What Is Robotic Process Automation? And How Does It Work?
Robotic Process Automation (RPA) or software robotics uses automation technologies to mimic human actions, judgment, and intelligence to accomplish back-office tasks of human workers, such as extracting data, filling in forms, conversion of data format, periodic reporting, etc. RPA technology works by deploying automation scripts to integrate and perform various repetitive functions and transactions across unrelated IT systems of an enterprise.
RPA tools are the key to automating relatively simple business process activities at a high volume, freeing up human resources to prioritize more complex and intellectually demanding tasks. It is currently booming across industries, geographies, and organizational sizes. RPA technology has so far enabled decision-makers to speed up digital transformation efforts and generate higher ROI from their staff. In fact, unlike previous digital transformations, Robotic Process Automation does not require heavy upfront investment or infrastructure costs.
At the core of the next digital transformation wave, would be the intelligent automation capabilities of organizations, which is exactly what RPA technology promises to deliver. It is inconceivable to think of a full-scale digital transformation strategy without RPA. Let’s learn how:
RPA as A Part of Digital Transformation
RPA can digitally disrupt back, middle and front offices with dramatic reductions in cost, increases in speed, improvement in compliance, etc. Top RPA companies provide some simple RPA solutions that let a trainee with limited or no development experience automate basic routine tasks. While that’s the simplest of RPA solutions, IT leaders need a broader plan for RPA’s role that addresses the following aspects of digital transformation:
1. Business-Critical
RPA has achieved business-critical status in a short period. This is because RPA solutions are usually deployed for core functions like finance and accounting, sales and fulfillment, procurement, etc. RPA allows organizations to create a digital workforce with the use of bots to execute resilient operations, especially in the current Covid-19 situation where remote working has become a norm.
2. Scaling Automation Initiatives
Many enterprises are struggling to scale their automation initiatives in their digital transformation journey because they achieve early limited success with few dozen bots. In order to get to the larger more impactful scale, IT leaders must plan to scale RPA and intelligent automation with proper governance and support of sizable software bot fleets.
3. Enabler For Other Digital Technologies
RPA tools can’t sustain marketplace competition on their own. In order for RPA tools (process-driven) to remain competitive, they need to move beyond task automation and extend their offerings to include Intelligent Automation (IA). This type of expansion on RPA functionalities will be done by incorporating sub-disciplines of artificial intelligence (data-driven), like cognitive automation, machine learning (ML), natural language processing (NLP), computer vision, hypothesis generation, and analysis.
While RPA will be used for rule-based simple to complex processes, IA will be used for judgment-based processes. Whereas, in collaboration with cognitive intelligence and AI, RPA software can lead to predictive ‘Decisioning’, self-adaptability, and management.
Business Drivers and Expected Benefits
There are multiple business drivers and benefits that are giving a greater push to organizations to launch full-blown digital transformation programs.
1. Less Coding
RPA deployment and operation don’t necessarily require developers to configure. Drag-and-drop features in RPA software’s user interfaces make it easier to onboard non-technical staff.
2. Rapid Cost Savings
With RPA software deployment, the time taken for executing a transaction will reduce to one-third the time taken by a human. Hence, the staff can be reallocated towards other thoughtful and strategic decision-making work that requires human input, resulting in increased productivity and ROI.
3. Higher Customer Satisfaction
The bots and Chatbots would be available to function around the clock, throughout the year, without weekends or holidays off. This will lead to reduced wait times for customers, leading to higher customer satisfaction. Enterprises will handle spikes in the volume of transactions smoothly.
4. Better Accuracy And Compliance
Typically, we program RPA robots to follow specific workflows and rules. This simply limits the human tendency to commit errors in transactions that require accuracy and compliance, like regulatory standards. RPA also offers an audit trail that can monitor progress and resolve issues more quickly.
Growing List of RPA Use Cases
According to a recent study, about 39% of the participant companies are already using RPA, particularly in finance & accounting, and customer services. However, 77% of them are planning to implement and continue to invest in RPA within the next 3-5 years. RPA automation has been proved industry-agnostic thus far and its implementation can be found across the following industries:
- Global Investment Banks
- Insurance and Annuity Insurance Firms
- Financial Services
- Human Resource Management
- Sales and Delivery
- Global Pharmaceuticals Company
- Procurement and Warehousing
- Customer Service
Conclusion
RPA is gaining prominence across different industries due to ease of implementation, improved processes, and time and cost efficiencies. It is evident that robotic process automation will be central to the next wave of digital transformation, which will also bring along a digital workforce revolution.
