Robots Conquer Business Processes in Back Offices

Robotic Process Automation - Robots conquer business processes in back offices

A 2016 study conducted by Capgemini Consulting and Capgemini Business Services 2 Robotic Process Automation - Robots conquer business processes in back offices Contents

Preface 04

Authors 06

Executive Summary 07

What is Robotic Process Automation? 10

Key findings 17 - Introduction to key findings 17 - Size doesn’t matter 19 - Robots march out 22 - Robots tasks 24 - Drivers and expected benefits 29 - Optimization and standardization 35

Future Outlook 40

Capgemini Consulting’s Implementation Offering 42

Appendix: The participants 44

Contacts 46

3 1 Preface

Robotic Process Automation (RPA) — implementation plans for Robotic Process To study this, a questionnaire was the automation of complex processes Automation within back office processes. conducted and consisted of 34 that replaces humans through the imple- questions. Over 150 executives from To ensure the accuracy and applicability mentation of advanced software — is companies of different sizes participated of trends identified in Robotic Process transforming the future of back office in the survey. Nearly half of the Automation, Capgemini Consulting and processes. Businesses across the board participants indicated that their company Capgemini Business Services created and are realizing that RPA is the next significant reports revenues greater than a billion distributed a survey which investigated the digital transformation that will enable Euros per annum, while about 10% of following topics: employees to stop working on repetitive participants reported revenues of less • general thoughts towards RPA; tasks. Robotic Process Automation allows than half a billion. • implementation statuses in various employees to concentrate on more value- functions; The scope of the study concentrated on adding initiatives, which are imperative • sourcing structures; back office processes, i.e Finance & for the bottom line of the firm. • standardization of processes; Accounting (F&A), Human Resource Capgemini Consulting and Capgemini • future plans with regard to sourcing Management (HR), Customer Services, Business Services have joined forces to and RPA Procurement & Warehousing, Sales & investigate the current understanding of Distribution and Production Planning. The participants’ answers, in conjunction RPA, what perceived advantages it offers, with selected face-to-face interviews, are current sourcing and automation strate- analysed throughout this report. gies, as well as the future outlook and

Figure 1: Participants by position and industry

Participants Public Sector Automotive Life Sciences Chemicals Telecom, Media & Entertainment 2% 3% 3% Consumer Products & Retail 4% 21% 4% 2% Energy & Utilities 4%

Transportation & Tourism 4% 48% Unspeci ed

8% 79% Manufacturing

18% Financial Services Board members Functional executives

4 Robotic Process Automation - Robots conquer business processes in back offices Participants represent businesses in The survey not only represents a multi- “ industries across the board, including: study of industries, but also a geographi- „Developing Robotics is like Financial Services, Transportation, Tourism, cally diverse group of companies. While living in the SciFi novels of your youth – Energy, Utilities, Telecommunications, 22% of participants have indicated that Asimov´s visions are becoming Media, Entertainment, Consumer their firm is headquartered in Germany, alive. Products, Retail, Chemical, Automotive, Austria, or Switzerland, another 11% “ Life Sciences, the Public Sector, Industrial specified that their company is headquar- Automation, Software and Aerospace tered in Scandinavia, which encom- Peter Hofbauer, Unicredit Bank AG and Defence. 21% of participants passes: Denmark, Finland, Norway, and that answered the survey were board Sweden. A tenth of the participants members while 79% were executives in have headquarters located in North Finance, HR, IT, Sales and others. America followed by France with 9%.

