We have all heard about Davos, where the global elites meet once a year to discuss the state of the economies of the world and more importantly, global business. Although the populist era is upon us, we still live in a world where our help centres are in the Philippines or India, cars are made in Japan, Korea or Germany, clothes and manufactured goods are from China and South East Asia and thank goodness, iron ore, coal and LPG come from Australia.
Anyway, I was reading the New York Times on the Davos event and their banner headline caught my eye:
The Hidden Automation Agenda of the Davos Elite
It was a great article and talked about how the world leaders were excited about the prospects of automation to robotise the workforce. But we are not talking blue collar workers, they were talking white collar.
The key words out of the article were: AI and RPA
Now AI, or artificial intelligence is on the rise in various countries and in particular, China- where facial recognition technology can pull a face from a crowded street or stadium. But it is an ever-evolving process. On the other hand, RPA or “robotic processing automation” is here and now and the hottest new thing in business. It is something that can cut significant expenses from an organisation is a quick amount of time.
So what is RPA? Professor Leslie Willcocks of the London School of Economics has expressed it this way:
“RPA takes the robot out of the human. It deals with simple types of task. RPA takes away mainly physical tasks that don’t need knowledge, understanding or insight—the tasks that can be done by codifying rules and instructing the computer or the software to act.
The major benefit we found in the 16 case studies we undertook is a return on investment that varies between 30 and as much as 200 percent in the first year. But it’s wrong to look just at the short-term financial gains—particularly if those are simply a result of labour savings. That approach does not do justice to the power of the software because there are multiple business benefits.
For example, companies in highly-regulated industries such as insurance and banking are finding that automation is a cheap and fast way of applying superior capability to the problem of compliance. You also get better customer service because you’ve got more power in the process.”
Tracking along from this a recent PWC report on RPA which stated:
“RPA is part of the ‘Fourth Industrial Revolution’ because of the dramatic improvements it makes on operations processes:
- Runs at 33% of the cost of an offshore resource and 10% of an onshore resource;
- Reduces process time by up to 90%;
- Reduces error rate to almost nil;
- Strengthens risk and compliance control management;
- Improves customer advocacy, revenue and retention;
- Frees up personnel to provide personalised services and manage unstructured data.”
As you can imagine the elites at Davos were frothing at the mouth with RPA. Here is a quote from the NYT article – which you can read here – Automation at Davos
“People are looking to achieve very big numbers,” said Mohit Joshi, the president of Infosys, a technology and consulting firm that helps other businesses automate their operations. “Earlier they had incremental, 5 to 10 percent goals in reducing their workforce. Now they’re saying, ‘Why can’t we do it with 1 percent of the people we have?’”
But that is the seriously big end of town. For small business owners such as ourselves, RPA is a blessing. Why?
Well it enables sophisticated strategies as well as documentation + processing strings to be automated and available instantly. Importantly I have been using RPA to build out the biggest and best strategies I can think of – at this time anyway. I recently created, along with the LightYear team of RPA Strategy Engineers, a “pre-built related party loan LRBA” which meets the Commissioner’s guideline – PCG 2016/5.
In short, it enables an adviser or paraplanner to complete a simple information and interview process and immediately create a fully-documented and loaded strategy in minutes. The LY Docs related party PCG2016/5 LRBA strategy has the following ten documents built into the strategy:
1. A Product Disclosure Statement
2. The Commissioner’s guideline PCGH 2016/5
3. Trustee minutes upgrading the deed and authorising the acquisition of a single acquirable asset under a Holding Trust
4. SMSF Deed Upgrade plus minutes
5. Investment Strategy covering asset and loan
6. Holding Trust establishment plus minutes
7. Related Party Loan
8. Mortgage Deed
9. Personal Guarantee (optional)
10. Lease if asset to be used for rental income (optional)
At our upcoming Roadshow across Australia we will be highlighting this strategy and many others under our soon-to-be-launched LY Docs Strategy System which uses RPA technology to make complex legal processes, precedents and strategies simple and efficient to implement. The Early Bird for the three hour CPD Strategy session will be closing soon so make sure you jump onto www.ilovesmsf.com/events to register and witness the ground-breaking ability of RPA to leverage your business with no extra staffing requirements, well before your competitors understand what is going on.
The above related party LRBA, which meets and goes above and beyond the Commissioner’s guidelines can be completed in less than 20 minutes for an administration assistant and under 15 minutes for a professional. Now trying compiling all of the above from a lawyer or on-line document provider. The cost from a lawyer would be $5,000+ and on-line document providers simply do not provide all of the above documents. As well, can you imagine how long it would take to build these ten documents and get them right?
The LightYear Docs Strategy System is auto-intelligent, can handle 10,000 strategies and more a day, has taken the ILS team more than 2 years to build and over $1M in cash and sweat to build. Importantly it enables LY Docs to replicate the best-of-the-best strategies through RPA technology.
We would love to hear some strategies or processes that you have used or would like to use in your business to see if we can automate through RPA. Our next big RPA project is Wills and SMSF Estates plus, on display at the Roadshow is our new Family bloodline Planning suite. We have had requests for Buy/Sell agreements so that is on the cards. If there is anything else, let me or one of the I Love SMSF team know – we are keen to bring Davos to your business.