Technology, Robotics, and Automation: Keeping Your Tax Department Current Andy Gold, Deloitte Tax LLP Tyler P

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Technology, Robotics, and Automation: Keeping Your Tax Department Current Andy Gold, Deloitte Tax LLP Tyler P The 2019 National Multistate Tax Symposium State tax reboot—The age of Multistate February 6-8, 2019 Technology, robotics, and automation: Keeping your Tax department current Andy Gold, Deloitte Tax LLP Tyler P. Juckem, Anthem, Inc. Emily VanVleet, Deloitte Tax LLP February 6-8, 2019 Agenda • Introduction • Transforming Impacts on the State Tax Department • From the “Art of the Possible” – Technology Applied −Automation −Analytics −Migration to the Cloud • Getting Started • Q&A 3 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Transforming the tax function through data and technology 4 The impact of technology “We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before.” World Economic Forum, 2016 5 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Tax trends & technology Tax department trends Related emerging technologies Data management & process automation Analytics • Big Data • Disparate systems Robotic Process Automation (RPA) • Need for speed • Global integration Optical Character Recognition (OCR) Regulatory changes & scenario planning Extract Transform Load (“ETL”) solutions Suite expectations Cognitive computing 6 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Business value enabled by tax transformation comes in 3 ways Enhancing the tax function and strategic partnering across the business increases value from the tax department Enhanced operational Improved risk Increased value to the efficiency management organization Free up personnel to perform Increased transparency and Known as a value-added tax value-added tax planning formalized risk procedures may function, aligned with the activities with increased help effectively address financial organization’s strategies through compliance and reporting statement and audit risk partnership within the efficiency driven by automation organization and process standardization 7 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Moving from the “art of the possible” – Technology Applied 8 Automation - Data Wrangling - Robotic Process Automation 9 What is Data Wrangling? Data wrangling is the process of transforming “raw” data into user- friendly data that can be analyzed to generate actionable insights. 2 Benefits of Data Wrangling • Automation • Integration Staging • Data Accessibility and Preparation • Autonomy • Data detail • Data reconciliation 1 3 Extraction Analysis Applicability of Integration Layer Data Wrangling • Apportionment Provide seamless workflow across • Compliance modules to simplify user experience • Provision • Indirect Tax 10 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Data Wrangling Tools Basic Functionality STORING RESHAPING Data wrangling requires a series Modify and manipulate data into of data structures or objects that a consistent data structure by contain or store data in it’s “raw” gathering columns into rows or form, e.g. data-frames and creating multiple columns from a tables single row SUBSETTING AGGREGATING Selecting or retrieving a Grouping multiple data records particular part of the entire that share one or multiple dataset by specifying subset of characteristics and calculate columns and/or rows values that describe the group as a whole MERGING TRANSFORMING Combining or joining multiple Applying a mathematical or data sources into a single unit; logical function to a particular merging can be either column- column to either enrich, extract wise or row-wise and done by or translate information specifying a joining key 11 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Data Wrangling Illustrative Workflow for State Apportionment 12 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 RPA - Overview What It Is What It Is Not Computer coded software Physical hardware Cheaper and faster way A multi-year technology to automate processes deployment Cross-functional, cross- Artificial intelligence application macros Source: 2018 Deloitte RPA Survey What It Can Do Benefits Open, read and Pull data from the web Lower labor costs / labor redeployed to higher value activities create emails Log into Obtain human input via Increased process throughput web/enterprise apps email / workflow Improved process quality Move files & folders Make calculations Greater delivery model flexibility Copy / paste Extract data from docs Better scalability Fill in forms Collect statistics Better payback / ROI – relatively low cost to implement Read / write to DB’s Follow “if/then” decision rules 13 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 How to identify suitable process candidates for RPA Well-defined, measurable, rules-based processes can be prioritized for automation by rating complexity against value Criteria Typical examples and questions High transaction volume / Process candidates with high value or volume transactions (especially monotonous) are often strong candidates value transaction for automation Processes with many manual activities in the process today that result in a substantial number of errors due to Prone to errors or re-work human operator mistakes, e.g. flexibility of work-force, complexity of work or infrequency of activity High predictability / Processes with a defined set of predictable, unambiguous business rules are ideal for automation rules-based Processes with few exceptions in delivery are excellent candidates for automation in the beginning. With Limited exception handling learning, the organization can expand to processes which are complex or error prone Processes with little automation support today and large chunks of manual work involved benefit more from Significant manual work involved RPA, although the process does not need to be completely ‘straight through processed’ to benefit from automation Processes that vary greatly in terms of throughput and require large influx of resource support may be a strong Seasonal Peaks and Troughs candidate for robotics Out of Office Hours Processes that involve out-of-office hours support are often strong candidates for automation as they contribute Support to the normalization of an employee’s workday Processes with no planned changes or updates are often stronger candidates for automation as significant Process/system stability changes can create a substantial amount of rework 14 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 RPA: How It Works RPA can easily be deployed and managed from a central controller to interact with a wide range of business applications 15 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 RPA Tax Examples Indirect tax compliance – sub processes E-filing Use tax reconciliation Pulling invoices Tax provision – sub processes Direct tax compliance – sub processes And more…. 16 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Automation / Data Wrangling Anthem’s Lessons Learned……so far Capitalizing on broader RPA initiatives Early experience with Alteryx Sustaining the automation 17 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Realizing Value from RPA: More Than Just Building Robots Building robots is only the start to deriving value from an automation program Value Bot Automation Development Barrier to Only Approach Realizing Value Efficiency Automation Key RPA Decisions, Impacts, & Considerations Improved Quality & Operating Model Governance Process Accuracy How are roles and Who manages exceptions Redesign responsibilities being and escalations? Who How does a shifted? Who is makes key decisions? process need to Deloitte’s accountable? change to drive Comprehensive savings, Approach to RPA improved accuracy and/or Financial Analysis & Labor Impact the shift of Decisions resources to Resource Shift Who is impacted? What is higher value What are the the future for those work? To Higher implementation costs? Who resources? What training is Value Work is funding? required? 18 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 Data Wrangling / Automation Tools - Considerations Choosing the right technology tool(s) based upon need Approaches to deployment Training and change management needs Lessons learned 19 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 State Tax Analytics - Visual Data Analytics - Analytics within Tax Portal - Tax Modeling 20 State tax analytics / dashboards 21 Copyright © 2019 Deloitte Development LLC. All rights reserved. The National Multistate Tax Symposium: February 6-8, 2019 State apportionment Analytics dashboard Activity Map and KPIs for Sales,
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