Introduction to Robotic Process Automation (RPA) - Unit 1

Topics Covered

1. Understanding a Robotic Process

2. RPA History and Drivers
3. RPA Market Size, Growth Forecasts, and Landscape
4. How RPA Fits in with Other Digital Initiatives
Machine Learning
Big Data
Artificial Intelligence
5. Business Value of RPA
6. Effect of Automation on People
7. How to Get Started with RPA

1) Understanding a Robotic Process

Definition:

Robotic Process Automation (RPA) refers to the automation of high-volume,

repetitive, and mundane manual processes using advanced software robots (bots).

Key Benefits:

Productivity Optimization:
RPA optimizes productivity by redefining how work is executed.
Employees are reassigned to customer-centric and higher-value activities.

Technical Scope:

RPA can be configured to work on command interfaces and offline with SQL databases.

McKinsey & Company Insights:

Up to 45% of activities individuals are paid to perform can be automated using current
RPA tools.
Additional labor productivity from RPA could equate to the output of 110 million to 140
million workers.
These statistics highlight RPA's importance as a transformative tool for business leaders
aiming to modernize functions and achieve business goals.

Advanced RPA Concepts:

Intelligent Process Automation (IPA) / Cognitive Process Automation (CPA):

Combines RPA with AI-based technologies like Machine Learning, Natural Language
Processing, and Cognitive Computing.
IPA/CPA delivers additional value by learning and adapting to optimize processes,
representing the next evolution of RPA.
2) RPA History and Drivers

Early 2000s: Emergence of RPA

Growing Technology:
RPA began to gain traction as a technology in the early 2000s.
Initially relied on artificial intelligence, screen scraping, and workflow automation.
Screen Scraping:
First Technology:
Screen scraping was among the first technologies to create a bridge between
newer systems and incompatible legacy systems.
Current Use:
Used to extract data from the web on the presentation layer.
AI Technology:
Screen scraping was one of the AI technologies that quickly gained market
acceptance, compared to others like Machine Learning (ML), Deep Learning (DL), and
Natural Language Processing (NLP).
Robotics in Manufacturing:
With the rise of mass and customized production units globally, robotics became
essential for companies aiming to reduce costs and manpower.

1990s: Automation for UI Testing

UI Testing Automation:
RPA's roots can be traced back to the automation of user interface (UI) testing,
ensuring visual elements of interfaces worked correctly without issues for users.
Shift in Computer Use:
The introduction of Windows 95 marked a shift from corporate and government
computer use to home-based users, driving the development of UI testing as screen
sizes and requirements diversified.
Agile Development:
Late 1990s to early 2000s saw the rise of agile development, prioritizing people over
processes and tools.
The need to speed up operations led to the creation of various UI testing and quality
assurance (QA) automation scripts.

2000s: Banking and Insurance Automation

Key RPA Elements:

The early 2000s saw the emergence of crucial RPA components, particularly screen
scraping technology.
Data Management:
Screen scraping automated the extraction of data from applications for other uses,
significantly boosting business efficiency and effectiveness.
Industry Adoption:
Banks and insurance companies were among the first to adopt RPA due to the need to
manage large volumes of data and improve compliance.
 High entry thresholds for automation required complex IT environments and
expensive engineering skills.

2010s: Enterprise Automation

Pivotal Point for RPA:

Around 2012, RPA technology gained official recognition by large-scale businesses.
Key Factors:
Post-financial crisis, businesses sought ways to reduce expenses.
The need for digital transformation led to the adoption of RPA as an affordable
solution.
Enterprise Adoption:
RPA became widely adopted for mission-critical tasks across enterprises.

2020s: Mid-Market and SMB Automation

RPA Democratization:
The 2020s marked the democratization of RPA, expanding its impact across all
economic segments.
RPA-as-a-Service:
Transition from costly licensing fees to partnerships with managed service providers
enabled the RPA-as-a-service model.
SMB Adoption:
Small and mid-sized businesses (SMBs) began adopting RPA, moving from pilot
projects to real-time production faster than larger enterprises.
2021 Report by Xerox:
80% of SMB leaders viewed task and process automation as critical to survival,
with two-thirds planning to upgrade their automation tools.

3) RPA vs. AI

Basic Comparison:
RPA (Robotic Process Automation): Often described as "doing" or the "muscles" of
automation.
AI (Artificial Intelligence): Referred to as "thinking" or the "brain" behind intelligent
operations.
 Feature RPA AI ML

How does it work? Imitates human Simulates human Learns by pattern

actions intelligence recognition

Drive Process-driven Data-driven Data-driven

Input and data Explicitly Equipped with With prescriptive

processing programmed by a deductive analytics analytics and
human decision engines,
ML reviews and
interprets data on
its own

Value delivered Delivers significant Generates Delivers great value

value tremendous value

Approach Requires ruled- Statistical Offers appropriate

based approach methods, decisions based on
and constant computational learning
training intelligence, and (experience)
intelligent
algorithms

Outcome Deterministic: Utilizes predictive Predictions,

Automation of analytics, image complex models
repetitive tasks and voice
recognition, deep
and machine
learning

Augmentation Augments people Augments Augments

with process automation automation and
automation processes

4) Business Value of RPA: Suitability of RPA Cases

RPA is particularly well-suited for the following scenarios within organizations:

Highly Manual and Tedious Tasks: RPA excels at automating tasks that require significant
manual effort and are monotonous.
High Likelihood of Human Error: Tasks prone to human error, especially those requiring
repetitive data entry or processing, can benefit from RPA’s accuracy.

