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Robotic Process Automation Study

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838 views48 pages

Robotic Process Automation Study

Uploaded by

Akmanar Baktan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Robotic Process Automation -

Robots conquer business processes in back offices


A 2016 study conducted by Capgemini Consulting and Capgemini Business Services
2 Robotic Process Automation - Robots conquer business processes in back offices
Contents

Preface 04

Authors 06

Executive Summary 07

What is Robotic Process Automation? 10

Key findings 17
- Introduction to key findings 17
- Size doesn’t matter 19
- Robots march out 22
- Robots tasks 24
- Drivers and expected benefits 29
- Optimization and standardization 35

Future Outlook 40

Capgemini Consulting’s Implementation Offering 42

Appendix: The participants 44

Contacts 46

3
1 Preface

Robotic Process Automation (RPA) — implementation plans for Robotic Process To study this, a questionnaire was
the automation of complex processes Automation within back office processes. conducted and consisted of 34
that replaces humans through the imple- questions. Over 150 executives from
To ensure the accuracy and applicability
mentation of advanced software — is companies of different sizes participated
of trends identified in Robotic Process
transforming the future of back office in the survey. Nearly half of the
Automation, Capgemini Consulting and
processes. Businesses across the board participants indicated that their company
Capgemini Business Services created and
are realizing that RPA is the next significant reports revenues greater than a billion
distributed a survey which investigated the
digital transformation that will enable Euros per annum, while about 10% of
following topics:
employees to stop working on repetitive participants reported revenues of less
• general thoughts towards RPA;
tasks. Robotic Process Automation allows than half a billion.
• implementation statuses in various
employees to concentrate on more value-
functions; The scope of the study concentrated on
adding initiatives, which are imperative
• sourcing structures; back office processes, i.e Finance &
for the bottom line of the firm.
• standardization of processes; Accounting (F&A), Human Resource
Capgemini Consulting and Capgemini • future plans with regard to sourcing Management (HR), Customer Services,
Business Services have joined forces to and RPA Procurement & Warehousing, Sales &
investigate the current understanding of Distribution and Production Planning.
The participants’ answers, in conjunction
RPA, what perceived advantages it offers,
with selected face-to-face interviews, are
current sourcing and automation strate-
analysed throughout this report.
gies, as well as the future outlook and

Figure 1: Participants by position and industry

Participants
Public Sector Automotive
Life Sciences
Chemicals
Telecom, Media & Entertainment 2%
3%
Consumer Products & Retail 4% 3%
21% 4% 2%
Energy & Utilities
4%

Transportation & Tourism 4% 48% Unspecified

79% 8%
Manufacturing

18%
Financial Services
Board members Functional executives

© Capgemini Consulting 2016

4 Robotic Process Automation - Robots conquer business processes in back offices



Participants represent businesses in The survey not only represents a multi-
industries across the board, including:
Financial Services, Transportation, Tourism,
Energy, Utilities, Telecommunications,
Media, Entertainment, Consumer
study of industries, but also a geographi-
cally diverse group of companies. While
22% of participants have indicated that
their firm is headquartered in Germany,
“ „Developing Robotics is like
living in the SciFi novels of your youth –
Asimov´s visions are becoming
alive.
Products, Retail, Chemical, Automotive, Austria, or Switzerland, another 11%
Life Sciences, the Public Sector, Industrial specified that their company is headquar-
Automation, Software and Aerospace tered in Scandinavia, which encom- Peter Hofbauer, Unicredit Bank AG
and Defence. 21% of participants passes: Denmark, Finland, Norway, and
that answered the survey were board Sweden. A tenth of the participants
members while 79% were executives in have headquarters located in North
Finance, HR, IT, Sales and others. America followed by France with 9%.

Figure 2: Participants by region and company size

Geography

2% More than 1 billion euros 43% (67)


17%
500 million euros - 1 billion euros 4% (7)

38%
100 million euros - 500 million euros 8% (13)
43%

DACH (Germany, Austria, Switzerland) Less than 100 Million euros 1% (2)
Other Europe (Nordics, UK, France, BeNeLux)

North America (United States, Canada) Unspecified 43% (68)


Others

© Capgemini Consulting 2016

5
2 Authors

Christian Kroll Dr. Adam Bujak Volker Darius


Senior Vice President Director Vice President
Head of Corporate Excellence Global Head of Technology Corporate Excellence and
and Transformation Transformation Transformation
Capgemini Consulting DACH Capgemini Business Services Capgemini Consulting DACH

Contributions from Torsten Baumbach,


Ralf Dürr, Julia Thieme, Philipp Obach,
Inga Schubert, Elizabeth Hayes

Wolfgang Enders Marcus Esser


Principal Senior Manager
Corporate Excellence and Global Head of Technology Innovation
Transformation Capgemini Business Services
Capgemini Consulting DACH

6 Robotic Process Automation - Robots conquer business processes in back offices


3 Executive Summary

Capgemini Consulting and Capgemini • All back office functions will see an faster than humans. Robotic automation
Business Services have investigated the increase in RPA usage. can cost as little as 1/3rd of the price of
current and future trends in Robotic • Essential quantifiable measures of an offshore full-time employee (FTE) and
Process Automation (RPA) in back office success include cost reductions, as little as 1/5th of the price of an onshore
processes. This study describes what RPA improving the quality of work FTE. Robotic Process Automation also
in this context is all about, as well as the produced, saving time on repetitive frees employees from tedious tasks,
major findings that were discovered tasks, reducing risk and increasing enabling employees to instead focus
through the distribution and analysis of a compliance, and improving process on value-adding initiatives that involve
survey, specifically created for this study. effectiveness and efficiency. creativity and decision-making, which
Capgemini was curious to discover the • While RPA does not help standardize unlike the creation of an invoice, only
current thoughts on RPA, whether compa- processes, the processes that are the humans can complete.
nies intend to implement it in the next most standardized are also the pro-
All back office areas have processes that
3-5 years, as well as whether companies cesses most likely to see a significant
are strong candidates for RPA and compa-
intend to implement RPA onshore, in a increase in RPA usage in the
nies realize that RPA is not just a piece of
captive Shared Service Centre, or a near future.
coding or another marketing tactic. In fact,
Business Process Outsourcer.
Unlike previous technologies, a massive based on the processes targeted by
Even a quick overview of the survey find- advantage of RPA is that it is a techno- companies, all back office areas are worth
ings demonstrates the massive potential logical transformation without the looking at; however, Finance & Accounting
that RPA offers. The following is just a headache of switching systems and processes are currently the front runners
snapshot of statements that participants processes. RPA offers new options for for RPA, followed by Human Resource
indicated they either agree or strongly business to close the gaps of missing Management and Customer Service.
agree with: system interfaces, if any are left open High volume, repetitive and rules-based
• 86% of participants said that RPA by IT. It can work with and between transactional processes in Finance &
can significantly reduce costs the systems that are already in place, Accounting are top priorities on compa-
• 86% of participants felt that RPA finding all of the necessary information. nies’ agendas. In general, participants
can help reduce risk and increase Moreover, robotic automation can learn believe that HR processes cannot be
compliance from users, copying their processes automated as much as Finance &
• 86% believed that RPA improves and steps. On the other hand, it is a Accounting tasks. This could be because
process effectiveness and efficiency collaborative task for both business and many tasks in F&A are known to be highly
• 89% of participants believed that to ensure that RPA is not only working to rules-based, whereas some HR processes
RPA can improve the quality of work relieve symptoms. Therefore, check for may require more human intervention.
produced other options such as a stable system
In general, process standardization is a
• 91% said that RPA can save interface because this could be a better
good indicator of strong potential candi-
companies time on repetitive tasks option for fixing the source of issues.
dates for RPA. In fact, the survey revealed
By executing this study, Capgemini was When discussing the substantial benefits that current RPA usage in a process is
able to decipher the following essential of Robotic Process Automation, the typical directly correlated to the current degree
findings: areas affected are: effectiveness, quality, of standardization in that respective
compliance, scalability, risk optimization process. Moreover, processes with a
• Companies of all sizes and across all
and workforce performance. Therefore, higher degree of standardization such
industries intend to implement RPA in
companies choose to implement RPA as Accounts Payable, Accounts Receiv-
the near future. Companies that earn
for a number of reasons, including cost able, and some Customer Service
more than 1 billion Euros per annum
savings, quality improvements, reductions processes, tend to be the primary
intend to implement RPA in F&A and
in headcount, assurances that regulatory processes selected when companies first
HR processes whereas companies
requirements will be followed, and to implement RPA. The degree to which
that have revenues under 1 billion
increase the speed of processes. In fact, a process is standardized is a strong
Euros per annum also have Customer
the statistics indicate that robots make indicator as to the degree to which a
Service on their agendas.
fewer mistakes and work significantly process can be automated by RPA.

