RPA 101: Business Processes Worth Automating

By now, Robotic Process Automation (RPA) has gained enough traction for most businesses executives worldwide to know what it is and the benefits it can bring to a business in terms of cost efficiency, speed, improved compliance, better agility, etc.

It's now quite rare for my existing and potential clients to ask me whether they should automate. The main question has now transitioned to "what should I automate" or "where should I start" instead. The possibilities are vast, but each business is unique and so are their processes. So, they always face the problem of determining which processes are the best fit for automation.

Here are some guidelines to keep in mind when selecting processes for RPA implementation:

• Digital: This is the obvious one. RPA is not a tool to digitize a process. It is a tool to be used on processes that are already being performed on a computer with digital data, in order to automate it.?
• Standardized and rule-based: RPA is well suited to processes that follow a set of rules and do not require human judgment. ?
• Stable: If the process does not change frequently, it is easier (and cheaper) to maintain a solution that automates it. ?
• Repetitive and/ or time-consuming: Look for tasks that are repetitive, time-consuming, and manual. This is where RPA can have the greatest impact. ?
• High volume: Processes that are performed frequently and in high volume are ideal candidates for RPA. ?
• Low-complexity: While RPA can handle complex processes as long as they are rule-based and stable, starting with processes that are simple and straightforward is a good idea. They can be automated with less effort and faster time to value. ?
• Value-adding: This may seem weird to some readers, but some processes that are performed manually are completely useless and should be dropped instead of automating. There can be no ROI in automating a process that does not generate returns. ?

With these guidelines in mind, let's take a look at some typical best candidate processes from different industries and business functions:

• Accounting: Invoice and payment processing, master data management, and statement reconciliation.??
• Finance: Budget data preparation, data reconciliation and control, and financial reporting.??
• Legal: Contract management, legal research, and e-discovery.??
• Human Resources: Employee on-boarding, benefits enrollment, and personnel file maintenance.??
• Customer Service: Order processing, customer service requests, and complaint resolution.??
• Supply Chain: Purchase order processing, order confirmations, and shipment tracking.??
• IT: Data entry and updates, software testing and deployment, and user rights management.??

Since most of accounting tasks are highly regulated and rule-based, there is a lot of potential for automation. Invoice processing is usually one of the first tasks to tackle, as it can be very time consuming, especially in larger organizations. But there's always more and things like handling customer and/or vendor account statements, or managing master data in the accounting system can also save a lot of time for your accountant, while enabling them to focus on more important tasks such as analyzing the data and providing insights to the CFO.

In finance, automating budget data preparation can greatly improve the accuracy and speed of the process, saving valuable time and reducing the risk of errors. For example, the automation of budget data preparation can eliminate manual data entry and reduce the time required to produce accurate budget reports from weeks to just a few days.

In the legal industry, automating contract management and legal research can significantly improve efficiency, accuracy, and consistency. For instance, by automating the contract management process, organizations can ensure that contracts are accurately stored, easily retrieved, and processed in a timely manner.

The list goes on and I'm not here to bore you. These are just a few examples of how RPA can be applied in various industries. The key takeaway is that RPA can automate a wide range of business processes in pretty much any industry, freeing up valuable time and resources for more strategic initiatives.

Use this as a set of simple guidelines that can help you identify the best processes to automate and reap the benefits of automation. And if you still have questions, seek some professional help.??

I specialize in helping businesses improve and automate their processes. If you see any value in what I shared here, please follow me at Agnius Bartninkas for more insights into #RPA, #automation, #processimprovement and similar topics. ??

If you need any help with making your business more efficient, contact me or my team at Definra ??