RPA Overview

 Introduction to RPA

Ø  Robotic Process Automation (or RPA) is an emerging form of clerical process automation technology based on the notion of software robots or Artificial Intelligence (AI) workers.

Ø  A software 'robot' is a software application that replicates the actions of a human being interacting with the user interface of a computer system.

Ø  For example, the execution of data entry into an SAP system - or indeed a full end-to-end business process - would be a typical activity for a software robot.

Ø  Robotic Process Automation (or RPA) is an emerging form of clerical process automation technology based on the notion of software robots or Artificial Intelligence (AI) workers.

Ø  A software 'robot' is a software application that replicates the actions of a human being interacting with the user interface of a computer system.

Ø  For example, the execution of data entry into an SAP system - or indeed a full end-to-end business process - would be a typical activity for a software robot.

Ø  One of the debates surrounding RPA revolves around the question of whether this technology is truly revolutionary or simply the product of the evolution of other similar technologies.

Ø   Many technologies, including artificial intelligence (AI), expert systems, and other methods of process automation have served as predecessors to RPA. That being said, RPA takes artificial intelligence and expert systems to an elevated level.

Ø  Among leaders in the automation industry, robotic process automation is perceived as offering unique capabilities and advantages over previous technologies

How RPA can help

Ø  RPA software is composed of multiple components. First, for collection, they employ a variety of tools for grabbing digital data, which can include screen scrapping, digital image recognition, or the ability to access a server or be linked to a website.

Ø   RPA promises huge cost savings and the elimination of tedious tasks for IT infrastructure workers.

Ø   RPA is most likely to replace data entry and data rekeying or data assembly and formatting tasks, which are rules-based and also it helps in completing high volume, repeatable and highly transactional process functions.

Features of RPA

Code Free

RPA does not require programming skills. Business operations employees - people with process and subject matter expertise but no programing experience - can be trained to independently automate processes using RPA tools within a few weeks.

Non-disruptive

The robots access end user computer systems exactly as a human does - via the user interface with an established access control mechanism so no underlying systems programming need be required and no need for transformation or change of existing system.

Business user friendly

RPA projects do not require expensive IT skills and investment in new platforms, the economic threshold of processes with a viable business case for automation is substantially lowered.

Benefits of RPA

Companies that have leveraged robotic process automation in their services portfolio have shown that they can increase value to their existing customers and differentiate themselves to new customers in a crowded marketplace. The major qualitative and quantitative benefits of RPA are shown below:

Decreased operational costs

Robotic process automation is creating a shift beyond labor arbitrage, or ShiBLA. It reduces labor costs by 25% to 40% in both IT and business process environments.

Reduced error rate and delivery risk

Automating a highly optimized process provides risk free and zero-error delivery. However,
the software requires testing, training and governance to get desired outputs.

Improved regulatory compliance

A fully RPA automated process would enable enterprises to track every step and systematically document them. This helps them to be more compliant with industry and audit regulations.

Data analytical ability

Process logs generated by the software robots can be further analysed for improved decision-making. This is possible at both the micro and macro levels of business processes.

Increased efficiency

A software robot is capable of working all day, every day a year, and does not require any time off. Software robots can execute more work in less time, thereby gaining control of resource requirements during peak processing periods.

Flexibility and multitasking

Employees can devote their time to complex tasks, adding value to the existing processes, while software robots handle repetitive, tedious jobs. They can be involved in activities that call for greater human intervention.

Increased customer satisfaction

Automation results in more efficient and error-free processes, giving employees more time for direct interaction with customers, enhancing their experience, improving customer satisfaction and building their relationship with the company.

Logistical advantages

RPA eliminates the need for offshore labour, and complications with recruiting and managing employees in different time zones, together with any cultural and language barrier among employees. Companies can also reduce training costs significantly.

Cost Saving Potential

While many businesses have turned to offshore outsourcing to decrease operational costs, RPA offers an opportunity for additional savings. According to the Institute for Robotic Process Automation, RPA technology has been shown to cut the cost of an offshore full-time equivalent (FTE) to one-third.

