Disrupt 4.0 Content
Guide to What is RPA & How it is Used
RPA or Robotic Process Automation is the automation of repeatable, redundant and rule-based human actions using software bots. It is relatively low cost and quick to implement. This automation enables input of data/ or information by a bot rather than a person. This leaves less room for error and means the task can be completed in a shorter time frame.
RPA uses software robots installed on the user’s machine to track their actions and replicate these activities on their own. While processing, RPA solution captures valuable data that helps it to locate irregularities and improve the processes it carries out.
One may ask if RPA automates activities, so does ERP so why should a company deploy a duplicate system?
Answer to this is that traditional ERP or automation systems automate business rules within a functional system (e.g. finance, HR etc). RPA automates the connections between systems that were either very costly or too difficult to connect. RPA is not functional system specific – any application that can be used by a person can be used by robots. RPA does not require any changes or integration with the system.
There are many myths about RPA in the industry. Some key facts about RPA are:
- Majority of companies, about 58.6% of worldwide companies surveyed globally have not applied RPA but still considering.
- Most companies feel that RPA would affect just 0-40% of their businesses while post implementation, companies see more than 60% of the processes being positively impacted by RPA.
- RPA’s main advantage is its accuracy, but it quickly turns negative if an internal or external business process isn’t aligned. Thus, meticulous planning is required before RPA is implemented.
- RPA implementation process can’t be done overnight but instead takes more than 12 weeks. Hence, companies must be prepared to wait if they are to implement RPA successfully.
Benefits of RPA
|Reduce Costs: RPA achieves up to 40% reduction in costs over a period of 24 weeks.||Improves Productivity: RPA generates 7% productivity benefits through more efficient use of human resources.|
|Reduces processing times by up to 60%||Improves accuracy by 95% and increases compliance by to regulatory requirements|
Where is Robotic Process Automation (RPA) used?
Benefits of RPA solution can be numerous across an organisation depending on what all processes, the organisation wants to automate. Below are some of the most common departments seen around that are automated with RPA:
Firms are using RPA solution in finance, from accost receivables to budgeting to auditing. An RPA solution can process information faster and more efficiently than its human counterpart. By using RPA, productivity in commercial finance operations can increase by 30-50%, reducing cost-to-serve by 25%.
Human Resource Department
A company may use RPA solution in the HR department. Here the RPA solution can carry out repetitive processes such as payroll, shortlisting of candidates for hiring, department wise segregation and assignment of profiles for further interviews, candidate-job-skill matching etc. leaving staff members free to take on higher level responsibilities such as interpretation of data.
Information Technology Department
RPA in IT streamlines processes, both in support and in backend processes. This trend is on the upside as in the Nordics 37% of firms are implementing IT automation just this year in 2017.