ROBOTICS PROCESS AUTOMATION

Transcription

1 ROBOTICS PROCESS AUTOMATION USHERING INNOVATION, COST SAVINGS 1 ROBOTICS PROCESS AUTOMATION

2 TRANSFORMING CHALLENGES INTO OPPORTUNITIES Amidst continuous pressure from internal stakeholders to bring down costs, the finance function has become leaner and more cost-efficient. The Chief Financial Officers (CFOs) besides donning multiple hats(i.e. providing forward-looking insights and support in strategic planning and decision-making)continue to keep an eye on cost control, as well as respond to evolving market requirements by improving organisational agility. The CFO is looking to automate processes, in order to free up resources to develop and support business strategy and drive critical business initiatives. The CFO is moving beyond plain vanilla cost and labour arbitrage advantages, offered under the traditional outsourcing model. As the clamour for differentiation grows, the CFO is demanding innovative technology solutions from the Finance and Accounting Outsourcing (FAO) service providers, to deliver customer satisfaction. According to a recent study from Horses for Sources (HfS), 47% of BPO buyers indicate automation as a critical component of the BPO service provider capabilities. 2 ROBOTICS PROCESS AUTOMATION

3 ROBOTICS PROCESS AUTOMATION: USHERING INNOVATION AND COST SAVINGS In the Finance and Accounting Outsourcing (FAO) industry, Robotics Process Automation (RPA) is fast emerging as a disruptive technology solution capable of delivering multiple benefits cost savings, enhanced accuracy, scalability and increased compliance. According to Everest Group s Finance and Accounting Outsourcing Annual Report 2014, FAO Robotic Automation tools are up to 65% less expensive than offshore-based full-time employees (FTEs). Therefore, not surprisingly industry analysts are looking at RPA to transform the global outsourcing industry, and disrupt the traditional BPO business model. FAO providers are increasingly leveraging RPA to better manage the growing transaction volumes by automating routine processes; without increasing the FTE headcount. Thus, allowing the CFO to realign resources to focus on strategic, high-value customer facing roles. TYPICAL AUTOMATION BENEFITS CURVE Core Systems Replacement Benefit Robotic Automation Business Process Management Maximised through Process Transformation Screen Scraping Cost xchanging.com ROBOTICS PROCESS AUTOMATION 3

4 ENGINE OF BUSINESS GROWTH In the FAO space, processes such as Order-to-Cash (order management, invoicing and collections, etc.), Record-to-Report (fixed asset accounting), Claims Processing and General Data Entry, etc. are ready for RPA. RPA is the go-to solution for organisations to benefit from process automation and advanced operational and process analytics; at economically viable price points something that was not possible with previous automation approaches. This is because the RPA platform uses the client s existing user interface and enterprise applications (both in-house and in the cloud) seamlessly, with the software robot logging into the application (similar to how a user would, albeit in a controlled environment). This does not require back-end integration or access to client data through API s. The software robot is non-intrusive and will function within the security controls and restricted access rights. In short, there is no compromise on security, resilience, scalability, compliance or operational governance. Furthermore, software robots are technology-agnostic and can be used in any data-driven, rule-based processes. This makes RPA a capability that can be leveraged irrespective of industry and application, making it cost-effective. Xchanging has already automated seven processes for some of our insurance industry customers. The robots are working over 30,000 cases per month. We are already seeing significant benefits from the robotics implemented to date. For instance, the average processing time has reduced from around five minutes to under 10 seconds per unit and 12 multi-skilled robots are all able to work each process 24/7. In addition, our robots now scan third party workbaskets for items that we are unable to process and reject back to the source (broker). Buoyed by the encouraging results, Xchanging is in the process of deploying more robots across other customer processes and for our internal Shared Services functions. Xchanging is also establishing the Blue Prism Competency Centre to spread the footprint of RPA across the company. In addition, we are also setting up a scalable environment to support the robotics platform and process modellers who have been trained to build processes on Blue Prism (Xchanging s robotics partner). We have also created a dedicated and accredited RPA team, reporting into a RPA Product Manager. We have embraced RPA and implemented the required infrastructure, framework approach, delivery capability and support model for the initial wave of processes. With this capability, we will offer true innovation to our customers and deliver creativity and real process transformation -Product Manager RPA, Xchanging 4 ROBOTICS PROCESS AUTOMATION

5 VALUE PROPOSITION OF RPA IN FAO SCALABILITY AND FLEXIBILITY The ability to replicate robotic tools across geographies/business units increases scalability and flexibility PRODUCTIVITY AND EFFICIENCY Robotic automation tools are at least twice as fast as human FTEs and can function 24/7 ROBOTICS PROCESS AUTOMATION ACCURACY Automation phases out human intervention, thus reducing possibility of human errors COMPLIANCE Robotics allows data and processes to be retained onsite COST SAVINGS Robotic automation tools are up to 65% less expensive than offshore based FTEs By eliminating repetitive and manually intensive processes, RPA drives efficiency, enhances productivity, consistency and accuracy. This enables companies to improve response time to new markets and adhere to global regulatory requirements xchanging.com ROBOTICS PROCESS AUTOMATION 5

