Robotic Process Automation (RPA) — the automation of complex processes that replaces humans through the implementation of advanced software is transforming the future of back office processes. Businesses across the board are realizing that RPA is the next significant digital transformation that will enable employees to stop working on repetitive tasks. Robotic Process Automation allows employees to concentrate on more valueadding initiatives, which are imperative for the bottom line of the firm.

Business Services have investigated the current and future trends in Robotic Process Automation (RPA) in back office processes. This study describes what RPA in this context is all about, as well as the major findings that were discovered through the distribution and analysis of a survey, specifically created for this study. Companies of all sizes and across all industries intend to implement RPA in the near future. Companies that earn more than 1 billion Euros per annum intend to implement RPA in F&A and HR processes whereas companies that have revenues under 1 billion Euros per annum also have Customer Service on their agendas.

Types of business processes in which RPA can be used

Although Robotic Process Automation and Business Process Management have similarites, they are in fact fundamentally different. BPM works from the top down, standardizing all processes throughout its implementation. In comparison, Robotic Process Automation works from the bottom up, integrating itself with processes. While RPA automates processes, it does not standardize them, nor does it help to standardize processes. BPM standardizes processes, but does not automate them. Even though RPA does not standardize processes, having standardized processes is hugely beneficial for RPA, as can be seen by the fact that the majority of processes that will see an increase in RPA usage in the near future are also the processes that are currently the most standardized.

Robotic Process Automation is undoubtedly the next wave in digital transformation RPA is a software application that can replicate processes humans woulddo to move information through and between different technology systems. Robotic automation uses software as a virtual FTE to manipulate existing application software (e.g. ERPs, CRMs, and claims applications) in the same way that a person completes a process. What is particularly revolutionary about robotic automation software is that it does not necessarily require companies to make changes to their strategic processes or existing back office technologies. Even if companies are separated geographically or have various technological systems implemented, RPA is able to connect systems. Therefore, RPA may function as a quick win solution for process optimization.

Why companies are increasingly interested in RPA

As RPA becomes more common, companies will begin to implement knowledge based automation, enabling robotic automation to work with many more exceptions. A typical example of knowledge based automation would be in Customer Service functions, searching for information across systems and answering customer emails. Finally, while RPA has not developed into the all cognitive periphery, experts definitely see potential for RPA to eventually be able to think for itself, working alongside humans on value adding initiatives that are important to the bottom line of the firm. Robotic Process Automation is already transforming back office processes in Customer Service, Finance & Accounting, and Human Resource Management for rules based tasks. As the graph above demonstrates, RPA can currently work with tasks that follow a complex, yet specific and repetitive pattern. As RPA continually improves and develops, the software will be able to move into the outer peripheries and work with knowledge based and eventually, all cognitive tasks.

Potential reduction in headcount when using robotic workstations

If back office processes meet the following checklist, then it is worth thinking about introducing Robotic Process Automation. It is important to note that even if processes within an organization are strong candidates for RPA, companies must consider their overall IT strategy and ensure that implementing RPA fits. It is a collaborative task for both business and IT, to ensure not to work on the symptoms only by introducing RPA, if a stable system interface can be the better option to fix the issue at the source. Another noteworthy benefit is that the robotic software saves and stores all information regarding the work that they are doing, which helps increase transparency and ensure that RPA follows regulatory requirements. This is particularly pertinent for companies operating in highly regulated environments.

A quest for cost savings, scale, and speed

RPA software automates repetitive, rules-based processes usually performed by people sitting in front of computers. By interacting with applications just as a human would, software robots can open email attachments, complete e-forms, record and re-key data, and perform other tasks that SIGNALS for Strategists mimic human action. Robots can be seen as a virtual workforce assigned to middle and back office processing centers. There are also applications for which software assists front office staff for instance, prompting contact center agents during customer interactions and automatically capturing call close notes, a mode known as “attended automation.” Beyond automating existing processes, companies are using bots to implement new processes that would otherwise be impractical. For instance, UK retailer group Shop Direct used RPA to identify flood affected customers and automatically remove late payment charges from their accounts. Financial services providers have also used such “one off” RPA implementations to comply with regulatory requirements in areas such as remediation processing, monitoring, and reporting.

RPA tools interact with existing legacy systems at the presentation layer, with each bot assigned a login ID and password enabling it to work alongside human operations employees. Business analysts can work with business operations specialists to “train” and to configure the software. Because of its noninvasive nature, the software can be deployed without programming or disruption of the core technology platform. It is worth noting that RPA’s ability to wring substantial process improvements from legacy systems, often at relatively low cost, can undermine the business case for large-scale replacement of systems or enterprise application integration initiatives.