Figure 2: Participants by region and company size

Geography

2% More than 1 billion euros 43% (67) 17% 500 million euros - 1 billion euros 4% (7)

38% 100 million euros - 500 million euros 8% (13) 43%

DACH (Germany, Austria, Switzerland) Less than 100 Million euros 1% (2) Other Europe (Nordics, UK, France, BeNeLux)

North America (United States, Canada) Unspeci ed 43% (68)

Others

5 2 Authors

Christian Kroll Dr. Adam Bujak Volker Darius Senior Vice President Director Vice President Head of Corporate Excellence Global Head of Technology Corporate Excellence and and Transformation Transformation Transformation Capgemini Consulting DACH Capgemini Business Services Capgemini Consulting DACH

Contributions from Torsten Baumbach, Ralf Dürr, Julia Thieme, Philipp Obach, Inga Schubert, Elizabeth Hayes

Wolfgang Enders Marcus Esser Principal Senior Manager Corporate Excellence and Global Head of Technology Innovation Transformation Capgemini Business Services Capgemini Consulting DACH

6 Robotic Process Automation - Robots conquer business processes in back offices 3 Executive Summary

Capgemini Consulting and Capgemini • All back office functions will see an faster than humans. Robotic automation Business Services have investigated the increase in RPA usage. can cost as little as 1/3rd of the price of current and future trends in Robotic • Essential quantifiable measures of an offshore full-time employee (FTE) and Process Automation (RPA) in back office success include cost reductions, as little as 1/5th of the price of an onshore processes. This study describes what RPA improving the quality of work FTE. Robotic Process Automation also in this context is all about, as well as the produced, saving time on repetitive frees employees from tedious tasks, major findings that were discovered tasks, reducing risk and increasing enabling employees to instead focus through the distribution and analysis of a compliance, and improving process on value-adding initiatives that involve survey, specifically created for this study. effectiveness and efficiency. creativity and decision-making, which Capgemini was curious to discover the • While RPA does not help standardize unlike the creation of an invoice, only current thoughts on RPA, whether compa- processes, the processes that are the humans can complete. nies intend to implement it in the next most standardized are also the pro- All back office areas have processes that 3-5 years, as well as whether companies cesses most likely to see a significant are strong candidates for RPA and compa- intend to implement RPA onshore, in a increase in RPA usage in the nies realize that RPA is not just a piece of captive Shared Service Centre, or a near future. coding or another marketing tactic. In fact, Business Process Outsourcer. Unlike previous technologies, a massive based on the processes targeted by Even a quick overview of the survey find- advantage of RPA is that it is a techno- companies, all back office areas are worth ings demonstrates the massive potential logical transformation without the looking at; however, Finance & Accounting that RPA offers. The following is just a headache of switching systems and processes are currently the front runners snapshot of statements that participants processes. RPA offers new options for for RPA, followed by Human Resource indicated they either agree or strongly business to close the gaps of missing Management and Customer Service. agree with: system interfaces, if any are left open High volume, repetitive and rules-based • 86% of participants said that RPA by IT. It can work with and between transactional processes in Finance & can significantly reduce costs the systems that are already in place, Accounting are top priorities on compa- • 86% of participants felt that RPA finding all of the necessary information. nies’ agendas. In general, participants can help reduce risk and increase Moreover, robotic automation can learn believe that HR processes cannot be compliance from users, copying their processes automated as much as Finance & • 86% believed that RPA improves and steps. On the other hand, it is a Accounting tasks. This could be because process effectiveness and efficiency collaborative task for both business and many tasks in F&A are known to be highly • 89% of participants believed that to ensure that RPA is not only working to rules-based, whereas some HR processes RPA can improve the quality of work relieve symptoms. Therefore, check for may require more human intervention. other options such as a stable system produced In general, process standardization is a interface because this could be a better • 91% said that RPA can save good indicator of strong potential candi- option for fixing the source of issues. companies time on repetitive tasks dates for RPA. In fact, the survey revealed By executing this study, Capgemini was When discussing the substantial benefits that current RPA usage in a process is able to decipher the following essential of Robotic Process Automation, the typical directly correlated to the current degree findings: areas affected are: effectiveness, quality, of standardization in that respective compliance, scalability, risk optimization process. Moreover, processes with a • Companies of all sizes and across all and workforce performance. Therefore, higher degree of standardization such industries intend to implement RPA in companies choose to implement RPA as Accounts Payable, Accounts Receiv- the near future. Companies that earn for a number of reasons, including cost able, and some Customer Service more than 1 billion Euros per annum savings, quality improvements, reductions processes, tend to be the primary intend to implement RPA in F&A and in headcount, assurances that regulatory processes selected when companies first HR processes whereas companies requirements will be followed, and to implement RPA. The degree to which that have revenues under 1 billion increase the speed of processes. In fact, a process is standardized is a strong Euros per annum also have Customer the statistics indicate that robots make indicator as to the degree to which a Service on their agendas. fewer mistakes and work significantly process can be automated by RPA.

