game changer. VSIM is a flexible approach widely applied across the organization
by Deloitte in the Financial Service • Enhanced controls for operational risk
Before this transformation can emerge, industry to deliver results from traditional and regulatory compliance
an important initial step is to identify productivity improvements to disruptive • Enhanced quality data and transparency
processes that can be measured, analyzed design innovation. This approach consists as duplicate information will be
and improved. of 6 phases that can be completed in 8-12 centralized in a single source of truth that
weeks and serves to identify and resolve feeds all peripheral systems
At Deloitte, we have developed ground- complex, hidden root-cause problems. • 360-degree customer visibility (e.g.
breaking integrated approaches to help The first 3 phases shed light on the integration with other banks for credit
Financial Services customers tackle current state of the organization, whereas information, governmental systems)
disruptions and create opportunities the remaining 3 serve for designing and • Quick wins that can be implemented with
to factually analyze performance and implementing a sustainable model that minimum effort and in a timely manner
identify improvement opportunities. Our addresses the issues identified earlier.
approaches that are flexible, structured A massive part of this model relies on
Figure 7
Phase 6: Sustain Phase 1: Scope
Ensuring the sustainment of Defining and reaching consensus on
performance and business the scope and the impact of the
improvements business problem
Value Stream Phase 2&3: Asses & Iterate
Phase 5: Implement Improvement Taking an agile approach to
Embedding the complete Method identifying and validating quick
solution in the business wins to create early value and
problem engagement
Phase 4: Future state
Using digital accelerators to focus on
innovating a future state design and speeding
up implementation of the integrated solution
13Deloitte | Process analysis
Phase 1: Scope Phase 2&3: Asses & Iterate
The first phase of VSIM serves to define These two phases apply an agile and iterative approach in identifying and validating
and reach consensus on the scope and quick wins to create early value and engagement. During these phases, it is critical to
the impact of the business problem. Banks understand the business processes to identify barriers to efficiency, identify how value
specifically face many issues related to is created and illustrate the capability of the process and performance against baseline
complaints management and resolution, measures and targets.
product performance, market demand,
digital transformation, etc. What are the key activities performed at this phase?
•M apping the as-is process(es) to help visualize the tasks and shed light on the
What are the key activities performed sequence and interdependencies. Deloitte has its own IndustryPrint tool (ARIS-based)
during this phase? that can be used to draw the process flows.
• Defining the problem statement and •U nderstanding the voice of the customer: e.g. “We need faster answers to our
agreeing on the scope to align on the queries”, or “the customer service representative did not have an answer to my
objective at a very early stage: e.g. a bank questions”; such statements highlight an issue related to response time and requires a
could be facing an increased number of service level agreement (SLA) to be defined as critical to quality (CTQ).
complaints related to personal lending •P erforming waste analysis and ‘go-sees’. This includes performing on-floor
and wants to enhance the related observations, finding out what really happens, and identifying the waste aspect of
processes to resolve this issue. activities. An example would be inspecting the motion occurring while printing a loan
• Defining measurable targets and application at the bank branch.
critical success factors to drive •P erforming pain-point identification and root-cause analysis to help understand
accountability across the business the actual cause of the issues and ensure that the problem is addressed rather than the
and enable monitoring and steering of symptom (e.g. inputting the same customer information more than once on multiple
business processes (e.g. defining a target systems).
time for personal financing file approval, •A nalyzing data and establishing a performance baseline against CSFs and targets.
or number of rejections). The analysis focuses on process effectiveness, identification of process leakage, waste
• Outlining the project governance and time efficiency (e.g. applications which are lost or canceled in the middle of a
and project plan, identifying key risks, process generate unnecessary costs).
dependencies and key outputs. • I dentifying quick wins and prioritizing based on value and ease of implementation,
• Identifying the types of data expected such as improving the template of an Excel sheet used throughout a manual process.
to support documentation of the
as-is process, such as user manuals, Examples of tools used
documented procedures, organization
structure, charters, etc.
