Optimize Return on Investments of RPA through Selection of the Right Processes for Automation

Robotic Process Automation commonly referred to as RPA has received wide acceptance across the world in process-centric and data-centric business environments. However, at times the process automation fails due to inadvertently automating the wrong processes. For deriving the optimal outcome and benefit of automation, businesses need to select the right processes and optimize the return on investment or RoI. The automation offers maximum benefits with processes that are repetitive, rules-driven, and require high compliance. The selection of the right processes for RPA automation enables businesses to crystallize significant monetary savings and benefits in a short time.

Rules of thumb for RPA automation

RPA tends to improve the processing speed by 5X. Hence adopting certain rules of thumb to select the correct processes becomes highly important.

Correct vision: Having a definite vision about why RPA is required in the enterprise is important. Whether it is scaling up operations, improving compliance processes, defining baseline performance, improving process efficiency, or improving customer experience. Defining the vision enables you to create KPIs for the measurement of process improvements.

Governance team: A proper Governance team to steer the RPA implementation, KPIs, and outcomes is important for the RPA automation exercise. This Governance team helps to fine-tune the enterprise processes and create a definite blueprint for selecting the right processes. Alongside a proper RACI matrix for allocating the responsibility, accountability, consulting, and informing positions allows strengthening the governance of the RPA exercise that should be deployed and rolled out as a Six Sigma project.

Right technology provider and implementation partner: RPA is offered by a number of vendors and providers. However, the vendors who can steer the deployment from the blueprint to the rollout and have the experience of successful RPA tool implementations are the right candidates to be selected as the technology partners. They understand how a project can be successfully steered around the highs and lows of the implementation.

Frameworks for RPA implementation: Using predefined checklists and frameworks to chart the blueprint for an RPA automation exercise offers high success rates. Working with frameworks allows enterprises to optimize the outcomes in a rules-driven environment.

Rules of thumb for process selection for RPA

Repetitive processes: Processes that are highly repetitive in nature are the right candidates for galvanizing the RPA effort. They optimize the output and the RoI for technology deployment.

Rules-driven processes: Processes that follow rules in a highly regulated environment and occur in the same manner over a period of time are the right ones for RPA automation.

High data volume processes: Some processes work with high data volumes in the same systematic manner over multiple cycles. Such processes are also the right candidates for RPA automation. Here RPA automates by allowing systematic communication between multiple systems thus affecting a continuous data transfer in a 24×7 mode.

Internal and regulatory compliances: Many processes need approval from regulatory authorities as well as internal quality departments for their official sign-offs on critical products in the Manufacturing and Pharmaceutical Manufacturing domains. The same holds for many processes in the BFSI domain. RPA enables enterprises to work within the ambits of a high compliance framework with pre-defined checks at multiple process nodes.

Data validations: Processes in the BFSI domain have internal validations at predefined process junctures to ascertain the validity of the data before incorporating it in the core systems. Certain processes that involve aggregating and massaging data from multiple systems before arriving at a single result are also ripe for RPA automation.

Electronic processes: Certain processes have electronic trigger points and endpoints. These processes receive data in electronic format such as *.csv, *.xls, *.xml, etc. Similarly, the processes end by generating similar electronic outputs that are finally integrated into some ERP systems. Such processes are also good for RPA automation.

Error-prone processes: Some processes involve high transactional volumes, multiple manual steps, paper-based workflows, manual data entry prior to culmination, dependencies on multiple inputs, etc. Such processes are ideal for RPA automation.

Manual processes: Processes that require human swivel chair operations and manual calculations and where one miss results in a cascading effect on the entire process is another set that is ripe for RPA.

Seasonal processes performed out of office hours: Some processes peak during particular times of the year and the workload varies from season to season. These processes require late hours for completion within stipulated time frames. These processes are right for RPA automation and improve productivity, efficiency, and RoI by delivering in 24×7 mode.

Digital trigger and culmination: Processes that have a digital origin and a digital culmination or an endpoint have at times manual steps in between. These manual steps can be automated with RPA towards achieving complete automation. Processes that involve paper inputs can be fully digitized by using intelligent data capture also referred to as intelligent document processing (IDP) to convert paper assets to digital assets. Thereafter the process can be fully automated by using RPA.

Enterprises can achieve complete automation by using IDP and RPA by using these ten rules of thumb for the selection of the right processes for RPA automation. Selection of the right processes allows businesses to optimize their RoI for the RPA investment. Simple processes offer RoI within 2 to 4, months, medium complexity processes allow RoI within 6 months, and high complexity processes provide RoI within 2 years. The timelines vary for any other intermittent complexity of processes. RPA allows maximizing RoI in Shared Service operations due to benefits achieved by the scale of operations.

Simply put

Successful implementation and rollout of RPA projects primarily depend on the selection of the right processes for automation. The ten rules of thumb ensure the right selection and hence a successful implementation of RPA with an ensured RoI.