What is RPA? A Revolution in Business Process Automation
More CIOs are turning to an emerging technology practice called robotic process automation (RPA) to streamline enterprise operations and reduce costs. With RPA, businesses can automate mundane rules-based business processes, enabling business users to devote more time to serving customers or other higher-value work. Others see RPA as a stopgap en route to intelligent automation (IA) via machine learning (ML) and artificial intelligence (AI) tools, which can be trained to make judgments about future outputs.
What is robotic process automation (RPA)?
RPA is an application of technology, governed by business logic and structured inputs, aimed at automating business processes. Using RPA tools, a company can configure software, or a “robot,” to capture and interpret applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems. RPA scenarios range from something as simple as generating an automatic response to an email to deploying thousands of bots, each programmed to automate jobs in an ERP system.
What are the benefits of RPA?
RPA provides organizations with the ability to reduce staffing costs and human error. David Schatsky, a managing director at Deloitte LP, points to a bank’s experience with implementing RPA, in which the bank redesigned its claims process by deploying 85 bots to run 13 processes, handling 1.5 million requests per year. The bank added capacity equivalent to more than 200 full-time employees at approximately 30 percent of the cost of recruiting more staff, Schatsky says.
Bots are typically low-cost and easy to implement, requiring no custom software or deep systems integration. Schatsky says such characteristics are crucial as organizations pursue growth without adding significant expenditures or friction among workers. “Companies are trying to get some breathing room so they can serve their business better by automating the low-value tasks,” Schatsky says.
By 2020, automation and artificial intelligence will reduce employee requirements in business shared-service centers by 65 percent, according to Gartner, which says the RPA market will top $1 billion by 2020. By that time, 40 percent of large enterprises will have adopted an RPA software tool, up from less than 10 percent today.
What are the pitfalls of RPA?
RPA isn’t for every enterprise. As with any automation technology, RPA has the potential to eliminate jobs, which presents CIOs with challenges managing talent. While enterprises embracing RPA are attempting to transition many workers to new jobs, Forrester Research estimates that RPA software will threaten the livelihood of 230 million or more knowledge workers, or approximately 9 percent of the global workforce.
Retrieved from: Boulton, C. (2018, September 3). What is RPA? A revolution in business process automation. Retrieved from https://www.cio.com/article/3236451/what-is-rpa-robotic-process-automation-explained.html
GIF by Eva Garner