5 Whys VOC
Examples of tools used Activity
and analysis
analysis
Fishbone (CTQ)
Process Visual Waste
Stakeholders maps management analysis
Business
engagement
case
map
Change
readiness SIPOC
assessment
14Deloitte | Process analysis
Phase 4: Future state Phase 5: Implementation Phase 6: Sustain
This phase consists of designing, validating The implementation phase embeds This phase ensures the sustainment of
and approving the process improvements, the complete solution to resolve the the process and business performance,
as well as providing a clear understanding business problem, address the business maintaining improvement momentum and
of the impact the proposed change(s) will change impact of the solution and close capturing the change journey and adoption
have. During this phase, the automation implementation gaps to ensure problem process.
opportunities will be highlighted and resolution.
incorporated in the to-be processes. What are the key activities performed
What are the key activities performed at this phase?
What are the key activities performed at this phase? • Identifying key behaviors required to
at this phase? •B uilding a Work Breakdown Structure maintain improvements, track process
• Defining solution requirements for (WBS) and implementation plans and performance and adjust improvements to
the future state design, e.g. defining the defining responsibilities: a deliverable- align with the process vision.
approval layers and rules in the approval based WBS clearly demonstrates the • Integrating management disciplines
workflow related to personal financing relationship between the initiatives into leadership objectives.
files. and the scope (i.e. implementing a new • Coaching stakeholders on behaviors
• Creating a future state process simulator for car leasing system). that instill a continuous improvement
map according to the improvement • I mplementing project/program culture.
opportunity identified to visualize the governance and KPIs: this activity
automation efforts and enhancements defines the governance structure of the Examples of tools used
which can be measured versus the projects/initiatives.
baseline metrics defined in the “Assess” •D eveloping and deploying training
phase. communications: a communication
Change
• Determining the organizational impact plan should be developed to keep all the Revised
adoption
KPIs
of the solution as some automation stakeholders updated with the program assessment
initiatives might replace human functions progress.
or some processes might be eliminated: • I dentifying and addressing gaps during
e.g. fully automating an approval process implementation: based on the solution Continuous
process
based on a predefined risk model might selected and the capabilities of the SOP
optimization
lead to a severe decrease in FTE. organization, the implementation plan framework
• Validating benefit generation from may vary slightly from the to-be design.
the business case: the automation of a •F ormalizing benefits realization and
specific process will enhance the quality the business case.
of data, reduce the required number In case the VSIM approach is not relevant
of FTE and accordingly generate a cost Examples of tools used for the context of some customers, for
saving for the organization. example, in cases of simple processes or
• Testing/piloting the future-state pre-identified issues such as complaints
design as an integrated solution. related to personal financing, Deloitte
Process
Completing a pilot on 1-2 quick wins Business can use the Rapid Improvement Event
control
or processes in order to prove the case Approach (Kaizen), which can be
plans
benefits of the to-be phases. A popular completed in 2 weeks.
example would be the application of RPA
technology for repetitive tasks. Pilot
evaluation
Examples of tools used
Quick wins
15Deloitte | Process analysis
Value stream improvement method Rapid improvement event
• Need to resolve complex issues • Pilot on one process
When used • Root cause of the issues not known • Issues are known in the process
• Process that involves multiple parties • Within the same unit
Medium - high Low
Effort
Medium - high Low - medium
Process coverage
Medium - high Medium
Process step
details
2. The alternative: Using a data-driven What is Deloitte Digital Discovery™? Why do I need both task and process
approach to business process analysis Deloitte Digital Discovery™ tooling mining?
Over the last few decades, IT systems is unique in the market in providing To illustrate this point, we have to look at
have grown from residing in people’s a data-join between process and task the definition of a task and process. One
garages to powering the world’s most mining (refer to the below table for such definition is as follows:
complex industries, and by doing so are more information on process and A process is an upper level description
producing vast amounts of data that can task mining), to provide fully visualized of a series of major steps required to
be harnessed to analyze processes with E2E processes down to a transaction level. accomplish an objective. Processes are
accuracy and volumes that could not generally made up of tasks. Tasks are
possibly be produced using traditional Process mining has been a sub-section of made up of actions or steps.
approaches such as VSIM, due to their data science since the late 1990s and has
human-centric nature. To enable us a wide variety of use cases (i.e. modeling Taking the above and placing it into
to move ahead to an always-on, digital a purchase-to-pay process). We have context, it easily illustrates how both task
future where robots take care of full helped clients build their process mining and process mining reveal different parts
end-to-end processes, people need to capability, analyze processes and employ of a true end-to-end process and are
be able to accurately pinpoint the most predictive analytics for the last decade with necessary to spot high-value opportunities.
valuable areas for intelligent automation the help of the Deloitte Process Mining Figure 8 overleaf shows this graphically.