7
It is important to note that introducing necessarily believe that RPA can be as Remarkably, all the people who already
robotics will not increase the degree of helpful in reducing costs compared to implemented RPA in the study agree, that
standardization in itself. those who have not yet implemented while RPA is going to help in the back
RPA, 84% of RPA users did indicate that offices, employees and RPA must still
The study results also highlight that RPA
the robots can help significantly reduce co-exist. Change Management is a vital
acts more as an instrument and enabler of
costs, compared to 96% of non-users. aspect to be considered when implemen-
process optimization and less as a trigger
On the other hand, a potential reduction ting RPA. It is essential that companies
to indicate that processes should be
in process complexity is indicated by 53% consider all aspects in terms of people,
standardized. The majority of participants
of trained executives compared to 44% processes and technology. Activities and
start their process optimization before they
of inexperienced RPA users. Overall, the responsibilities may change and people
implement RPA or adjust their processes
most important measure that indicates the should be involved according to the
during the RPA implementation.
success of a RPA implementation is cost corporate culture. Moreover, even
RPA can be vital to the Business Process reduction, which was quoted by 65% of though robotic software is a non-intrusive
Management environment, giving trans- participants as either a very or extremely package, it is still an add-in to the IT envi-
parency to the process flow and indicating important measure of success. Over half ronment. Once implemented, the robots
further improvement potential. Another of RPA users indicated that cost reduc- become a part of the living organization,
revolutionary aspect about robotic automa- tions met or exceeded their expectations, so the human workforce needs to be
tion software is that it does not necessarily and based on the evidence, 20% - 50% prepared—effective Change Management
require companies to make changes cost reduction is achievable. The increased plays a key role in the success of a RPA
to their strategic processes or existing speed of processes was also quoted by implementation.
back office technologies. Companies 58% of participants as very or extremely
need to ensure that they prioritize important when measuring the success of
which processes will initially use RPA a RPA implementation.
and develop a transformation roadmap
Based on the data in the survey, it is clear
based on the individual requirements.
that RPA implementation will continue into
The relevance of a task remains important, other support functions. While RPA
even if it is executed faster and more currently works with rules-based pro-
accurately by RPA. While companies that cesses, RPA will push boundaries and
have already implemented RPA do not eventually be able to work within the all
cognitive periphery.

8 Robotic Process Automation - Robots conquer business processes in back offices


9
4 What is Robotic Process
Automation?

In the 1990’s many companies were RPA enables companies to drastically requires minimal capital or infrastructure.
seeking cost reduction strategies in the improve cost effectiveness and quality RPA can act as an additional employee
form of labour arbitrage and as a result, improvements in their transactional that can work between the IT systems
many tasks were moved to low-cost processes. and with the back office processes in
countries in Asia, Eastern Europe and various functions. Similarly to humans,
A key advantage of Robotic Process Auto-
Latin America. Now that major companies RPA can learn from people and copy
mation is that unlike previous IT transfor-
from around the world have reaped the their processes, eventually taking over the
mations such as Enterprise Resource
benefits of labour arbitrage, and system processes that humans once completed,
Planning (ERP’s), RPA does not require a
harmonization and process standardiza- at a much faster pace. Robotic Process
massive upfront investment or a significant
tion has come to a reasonable level, auto- Automation is going to continue to
change to the current IT systems and
mation of remaining tasks and processes develop and work with increasingly
processes. In fact, RPA can be imple-
is the new target. Companies take advan- complex processes and tasks.
mented relatively quickly when compared
tage of Robotic Process Automation in
to previous digital transformations, as it
their back offices.

Figure 3: Types of business processes in which RPA can be used

Typical types of business processes in Characteristics of processes that can be


which RPA can be used automated using RPA

high
Frequency of process

Repetitive tasks carried Process list and typical


out 50-60 times a day file storage automation
targets
RPA candidates
low
low Complexity of process high

Periodic reporting, data Mass email generation, high


entry and data analysis archiving and extracting
Value of work

RPA candidates

Conversion of data ERP and other back


format and graphics office transactions
low
<5 min. Duration of work >30 min.

© Capgemini Consulting 2016

10 Robotic Process Automation - Robots conquer business processes in back offices


?

Although Robotic Process Automation increase in RPA usage in the near future not necessarily require companies to
and Business Process Management have are also the processes that are currently make changes to their strategic processes
similarites, they are in fact fundamentally the most standardized. or existing back office technologies. Even
different. BPM works from the top down, if companies are separated geographically
Robotic Process Automation is undoubt-
standardizing all processes throughout or have various technological systems
edly the next wave in digital transforma-
its implementation. In comparison, implemented, RPA is able to connect
tion—RPA is a software application that
Robotic Process Automation works from systems. Therefore, RPA may function
can replicate processes humans would
the bottom up, integrating itself with pro- as a quick win solution for process
do to move information through and
cesses. While RPA automates processes, optimization.
between different technology systems.
it does not standardize them, nor does it
Robotic automation uses software as While knowledge-based automation tools
help to standardize processes. BPM
a virtual FTE to manipulate existing and cognitive artificial intelligence systems
standardizes processes, but does not
application software (e.g. ERPs, CRMs, are entering the market, the majority
automate them. Even though RPA does
and claims applications) in the same of companies are currently focused on
not standardize processes, having stan-
way that a person completes a process. rules-based robotic automation solutions,
dardized processes is hugely beneficial
which means that RPA can work well with
for RPA, as can be seen by the fact that What is particularly revolutionary about
complex processes that have a specific
the majority of processes that will see an robotic automation software is that it does
set of repetitive rules. Rules-based tasks

Figure 4: Why companies are increasingly interested in RPA

Emerging technology with Faster and targeted benefits Does not require heavy upfront
growing list of use cases realisation investment

Minimal impact on existing IT Business led – Possibility of Flexible to adapt to changing


landscape developing internal capacity business environment

© Capgemini Consulting 2016

11
would include tasks in back office pro- different systems, or other tasks that follow than humans— a software robot can
cesses, such as completing an invoice. As a very specific, repetitive, rule-based cost as little as 1/3rd of the price of an
RPA becomes more common, companies process. offshore full-time employee (FTE) and as
will begin to implement knowledge-based little as 1/5th of the price of an onshore
Robotic Process Automation is not only
automation, enabling robotic automation FTE. This results in anywhere between
advantageous for employees, but also
to work with many more exceptions. A 20%-50% cost savings. Moreover,
for companies. Tasks can be completed
typical example of knowledge-based automation reduces human involvement,
quickly, accurately, and at a lower
automation would be in Customer Service therefore reducing human error by up
cost through the implementation of
functions, searching for information across to 20%. Additional robots can start
robotic automation solutions. Statistics
systems and answering customer emails. working in a mere 20 minutes to help
indicate that robots make fewer
Finally, while RPA has not developed into relieve backlog if needed.
mistakes and work significantly faster
the all-cognitive periphery, experts defi-
nitely see potential for RPA to eventually
be able to think for itself, working along-
side humans on value-adding initiatives
that are important to the bottom line of
the firm.
Figure 5: Evolution of RPA technology
Robotic Process Automation is already
transforming back office processes in
Processing
Customer Service, Finance & Accounting, Complexity
and Human Resource Management for
rules-based tasks. As the graph above high Current state in Finance & Accounting
and Human Resource Management
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
All
knowledge-based and eventually, all Cognitive
cognitive tasks.

