ROBOTICS PROCESS AUTOMATION - Xchanging - … · 2015-01-12 · resources to develop and support business strategy and drive ... ROBOTICS PROCESS AUTOMATION xchanging.com ROBOTICS

xchanging.com ROBOTICS PROCESS AUTOMATION | PB1 | ROBOTICS PROCESS AUTOMATION

ROBOTICS PROCESS AUTOMATIONUSHERING INNOVATION, COST SAVINGS


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.

TRANSFORMING CHALLENGESINTO OPPORTUNITIES

xchanging.com ROBOTICS PROCESS AUTOMATION | 3PB | ROBOTICS PROCESS AUTOMATION

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.

ROBOTICS PROCESS AUTOMATION: USHERING INNOVATION AND COST SAVINGS

TYPICAL AUTOMATION BENEFITS CURVE

Maximised through Process Transformation

Benefit

Cost

Robotic Automation

Screen Scraping

Business Process Management

Core Systems Replacement

xchanging.com ROBOTICS PROCESS AUTOMATION | 54 | ROBOTICS PROCESS AUTOMATION

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.

ENGINE OF BUSINESS GROWTH

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


VALUE PROPOSITION OF RPA IN FAO

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

ROBOTICS PROCESS AUTOMATION

PRODUCTIVITY AND EFFICIENCY

Robotic automation tools are at least twice as fast as human FTEs and can function 24/7

COST SAVINGS

Robotic automation tools are up to 65% less expensive than offshore based FTEs

SCALABILITY AND FLEXIBILITY

The ability to replicate robotic tools across geographies/business units increases scalability and flexibility

ACCURACY

Automation phases out human intervention, thus reducing possibility of human errors

COMPLIANCE

Robotics allows data and processes to be retained onsite


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, email 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

A ROBOT FOR EVERY RULE-BASED PROCESS

APPLICATION OF RPA IN BUSINESS PROCESSES

Undertake structured, repeatable, computer based tasks

Access more than one system to complete a process

Perform complex decisions based on algorithms

Do information search, collation or updation

Use workflow enabled interaction with people

Robotics Automation can be effectively used by teams and individuals who:


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.

VALUE DEFINED, VALUE DELIVERED

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 email, 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.

IN SUMMARY


THE BENEFITS OF ROBOTICS PROCESS AUTOMATION

ROBOTICS PROCESS AUTOMATION

EFFICIENCY/COST BASE REDUCTION

QUALITY/ACCURACY/RISK MITIGATION

CUSTOMER SATISFACTION

FLEXIBILITY/MULTI-TASKING

MI, AUDITING AND SECURITY

OPERATIONAL EFFICIENCY

REDUCED DELIVERY RISK

DATA COLLATION AND MIGRATION

TECHNICAL

APPLICATION INTEGRATION VIA USER INTERFACE


@xchanginggroup linkedin.com/company/xchanging facebook.com/xchangingplc

© 2014 XCHANGING JAN.15

AMERICAS

281 Winter Street Suite 380, Waltham, MA 02451, USA

Phone: +1 (781) 916 [email protected]

EUROPE

The Walbrook Building, 25 Walbrook, London, EC4N 8AQ, UK

Phone: +44 (20) 3604 6999 [email protected]

ASIA-PACIFIC

Xchanging Towers, SJR iPark, EPIP Area, Whitefield, Bangalore, 560 066, India

Phone: +91 (80) 3054 [email protected]

Raja Subramanian Group Enterprise Architect - Xchanging

[email protected]

AUTHOR

REFERENCES

http://www.blueprism.com/industry/industry.php?cat=8

http://www.sourcingfocus.com/site/featuresitem/8353/

http://www.irpanetwork.com/what-is-robotic-process-automation/

http://www.everestgrp.com/2014-03-robotic-automation-drives-value-in-fao-market-insights-14141.html

Documents

ROBOTICS PROCESS AUTOMATION - Xchanging - … · 2015-01-12 · resources to develop and support business strategy and drive ... ROBOTICS PROCESS AUTOMATION xchanging.com ROBOTICS