to maximize the return on investment. To Framework. This framework helps the The y-axis shows the complete E2E process
be able to do this, we have developed the extraction, transformation and visualization coverage down to a transaction level, whilst
Deloitte Digital Discovery tool, specifically of data from clients. It has been refined the x-axis shows the process step details,
for intelligent automation transformations with over nine years of experience and i.e. the coverage of steps that take place
that can accurately model processes by includes features such as standardizing within a task.
utilizing big data to capture millions of timestamps and currencies across multiple
cases and how each one flows through regions, as well as templates for extracting A higher value on the E2E process
a process, thereby enabling us and our data from large IT systems to significantly coverage axis represents the higher
clients to accurately and confidently decide reduce the time it takes to get insights completeness of the whole E2E process
on the highest value opportunities to from client data. (i.e. if there are 100 steps in a process, the
automate. Once Digital Discovery is set up highest value would show that the solution
for a process, it can then be easily switched Naturally, this framework has been captures all 100 steps).
into continuous data-feeds for monitoring adapted for Digital Discovery, enhanced
and continuous improvement. with task-mining agents to give unrivaled
analysis and understanding of true end-to-
end (E2E) processes.
16Deloitte | Evolving Technology Trends
Process mining Task mining
Major systems Process mining tools Desktop applications Task mining vendors
Digital activities executed by people, machines, and software Out-of-system activities, such as updating Excel and sending
leave trails in so-called event logs. Process mining techniques e-mails, are captured through desktop recording over a
What is it? use such logs to discover, analyze, and improve business two-week period and then processed with AI and machine
processes using data science. learning to build process diagrams, improve business
processes and spot opportunities for automation.
To model end-to-end processes by using data-driven insights. To spot automation opportunities by identifying the most
What is it used for? More than a million cases can be modeled on one process common and rule-driven tasks that occur on an employee’s
diagram, showing each variation, where the bottlenecks are, desktop.
and much more.
As we move into an always-on future, process mining enables In order to automate first, we need to understand the task
Why is it significant? the development of digital process twins, continuously down to a transaction level so that rules-based robots can be
monitoring processes. It is often referred to as ‘process developed. Omitting information from the initial as-is analysis
hygiene’. In the future, process mining tools will allow the can lead to unexpected robot failures and failed intelligent
monitoring of the robot workforce. automation transformations.
What are its Process mining only reveals the steps taken during a process Whilst it is exceptionally well-suited to drill into the detail to
limitations? that are available in IT systems; it doesn’t drill into the detail. reveal user activities, users need to ensure they are deploying
For example, it will note that a mortgage application has been it in the area that will bring the most value. To do this, the
approved, however it won’t show the steps taken to ensure it whole end-to-end process needs to be analyzed. For
can be approved. example, task mining reveals the out-of-system checks taken
to approve a mortgage.
In contrast, a higher value on the process Both values of measurement are Phase 1: Connect and extract the data
step details axis shows the level of steps correlated; however, it is important During the first phase, SMEs utilize both
that are included within each specific to distinguish between them as both core and non-core systems to connect,
task (i.e. if one task in a process has 10 have two different functions. The first extract and process the data required for
steps, the highest value on this axis would measurement of E2E process coverage Deloitte Digital Discovery. A combination
represent that all 10 steps within the task allows us to pinpoint tasks with the highest of both sources enables a view of the true
are captured). inefficiencies in a process, whilst the processing time at every core and non-
second measurement is used to drill down core system touchpoint.
Figure 8: How Digital Discovery allows for the
into each task and understand how and • Systems to extract process mining
spotting of high-value automation
opportunities if intelligent automation can be deployed data will be identified and data extraction
to remove these inefficiencies. The sweet points agreed (i.e. a bank’s internal
High spot for intelligent automation is the area mortgage approval system: Pegasus).
Coverage required where the empty, green dotted rectangle • Data will need to be extracted from
to spot high-value and green-filled rectangle meet. Deloitte these systems with the agreed method
Deloitte Digital
automation
Discovery Digital Discovery is currently the only tool and timeframe (i.e. extract two weeks’
E2E process coverage
opportunities
able to combine both data-sets to reap the worth of data from the bank’s internal
benefits of both mining techniques to spot mortgage system).
confident decisions
Process mining
required to make
high-value opportunities. • Task mining software will need to
Amount of detail
be set up on teams’ desktops/virtual
How does Deloitte Digital Discovery™ environments (it may be deployed on 20
work? employee desktops within the mortgage
Digital Discovery uses data science and department).
