Stalled productivity or slowing of RPA uptake? Try these 4 strategies

Robotic process automation (RPA) systems saw massive investments in the last decade, especially among large, global organizations. The hope was that robotic process automation would magically improve the productivity figures. The results have not been less than magical though. Productivity growth using RPA demonstrated impressive results in small pockets but achieving massive productivity growth through scaling up hasn’t become a norm. Adoption of RPAs has been growing steadily but the path to unleashing enterprise-wide productivity gains is still fraught with difficulties.

This article recommends four strategies for improving productivity using RPA and laying the foundation for a successful enterprise-wide RPA transformation.

?

Improving enterprise productivity is one of the key goals for every executive. The cost of process deviations, errors, and employing people for repetitive tasks is very high. Robotic Process Automation (RPA) is being sold as a magic pill to business and tech leaders to help achieve higher productivity goals.

In the last five years, Robotic process automation has been adopted widely across industries but the results have not been stellar, neither across the industry nor within a company. Unlike large transformations such as those involving ERP systems, scaling up process automation requires looking at the problem from several dimensions. The adoption of RPA is fundamentally different to the adoption of packaged software solutions. Packaged software tends to automate standardized processes whereas RPAs automate processes that cannot be automated by packaged software either because the processes are highly manual or runs across multiple systems that do not talk with each other.

If you are a leader who has trialled RPA in your business and is looking to improve digital automation and/or productivity. Or you are a Tech leader who wants to assess the value of investments in an RPA platform, then this article is for you. You may be asking one or all of the following questions on this topic.

·?????? Why is the productivity KPI plateauing or even going down?

·?????? Why are the number of ideas for process automation declining?

·?????? Why are some units’ productivity using RPA on the rise while others are going down?

·?????? Should I make more investments in automation?

·?????? How do I achieve higher adoption of RPAs across the enterprise?

?

What is Robotic Process Automation?

Automation/ Robotic Process Automation/ RPA/ Bots are the terms interchangeably used in the industry for a set of technologies that record the actions of humans on a computer and play it back faithfully on request or automatically as many times as required. Remember the Compact discs or even the music cassettes? A recording device could easily replicate a song from one cassette or CD to a new one and the song could be played with the same level of quality. RPA does something similar to processes people perform in computer systems.

An RPA records the steps a user takes on a system or on multiple systems which may involve activities such as opening computer folders, logging into different systems, downloading reports, developing a report on PowerPoint or spreadsheet, and sharing something by email. Once recorded, the system will repeat all these steps, in the same order and ideally generate the desired output. It cannot however brew coffee for the user while he or she waits, yet.

?

Why is scaling up automation so difficult?

Several factors affect scaling up automation. These factors are:

1.???? Different business units within a company may have adopted different automation approaches.

Different business units and regions may have different KPIs and needs around automation. Over the years, business priorities also change and as a result, the approaches to automation may differ across businesses and regions. The different needs, availability of skills, and leadership’s position on automation affect the way automation strategies are applied.

2.???? Likewise, there may be differences in the automation platforms across business units and/ or regions

Automation can be achieved through several technologies and platforms. From simple macros on spreadsheets to sophisticated purpose-built platforms can fulfil automation needs. A lot of Cloud platforms like Microsoft Azure and Google Cloud platforms have automation tools built into them. Because in large and global companies, each business procures IT systems differently, there is a possibility a company may end up having multiple platforms. At the time of scaling up, an executive might face challenges in consolidating the platforms or developing a multi-platform strategy.? ??

3.???? There may not be a common enterprise-wide strategy, operating model, and funding rules ?

Not having a centralized automation strategy is not necessarily bad or even required. It may also be a result of the two challenges mentioned above. However not having an enterprise-wide strategy is a challenge to scaling up. Not having a common operating model and funding rules will only prolong the effect of the above two challenges.? ??

4.???? And finally, the company may not have given a thought about the narrative around automation when discussed in various company forums

Automation carries a negative connotation in the industry – a threat to jobs. The adoption of any technology or change requires adoption by all stakeholders. If any employee in the chain of a workflow feels threatened by technology and its ability to make his/ her job redundant, the adoption is bound to meet with rejection.

?