6 A ROBOT FOR EVERY RULE-BASED PROCESS The CFO is constantly challenged with ensuring optimal resource utilisation and cost reduction. Therefore, organisations are constantly looking to identify processes which can be automated. Rule-based, routine and high-volume processes, predictably susceptible to human error and miscalculations, are ideal for RPA. Some of the areas where RPA can help organisations improve working capital management, enhance productivity and efficiency include: Processes having structured input source, with readable data (sourced from spreadsheets, database, forms, etc.) or routine workflow tasks. The presentation-layer automation software follows the steps defined in a rule-based, non-subjective process and does not alter the existing IT architecture. The RPA software continues to carry out pre-defined steps, and can be easily scaled up or down, to adapt to dynamic business requirements Remote management of IT infrastructure, automated processes under RPA can address and resolve problems on its own. In addition, RPA software can also improve the service desk function and monitoring of network devices. By separating business scalability from the need to add headcount, enterprises can easily manage short-term business demands without adding to the employee strength Large call centres or customer service centres handling high call volumes, in multiple languages. With voice recognition software, progress in language processing by machines and ease in information retrieval, RPA can enable customer service executives to answer customers in natural language, rather than in software code Processes that require data transfer across multiple systems, which can leverage the software robots to help drive record, without the expense of technical integration. By incorporating RPA into operations, FAO providers can create one master process, that can be emulated by the robots in the client s specific systems Data being collated from multiple sources web pages for orders, invoice workflow, exchanges and excel documents RPA can be leveraged effectively to automate high-volume, low complexity tasks. Organisations can thus ensure optimal resource utilisation and also improve employee productivity APPLICATION OF RPA IN BUSINESS PROCESSES Robotics Automation can be effectively used by teams and individuals who: Undertake structured, repeatable, computer based tasks Perform complex decisions based on algorithms Access more than one system to complete a process Do information search, collation or updation Use workflow enabled interaction with people 6 ROBOTICS PROCESS AUTOMATION

7 VALUE DEFINED, VALUE DELIVERED Organisations expect RPA to drive productivity (by automating transactional tasks) and profitability (by gleaning relevant business information from unstructured operational data). RPA allows companies to save 50-70% on labour costs by making intelligent use of resources, near-zero error rates, improved compliance and reduced process cycle time. Therefore not surprisingly, a large majority of the CFOs are already contemplating RPA to automate a large percentage of their rules-based, repetitive back office processes resulting in: LOWER COST: Robotics Process Automation can create a 25-50% cost savings. Process automation enables round the clock execution at a fraction of the cost of a regular FTE model. A software robot can cost as little as one-two ratio the price of an offshore FTE and as little as one-fifth the price of an onshore FTE. This number can be significantly greater, given overnight system availability. HIGHER EFFICIENCY: Robots can work 24/7, 365 days a year, with no vacation breaks or attrition. This leads to reduced cycle time and enhanced productivity. ENHANCED ORGANISATIONAL PRODUCTIVITY AND QUALITY: RPA can help organisations enhance organisational productivity without significantly modifying the existing process flow. Robotic FTEs are deployed into existing transactional systems operating the processes in exactly the same way that human FTEs do today. INCREASED COMPLIANCE TO REGULATORY NORMS: Organisations are wary of the possibility of experienced process associates skipping any step in the standard operating procedure. The robots are programmed to follow the SOP and hence perform the task in exactly the same way, every single time. In addition, robotic automation also generates extensive audit trails at the keystroke level, which provides an extra level of assurance during testing and production. Analysts, however, add a word of caution for organisations considering RPA to be a replacement of their existing systems. Enterprises need to remember that RPA does not and cannot completely replace the existing systems, but can only perform specific rule-based repetitive tasks. In addition, the cost of building automation into the systems should also be well thought through. With increasing incidents of data theft, organisations are treading cautiously when it comes to providing access to confidential business data, under RPA. IN SUMMARY Robotics Process Automation is maturing in terms of credibility, clarity and applicability, as more and more organisations are embracing it. According to Gartner, the focus of outsourcing is shifting from resource augmentation to outcome-based managed services. As this continues to evolve, the role played by RPA will be even more significant. Besides process automation, this technology can be applied to a wide range of domains including information technology support and management, and automated assistance, etc. The main challenge with RPA is with respect to handling unstructured data. In the F&A domain, especially in payments and collections, the data including correspondence, claims, complaints and invoice are received via , fax, post and paper, etc. The potential to combine RPA with new Artificial Intelligence (AI) engines, would help overcome this challenge. Therefore, together with AI, RPA can make deep inroads in the F&A domain. xchanging.com ROBOTICS PROCESS AUTOMATION 7

8 THE BENEFITS OF ROBOTICS PROCESS AUTOMATION QUALITY/ACCURACY/ RISK MITIGATION FLEXIBILITY/ MULTI-TASKING APPLICATION INTEGRATION VIA USER INTERFACE REDUCED DELIVERY RISK EFFICIENCY/COST BASE REDUCTION CUSTOMER SATISFACTION MI, AUDITING AND SECURITY DATA COLLATION AND MIGRATION OPERATIONAL EFFICIENCY TECHNICAL ROBOTICS PROCESS AUTOMATION 8 ROBOTICS PROCESS AUTOMATION

9 AUTHOR Raja Subramanian Group Enterprise Architect - Xchanging Raja.Subramanian@Asia. Xchanging.com REFERENCES AMERICAS 281 Winter Street Suite 380, Waltham, MA 02451, USA Phone: +1 (781) [email protected] EUROPE The Walbrook Building, 25 Walbrook, London, EC4N 8AQ, UK Phone: +44 (20) [email protected] ASIA-PACIFIC Xchanging Towers, SJR ipark, EPIP Area, Whitefield, Bangalore, , India Phone: +91 (80) linkedin.com/company/xchanging facebook.com/xchangingplc 2014 XCHANGING JAN.15 9 ROBOTICS PROCESS AUTOMATION