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21. juli 2021

What is RPA?

RPA is an abbreviation for “Robotic Process Automation”, which can be viewed as a software robot. Based on a set of instructions that you program it with, the software robot can turn manual processes into a digitally automated solution.

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Introduction

The purpose of the software robot is to imitate the functions/processes that a person would otherwise perform manually on their computer. This can either be done via the same interface the person uses, or it can be a process that is hidden away and executed as a background process.

The only difference between the software robot and you is that it can perform these tasks 24 hours a day, 10–1,000 times faster, and without human error, broadly speaking. 😉 This means you are no longer forced to hire new employees every time that person gets busy.

The technologies that support process automation have actually existed for a long time. It is only in more recent times that it has been given the name Robotic Process Automation.

Many people know robots from the manufacturing industry. Here, robots are used for everything from assembling cars to wrapping packages in plastic film. What characterizes a robot is that it is a “helper” that can perform a given piece of work. That is why robots around the world help automate thousands of tasks.

Where can RPA be used?

RPAs can be used for a wide range of tasks across industries as well as within business processes. It is somewhat like having a virtual assistant (the software robot). An RPA is an excellent candidate for tasks that:

  • Are repeated many times within a given period
  • Have specific business logic and therefore must be performed very consistently and accurately
  • Quickly require additional manpower for processes to be carried out

In principle, you can use an RPA for almost all processes and tasks. However, cognitive processes and tasks with higher complexity place greater demands on your RPA having artificial intelligence. This means you will need to look into Machine Learning and train a model that your RPA can classify based on.

Specific tasks

This is just a selection of the tasks the software robot would be able to perform:

  • Post entries in your accounting system
  • Copy data from one system to another
  • Prepare budgets
  • Forecast production
  • Collect information from other systems
  • Transform and structure data into the format you need

What can an RPA do for you?

The typical outputs we see when we develop RPAs for our customers are:

  • A significant increase in the speed of internal processes
  • A lower error margin and greater consistency in how work is performed
  • Improved task quality
  • Increased and easier scalability
  • Reduced costs
  • Higher returns
  • Reduced time spent per task
  • The ability to focus where the greatest value is created for the business

Below are processes we typically help automate with RPA:

  • Automatic handling of incoming leads, e.g., registration in CRM systems
  • Creating/updating customers from/to accounting systems or ERP
  • Calculations that help forecast production in companies
  • Preparing standard documents, e.g., orders, quotes, or PDFs that need to be signed.
  • Generating daily, weekly, or monthly reports with data from the business.
  • Overall, the software robot can automate recurring and/or standardized tasks. This applies to both simple and complex tasks.

Benefits of using RPA

There are a wide range of benefits to implementing RPA. We have focused on some of the primary benefits, which are:

Speed: An RPA does not get tired or lose focus. It is therefore much faster than a person. If you need the process to be carried out faster, it does not require hiring a new employee. Instead, you can add more processing power—and just like that!

Reducing errors: An RPA only does what you have told it to do. This means your work is performed consistently and without errors. If there is an error, there is a high likelihood that it is something you are responsible for. Therefore, an RPA can be effective when solving business-critical processes where the error margin must be zero.

Creates capacity for employees: With an RPA, you can potentially make your employees much more productive. They are not forced to do work that does not require much thinking.

Works 24 hours a day: An RPA does not need coffee breaks or days off. It can work 24/7 if it is well calibrated and supports a High Availability setup.

Challenges of using RPA

Although there are many benefits to an RPA, there are of course also drawbacks. Some of the challenges you should be aware of are:

Obvious errors: An RPA will not be able to detect obvious errors that a person would quickly spot. In Machine Learning, it is typically said that your classification is only as good as your data allows. This means that if your data contains errors, the RPA will not be able to see these patterns and classify them as an error unless you have taught the RPA to do so.

Thinks short-term: Unfortunately, there is a tendency for an RPA to result in predominantly short-term thinking. That is, instead of focusing on doing everything correctly so it works long term, “quick fixes” are made. This can limit opportunities for scaling.

Maintenance: Most RPAs are built around a specific business need tailored to your business. Therefore, it typically does not pay to invest in an RPA if you know there will be drastic changes in your business in the near future. In that case, it is better to wait until you have clarified the new business needs.

Is an RPA the right choice for your business?

At a high level, it depends greatly on the process or task you want to automate. Do you have tasks that must be repeated countless times and do not change? Then RPA could certainly be a good solution. If your tasks often change and many specific factors must be assessed, an RPA may not be the right choice for you. Therefore, our recommendation is that you find a partner who can advise you before you choose to invest in an RPA solution.

If you would like to read more about the business needs that RPA can solve, or the process of implementing an RPA, click here.

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