Task mining software to capture tacit and explicit • The software will run for two weeks to
knowledge to model the as-is process capture the out-of-system activities
Low High landscape. There are three distinct stages that are not visible with traditional
Information for each process task involved: process mining software (i.e. the steps
taken to approve a mortgage).
17Deloitte | Process analysis
Once both task and process mining data imported into a secure environment Phase 3: Digital Discovery Insight
has been extracted it is time to process to be processed. In order to obtain During this phase, domain SMEs obtain
each individually and then combine to give efficient results, the system log data is a visualized analysis of the end-to-end
one holistic end-to-end data model. transformed to include a unique case ID, process flow inclusive of processing time,
activity, and timestamp; other information elapsed time, process variants and rework
Phase 2: Data modeling may be added as it will help deep time, and in combination with suggestions
Combine the data sets diving into the data analysis for better from the visualization tool SMEs are
During this phase, data scientists build understanding of the issues and process able to make informed, data-driven,
new data-models from the extracted data turnaround time. simplification and intelligent automation
(by utilizing the Deloitte Process Mining •T
ask mining data is obtained following recommendations.
Framework) and then apply machine a two-week recording period, after which
learning techniques to produce a unique it is sent for processing using the latest Through the use of the mortgage example
data join. machine learning, AI and optical character above, SMEs can easily spot bottlenecks
recognition (OCR) techniques available. and frictions, i.e. once a mortgage
The main events of the data science •B
oth data sets are subsequently application has been made, SMEs may be
revolve around data upload and combined using the Deloitte data-join able to tell that some applications have a
configuration: method to give a holistic data model. three-day delay due to missing information
• Creating a data pool: data is between departments due to human
error. A robot could be deployed here to
Figure 9: An illustrative example of how task and process mining are used to build a holistic automatically move a mortgage application
end-to-end process model between different teams involved in the
A typical mortgage journey
process and improve processing time.
Managers using SMEs using SMEs make SMEs use a Perform a Decision notes Benefits of using Deloitte Digital Discovery
XLS templates to outlook to notes on variety of third KYC check logges on
Desktop analytics
Process analytics goes beyond basic
Task mining
allocate work retrieve case notepad and party websites evidence form
details word to digest to assist with process efficiency metrics like throughput
information verification time calculation to show how a friction in
a process affects key business outcomes.
Key benefits for our clients include:
• Significantly reducing the cost of
Manual case Access Manually Conduct KYC check Decision– discovery activities: the process analysis
allocation case from review income and and approve/
to team allocation application/ commitment valuation reject/defer alleviates the process improvement
file case check efforts by identifying manual tasks and
rework, so clients can automate smarter
with robotic process automation (RPA)
Process mining
System log files
and other types of automation by
Decision to approve/ focusing on the steps that matter.
SMEs use core systems SMEs use internal reject logged core
to confirm application/ calculators and toolkits • Understanding the impact of process
systemand notes are made
case details to check affordability if the case is deferred friction on KPIs: availability of both
pre-configured and custom KPIs that
enable clients to build and track metrics
according to management or divisional
and visualized through
Analyzed by Deloitte
process mining tool
Deloitte Digital
goals.
Discovery
• Identifying upstream root causes
of friction: AI-powered root-cause
analysis that helps clients drill deeply
Process log data Desktop analytics data to highlight the upstream causes of
18Deloitte | Process analysis
Volume #Applications Average Thr... Customer Ca... #PRocess Va...
Credited Application Process – Process Benchmarking 2.04B 17,305 27 d 369M 7,197
Filter by Creation Date: Filter by Customer Type Filter by Credit Type Filter by Check Type Filter by Assessor Campus
YYYY-M YYYY-M Customer Type Customer Type Credit Type Assessor Campus
vs.