7 It is important to note that introducing necessarily believe that RPA can be as Remarkably, all the people who already robotics will not increase the degree of helpful in reducing costs compared to implemented RPA in the study agree, that standardization in itself. those who have not yet implemented while RPA is going to help in the back RPA, 84% of RPA users did indicate that offices, employees and RPA must still The study results also highlight that RPA the robots can help significantly reduce co-exist. Change Management is a vital acts more as an instrument and enabler of costs, compared to 96% of non-users. aspect to be considered when implemen- process optimization and less as a trigger On the other hand, a potential reduction ting RPA. It is essential that companies to indicate that processes should be in process complexity is indicated by 53% consider all aspects in terms of people, standardized. The majority of participants of trained executives compared to 44% processes and technology. Activities and start their process optimization before they of inexperienced RPA users. Overall, the responsibilities may change and people implement RPA or adjust their processes most important measure that indicates the should be involved according to the during the RPA implementation. success of a RPA implementation is cost corporate culture. Moreover, even RPA can be vital to the Business Process reduction, which was quoted by 65% of though robotic software is a non-intrusive Management environment, giving trans- participants as either a very or extremely package, it is still an add-in to the IT envi- parency to the process flow and indicating important measure of success. Over half ronment. Once implemented, the robots further improvement potential. Another of RPA users indicated that cost reduc- become a part of the living organization, revolutionary aspect about robotic automa- tions met or exceeded their expectations, so the human workforce needs to be tion software is that it does not necessarily and based on the evidence, 20% - 50% prepared—effective Change Management require companies to make changes cost reduction is achievable. The increased plays a key role in the success of a RPA to their strategic processes or existing speed of processes was also quoted by implementation. back office technologies. Companies 58% of participants as very or extremely need to ensure that they prioritize important when measuring the success of which processes will initially use RPA a RPA implementation. and develop a transformation roadmap Based on the data in the survey, it is clear based on the individual requirements. that RPA implementation will continue into The relevance of a task remains important, other support functions. While RPA even if it is executed faster and more currently works with rules-based pro- accurately by RPA. While companies that cesses, RPA will push boundaries and have already implemented RPA do not eventually be able to work within the all cognitive periphery.

8 Robotic Process Automation - Robots conquer business processes in back offices 9 4 What is Robotic Process Automation?

In the 1990’s many companies were RPA enables companies to drastically requires minimal capital or infrastructure. seeking cost reduction strategies in the improve cost effectiveness and quality RPA can act as an additional employee form of labour arbitrage and as a result, improvements in their transactional that can work between the IT systems many tasks were moved to low-cost processes. and with the back office processes in countries in Asia, Eastern Europe and various functions. Similarly to humans, A key advantage of Robotic Process Auto- Latin America. Now that major companies RPA can learn from people and copy mation is that unlike previous IT transfor- from around the world have reaped the their processes, eventually taking over the mations such as Enterprise Resource benefits of labour arbitrage, and system processes that humans once completed, Planning (ERP’s), RPA does not require a harmonization and process standardiza- at a much faster pace. Robotic Process massive upfront investment or a significant tion has come to a reasonable level, auto- Automation is going to continue to change to the current IT systems and mation of remaining tasks and processes develop and work with increasingly processes. In fact, RPA can be imple- is the new target. Companies take advan- complex processes and tasks. mented relatively quickly when compared tage of Robotic Process Automation in to previous digital transformations, as it their back offices.