RPA is currently a growing trend in


Knowledge-
Finance, Accounting and HR because based RPA
these areas have a number of tasks that
are tedious and repetitive, yet take away Rules-based
too much time from employees who could RPA
instead be working on critical creative and
strategic functions which involve important
Scree
decision-making that can only be com- scraper
pleted by humans. RPA has a notewor- low
thy impact on these functions as
robotics allows employees to focus on Input type
Structured, Unstructured, Unstructured,
the value-adding activities that are electronic patterned free form
essential to the firm, and frees employees
© Capgemini Consulting 2016
from copying and pasting information in

12 Robotic Process Automation - Robots conquer business processes in back offices


Exemplary Use Case – Invoice logging in, copying the applicable infor- with this job could have been focusing
Processing mation, switching windows, pasting the on value-adding initiatives that involve
information in the other system, and creativity and decision-making, which
Based on a typical use case that is
repeats this procedure for each invoice unlike the creation of an invoice, only
transacted in BPO centers, invoice
item, finally finishing the creation of an humans can complete.
processing, the difference between
invoice after ten minutes of work. The
a human’s interaction and a robot’s In comparison, figure 4 also illustrates the
employee then completes six more
method to complete a process can be same task, but is executed in a fraction
invoices, with ten items each, for the
illustrated nicely in the graph below for of the time by robotic automation
next hour.
invoice processing. software.
Not only is this time consuming, error-
Imagine an employee sitting at their desk The robotic software begins automation,
prone and not particularly interesting for
and they need to create an invoice with reads the necessary information, pastes
the employee, but it is also a rather poor
ten invoice items, using basic data from the required information into the other
allocation of a valuable resource. In this
different sources and systems obtainable system, creates the invoice item, repeats
same time frame, an employee tasked
only via Citrix. The employee begins by

Figure 6: Comparison of process execution - manual vs. automated

Demo: An invoicing process – AS IS/manual

In Total

Start End
600s+

Login Copy Switch Create Paste


Windows Invoice
Repeat (10+ Times)

70% saving
Demo: An invoicing process – TO BE/automated in time

In Total
Start Log End
180s+
Start Read Create Logging
Automation Invoice
Paste (10+ Times)

© Capgemini Consulting 2016

13
this process for each invoice item, and
saves the data of the entire process in a Figure 8: Man-to-Machine Ratio
database. The same invoice with ten
invoice items is then completed by a robot What span of control (man-to-machine ratio) do you feel is appropriate?
in a mere three minutes rather than ten 52%
minutes. This process is repeated ten times 48%
by the robotic software for the next half 41%
hour. Obviously, the robot is much faster 33%
and by definition, error-free. Productivity
levels can soar, as robots do not need
breaks or holidays and can run 24/7, 11%
9%
meaning a three-shift model. The work 4%
2%
that takes around a week for an employee
can now be completed in just over twelve 1:1 1:5 1:10 1:100
hours by utilizing Robotic Process Auto-
mation. Assuming a team lead is super-
vising the work of eight employees in a
three-shift scenario, the weekly work of 24
accounting clerks can be accomplished Companies not yet implemented RPA Companies already implemented RPA
by one and a half robots, monitored by
© Capgemini Consulting 2016
the same three leads.

Further reductions in transaction speed Another noteworthy benefit is that the Despite the facts and scenarios mentioned
can be achieved if more robots are robotic software saves and stores all above, robots can also be utilized in an
introduced to fulfil the above mentioned information regarding the work that they attending manner. Based on information
task by implementing a man-to-machine- are doing, which helps increase transpar- keyed by a service desk member, a robot
ratio of one human supervising five ency and ensure that RPA follows regula- may automatically search for and provide
robots as assumed by the majority of tory requirements. This is particularly additional information of interest to quickly
survey participants. pertinent for companies operating in highly
regulated environments.

Figure 7: Example of headcount effect

Potential reduction in headcount when using robotic workstations

A typical GUI automation scenario:


Assuming three-shift operation for both humans and robotic
workstations
Assuming one or more GUI automation artifacts
(e.g. CES invoicing case)
Assuming batch mode compatibility of the GUI
automation artifacts
Assuming sufficient work item volume for automated
(sub) processes to reach a 95%+ utilization of the
robotic workstations
Assuming that operator is able to log into customer systems
multiple times simultaneously

© Capgemini Consulting 2016

14 Robotic Process Automation - Robots conquer business processes in back offices



support the decision-making process,
e.g. a customer complaint via telephone
requires immediate response and action.
In other words, what took days and
It is important to note that even if
processes within an organization are
strong candidates for RPA, companies
must consider their overall IT strategy

„Robotics is a quick
and cheap fixing of insufficient
IT investments.
weeks can be decided within seconds, and ensure that implementing RPA fits. It
which will likely have a direct and is a collaborative task for both business
immediate effect on customer and IT, to ensure not to work on the Thomas Budny, Commerzbank AG
satisfaction. symptoms only by introducing RPA, if a
stable system interface can be the better
If back office processes meet the following
option to fix the issue at the source.
checklist, then it is worth thinking about
introducing Robotic Process Automation.

Figure 9: Criteria for candidate processes and tasks

Processes that require access to multiple systems

Processes prone to human error

Processes that can be broken down into unambiguous rules

Process once started, need limited human intervention

Processes that require limited exception handling

Processes executed frequently, in large numbers or with significant peaks in workload

Process has no strategic fit

© Capgemini Consulting 2016

15
16 Robotic Process Automation - Robots conquer business processes in back offices
5 Key findings
Introduction to key findings
Capgemini Consulting distributed a survey • Implementation drivers and expected affects an organization. Hardly any partici-
to many large companies and based benefits: When companies think about pants believe that RPA is just a piece of
on the responses, was able to draw the robotics, cost, quality and better coding or that it is just another marketing
following conclusions: compliance are the main drivers and tactic and companies clearly realize that
• Size doesn’t matter: Companies benefits expected. RPA is not just an IT transformation, but
of all sizes already use or intend to • Optimization and standardization: rather an organizational transformation
implement robotics within the next 3 - RPA is an enabler of process affecting the business as a whole. The
5 years. optimization, not a trigger for process graph below demonstrates the percentage
• Robots march out: Companies standardization of people that agree to strongly agree
take advantage of Robotic Process with each of the statements.
The first question in the survey presented
Automation in their own sphere of participants with a series of statements It is clear that RPA is the next digital
influence where participants either agreed or transformation, affecting organizations,
• Robot tasks: Process candidates for disagreed with the statement. This enabled processes, and technology at the same
RPA can be found in all back office Capgemini Consulting to identify the time. Companies realize that RPA dramati-
areas current understanding of RPA in regard cally changes the entire organization,
to the advantages that RPA presents and including the process chain and the way
how this technological transformation

Figure 10: Participants’ statements about RPA

Robotic Process Automation… Agree / Strongly Agree

It’s clearly understood ... changes the organization and the way people work 86%
that RPA implementation
1 affects all areas ... is a significant digital transformation 81%
Organization, Processes
and Technology. ... changes the process chain 71%

© Capgemini Consulting 2016

17
in which people work. However, robotics • Work item and exception queuing to only 44% of participants expect significant
does not transfer responsiblites from the be processed by a robot or adviser reduction in process complexity.
business functions to IT. Rather IT and the • Activity monitoring that captures and
The following section investigates the
business functions must work together. analyzes data on an adviser’s desktop
present and future of Robotic Process
While robots may replace some employees application usage
Automation by delving into the six key
in back office processes, new jobs will be
The main benefits that companies expect findings mentioned above.
created because employees and robots
to see are cost reduction, improvements
must co-exist, and 85% of participants


in the quality of work produced, reduced
agree to strongly agree with this
time spent on repetitive tasks as well as
statement.

