RPA - random thoughts

It was in the beginning of 2016, I was laughed at when brought the topic of robotization of business process in Healthcare Insurance market. Within three months, everyone was talking about how can we do that! By the start of 2017 there were investments made on realizing the potential of Robotic Process Automation (RPA) in some functions.

Researchers bet on RPA with high numbers, top 4 companies put together have a valuation of over $10 billion! So much for Hype!

Madness has caught up, teams started sprouting with investments raging between a million to several millions. There were claims of reduction in human resources, ROI in six months, high return on investments, increased efficiency and reduced error rates and what not. Middle of 2017, we had analysts report why RPA implementations are failing (some of them Big 5 Consultants helping your company digitize the workforce). The success rate achieved projected between 15 and 96% (depending on which research firm you are talking to. Each one defending themselves and some heavily critiquing the others. Contest was on to figure who lied the least!

Fast forward to the start of 2018, sit with one of these team leads for a beer at HIMSS 2018, surprise – surprise, he admits none of these predictions of success happened, moreover, he also admits million have been spent with no near future results! One team lead in one of the top 5 Health Insurance companies told me they spent $17 million and after 2 years, they decided to shut down the project! No one formally admits it.

I am sure you have downloaded reports that peg the RPA market at over $1.2 Billion by 2021 (HfS Research). If you notice, the services component is $950 million and Software accounts for ONLY $ 270 Million.

 Following are some other market research you will find on the web;

I am at loss (you all may be too), as they are allover the place, which one to trust?.

Don’t take me as a skeptic – I am just looking at the business with critic’s lenses.