Lately I have been delving into the different business models for Robotic Process Automation, or as it’s called in short: RPA. How are these RPA business models implemented, how are suitable processes identified and how are the services charged? Most important, why do RPA projects fail most of the time, although they initially seemed to be with high potential. In this blog I will elaborate on which processes are suited for current state RPA and explain how I think they should be implemented. In closing I will dive into the remuneration of the RPA provider.
First, what is robotic process Automation exactly?
Do the eligible processes require a lot of manual “clicks”?
Are the processes done with a sizable volume?
Is the process perceived as time consuming or as administrative hassle by your customers?
Wanting to establish all that develops the need to select some kind of technology. The list of potential technology providers is not extremely long. RPA is still an emerging market; technology providers are just slowly picking up. What I find interesting in the RPA technology is the way it is deployed. Is it purely a software tool or can you drive value added services from your provider, like identifying bottlenecks in the execution of processes? In that sense, I firmly believe that automation companies that understand both the process and have proprietary technology are getting ahead of the pack. It takes time to understand how people currently work the process. In relation to that it is vital to understand that not all people are executing the process as desired or defined. Therefore learning might be a bit difficult. When not taking the differences in process operation in consideration, it leads to one of the key arguments that implementations fail.
The implementation of RPA is not a procurement kind of process; you are not just buying a software tool. RPA requires very clearly defined business requirements and very clear rules of engagement. The tools are not very comparable to each other. Therefore it is vital to do a more extensive deep dive into the benefits than you would when acquiring a normal software tool. For me one of the most important aspects is the implementation track record for success. In other words, the way the vendor desires to enter into risk-reward based outcome instead of unit price or even worse a license fee. Other very important elements are flexibility and business knowledge in relation to the processes that need to be automated.
This brings me to why so many RPA projects still fail. In my experience, so many projects are undertaken by a Center of Excellence (CoE), where people are running internal RPA projects. This doesn’t work. A clear example we have seen the last few years in the area of data science. A lot of companies have tried to apply data science on their own, but are now moving away to standardised services and building blocks. My advice: don’t do it on your own. The second most important reason of RPA failure has to do with the fact that most RPA vendors are currently selling a software tool instead of business results. Therefore once they have sold their license, their customer engagement stops.
RPA can drive significant benefits for your business. However, finding the right partner is not easy. Look into your company DNA and find a fit on that level. Look for joint entrepreneurship that has the potential to grow into a long term commitment. And yes, it also means hiring a consultant in order to help you find the right partner and processes.
Want help in tackling your RPA challenges? Let me help you out!