In a nutshell, Robotic Process Automation


has five key functionalities:
• Non-intrusive business system
reduced risk and increased compliance.
These benefits are expected because
RPA can work faster than a human, and
will make fewer mistakes on mundane

“Robotics is a completely new
ball game – none of incumbent vendors
on the market and no $$$$-implemen-
tasks, where processes are complex, yet tation-budgets needed.
integration, primarily through the user
interface highly rules-based, and employees are
• Data aggregation that presents a subject to losing concentration. In fact, Tobias Maier, Allianz SE
consolidated view from different 86% of participants agree to strongly
back-end systems agree that RPA will significantly reduce
• Business rule execution based on costs and 91% indicate that RPA will save
defined logic and self-learning them time on repetitive tasks. However,

Figure 11: Participants’ statements about RPA

Robotic Process Automation… Agree / Strongly Agree

... can save you time on repetitive tasks 91%


Main benefits expected are
Cost Reduction, Quality ... can improve the quality of work produced 89%
2 Improvement, Process
Speed-up and better ... can significantly reduce costs 86%
Compliance
... can reduce risk and increase compliance 86%

... can reduce process complexity 44%

© Capgemini Consulting 2016

18 Robotic Process Automation - Robots conquer business processes in back offices


Size doesn’t matter
Companies of all sizes already use or About 39% of companies that took part Even though Robotic Process Automation
intend to implement robotics within the in the survey are already using RPA, is currently used in nearly all outsourcing
next 3 - 5 years. Regardless of the particularly in Finance & Accounting companies, others just started this kind
individual implementation approach, and Customer Service. A wide range of of process optimization. Moreover, the
RPA is a major digital transformation software has been used by participants in initiatives are independent of the size
for companies and it is picking order to benefit from RPA. of the company, defined by revenues in
up momentum. Euros earned per annum.

Figure 12: Actual use of Robotic Automation

Have you already implemented In which functions do you currently use


Robotic Process Automation? Robotic Process Automation?

In which functions do you use RPA?

39% Finance & Accounting 53%


Customer Service 30%
61%
Sales & Delivery 13%
Yes
% of those who already
Human Resource Management 7% implemented RPA –
No multi-quotes possible

© Capgemini Consulting 2016

Figure 13: Actual use of Robotic Automation

What is your solution in place?

Whinshuttle
3%
Not quoted Blueprism
22% 28%
Winauto 3%

Kofax/Capow 3%
NICE
JitBit 3% 13%

UiPath
Invoinet 3%
10%

BlackLine 3%
Automation
Anywhere 9%

% of those who already implemented RPA – multi-quotes possible © Capgemini Consulting 2016

19
Although only 39% of companies are
currently using robotic solutions, 77% are Figure 14: RPA usage and plans by company size
planning to implement RPA within the next
3 - 5 years. Majority of companies of all sizes plan to invest in RPA

When analysing where companies plan 100%


to implement RPA in the next 3 - 5 years,
it becomes clear that all back office 80%
functions will be affected. Finance &
Accounting currently seem to be the 60%
pacemakers, followed by Human
Resource Management and Customer 40% investigating
Service. These three functions are the RPA in use or planned
well-known targets for Shared Services 20%
and Outsourcing decisions since their
0%
wide-spread introduction in the 1990s. up to 1 more than
However, Procurement, Sales & Delivery billion 1 billion
and Customer Service will definitely see © Capgemini Consulting 2016
some changes in the near future. Produc-
tion Planning is lagging behind, and will
not see any significant RPA implementa-
tion in the near future.

This illustrates the increasingly important


role that robotics plays in companies’
process improvement.
Figure 15: Increase in RPA usage within the next 3 - 5 years
(multiple answers possible)

The number of RPA users will nearly double


within the next three to five years

+97%

77%

39%

Actual use Planned use

© Capgemini Consulting 2016

20 Robotic Process Automation - Robots conquer business processes in back offices


Figure 16: Process areas - where companies plan to use RPA

25%
Finance & Accounting
75%

3%
Human Resource Management
43%

14%
Customer Service
33%

0%
Procurement & Warehousing
27%

6%
Sales & Delivery
22%

0%
Production Planning Actual use
6%
Planned usage in the next 3-5 years

© Capgemini Consulting 2016

21
Robots march out
Companies take advantage of Robotic pilots to grow further rather than control- • Pure availability of powerful and
Process Automation in their own sphere ling every last bit of the implementation. up-to-date RPA software, with a
of influence. focus on ease of access rather than
To sum it up, an agile RPA implementa-
100% complete cross-system
Now that major companies from around tion is recommended to be managed in a
integration.
the world have reaped the benefits of combination of:
labour arbitrage, and system harmoniza- Allow the change to happen rather than
• Change management, enablement
tion and process standardization have trying to control it to the very last bit
and qualification for the business –
come to a reasonable level, automation of of detail.
which is sought by the operational
remaining tasks and processes is the new
business as soon as they learned Those who are willing to install robots tend
target.
about the power of RPA and reach to focus on their own sphere of influence.
RPA requires neither a full organizational their own limits in a rather demand In fact, 46% of companies plan to intro-
make-over nor a huge IT transformation – than control driven approach; e.g. by duce RPA in their own line of business
it typically comes from the business and is implementation RPA-multiplicator roles or retained functions, while 51% plan
implemented in a very bottom-up driven in the business. to implement RPA in their captive Shared
approach. No bigger back-end IT changes Service Centres. In addition, 24% of
• Governance – for use case
are needed. For attended robotics, stan- companies expect their outsourcing
identification, benefit tracking and
dard desktop application software is rolled partners to utilize RPA in order to benefit
support the agile way of working.
out, and for unattended robotics, a virtual from cost, speed and quality advantages.
desktop server is set up or RPA is inte-
grated into given virtual desktop environ-
ments such as Citrix. This makes it very
easy to implement – the transformation
focus should be on enablement, qualifica- Figure 17: Sourcing areas-- where companies intend to implement RPA
tion and on the overall RPA governance (multiple answers possible)
rather than on the typical IT requirements
and developments. So instead of following
Implementation plans by sourcing strategy
classic waterfall based approaches, agile (multiple answers possible)
methods must be leveraged: the typical 51%
implementation is mostly based on small
use-cases, which are step-wise iterated
46%
to medium-size process changes in a
few sprints.

Still, this bears the risk of a high opera-


tional bottom-up dynamics which can be
difficult to control and is very atypical to the
classic top-down culture in large compa-
nies. To steer (not to control) this, the
participants recommend setting-up an
24%
implementation governance that is small,
yet has significant control over the imple-
mentation process, its benefits and
Onshore Captive Outsourcing
enabling the cultural change. Agile
SSC
requires cultural change – and RPA does
too. It is important to focus on setting up
© Capgemini Consulting 2016
a powerful environment helping high speed

22 Robotic Process Automation - Robots conquer business processes in back offices


Among participants, there is clearly a good party. Implementing RPA is definitely a advantage of the technology available to
understanding as to how Robotic Process significant transformation for companies; them. Companies that choose to imple-
Automation can help companies. Robotic however, companies that choose to imple- ment RPA in a BPO do not have to make
Process Automation is no longer a secret ment RPA either onshore or in a captive a significant investment or be concerned
weapon used by outsourcing partners, SSC will benefit the most. This is because that they have too many processes—
and all companies want to, and intend advantages such as reduction in head- these problems are now outsourced. It
to, benefit from the advantages. As illus- count, cost savings and the improved is clear that those who implement RPA
trated in figure 17, companies want to speed of processes will be felt directly onshore or in a SSC will benefit the
implement RPA in all sourcing partners, by the company. While companies will most in the long-term.
but captive Shared Service Centres will also experience the advantages by
As companies have seen with other
see the biggest increase in Robotic implementing RPA in an outsourcing
technologies, the speed of the techno-
Process Automation, closely followed partner, the benefits will not be as intense
logical revolution is incredible—companies
by onshore. The more companies are compared to companies that undergo an
can expect RPA to continually develop,
experienced with the usage of RPA organizational transformation and make
offering further advantages to companies,
technology, the more they tend to use the technological investment in RPA
especially those made the investment in
it onshore. Companies new to RPA themselves.
RPA early on.
are more likely to utilize RPA in their
Nevertheless, utilizing RPA in a BPO
outsourcing partner.
partner is beneficial for companies that
This is a very interesting contradiction and do not want to undergo a significant
both options offer different benefits to each transformation, but still want to take

