What You Need To Know About RPA (Robotic Process Automation)
RPA (Robotic Process Automation) is one of the hottest sectors of the tech market. Some of the world’s top venture capitalists – such as Sequoia Capital, CapitalG and Accel Partners – have invested enormous sums in startups like UiPath and Automation Anywhere. According to Grand View Research, Inc., the spending on RPA is expected to hit $8.75 billion by 2024.
The irony is that this category has been around for awhile and was kind of a backwater. But with the breakthroughs in AI (Artificial Intelligence), the industry has come to life.
So what is RPA? Well, first of all, the “robotic” part of the term is somewhat misleading. RPA is not about physical robots. Rather, the technology is based on software robots. They essentially are focused on automating tedious activities, such as in back offices. These include processing insurance claims, payroll, procurement, bank reconciliation, quote-to-cash and invoices.
And the impact can be transformative on an organization. For example, a company can leverage RPA to reduce its reliance on outsourcing, which can be a big cost saver. There may also be less of a need for hiring internally.
Yet even if there is not much of a drop in headcount, there should still be material improvements in productivity. Based on research from Automation Anywhere, RPA can automate processes 70% faster. In other words, employees will have more time to devote to value-added activities.
Here are some other benefits:
- Accuracy: RPA eliminates human error.
- Compliance: Legal and regulatory requirements can be embedded in the systems.
- Tracking: There can be diagnosis of technical issues and monitoring of risks, such as with customer service.