What is RPA?
Robotic Process Automation (RPA) is one of the latest buzzwords, but what exactly does it mean? As the name suggests, it is a technology for automating processes. More specifically, RPA uses software robots.The result is that processes that previously involved human interaction with user interfaces of various application programs are imitated by software robots and thus run automatically. The process steps required for this are first recorded, modeled with the help of RPA tools or programmed in the form of scripts. Thus, the use of RPA does not require any changes to existing information systems, since a software robot works in a comparable way on the user interface as a human would. RPA solutions can run on individual desktop PCs as well as on corporate servers.
What are potential benefits of RPA?
It is not without reason that RPA has become an important topic in a very short time. Automation technology brings with it many advantages. The most significant is the cost factor. It is not necessary to redesign used information systems and existing business structures for the use of software robots. Consequently, automation projects can be implemented quickly and cost-effectively with RPA. This non-invasive characteristic of the technology also ensures trouble-free integration into the existing IT infrastructure, since different systems do not interfere with each other. Also not to be underestimated is the low development effort. RPA does not require any programming skills and is largely based on low-code implementations. The required technical know-how is therefore relatively low. Another important aspect of automation is the quality of the work that is to be automated. If procedures are always executed in the same way in a structured manner, there are no careless errors that can otherwise be caused by human carelessness. In addition, the speed of work can be significantly increased by using RPA robots. This can result in time savings, which in turn brings increased efficiency and increased productivity to an organization. Reducing the workload of employees also often creates increased satisfaction, as humans can invest their time in more challenging and exciting tasks. These are just some of the benefits of using RPA.
Disadvantages of RPA
To portray a holistic picture of RPA, however, the disadvantages of the technology must also be taken into account. In particular, the stability of the performance of the software robots is a major shortcoming in many cases: Even the smallest changes to the user interface – for example, moving a button – can cause a robot to fail. In times of constant updates and visual adjustments, this is a major problem. Automation is still possible, but it often requires a great deal of maintenance, which can suddenly turn what was initially a low-cost integration into an expensive undertaking. It is thus apparent that the methods for recording and modeling processes are not yet fully mature. Therefore, increased use of technologies such as Artificial Intelligence and Optical Character Recognition (OCR) and a shift away from pure front-end to increased back-end integration can be observed. The latter can be ensured by using provided components within an RPA configuration software. The chances of successful and stable execution of software robots can be increased in this way, but, contrary to the promises of many RPA vendors, requires greater technical expertise. In addition, not every process is suitable for automation using RPA. Consequently, companies are faced with the central question of which processes can be automated sensibly and effectively without the automation bringing new – and perhaps even serious – problems with it.
Which processes can be automated with RPA?
Processes that run according to fixed instructions can be automated with RPA. The more frequently certain routines occur, the more profitable their automation. Fixed instructions and rules are also important because a software robot, unlike a human, can use little to no intelligence to process a task. For example, a process that can be automated that occurs in any business is data entry or extracting data from an enterprise resource planning (ERP) system. This process is not very sophisticated, requires frequent repetition, and can be very error-prone in some circumstances. These are all factors in favor of implementing RPA.
What is the current status quo of RPA?
As already mentioned, Robotic Process Automation is currently a hot topic. The success of an emerging technology depends in particular on its adoption in the market. To track this development, it is useful to take a look at the Gartner Hype Cycle. The Hype Cycle assigns various emerging technologies to one of five phases of the technology lifecycle. From this, a statement about the current public awareness of a new technology can be derived. In the Hype Cycle from 2019, in that only technologies from the field of artificial intelligence are listed, RPA can be found in phase 3, the “Valley of Disappointments”. Gartner describes dwindling interest in this phase, as expectations (Phase 2: “Peak of Excessive Expectations”) for the technology are not being met. Consequently, the coverage and thus the level of awareness decreases. In this phase, providers of the new technology in particular must come up trumps with improvements and innovations in order to satisfy the “early adopters” and fight for a continuing market position.
This battle for the market leader role can also be observed in the RPA market: From 2017 to 2018, the market share position changed for nine out of ten RPA vendors. In addition, current top players such as UiPath, Automation Anywhere and BluePrism are facing new competitors. In particular, large companies such as IBM, Microsoft and SAP will once again shake up the market in the near future through partnerships or acquisitions. One result of this fierce competition is the prediction that RPA will reach the “plateau of productivity” in less than two years. At this point, the benefits of a technology are recognized and accepted and new generations begin to establish themselves in a mass or niche market.
Who should use RPA?
The biggest users of RPA today are banks, insurance companies, and telecommunications firms, as they often work with legacy systems and use RPA solutions to provide integration functionality. However, decreased costs, increased accuracy and improved compliance promise improved business results in many other industries as well. It is estimated that 85% of large organizations (companies with revenues of more than one billion euros) will be using some form of RPA by the end of 2022.
However, RPA is not a one-size-fits-all technology, so in some use cases better results can be achieved with other automation solutions. RPA is a good choice whenever structured data is available for automation, automated functionality is to be added to existing legacy systems, or external systems are to be connected that cannot be connected via other IT options.
To make an RPA project a success, managers must first evaluate possible use cases for RPA in their own organization. This should focus primarily on revenue-generating activities. The next step is to identify the use cases that can generate quick wins. These may be tasks that simply involve moving data between systems or processing structured, digitized data according to predefined rules. While these are the use cases where RPA can deliver quick and high wins, it is important to consider other tools and services that can be applied to specific use cases in a way that makes sense functionally and cost-wise. These alternatives can be deployed in parallel with RPA or as a hybrid solution. When selecting a provider, attention should also be paid to future AI-based options.