23
Robots tasks
Process candidates for RPA can be found
in all back office areas. Figure 18: Understanding of RPA’s impact

It’s clearly understood that RPA implemen- Robotic Process Automation…


tation affects all areas, including: Organiza- agree / strongly agree
tions (86%), Processes (71%) and
…changes the organization and 86%
Technology (81%). the way people work
Although robotic software is a non-intrusive
package, it is still an add-on to the IT …is a significant digital transformation 81%
environment. Topics such as local installa-
tions on users’ desktops, server architec- …changes the process chain 71%
ture, connectivity, user and authorization
concepts, licence agreements for RPA
© Capgemini Consulting 2016
solutions and called systems and applica-
tions are to be investigated. Involving
IT departments in this organizational organization, so the human workforce a robot or artifact is started within a
transformation is highly recommended. needs to be prepared and effective short period of time to minimize the
Change Management will play a key role stress curve, having a positive effect on
From an organizational standpoint, it is in a successful implementation. Activities both employee satisfaction and health.
worth thinking about different phases. and responsibilities may change and
During the concept, design and implemen- Looking at the processes targeted by
people should be involved according
tation phases, dedicated people are companies, all back office areas are
to the corporate culture. The following
affected and Centers of Excellence are worth looking into.
diagram illustrates an effect that RPA can
introduced or enriched through the imple- have on organizations: Participants have been asked which of
mentation of RPA tasks. Once imple- the processes are the most suitable for a
mented, the robots are part of the living If peaks in workload are an issue, robots
RPA implementation.
can easily be ramped up. Once defined,

Figure 19: Workforce planning and flexible deployment of robots

Robots can easily be used to deal with peaks in workload – regular or unexpected

robot

overtime
average
compensation

d1 d2 d3 d4 d5 d6 d7 d8 d9 d10 d11d12d13 d14 d15 d16 d17 d18 d19 d20 d21d22 d23 d24 d25 d26 d27d28 d29 d30 d31

© Capgemini Consulting 2016

24 Robotic Process Automation - Robots conquer business processes in back offices


Process potentials and implemen- tasks in a process could be automated. more detail, it becomes clear that there
tation plans in Finance & Accounting An example of this is the estimations that are processes that are typically nominated
were given concerning Intercompany as primary candidates for RPA.
For both the participants that have already
transactions. 74% of participants inexperi-
implemented RPA as well as for those who High volume, repetitive and rules-based
enced with RPA believe that more than
have not, Accounts Payable, Accounts transactional processes in Finance &
25% of processes could be automated,
Receivable and Travel & Expense Calcula- Accounting are top priorities on compa-
but only 58% of experienced companies
tion are the processes indicated as the nies’ agendas. Some process tasks are
believe that more than 25% of tasks could
most suitable for RPA. heavily investigated for a potential RPA
be automated by RPA in Intercompany.
implementation, depending on the indi-
In fact, 79% of all participants said that Hesitations were also indicated by those
vidual environment and company specific
more than 25% of Accounts Payable experienced with RPA when it comes to
issues. These include: invoice verification
transactions and sub-processes could be Taxes, Regulatory Reporting, and Travel
and reductions, penalty claims and credit
completed by RPA. Expense Calculation, when compared to
note handling in Accounts Payable, cash
those who have not yet implemented RPA.
In addition to Accounts Payable, three collection and cash allocation or pre-dun-
fourths of participants also believe that Understanding the potential leads to actual ning reminders in Accounts Receivable,
more than a quarter of all Accounts Receiv- investment plans into Robotic Process Master Data Management, OPEX / CAPEX
able processes could be completed by Automation capabilities. allocation or preparation of stock taking in
robotic automation. Fixed Assets Accounting, and journal
Finance & Accounting currently seem to be
entries, interface and account reconcilia-
Companies that are more experienced with the early starters, followed by Human
tion, as well as account clearing in General
RPA are sometimes more reluctant to Resource Management and Customer
Ledger Accounting.
indicate that a significant percentage of Service (see Figure 16). When delving into

Figure 20: Automation potential in Finance & Accounting

What percentage of the following Finance & Accounting processes


do you think could be more than 25% automated by RPA?

Accounts Payable 79%


79%
Accounts Receivable 75%
76%
External Reporting 45%
47%
Fixed Asset Accounting 70%
64%
General Ledger Accounting 60%
53%
Intercompany 58%
74%
Management Accounting 60%
50%
Regulatory Reporting 46%
66%
Taxes 46%
51%
Travel Expense Calculation 70%
82%
Treasury 62%
44%
Companies already implemented RPA Companies not yet implemented RPA

© Capgemini Consulting 2016

25
Process potentials and implementa- theless, RPA can definitely help in HR pro- automated by robots. Similar quotes apply
tion plans in Human Resource cesses and companies are realizing this. to HR Reporting, and in addition Opera-
Management tional Management / HR Administration
Master Data Management, Compensation
and Compensation & Benefits are regarded
In general, participants believe that HR & Benefits, HR Reporting and Operational
as highly suitable by the majority of partici-
processes cannot be automated to as Management / HR Administration (with
pants. These processes are currently the
significant a percent as Finance & Accoun- its major activity of Payroll Management),
leading candidates for RPA in Human
ting tasks. This could be because many are the RPA candidates in HR the most
Resource Management.
tasks in F&A are known to be highly rules- frequently mentioned. More than 65% of
based, whereas some HR processes may respondents say that more than 25% of
require more human intervention. Never- Master Data Management tasks could be

Figure 21: RPA plans for Finance & Accounting

21%
Accounts Payable
79%

Accounts Receivable 13%


64%

External Reporting 13%


43%

Fixed Asset Accounting 0%


62%

2%
General Ledger Accounting
68%

9%
Intercompany
26%

6%
Management Accounting
23%

2%
Regulatory Reporting
9%

4%
Taxes
47%

Travel Expense Calculation 4%


11%
Actual use
2%
Treasury Planned usage in the next 3-5 years
6%

© Capgemini Consulting 2016

26 Robotic Process Automation - Robots conquer business processes in back offices


Although HR executives seem to be planning, payroll administration, salary However, the processes and tasks that
more reserved compared to Financial garnishment and assignment as well are selected is higly dependent on com-
executives, they still plan significant as collection of performance appraisal pany specifics, such as the current setup
implementations in RPA technology. and bonus calculation are mentioned by of process as well as the system and
Processes with regular workload peaks HR executives. application environment. An indepth
that require access to multiple systems investigation into the objectives and
The significant percentage of people that
seem to be of current interest among measures of success for a RPA implemen-
plan to implement RPA clearly indicates
executives. In particular, Cost Centre tation is highly recommended in order to
that companies recognize the consider-
reallocation of staff and departments, ensure that the decisions are based on
able advantages that RPA can provide.
application for leave and workforce the business case.

Figure 22: Automation potential in Human Resource Management

What percentage of the following Human Resource Management processes do you think could be completed by
Robotic Process Automation (automation potential >25)?