Types of RPA	Cost savings
Rules-based automation	35 - 50%
Enhanced /intelligent automation	35 - 50%
RPA with cognitive technologies	10 - 20%

RPA vs. Traditional Automation

Ø  Software robots interpret the user interface of third party applications and are configured to execute steps identically to a human user. They are configured (or "trained") using demonstrative steps, rather than being programmed using code-based instructions.

Ø  Demonstrative is an important concept in the RPA market because the intention is not to provide another "coding" platform for IT users (who already have the benefit of mature and tested software development and middleware platforms). Rather, the intention is to provide an agile and configurable capability to non-technical "business" users in operational departments.

Ø  A software robot should be a virtual worker who can be rapidly "trained" by a business user in an intuitive manner same like how an operational user would train a human colleague.

Ø  The benefit of this approach is twofold. Firstly it enables operations departments to self-serve. Secondly, it frees up the limited and valuable skills of IT professionals to concentrate on more strategic IT implementations such as ERP and BPMS rollouts.

Ø  RPA is typically focused on immediate operational effectiveness, quality and cost efficiency. RPA is classically seen therefore as complementary to existing automation initiatives.

Scope of RPA in ERP

ERP especially Finance and Accounting is an attractive target for RPA utilization because these processes have attributes that lend themselves to the technology. For Eg:

Ø  Accuracy: Robotic software is extremely accurate: data entry errors are not made; process steps are not overlooked; numbers aren’t transposed and “bad days” don’t happen.

Ø  Elevated Service Levels: RPA is capable of executing high volume, complex tasks within transaction times impossible for human staff.  

Ø  Fraud Control: Whereas any process, run by people, that touches multiple banking systems must sacrifice efficiency for role limitations and controls, robotic software imposes no such penalty. It will invariably execute a process as configured – without deviations or risk of fraudulent actions or inappropriate data use.

Ø  Compliance-Friendly:  As the software robot completes workflow processes it creates audit trails and logs as needed for regulatory compliance.

Ø  Scalable:  Software robots can be cloned and deployed within minutes– or removed – as needed.  This highly flexible scalability allows for easy accommodation of work peaks and valleys (e.g. end of month, quarter and year activity levels).

Ø  Higher Staff Retention: Few financial & accounting employees enjoy the tedium of repetitious work, all of which can be done by software.

Ø  Rapid Data Extraction & Aggregation:  Software robots are quickly configured to gain rapid access to data across multiple application and databases – then configured to consolidate and manipulate the data. This capability is often very useful for quick, customized and accurate consolidation data for month end and quarter end financial reporting

Ø  Regulatory Compliance Validations: software robots can be configured to report regulatory compliance or variances across multiple systems by accessing those systems and monitoring actual outcomes against required outcomes.

Current State of RPA

Ø  RPA, part of the larger Business Process Outsourcing market, is still fairly new and as such relatively small.

Ø  It is growing and rapidly gaining traction as understanding of the technology and its benefits is increasing within organizations.

Ø  In recent, the demand and expectations for automation have become more elevated than any other skill in the market today. The research shows that, “65 percent of service buyers and 69 percent of provider professionals cite the need to understand and deploy automation is significantly increasing as a skill requirement.

Technology and Service Providers

The IT robotic automation market comprises RPA technology providers and RPA service providers.

Ø  Some of the key technology providers for RPA include Blue Prism, IPSoft, Inc., Be Informed B.V., Appian Corporation, and Automation Anywhere Inc.

Ø  RPA service providers include Sutherland Global Services, Tata Consultancy Services, Accenture plc, Cognizant Technology Solutions, Infosys Limited, and Hewlett Packard Company.

Limitations in RPA

                                                                                                  

 Conclusion

The future of RPA is subject to much speculation, as the early majority adopt the technology and discover new uses and new synergies. Possible future trends may include:

Ø  A convergence of BPM and RPA tools, much in the way that the distinction between BPM and workflow tools is now blurred.

Ø  Greater incorporation of artificial intelligence (AI) for advanced decision making and inferencing.

Academic studies project that RPA, among other technological trends, is expected to drive a new wave of productivity and efficiency gains in the global labour market.