Auto Approved Rate:
30% 68%
Cycle Time:
33 d 20 d
Rework Rate Back Office:
44% 20%
Rework Rate Front Office:
46% 21%
Withdrawl Rate:
18% 6%
process variations, and to set prevention enables each function to see how below shows such an example for a
measures for those issues in the future. the performance of their processes mortgage department within a European
• Increasing compliance and reducing compares across departments, regions, bank, comparing the pre- and post-
risks: automated conformance checking, teams, and even compared to industry- automation landscape.
based on process mining AI, evaluates leading companies, so they can apply
current process performance against the best practices and increase process Phase 4: Monitor and improve
reference process model designed and standardization. Once Digital Discovery is set up for
based on best practices, and instantly processes it is recommended to integrate
highlights areas that fail to conform, so Once the data is loaded, processed and with continuous data-feeds for monitoring
clients can drive process standardization. analyzed, a hypothesis of opportunities and continuous improvement.
• Measuring internal performance can be built and implemented to eliminate,
of entities: process benchmarking simplify and automate processes. The
Figure 10: Summary of how Deloitte Digital Discovery works
1. Connect and extract the data 2. Combine the data sets 3. Analyze the data
Digital footprints Full transparency To-be As-is
Process mining finds Actual process flows
Process mining
and reconstructs become transparent Process
System/
system-based workflows in real time start
430,743
Order
executed
DBMS 430,743
Confirm
430,743
Task mining
ID Activity Time
Surface/
Process end
430,743
19Deloitte | Process analysis
3. Comparing Deloitte Digital process mining, as opposed to a human- and coverage. Deloitte Digital Discovery
Discovery to hands-on-process driven approach, which can miss steps and has been developed to specifically
analysis can be subjective (for example, it may miss help our clients implement successful
We have developed Deloitte Digital exception paths and can be subjective as it automation initiatives whilst keeping an eye
Discovery with intelligent automation relies on employees’ recollections of how a on the high-value return-on-investment
treatments in mind; however, this method process is completed). opportunities. Previous market research
can be applied cross-purpose and cross- indicated that one of the biggest hurdles
industry to take on any transformation This, in turn, means that the entire end-to- of business leaders taking on these
program. end process shows process step details initiatives is the time (and thereby also
on the granular level like never before, the cost) associated with spotting these
There are two key distinctions between giving the users an accurate state-of-the- opportunities in the first instance.
the hands-on process analysis and the art process landscape that can reveal However, that does not mean methods
data-driven approach Digital Discovery bottlenecks and irregularities and ensure such as VSIM are obsolete. Our experience
employs. Whilst hands-on-process analysis conformance on an unprecedented scale. shows quite the contrary, with both
used to be the gold standard for business methods being suitable tools for different
analysis, the end-to-end process coverage True end-to-end process analysis use cases. This is further explored in the
and accuracy significantly exceeds the results are delivered at a speed not table below.
hands-on-manual process analysis in seen before
modeling volumes as it utilizes a data- Using a data-driven approach has several
driven approach, combining task and advantages, the least of which are accuracy
VSIM Deloitte Digital Discovery
Description Map as-is process state by conducting interviews, holding workshops Combines both task and process mining to reveal the true, holistic E2E
and talking to SMEs business process enabling process analysis across different teams, systems
High
High Medium
Medium - high
- high
and applications
Implementation cost High
High Medium
Medium- high
- high
E2E process coverage Medium
Medium- high
- high High
High
Process step details Medium
High
Medium- high
- high High
High - high
Medium
When to choose • Dealing with multiple processes applicable across one
High
High • When activities are predominantly digital (i.e. High
taking
High place in IT
which approach geographical area systems or desktops)
• Majority of the activities done manually or dataMedium
isHigh
unstructured
High - high • For continuous monitoring and predictive and subscripted
High
High
High analytics
• Customer has concerns related to data privacy (e.g. sensitive • To analyze millions of cases and how they flow through processes
data, financials, etc…) • When dealing with one process across multiple geographical areas
• Highly complex processes for which the organization doesn’t
know how they’re completed High High
Pros • Often no sensitive data to deal with • Captures both process and detailed steps within each task in the
• No need to map current IT infrastructure and deploy software process
• In some cases, the cost will be lower than Deloitte Digital • Can be used to check the performance and conformance with the
Discovery ideal process
• Captures tacit and implicit knowledge
• Process and task mining can be completed in parallel
• Uses available data and captures real-time data to build a holistic
business process model
Cons • Time-consuming (as it involves workshops and on-site visits) • Potentially sensitive data that is captured that needs to be hashed
• Relies on information provided by staff which sometimes can • Potentially need to install task-mining software on user applications
be subjective if full Digital Discovery solution is required
• Requires a high level of involvement from the client
Considerations •D
o we know the complexity of our processes? • Will sensitive data be collected? Do we know which applications to
before use •W
ho are the main stakeholders that should be involved in the whitelist?
workshops? • Can this easily be deployed in IT infrastructure?