HR Strategy & Governance 22%


5%
Master Data Management 65%
79%

Recruiting 37%
26%

Learning & Development 37%


43%
Operational Management / HR Administration 56%
55%

Mobility 43%
38%
52%
Compensation & Benefits
51%

Exit Management 50%


36%

HR Reporting 63%
72%

Companies already implemented RPA Companies not yet implemented RPA

© Capgemini Consulting 2016

27
Figure 23: RPA plans for Human Resource Management

HR Strategy & Governance 0%


7%

Master Data Management 0%


52%

Recruiting 0%
26%

4%
Learning & Development
22%

4%
HR Administration
44%

0%
Mobility
15%

0%
Compensation & Benefits
37%

0%
Exit Management
22%

0%
HR Reporting
44%

Actual use Planned usage in the next 3-5 years

© Capgemini Consulting 2016

28 Robotic Process Automation - Robots conquer business processes in back offices


Drivers and expected benefits


Cost reduction, quality improvement, and Company executives clearly see the
better compliance are the main drivers
and benefits expected when companies
think about implementing robots.
benefits of introducing RPA in terms of
cost reduction, quality improvement and
better compliance. Increased speed of
process execution and reduced time spent

“Robotics is the great chance to
minimize simple and stupid processes for
the employees, so it is a great chance for
When discussing the substantial benefits personnel cost reduction.
on repetitive tasks also enable the people
of Robotic Process Automation, the typical
responsible for the back office processes
areas affected are: effectiveness, quality,
to improve process effectiveness Thomas Budny, Commerzbank AG
compliance, scalability, risk optimization
and efficiency.
and workforce performance.

Figure 24: Benefits of RPA

01 Effectiveness
Transition to service-through-
software from services-through-labor
People Performance
06 Codify human knowledge into
digital labor.
Increase productivity and
retention
Resources focus on high value
activities
02 Quality
Better mean time to respond:
Hours Minutes and
Minutes Seconds
Significant reduction in error rates

Proactive Risk Management


Human Error
05 Compliance
Virtual Engineers that follow the
Rising labour Rates
Staff attrition & Knowledge Loss 03 runbooks 100% of the time
Automation drives adherence
Agility and forward looking focus
to standards

Scalability
Decoupling of labour from quantity of devices
04
supported
Ability to deliver superhuman capabilities

© Capgemini Consulting 2016

29
Figure 25: Benefits expected by survey participants

Robotic Process Automation…


agree / strongly agree

... can save you time on repetitive tasks 91%

... can improve the quality of work produced 89%

... can significantly reduce costs 86%

... can reduce risk and increase compliance 86%

... can improve process effectiveness and efficiency 86%

... helps us eliminate captive Shared Service Center tasks 65%

... differs from BPM because it affects both controlling and processes 59%

... helps us eliminate BPO tasks 50%

... can reduce process complexity 44%

© Capgemini Consulting 2016

30 Robotic Process Automation - Robots conquer business processes in back offices


There is not much difference in statements difficulties, accelerates the process addition, a robot can also be used to
given by companies that already imple- execution and can help increase monitor human transactions, prompting
mented RPA (39%) and those who accuracy. alerts for any out of the ordinary activites
haven’t (61%). (in some countries, a workers’ council
Reducing risk and increasing compliance
must be consulted before implementa-
86% of all participants indicated that RPA is also seen as a valuable asset of RPA.
tions). Think of a robot that can check any
can significantly reduce costs. While partici- This can be analysed from two angles. It
purchasing or sales agreements on the fly,
pants clearly understand the benefits that is the robot and its artifacts, which is
as well as sign-offs for invoice differences,
RPA can provide, they do not expect RPA executing specific, repetitive tasks. Once
cash transfer initiations with predefined
to help reduce process complexity. Never- designed, the same routines will be exe-
patterns and the robot can ring the alarm
theless, companies do expect RPA to work cuted daily in a transactional manner
bell in any odd cases. RPA definitely has
with a higher process complexity, similar without unforeseen activities changing the
the potential to act as a great tool for
to other technical enablers. If complexity pattern. Any exceptions to the designed
internal audits.
is defined as processes where cause and workflow will cause an automatic alert to
effect are dynamic and require more the supervisor for immediate intervention More remarkable, however, are RPA users’
thoughtful decision-making, the processes and result in total robot shut down if statements, when it comes to the idea
are not likely to be the ideal candidates for required. Moreover, by implementing that robots can help eliminate captive
RPA. However, if complexity is defined as robotics, no errors caused by loss of Shared Service Centres and outsourced
requiring many interconnected steps and concentration will occur as it does with tasks. Among experienced users, the
the control of a number of variables, RPA humans doing the same mundane tasks share of those who support this concept
can manage this complexity, since the for hours. Robots cannot be accused of is 15 - 18 percentage points higher
process is rules-based. As a conclusion, any criminal intention, especially if external compared to those who have not yet
RPA will not make a poor process a better intervention can be denied based on the implemented RPA.
one, it just helps to handle the existing existing network security and firewalls. In

Figure 26: Benefits expected by companies already implemented RPA vs. companies not yet implemented RPA

Robotic Process Automation…

agree / strongly agree

... helps us eliminate captive Shared Service Center tasks 81%


61%
... helps us eliminate BPO tasks 66%
48%

Companies already implemented RPA


Companies not yet implemented RPA

© Capgemini Consulting 2016

31

For the ones already experienced with of those experienced with RPA indicated
RPA, the most important measures to that they either met or exceeded their cost
justify the success of a RPA implementa-
tion include cost reduction, named by
65% of participants as very important or
extremely important, as well as the speed
reduction expectations, and given the
evidence, cost reduction potentials
between 20% - 50% are achievable.
Finally, 2/3rds of users are satisfied with

Robotics offers the opportunity to
relieve human beings from simple, repe-
titive work and at the same time allows to
drive quality in results by leveraging the
precision of machines.
of processes, with 58% mentioning this their SLA achievements, increased speed
to be a very or extremely important quan- of processes and improved quality of work
tifiable measure of success. Over a half and data. Thorsten Hieber, Daimler AG

Figure 27: Quantifiable measures and success reported

How do you classify the following quantifiable measures of success for your last implementation of
Robotic Process Automation and to what extent have you achieved your quantifiable measures stated?

Measures Success
that companies use to companies indicate to what
determine the success of their extent measures met or
RPA implementation very to exceeded expectations
extremely important

Speed of process 58% … 65%

Improving the quality of


work and data 48% … 65%

SLA achievment levels 46% … 64%

Employee satisfaction 43% … 53%

Cost reduction 65% … 52%

Reducing risk and improving


52% … 40%
compliance

Increasing the % of
50% … 40%
standardization

Reduction in headcount 39% … 40%

© Capgemini Consulting 2016

32 Robotic Process Automation - Robots conquer business processes in back offices



It is also interesting to see what positive
improvements with regard to process
speed and error avoidance end users
indicate, who work with RPA.
who already implemented RPA in at least
one of their processes plan to add more
within the next 3 - 5 years. For an addi-
tional 13%, their decision was not articu-

“Robotics is like ASPIRIN®: it
cures the symptoms but not
the illness.
lated; however, it can be assumed that
The positive results enable companies
many companies will continue on the path
to continue to introduce more robots
towards further RPA implementation. Tobias S. Unger, Siemens AG
and artifacts. More than 80% of those

Figure 28: Quantifiable measures and success reported

What feedback have you received from employees that are working with RPA?

Less time spent on repetitive tasks 73%

Fewer errors in work 47%

Reduced workload peaks 37%

© Capgemini Consulting 2016

33
Based on the experiences that compa- In most areas new-joiners’ quotes are quite ance, quality improvements as well as SLA
nies have had with RPA to date the future similar to those of early adopters. Cost achievement levels. Remarkably, 78% of
quantifiable measures, which indicate the reduction and the speed of processes are beginners mentioned quality as being
success of a RPA implementation, will also focus areas for those who have not either very or extremely important to them,
slightly change. While companies currently yet implemented RPA, but intend to do while 65% also named increase in stan-
focus more on cost reduction and the so in the next 3 - 5 years. Moreover, the dardization being of greater importance.
speed of processes, standardization participants who intend to execute their However, only 40% of companies who
aspects and risk and compliance topics first RPA implementation in the next 3 – 5 already use RPA software believe that
have taken a back seat. years also believe that their approach will increasing standardization is a very or
achieve better results in risk and compli- extremely important measure to define the
success of a RPA implementation.