Figure 3: Types of business processes in which RPA can be used

Typical types of business processes in Characteristics of processes that can be which RPA can be used automated using RPA

high

Repetitive tasks carried Process list and typical automation out 50-60 times a day le storage targets Frequency of process RPA candidates low low Complexity of process high

Periodic reporting, data Mass email generation, high entry and data analysis archiving and extracting

RPA candidates alue of work V Conversion of data ERP and other back format and graphics of ce transactions low <5 min. Duration of work >30 min.

10 Robotic Process Automation - Robots conquer business processes in back offices What is Robotic Process ? Automation?

Although Robotic Process Automation increase in RPA usage in the near future not necessarily require companies to and Business Process Management have are also the processes that are currently make changes to their strategic processes similarites, they are in fact fundamentally the most standardized. or existing back office technologies. Even different. BPM works from the top down, if companies are separated geographically Robotic Process Automation is undoubt- standardizing all processes throughout or have various technological systems edly the next wave in digital transforma- its implementation. In comparison, implemented, RPA is able to connect tion—RPA is a software application that Robotic Process Automation works from systems. Therefore, RPA may function can replicate processes humans would the bottom up, integrating itself with pro- as a quick win solution for process do to move information through and cesses. While RPA automates processes, optimization. between different technology systems. it does not standardize them, nor does it Robotic automation uses software as While knowledge-based automation tools help to standardize processes. BPM a virtual FTE to manipulate existing and cognitive artificial intelligence systems standardizes processes, but does not application software (e.g. ERPs, CRMs, are entering the market, the majority automate them. Even though RPA does and claims applications) in the same of companies are currently focused on not standardize processes, having stan- way that a person completes a process. rules-based robotic automation solutions, dardized processes is hugely beneficial which means that RPA can work well with for RPA, as can be seen by the fact that What is particularly revolutionary about complex processes that have a specific the majority of processes that will see an robotic automation software is that it does set of repetitive rules. Rules-based tasks

Figure 4: Why companies are increasingly interested in RPA

Emerging technology with Faster and targeted bene ts Does not require heavy upfront growing list of use cases realisation investment

Minimal impact on existing IT Business led – Possibility of Flexible to adapt to changing landscape developing internal capacity business environment

11 would include tasks in back office pro- different systems, or other tasks that follow than humans— a software robot can cesses, such as completing an invoice. As a very specific, repetitive, rule-based cost as little as 1/3rd of the price of an RPA becomes more common, companies process. offshore full-time employee (FTE) and as will begin to implement knowledge-based little as 1/5th of the price of an onshore Robotic Process Automation is not only automation, enabling robotic automation FTE. This results in anywhere between advantageous for employees, but also to work with many more exceptions. A 20%-50% cost savings. Moreover, for companies. Tasks can be completed typical example of knowledge-based automation reduces human involvement, quickly, accurately, and at a lower automation would be in Customer Service therefore reducing human error by up cost through the implementation of functions, searching for information across to 20%. Additional robots can start robotic automation solutions. Statistics systems and answering customer emails. working in a mere 20 minutes to help indicate that robots make fewer Finally, while RPA has not developed into relieve backlog if needed. mistakes and work significantly faster the all-cognitive periphery, experts definitely see potential for RPA to eventually be able to think for itself, working along- side humans on value-adding initiatives that are important to the bottom line of the firm. Figure 5: Evolution of RPA technology Robotic Process Automation is already transforming back office processes in Processing Customer Service, Finance & Accounting, Complexity and Human Resource Management for rules-based tasks. As the graph above high Current state in Finance & Accounting and Human Resource Management demonstrates, RPA can currently work with tasks that follow a complex, yet specific and repetitive pattern. As RPA continually improves and develops, the software will be able to move into the outer peripheries and work with All knowledge-based and eventually, all Cognitive cognitive tasks.