•D
oes the voice of the customer uncover all issues? • Does HR need to be involved for privacy statements?
• Are systems known and can logs easily be extracted?
• Is the relevant information captured in system logs (Case ID, activity
and event time)?
20Deloitte | Process analysis
Project examples
21Deloitte | Process analysis
Project examples
Case 1: Digital retail client acquisition, Value delivered and impact Case 2: Process optimization for a
onboarding, maintenance and capital markets division
servicing in wealth management Engagement summary
Engagement summary Less than 5 minutes The capital markets division of a
A global bank suffered from manual sales expedited account opening global investment bank launched an
and processing of wealth products across organization-wide initiative to reduce
the Americas and Asia which resulted operating costs by 30% over the next
in their advisors relying on manual and Drastically improved three years. The client engaged Deloitte
inconsistent processes, with high time and productivity of advisors to accelerate existing cost reduction
cost factors to onboard clients and with leading to an increase in opportunities and identify new ones within
60% of applications incomplete, a lack of sales volume key target areas of its capital markets
a scalable platform hampering expansion operations.
and a high compliance risk.
Zero application Approach
The client strategy was to digitize sales of processing errors • The VSIM approach was used to target,
wealth products globally to gain market analyze, and identify improvements. The
share while lowering operation costs Deloitte team collected operational data
through onboarding new clients via digital Reduced operation risk through process interviews with subject
channels, enabling client self-service with the automation of the matter experts within each middle- and
capabilities and utilizing analytics to better control framework back-office team.
understand customer behavior and • Process bottlenecks, pain-points,
improve sales. dependencies, resourcing, and tasks
Enhanced client experience were analyzed to determine root causes
Approach through modern UI and self- and the ability to mitigate or eliminate
• Deloitte used the VSIM method to service capabilities the causes.
study the client’s current processes • Recommendations were compiled
and systems through reviewing existing into function-specific implementation
documentation and conducting roadmaps with execution
interviews to validate and refine the recommendations for realizing the
understanding and/or fill gaps as expected cost reduction benefits within
required. the next 12 months.
• Deloitte then developed an end-to-end
automated application incorporating
suitability, investment selection, account
opening, KYC and funding.
22Deloitte | Process analysis
Value delivered and impact Case 3: Process improvement for auto Value delivered and impact
leasing in KSA
Current state process Engagement summary Future-state process models
models were constructed A leading bank in KSA was facing were designed to reflect the
and validated live during increasing complaints related to its auto recommended changes and
subject matter expert leasing product and therefore wanted to showcase the efficiency
interviews to improve the related processes and and cost savings expected
aligns its capabilities with strategic and (e.g. instant approval,
organizational goals and objectives integration with government
Post-interview, volume and systems, automated
cost data were collected Approach workflow for credit approval,
and overlaid on the process • The VSIM approach was used to assess etc…)
models the as-is situation and design a to-be
state. The Deloitte team conducted
workshops with key contacts involved in Quick wins related to
Pain-points were the processes to capture the as-is status insurance claims and other
highlighted and a Lean and mapped 33 processes across 4 admin areas
Six Sigma root cause areas.
analysis was conducted to • Process bottlenecks, pain-points,
identify optimal process dependencies, resourcing, and tasks Clear KPIs were set that can
modifications were analyzed to determine root causes. be measured and used to
On-premises visits were also made to monitor the auto leasing
capture the waste related to movement processes
Future state process models at showrooms and branches.
were constructed to reflect • A quantitative and qualitative data
the recommended changes analysis for complaints and surveys were Enhanced SLAs for all
and to showcase the conducted to understand the root cause functions involved in the
efficiency and cost savings of the issues and issues in the CRM auto leasing processes,
expected system design. which directly impact the
• Recommendations were compiled turnaround time of the
into function-specific implementation process
At the end of the project, roadmaps with execution
the client had a repository recommendations for realizing the
of process models for expected cost reduction benefits within Implementation plan to
continuous improvement the next 18 months. support the bank in the
deployment of automation,
specifically related to loan
Identified new cost savings simulation and application
~50% for selected processes workflow
Reduced number of
customer complaints
after three months of the
engagement
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