Figure 29: Quantifiable measures and success reported

Will companies who already have RPA in place continue to implement further RPA?

13%
6% additional implementation planned
additional implementation not planned
unspecified
81%

What are your quantifiable measures … last time? … next time?


of success…
Cost Reduction 65% 76%
78%

Speed of Process 58% 63%


64%

Improving the Quality 48% 48%


78%

44%
Reduction in Headcount 39% 44%
42%
SLA achievment levels 46% 51%
Increasing the % of Standardization
40%
50% 65%
Reducing Risk and Improving Compliance 52% 33%
49%
employee satisfaction 43% 33%
36%

Companies already using RPA Companies not yet using

© Capgemini Consulting 2016

34 Robotic Process Automation - Robots conquer business processes in back offices


Optimization and standardization
When it comes to implementing RPA, the
Figure 30: When is the right time to optimize processes?
road to automation acts more as a process
optimization enabler, than as a trigger to
standardize processes.

More than 70% of the participants stated


that from their point of view RPA changes
the process chain, offering the chance for 63%
processes to be standardized. Yet, only
51% believe that RPA only works on stan-
dardized processes, meaning that partici-
pants do not see the necessity for process 22%
9% 6%
standardization since robots can follow
heterogeneous processes that have rules
and routines. 86% of companies rated
increasing the percentage of processes
that are standardized as important or very
important, meaning incorporation of robots Before During After Not needed
standardizes remaining human tasks with
Process Optimization
homogeneous inbound and outbound
process steps and data. Nevertheless, only
© Capgemini Consulting 2016
43% met or exceeded their expectations
in increasing the percentage of processes
that are standardized. This mismatch of The majority of participants start their pro- some company representatives mentioned
expectations and actual achievements cess optimization either before or adjust bugfixing and improving artifacts as
showcases the potentials and the limits of their processes during the RPA implemen- reasons for their late process optimization.
Robotics in back office functions. tation phase. In face-to-face interviews Others said – and this seems to be the

Figure 31: Current degree of standardization in Finance & Accounting

How standardized are your current Finance & Accounting processes?


mostly or even completely standardized
84%
Accounts Payable
Fixed Asset Accounting 74%
Accounts Receivable 72%
Travel Expense Calculation 72%
Intercompany 67%
General Ledger Accounting 60%
Treasury 60%
Regulatory Reporting 59%
External Reporting 57%
Management Accounting 49%
Taxes 43%

© Capgemini Consulting 2016

35
smarter approach – that late optimization Consequently, RPA can be a vital part of participants described as mostly or even
was caused by the fact that RPA was used the Business Process Management completely standardized. In fact, Accounts
as a quick win solution in the game of pro- environment, giving transparency to Payable and Accounts Receivable are
cess optimization. Business Process the process flow and indicating further on the top of the list of processes where
Management is the first to suggest improvement potentials. companies plan to implement RPA.
improvement potential in certain process-
The degree of standardization indicates Results from Human Resource Manage-
es. Heterogeneous system landscapes,
strong RPA candidates. Current RPA ment point in the same direction. Master
cross-system process execution or loops
usage correlates to the current degree of Data Management, Compensation &
in workflow, to name only a few criteria, let
process standardization. Processes with a Benefits, HR Reporting and Operational
companies look at RPA as a means to
higher degree of standardization such as Management / HR Administration with
non-intrusive solutions for quick wins,
Accounts Payable, Accounts Receivable its major activity of Payroll Management
rather than going for time-consuming
or Customer Service processes are are the processes with highest degree
process reengineering within a complex
generally the processes selected in the of standardization.
enterprise resource planning (ERP) environ-
initial RPA implementation phase.
ment. The robots begin by assisting with Once again, these processes are regarded
smaller activities and process steps, In addition to the above mentioned results the most suitable for a RPA implementa-
sending precisely defined exception rules on companies’ beliefs with regard to tion, according to the participants.
and exit notifications to their supervisors. process suitability and correlated plans Companies intend to invest in RPA in
Step by step the robot scope increases by to implement RPA, Capgemini also asked these four areas.
defining work routines for these excep- for the current degree of standardization
In conclusion, standardization is a strong
tions. These optimizations can affect both in each of the respective processes.
indicator as to the scope of RPA, but
the robot processes themselves, prede- Accounts Payable, Accounts Receivable,
introducing robots will not increase the
cessor processes, and input data which and Travel Expense Calculation are again
degree of standardization in itself.
is streamlined throughout the process flow. are the processes that 72% - 84% of

Figure 32: Current degree of Standardization in Human Resource Management

How standardized are your current Human Resource Management processes?

mostly or even completely standardized

Master Data Management 54%

Compensation & Benefits 53%

Operational Management / HR Administration 51%

HR Reporting 51%

Recruiting 50%

Mobility 46%

Learning & Development 44%

Exit Management 44%

HR Strategy & Governance 39%

© Capgemini Consulting 2016

36 Robotic Process Automation - Robots conquer business processes in back offices


37
Companies across all industries
around the globe will introduce
RPA in their back office functions
+150 Participants

ernance
Gov
21%

79% Discover
Board Functional
members executives

Capgemini Consulting’s
Implementation Methodology

Exploit

Automate
Process optimization before
the RPA implementation “plants” Ch e nt
ang
sustainable success e Managem

63%

22%
9% 6%

Before During After Not needed

Process Optimization

38 Robotic Process Automation - Robots conquer business processes in back offices


RPA is the next big RPA affects all
thing in process +97% areas: Organization,
automation Processes and
Technologyy
77% Main benefits expected
39%
are Process Speed-up,
Quality Improvement
and Cost Reduction
Actual use Planned use

The leading factors will become


even more important

Cost Reduction 65% 76%


78%

Speed of Process 58% 63%


64%

Improving the Quality 48% 48%


78%

44%
Reduction in Headcount 39% 44%
42%
SLA achievment levels 46% 51%
Increasing the % of Standardization
40%
50% 65%
Reducing Risk and Improving Compliance 52% 33%
49%
Employee Satisfation 43% 33%
36%

Robots tasks will increase in every function

39
6 Future Outlook

While it is clear that RPA is going to underestimate this topic. Furthermore, about the number of different systems that
transform back offices, the next question companies need to ensure that they they currently have in place—however,
becomes, how can companies drive a prioritize which processes will initially this is in fact one of the advantages that
successful RPA transformation within their use RPA, and develop a transformation RPA offers; RPA is able to work across
company and ensure a thriving, long- roadmap based on the individual many different systems in a non-intrusive
lasting and sustainable strategy? requirements. In general, RPA should manner. Therefore, companies can
be embedded into a greater Business expect to see a good return on their RPA
The Capgemini Robotic Process
Process Management framework to investment.
Automation survey clearly demonstrates
clearly determine whether RPA is the
the growing trend towards increasing While RPA currently works with rules-
right answer for current issues in certain
robotic automation within back office based processes, RPA will push
process steps, being it a quick win, a
processes in all sourcing areas, but boundaries and eventually be able to
short term optimization and / or a long-
particularly onshore and in Shared work within the all cognitive periphery.
lasting solution. Remarkably, experienced
Service Centers. Undoubtedly, some jobs will be lost, as
companies raise fewer concerns about
was seen in the automation of assembly
Companies, that already use RPA take cost and implementation time for artifacts,
lines. However, organizations and the
data protection and cyber security very compared to companies not yet using
way people work will change and new
seriously and in fact, companies that RPA software. Capgemini also noticed
opportunities will arise. Remarkably, all the
want to start any initiative should not that some companies were concerned

Figure 33: Current concerns about RPA implementation

What concerns do you have about Robotic Process Automation?

