Many businesses today use a number of different software applications to handle customers, pay rolls, records, and reports; however, many employees spend long hours performing repetitive computer data entry tasks manually. Robotic Process Automation (RPA) can help businesses reduce this burden and improve their operations.
What Is Robotic Process Automation (RPA)?
Robotic Process Automation (RPA) is a technology that enables one to use robotic process to perform repetitive computer tasks. RPA bots can carry out various functions in an application, including filling forms, capturing and transferring information from one system to another, and recording information on a computer screen.
Though the term robotic process automation (RPA) implies a robot, it refers to using software to mimic certain activities a human would do at a computer.
For example, a bot would be able to capture information sent to a company’s email and enter them into a customer relationship management (CRM) system to trigger certain automated events or report back to users if any information is missing.
How Does RPA Work?
RPA is a process of performing a set of pre-defined instructions by a bot. Once the bot is set up to complete, it can be deployed to fulfill a request at a given time or whenever a particular event takes place.
The steps include: identifying processes to automate, configuring the bot, testing and deploying the process, and monitoring the bot. For example, businesses can develop a bot that carries out a process, such as capturing or retrieving invoice details from a database and recording them into an accounting system or notifying finance managers if any invoice details are missing.
Common Examples of Using RPA in a Business
RPA can be used in diverse ways to simplify and automate repetitive digital processes and functions. Some of the common areas of use include:
- Data Entry and Management
RPA bots can assist businesses in digitizing and managing information in spreadsheet software or databases.
- Invoicing
Bots can support businesses during the invoice creation and management process, including capturing invoice data and recording them into accounting systems.
- Customer Onboarding
Organizations can use RPA to facilitate the laborious and error-filled customer onboarding process, including creating customer accounts, updating databases, and managing other related activities.
- Report Generation
RPA can help businesses in generating and compiling reports, including pulling information from various sources and compiling summary reports for internal business stakeholders.
- Email and File Management
RPA process automation bots can be used to organize or manage customer emails, including sorting and categorizing emails and attachments, renaming files, and moving files into specific folders upon receiving or processing emails.
- E-commerce Activities
RPA can also include bots that manage e-commerce activities, including processing online orders and managing inventory.
Key Benefits of Robotic Process Automation
Businesses can obtain numerous advantages by adopting robotic process automation (RPA) and deploying bots to manage repetitive digital processes.
These benefits include:
Enhanced operational efficiencies and improved process quality – bots can perform certain repetitive computer tasks faster and more accurate compared to humans, saving time, reducing errors, and helping to improve the quality of information.
Quick turnaround of repetitive, rule-based activities – RPA can make it possible for companies to respond to certain requests faster, such as capturing customer feedback forms, creating records in a database or CRM, and managing related processes.
Greater scalability – well-developed and reliable RPA automation tools can be easily scaled to support a growing number of activities and a higher transaction volume.
Reliable execution – bots can perform repetitive processes consistently based on a given set of instructions for every transaction captured by the bot. Organizations can also reap the benefits of enhanced productivity and focus on higher-value activities, including customer support or addressing more complex issues.
Improved resource management – RPA can help employees to use their time and effort more efficiently by automating routine, repetitive, and error-ridden processes.
Enhanced compliance – businesses can benefit from increased compliance because of the consistent and reliable delivery of digital processes by the RPA bots.
The extent of the benefits derived from RPA depends on the nature of the process being automated, the costs of setting up the automation processes, and the maintenance costs of maintaining the RPA tools.
What Are the Limitations of RPA?
Though RPA can be beneficial for a company that adopts the right processes and addresses the challenges, it might not always be a good idea.
Some of the main limitations, risks, and considerations of adopting an RPA bots include:
The need for a set of defined processes – RPA bots are not flexible and can only carry out predefined tasks. The tasks to be automated using RPA bots need to have a set of standardized data and instructions.
Moreover, most traditional RPA bots do not support unstructured data, such as text data, and, therefore, require organizations to have a well-structured data platform to support their process.
Need for regular maintenance and updates – the automation processes may need frequent maintenance and updates, especially if they experience inconsistencies or changes in the target application, such as new loginscreen prompts.
Security risks – the bots might have access to confidential business information, and thus, there is a risk of unauthorized access to the information, including theft of login credentials or unauthorized changes to target systems.
Limitations in exception management and resolution – RPA bots might require human assistance or intervention in resolving exceptions, and thus, organizations need to have the relevant skills to monitor and manage the RPA bots.
Potential loss of value when automating poorly-structured business processes – businesses might end up spending more resources on automating processes that do not fit well with RPA technologies.
Moreover, in some cases, organizations might want to re-engineer business processes before automating them, especially if the processes are poorly organized or require too many decisions to make.
Companies considering adopting RPA technology need to carefully weigh the risks and benefits and ensure that they fully understand the cost-benefit analysis and the potential impact on their business.
RPA vs. Artificial Intelligence: What Is the Difference?
RPA and artificial intelligence (AI) are somewhat related but different technologies.
RPA refers to adopting bots to complete repetitive computer-based tasks based on a set of defined instructions, whereas AI entails using technologies to enable machines or software to mimic human activities, such as analyzing information, identifying patterns, and managing more complex data structures. Thus RPA can be considered a subset of AI.
For example, RPA bots can help to fill forms or transfer information captured from a spreadsheet into a business application.
In contrast, AI can be used to analyze a customer complaint message and identify the issue or task mentioned in the complaint message (e.g., refund). However, RPA bots can be used to transfer this information into the relevant business application.
RPA tools can work together with AI technologies, and the combination could be powerful, depending on a given set of requirements.
How Can Businesses Get Started With RPA?
Any organization interested in adopting RPA to help automate some of its repetitive digital processes should look out for the best processes to address first.
It is always a good idea to start with a simple process, as opposed to trying to automate all business processes.
A good starting point in adopting RPA technology includes:
Identifying tasks that are repetitive, time-consuming, and relatively standardized.
Documenting the current process and look out for unnecessary or extra steps.
Considering the time, cost, and quality benefits of automating the process.
Selecting the most appropriate software to deploy RPA in the organization.
Designing and testing the RPA process.
Addressing any security and other issues identified during the testing phase.
Deploying the RPA process and looking out for additional opportunities to scale the process.
Looking at opportunities to adopt new processes.
Selecting the most appropriate process can be more important than choosing the most advanced automation tool.
For a more detailed overview of RPA, including how it can be used in a business and its limitations, see this blog: Introduction to Robotic Process Automation (RPA) .
Conclusion
Robotic Process Automation (RPA) makes it possible for organizations to help complete repetitive computer-based tasks without necessarily replacing their software applications. From data entry and customer onboarding to invoicing and report generation, RPA can be beneficial.
However, organizations need to consider the best process automation to adopt and understand the cost-benefit analysis, risks, and maintenance costs of using RPA.
By identifying and testing a sample business process, organizations can better understand how RPA can support their businesses and determine the best way of scaling the solution.
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