Strategies for scaling up automation

There are xx areas to strengthen that leaders can use to guide their strategy for automation acceleration each of which will individually strengthen the approach to automation but together will bring about an enterprise-wide transformation.?

?

1.???? Bringing the differences together – Hub and Spoke model

There are bound to be differences in the automation needs of different regions where a company operates and in preferences for automation technologies in a large organization. And it is good to have that variety. A way to make the best of both is:

·?????? to have an enterprise-wide governance process; and

·?????? to centralize the development and maintenance of automation bots

The hub and spoke model has several advantages.

·?????? Central governance process will enable common productivity/ automation KPIs/ targets across the enterprise which in turn will allow competition and growth

·?????? The centralized development will allow a better choice of technology for each use case, reduction of license and maintenance fees, and development of long-term plans with respect to the platform. This also harmonizes the cost of maintaining the automation platforms.

·?????? The regions and business units have the freedom to choose business areas/ processes they want to automate and with the speed they prefer. ?

Recommended Actions:

·?????? Develop a centralized governance model

·?????? Establish a common operating model

·?????? Centralize the automation development and life-cycle management activities

?

2.???? Use automation as a strategic tool and not as a Sticky plaster

When a company start adopting automation tools, every type of use case becomes a candidate. Automation tools have been used at places where funding for a more appropriate commercial off-the-shelf tool was difficult. However, as companies mature in their use of automation, they need to deploy the automation resource and funding strategically.

Identifying use cases with the highest potential for replication will bear the biggest result. A few criteria that could be applied readily during the qualification stage are:

·?????? Will this use case apply to multiple regions, business units, plants, etc without modifications? – This is critical. Customizations sap the benefits of industrialization.

·?????? Will this use case replace any high-cost or high-risk processes?

·?????? Will this use case remove the need for a high license fee carrying application or service?

Recommended Actions:

·?????? When designing the governance process, lay down clear qualification rules for automation use case funding.

·?????? Make the funding criteria quantitative, say an RPA can only get funding if it could replace a process at 10 sites or 20 products, etc or attach a dollar value the automation will achieve.

·?????? Have a clear process and metrics for calculating/ mapping value.

?

3.???? Use the right communication on automation to derisk adoption

IT projects traditionally have not required much focus on communication. Generally, the technologies have made life easier for its users. And the technology demos have focussed mainly on usability but automation projects carry a different message – job loss.

On a full spectrum of a technology’s ability to replace human workers, RPA is on the lower side. A worker hardly ever does one type of job all the time.? RPAs usually automate part of a worker’s day job, in most cases making him/her more productive but collectively, it can reduce headcount in a company.??

And so, there is a need for a narrative. An absence of a positive narrative and communication plan will be the biggest hindrance to scaling up automation.?

Recommended Actions:

·?????? Think carefully of the positive value you seek from automation and bake that into the automation narrative.

·?????? Have a communication plan – Not only will this aid in increasing the pipeline of automation use cases but will also help employees feel positive about automation adoption.??

·?????? Address the fear of job loss in the communication plan and bring this up in the communities of practice meetings and various employee forums.

?

4.???? RPA is just one of the automation tools

Independent RPA platforms such as UIPath, Blueprism, etc are built specifically for process automation and offer the right kit to achieve the goal, but they have limitations.

Cloud platforms such as Google Cloud Platforms (GCP), Microsoft Azure and even ERPs now have built-in process automation tools which are often much easier to use and bolt on very well with the processes that are using these platforms.

Productivity targets can be achieved with a combination of all these tools that are available today to an enterprise.

?Recommended Actions:

·?????? Automation use case development should be independent of the tool. The choice of the tool should be the second stage.

·?????? Some tasks may well be performed using RPA technology but the leaders must also consider the new data platforms and newer GPT-based algorithms that may make even the RPA’s redundant. ?

?

Scaling up automation across the organization requires some careful thinking around positioning the tool for productivity, derisking the narrative around the tool’s effect on jobs, and a good governance process to encourage idea generation, funding criteria and development. An operating model that allows freedom to the leaders of different businesses and tech to select automation use cases they want to promote while a centralized organization is responsible for the development and maintenance of bots and platforms.

You may apply all four strategies through a single digital transformation or focus one at a time. If you were to pick one first, centralizing the automation development and platform harmonization function will be the one that will bring the most benefit and fastest benefits.??