Business

Robotic Process Automation: What Are The Opportunities And Implications For Businesses?

Issue 43

If you've not yet heard about Robotic Process Automation (RPA), you soon will have. RPA is a type of Artificial Intelligence (AI) technology that can replicate the actions involved in repetitive business processes, creating significant operational and strategic opportunities for businesses. This isn't science-fiction, it is happening now.

Are the robots coming for our jobs?

One common myth surrounding RPA is wide-spread job losses. Whilst there will always be an opportunity to use RPA for reducing costs, this isn’t the best use of it. Many exponents of RPA highlight the benefits of automating mundane tasks. Used tactically and strategically, this can address particular pain points within a process, enabling staff to focus on more valuable activities. Enhanced compliance, audit trails and reduced error rates are also commonly cited benefits.

Scalable growth, productivity and the talent war

Organisations are concerned about the lack of available talent, which could be further impacted by Brexit and continued low unemployment rates. Deploying that scarce talent to routine jobs requiring little judgement isn’t a recipe for success – particularly if the ‘millennial’ stereotype is to be believed. Applying RPA technology to automate the right types of tasks and activities, enabling precious talent to focus on valuable activities, can set an organisation up for exponential growth.

Implications for process and job design

Most of us crave rewarding, satisfying work where we can make a difference. It, therefore, makes sense for repetitive tasks to be carried out by robots. To move to this scenario, the challenge of designing appropriate processes and job descriptions needs to be addressed. Appropriately skilled process improvement professionals can identify tasks and activities to be carried out by robots and people respectively. This is about business change more than simply new technology as there’s little value in automating a bad process.

Drivers for outsourcing, offshoring or retaining inhouse?

Historically, organisations have decided to outsource (and/or offshore) activities considered non-core and where external providers deliver improved performance. RPA potentially changes that dynamic. For organisations with cost pressures, offshoring presented a compelling business. Some sources have estimated that the use of a ‘robotic labour force’ presents a more compelling cost comparison than even the most competitive offshore rates. Accordingly, many outsourcers/BPOs are investing heavily into this technology.

How will people ‘cut their teeth’ in this new world?

In many industries junior individuals have historically been expected to carry out routine activities. Whether it was an apprentice, office junior or a professional services trainee, undertaking this role generally helped provide relevant experience and ‘on the job’ training. As RPA and other automation and AI technologies automate these routine activities, there will be training and education implications for organisations.

Human resources department…and robot resources department?

The good news is that robot resources don’t require an HR department, but they’ll still need maintenance, development and scheduling. Rather than a ‘Robot Resources’ department, most organisations will consider a ‘Robotics Centre of Excellence’, which may be a completely new function or merely an extension of the IT team with appropriate upskilling and resourcing to support this new technology.

To unlock the strategic potential of RPA, organisations should develop capabilities for the ongoing development of their robotic workforce. To begin with though, this is likely to be served by a third party while the feasibility and proof of concept is confirmed.

An entry point for AI

AI is currently a very hot topic in both business and society. Many organisations that RSM consult with want to explore how AI can benefit their business. AI is not a simple topic to access and there isn’t a wealth of readily available, mature solutions for medium sized businesses. RPA potentially offers an entry level position to experiment with AI. RPA can be readily understood ie use a software robot to automatically carry out some parts of a business process that are currently routine, cumbersome and/ or monotonous.

The RPA world is evolving quickly, bringing in more sophisticated elements such as Optical Character Recognition (OCR) scanning, Natural Language Processing (think voice activated assistants such as iPhone Siri or Amazon Alexa) and Machine Learning which could help to build a path for your business to incorporate more elements of AI.

Quicker time to value and return on investment

One of the most important features of RPA is that the automation takes place through the same userinterface used by your teams. The software robots replicate the activities exactly as your staff do by clicking on particular fields on a screen. This differs to traditional IT automation which typically links systems and applications via ‘back-end’ databases.

Why is this important? Well, RPA projects can be delivered in a fraction of the time (and cost) of a traditional IT automation project., dramatically increasing the time to receive a return-on-investment.

Summary RPA is a technology that presents significant opportunities for organisations to both tactically address particular process ‘pain-points’ and to strategically consider their processes, operations and resourcing approaches.

Sign-up to our newsletter

  • This field is for validation purposes and should be left unchanged.