34%
Data protection and cyber security
18%

25%
Too many processes
22%

Too expensive to integrate the various 16%


technologies 
20%

RPA implementation costs too high 13%


compared to ROI
22%

6%
Implementing artifacts is very tedious
10%

Companies already using RPA Companies not yet using

© Capgemini Consulting 2016

40 Robotic Process Automation - Robots conquer business processes in back offices


people who already implemented RPA in Companies must ensure that they to dramatically change the work that is
the study agree that while RPA is going to consider all the aspects of an attended to in these functions. The robots
help in the back offices, employees and implementation in terms of people, are coming in droves and Capgemini is
RPA must still co-exist. More than ever, processes and technology. excited to be a part of this transformation.
Change Management is a vital aspect to
As discovered throughout the study,
be considered in the journey towards a
RPA is without a doubt the next digital
successful RPA implementation.
transformation in back offices and is going

Figure 34: People impact

Robotic Process Automation…

Agree / Disagree /
Strongly Agree Strongly Disagree

... can help fill the shortage of skilled workers 51% 49%

... will replace employees in back office processes 75% 25%

... changes the organization and the way people work 92% 8%

…robots and employees must co-exist 92% 8%

© Capgemini Consulting 2016

41
7 Capgemini Consulting’s
Implementation Offering

While back office processes may not be Capgemini Consulting provides support sure that there is employee buy-in, a
fundamental to the bottom line of a firm, for every possible implementation strategic path, and clear communication
they still play a fundamental role. Many of scenario: throughout the organization.
these tasks are relatively repetitive, mun- Scenario 1: Tool Focused RPA Scenario 3: Factory Service
dane, and follow specific structures and Implementation Capgemini Consulting will work directly
rules. Currently, these tasks are taking
The client will purchase the rights to RPA with the service provider of the clients’
time away from personnel who could
software and lead their own implementa- choice. Since this partner already has RPA
instead be focusing all of their time and
tion, while our experts provide technical in place, additional technical support will
energy on value-adding initiatives.
and strategic support. not be necessary. Instead, we can help
Robotic Process Automation can be mas-
Scenario 2: Assisted RPA companies concentrate on RPA’s added
sively beneficial in improving process
Implementation business value to ensure that companies
effectiveness, efficiency, the quality of work
get the most out of their RPA implementa-
produced, as well as drastically decrease Our managing consultants will partner
tion. It will be essential to ensure that
the amount of time spent on a given task. directly with a RPA software provider to
organizations have clear goals that are
Capgemini Consulting is well-prepared to ensure that our client has a smooth RPA
communicated throughout the firm, as
work with clients throughout every imple- implementation. Moreover, Capgemini
well as quantifiable measures to determine
mentation process and scenario. We want Consulting will play a significant role in
the success of an implementation.
to support clients to ensure that their orga- facilitating the organizational transforma-
Capgemini also provides full factory
nizations have a clear strategic direction tion, to ensure that the people, processes,
service by Capgemini Business Services
that facilitates a smooth implementation and technology all have a seamless
for clients around the globe.
process and long term sustainable transition. We will support both the
success. business side and the IT side to make

Figure 35: Capgemini Consulting fosters successful RPA implementations based on three scenarios

Implementation Scenarios Description Advantages

The client buys just a licence for an


Tool Focused RPA tool. The provider can be used Implementation is conducted
1 RPA Imple- as technical support but the rest of with light external support
mentation the implementation is led by
the client

Robotic
Process A management consultancy Organisational transition
Automation Assisted RPA partners with a software provider and knowledge transfer is ensured
2 Imple- to be able to deliver a smooth RPA Success of the first implementation
mentation implementation and transition from phase is secured during
both business and IT side project mode

The client procures a RPA solution Capabilities to develop, adjust and


Factory as a service (Captive, Outsourcing) maintain robots is not required
3
Service and the service provider handles Client focuses on business
everything else value added

© Capgemini Consulting 2016

42 Robotic Process Automation - Robots conquer business processes in back offices


43
8 Appendix: The participants

Capgemini would like to thank all of the Representative companies come from revenues over €1 billion Euros, making
more than 150 individuals from companies many industries, with the largest these companies industry leaders and
of all sizes who participated in the survey. sectors being Financial Services and ideal candidates to accurately indicate
Board members and executives in various Manufacturing. The individuals that future trends.
positions completed the survey. Positions participated in the survey are all well- The majority of companies surveyed are
that participants hold include: Finance and informed about Robotic Process headquartered in Germany, Austria, and
HR, Head of Robotic Automation Center, Automation and represent a mix of multi- Switzerland. However, a significant
Operation Director in Global Business national, large, and medium sized com- number of companies that participated
Services, Claims Executive, Senior Director, panies from all over the world. Ensuring are headquarterd in Scandinavia and
Purchasing Executive, Strategy Officer, that companies are leaders in their fields North America. The global presence
Vice President of Business Process provides assurances that these companies represented by participants guarantees
Optimization, and Head of Finance & are trend setters and early adoptors. Nearly the accurate representation of global
Accounting Shared Services. half of the companies surveyed have trends within back office processes.

44 Robotic Process Automation - Robots conquer business processes in back offices


45
9 Contacts
Germany
Christian Kroll Dr. Adam Bujak Volker Darius
Senior Vice President Director Vice President
Corporate Excellence & Transformation Global Head of Technology Transformation Corporate Excellence & Transformation
Capgemini Consulting Capgemini Business Services Capgemini Consulting
+49 151 4025 1253 +49 151 4015 1445 +49 151 4025 2497
[email protected] [email protected] [email protected]

Wolfgang Enders Marcus Esser Torsten Baumbach


Principal Senior Manager Senior Manager
Corporate Excellence & Transformation Global Head of Technology Innovation Corporate Excellence & Transformation
Capgemini Consulting Capgemini Business Services Capgemini Consulting
+49 151 4025 1887 +49 151 4025 0516 +49 151 4025 2884
[email protected] [email protected] [email protected]

Belgium / Netherlands / Luxemburg


Robert van der Eijk Sanjay Jhamb Damien Dieryck
Senior Vice President Principal Senior Manager
CEO Capgemini Consulting BeLux FS Practice Leader Belux Capgemini Consulting
+32 270 820 72 +32 270 814 57 +32 270 815 99
[email protected] [email protected] [email protected]

Liesbeth Bout Ruben Sardjoe


Principal Consultant Managing Consultant
Capgemini Consulting Capgemini Consulting
+31 30 689 0388 +31 30 689 5316
[email protected] [email protected]

UK Norway
Steve Wilson Gunnar Deinboll
Vice President Vice President
Operational Excellence Technology Transformation
Capgemini Consulting Capgemini Consulting
+44 (0) 7800 978 788 +47 992 446 49
[email protected] [email protected]

46 Robotic Process Automation - Robots conquer business processes in back offices


France
Cédric Berthelot Martin Karaca
Vice President Managing Consultant
Corporate Excellence & Transformation Corporate Excellence & Transformation
Capgemini Consulting Capgemini Consulting
+33 682 657 210 +33 681 732 540
[email protected] [email protected]

US
Ashley Skyrme Adrian Penka
Vice President Vice President
Capgemini Consulting Capgemini Consulting
+12 022 715 943 +14 042 859 907
[email protected] [email protected]

Asia / Pacific
Julien Bourdiniere Frederic Abecassis
Vice President Vice President
Capgemini Consulting Capgemini Consulting
+86 186 2150 0719 +65 9066 2610
[email protected] [email protected]

Latin America
Martin Leonel Romero
Senior Manager
Capgemini Consulting
+54 114 735 8000
[email protected]

47
About Capgemini Consulting
Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group,
specializing in advising and supporting enterprises in significant transformation, from innovative strategy to
execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and
opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to
master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business
transformation and organizational change.

Find out more at


www.de.capgemini-consulting.com

About Capgemini
With more than 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting,
technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its
clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve
innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at

www.de.capgemini.com
Rightshore® is a trademark belonging to Capgemini

The information contained in this document is proprietary. ©2016 Capgemini.


All rights reserved. Rightshore® is a trademark belonging to Capgemini.

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