iTalent Digital - Best New Business Services
Company: iTalent Digital, San Jose, CA
Company Description: iTalent Digital is an innovative global woman- and minority-owned digital consulting and software engineering company headquartered in San Jose, CA. It helps companies achieve exceptional business outcomes through digital transformation services such as enterprise collaboration, automated mobile solutions, business insights and analytics, cloud integration, and change management.
Nomination Category: Product & Service Awards Categories
Nomination Sub Category: Best New Product or Service of the Year - Business Services
Nomination Title: Proprietary data science algorithm uses AI and automation to find hidden sources of leaked revenue
Describe for the judges the nominated product or service, including its features, functions, benefits, and performance to date (up to 525 words). Include in this section the date since the beginning of July last year on which the product or service was introduced to the marketplace:
In September 2017, iTalent Digital became the first consultancy to apply artificial intelligence and automation to the identification of revenue leakage, an ubiquitous problem among corporations that has traditionally been very cumbersome to address. This algorithm is part of a proprietary methodology called Cross-System Modeling that has reduced to just a few weeks what normally takes months or years to accomplish.
Revenue leakage is the unintended and often unnoticed loss of revenue, and can affect companies of all sizes. Studies have estimated that revenue leakage can account for between 3 and 12 percent of existing revenues, annually. For a $1 billion company, this adds up to losses of between $30 million and $120 million per year. Traditional revenue leakage solutions are tedious and involve a manual review of millions of data points, including contracts, policies, sales and financial reports, customer records, and more. Typically, a large offshore team of people conduct this review. Anything done manually is at risk of human error, and when dozens of people are each working on different slices of the problem, the risk of error compounds even more. All too often, companies ignore their revenue leakage problem because the expense and time required to address it is perceived as too onerous.
iTalent Digital’s Cross-System Modeling solution
Scouring data for errors and discrepancies is a perfect job for automation and machine learning. iTalent developed a data forensics algorithm that uses both assisted and unassisted machine learning to analyze mountains of data to detect the sources and scale of revenue leakage. What normally takes months or years is now accomplished in a matter of weeks. Through AI, the Cross-System Modeling framework has the ability to detect associations between data on different platforms (thus the “Cross-System” aspect of the solution) and understand the relationship between them, thus generating a holistic view of the business and surfacing problems that can occur from faulty integrations that would be very difficult to detect manually when each reviewer is looking at data within a specific system.
In its first deployment in the fall of 2017, iTalent’s solution uncovered $892 million in leaked revenue from 12 sources across the target enterprise, ranging from incorrect pricing or discounting and incentive overpayment to unbilled customer consumption and faulty systems integrations. The impressive aspect of this was not so much the scale of the issue, but the fact that it was revealed across so many systems and processes, in such a short amount of time (6 weeks instead of 18-24 months). Furthermore, thanks to automation, vastly fewer human resources were required to deploy the solution than what would be required the traditional way, translating into monumental cost savings for the client (our team was composed of two full-time equivalents, compared with more than a dozen people that would otherwise have been required). In a nutshell, our solution enabled a 92%-94% reduction in deployment time and an 83% reduction in human capital compared with traditional methods.
Provide a brief biography of the person or persons who lead the team that developed the nominated new product or service (up to 125 words):
The development of the iTalent Digital’s Revenue Leakage Practice was catalyzed by Renée La Londe, founder & CEO of iTalent Digital, a woman- and minority-owned global technology consulting and software engineering company. She was named Most Inspiring Executive in STEM by Women in STEM, among many other accolades.
Ruchi Kohar (female), Director of Enterprise Accounts at iTalent Digital, serves as the program manager for the deployment of the Cross-System Modeling process, liaising with the client’s IT team and the departments that house the various source systems and data repositories.
Mark Vilimek is iTalent Digital’s Data Forensics Scientist and served as head engineer for the development of the underlying algorithm. He also leads the discovery process of the solution deployment.