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What is robotic process automation? 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.
COOs working for financial services firms were at the vanguard of RPA adoption, figuring out ways to use software to facilitate business processes without increasing headcount or costs, says Regina Viadro, vice president at EPAM Systems and adviser of the company’s IA practice. Viadro has worked on RPA engagements for clients in financial services, healthcare, retail and human resources, showing the breadth of RPA use today.
What are the benefits of RPA? 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.
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.
Installing thousands of bots has taken a lot longer and is more complex and costly than most organizations have hoped it would be, Edlich and Sohoni say. The platforms on which bots interact often change, and the necessary flexibility isn’t always configured into the bot. Moreover, a new regulation requiring minor changes to an application form could throw off months of work in the back office on a bot that’s nearing completion.
What companies are using RPA? Walmart CIO Clay Johnson says the retail giant has deployed about 500 bots to automate anything from answering employee questions to retrieving useful information from audit documents. "A lot of those came from people who are tired of the work," Johnson says.
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