Rule-Based with Low Exceptions: RPA is ideal for tasks that follow clear, predefined rules with
minimal variations or exceptions.

High Volume and Time-Consuming Tasks: Tasks that are repetitive, time-consuming, and
involve large volumes of data or transactions are perfect candidates for RPA.

No Need for Human Judgment: Processes that do not require complex decision-making or
human judgment can be effectively automated using RPA.

Repetitive in Nature: RPA is designed to handle repetitive tasks, where the same actions are
performed repeatedly.

Involves Multiple Document Formats: RPA can manage processes involving different
document formats, such as extracting and processing data from various types of documents.

5) How to Get Started with RPA – Practical Steps

Key Considerations

Problem-centric: Focus on a specific, pressing problem that RPA can address.

Benefits: Clearly articulate how RPA will improve productivity, efficiency, and employee
satisfaction.
Financial: Quantify costs and benefits, including ROI, CAPEX, OPEX, and TCO.
Requirements: Assess necessary staff, technology, and infrastructure.

Steps

1. Identify the Problem:

Clearly define the issue RPA can address.
Gather data to support the problem, such as process maps, time studies, and error
rates.
2. Quantify Benefits:
Calculate cost savings based on reduced labor costs, errors, and rework.
Estimate time reduction for repetitive tasks.
Assess improvements in employee satisfaction and customer service.
3. Assess Costs:
CAPEX: Initial investment in hardware, software, and infrastructure.
OPEX: Ongoing costs for maintenance, licensing, and support.
TCO: Calculate the total cost of ownership over a specified period.
4. Define Requirements:
Staff: Determine the necessary roles (e.g., RPA developers, analysts, architects).
Technology: Select appropriate RPA tools and platforms.
Infrastructure: Evaluate hardware, software, and network requirements.
5. Build a Compelling Case:
 Present your findings in a clear and persuasive manner.
Use visuals (e.g., charts, graphs) to illustrate data.
Address potential challenges and concerns.
Highlight the competitive advantage RPA will provide.

6) Proof of Value – The Business Benefits of RPA

Increasing Efficiency

FTE & Cost Reduction: Reduce the need for new hires by 20% and increase efficiency of
existing services by 15%.
Absorbing Natural Attrition: Efficiently manage a healthy attrition rate of 10-12% without
disrupting the organizational structure.
Absorbing Growth: Accommodate company growth of 10% without additional
headcount.
Reskilling and Upskilling: Create new roles such as Botmasters, Transformation
Consultants, and RPA Developers, enabling employees to enhance their skills and
advance their careers.
Peak Time Accommodation: Handle peak periods (e.g., holidays) without needing extra
workforce planning by 25%.
Paid Overtime Reduction: Reduce paid overtime by 30% by automating tasks that would
otherwise require extra hours.
New Services: Enable the creation of innovative services that were not economically
feasible with manual labor, such as 24/7 customer support or personalized product
recommendations.
Faster Turnaround Time: Improve response times to leads by 20%, potentially increasing
sales volume for B2C businesses by 15%.
Increased Productivity: Allow employees to focus on high-value tasks, maintaining the
same headcount while generating higher sales by 10% if market conditions allow.

Generating Revenue

Revenue Generation: Enhance service delivery and customer engagement by 20%,

leading to increased revenue opportunities of 15%.

Enhancing Data Quality

Data Accuracy: Eliminate human errors and inconsistencies, leading to improved data
quality by 20%.
Improved data quality: Support more accurate business insights and analytics by 15%.

Accelerating Supply Chain Timelines

Supply Chain Efficiency: Reduce supply chain cycle times by 10%, freeing up significant
assets (e.g., $10 million from $100 million in procurement assets).
Streamlining Governance

Regulatory Compliance: Ensure traceability and adapt to changes, reducing the resource
load by 20%.
Reduced error susceptibility: Reduce human errors in governance processes by 30%.

Simplifying Migration

Legacy Systems Migration: Facilitate migration to modern platforms, saving time and
costs by 25%.

Reducing Bias

Fair Work Distribution: Minimize bias in work allocation by 20%.

Resume Screening: Avoid biases in recruitment processes by 15%.

Boosting Morale

Employee Satisfaction: Address concerns about job loss and improve morale by 20%.
Reduced dissatisfaction: Reduce the burden of repetitive tasks by 30%, leading to higher
morale and engagement.