Process Automation Poised to Change the Business Environment
Process automation is not new. Historically, humans have automated processes whenever machines could be developed to do routine and monotonous work. Recently, however, the machines receiving attention in the process automation space are computers. Robotic Process Automation (RPA) involves software rather than hardware. Todd Smekens (@ToddSmekens) explains, “In essence, using robotic process automation in business allows specially-tailored software to mimic the activity of a human being to carry out various repetitive and routine tasks. Now, this doesn’t sound particularly revolutionary, as we have been automating functions for decades and have moved on to more sophisticated uses of AI. But one key differentiator of RPA vs. other AI is that this technology is run by a business owner or virtually any other employee — not just your everyday programmer. And these solutions are beginning to be rolled out at an enterprise level with tremendous success.”[1]
“Digital has brought in so many technological advances to this age,” writes Sandeep Raut (@rautsan), Senior Director for Digital Transformation at Syntel, “and one of them is Robotic Process Automation.”[2] The Digital Age emerged as humans and machines began generating oceans of data which became available for collection and analysis. RPA is one of the tools developed to deal with all that data. Raut explains, “Today’s organizations often need to execute millions of repetitive and time-intensive business processes each day. Using RPA they can automate administrative functions such as customer address changes, registrations and other high-volume tasks and transactions. This helps avoid human errors and also allows employees to spend more time & focus on customer-related functions for better customer experience. RPA is well suited for processes that are clearly defined, repeatable and rules-based. Any company that uses workforce on a large scale for general knowledge process work, where people are performing high-volume, high-transactional process functions, will boost their capabilities and save money and time with RPA software. Process automation can expedite back-office tasks in finance, procurement, supply chain management, accounting, customer service and human resources, including data entry, purchase order issuing, a creation of online access credentials.”
Because RPA has so many potential uses, the market for RPA software is predicted to grow dramatically. Alison DeNisco Rayome reports, “IT leaders predict that 59% of business processes could be automated by 2022, according to a new study from Redwood Software and Sapio Research.”[3] Predictions about how large the RPA market is going grow varies. Market Research Future predicts the Robotic Process Automation market will grow to approximately $2.7 billion by 2023 with a compound annual growth rate (CAGR) of 29% between 2017 and 2023.[4] According to Arcluster the RPA market will nearly double the Market Research Future prediction and will reach $5.01 billion in 2022.[5] And P&S Market Research pegs the RPA market even higher at $6.247 billion by 2023, growing at a CAGR of 33.8% during 2017 – 2023.[6]
In talks with clients, I’ve found they want to go beyond RPA to what I call Cognitive Process Automation™ (CPA). Cognitive Process Automation goes beyond the accomplishment of routine tasks. CPA has the potential to not just automate, but to improve processes by dynamically processing and executing subtle decisions as if they were made by the best human expert. Leslie Willcocks, a professor of technology, work, and globalization at the London School of Economics, explains, “RPA deals with simpler types of task. It takes away mainly physical tasks that don’t need knowledge, understanding, or insight — the tasks that can be done by codifying rules and instructing the computer or the software to act.