RPA is currently a growing trend in Knowledge- Finance, Accounting and HR because based RPA these areas have a number of tasks that are tedious and repetitive, yet take away Rules-based too much time from employees who could RPA instead be working on critical creative and strategic functions which involve important Scree decision-making that can only be com- scraper pleted by humans. RPA has a notewor- low thy impact on these functions as Input type robotics allows employees to focus on Structured, Unstructured, Unstructured, the value-adding activities that are electronic patterned free form essential to the firm, and frees employees from copying and pasting information in © Capgemini Consulting 2016

12 Robotic Process Automation - Robots conquer business processes in back offices Exemplary Use Case – Invoice logging in, copying the applicable infor- with this job could have been focusing Processing mation, switching windows, pasting the on value-adding initiatives that involve information in the other system, and creativity and decision-making, which Based on a typical use case that is repeats this procedure for each invoice unlike the creation of an invoice, only transacted in BPO centers, invoice item, finally finishing the creation of an humans can complete. processing, the difference between invoice after ten minutes of work. The a human’s interaction and a robot’s In comparison, figure 4 also illustrates the employee then completes six more method to complete a process can be same task, but is executed in a fraction invoices, with ten items each, for the illustrated nicely in the graph below for of the time by robotic automation next hour. invoice processing. software. Not only is this time consuming, error- Imagine an employee sitting at their desk The robotic software begins automation, prone and not particularly interesting for and they need to create an invoice with reads the necessary information, pastes the employee, but it is also a rather poor ten invoice items, using basic data from the required information into the other allocation of a valuable resource. In this different sources and systems obtainable system, creates the invoice item, repeats same time frame, an employee tasked only via Citrix. The employee begins by

Figure 6: Comparison of process execution - manual vs. automated

Demo: An invoicing process – AS IS/manual

In Total

Start End 600s+

Demo: An invoicing process – TO BE/automated in time

In Total Start Log End 180s+ Start Read Create Logging Automation Invoice Paste (10+ Times)

13 this process for each invoice item, and saves the data of the entire process in a Figure 8: Man-to-Machine Ratio database. The same invoice with ten invoice items is then completed by a robot What span of control (man-to-machine ratio) do you feel is appropriate? in a mere three minutes rather than ten 52% minutes. This process is repeated ten times 48% by the robotic software for the next half 41% hour. Obviously, the robot is much faster 33% and by definition, error-free. Productivity levels can soar, as robots do not need breaks or holidays and can run 24/7, 9% 11% meaning a three-shift model. The work 2% 4% that takes around a week for an employee can now be completed in just over twelve 1:1 1:5 1:10 1:100 hours by utilizing Robotic Process Auto- mation. Assuming a team lead is supervising the work of eight employees in a three-shift scenario, the weekly work of 24 accounting clerks can be accomplished Companies not yet implemented RPA Companies already implemented RPA by one and a half robots, monitored by the same three leads. © Capgemini Consulting 2016

Further reductions in transaction speed Another noteworthy benefit is that the Despite the facts and scenarios mentioned can be achieved if more robots are robotic software saves and stores all above, robots can also be utilized in an introduced to fulfil the above mentioned information regarding the work that they attending manner. Based on information task by implementing a man-to-machine- are doing, which helps increase transpar- keyed by a service desk member, a robot ratio of one human supervising five ency and ensure that RPA follows regula- may automatically search for and provide robots as assumed by the majority of tory requirements. This is particularly additional information of interest to quickly survey participants. pertinent for companies operating in highly regulated environments.

Figure 7: Example of headcount effect

Potential reduction in headcount when using robotic workstations

A typical GUI automation scenario: Assuming three-shift operation for both humans and robotic workstations Assuming one or more GUI automation artifacts (e.g. CES invoicing case) Assuming batch mode compatibility of the GUI automation artifacts Assuming suf cient work item volume for automated (sub) processes to reach a 95%+ utilization of the robotic workstations Assuming that operator is able to log into customer systems multiple times simultaneously

14 Robotic Process Automation - Robots conquer business processes in back offices support the decision-making process, It is important to note that even if “ e.g. a customer complaint via telephone processes within an organization are „Robotics is a quick requires immediate response and action. strong candidates for RPA, companies and cheap fixing of insufficient In other words, what took days and must consider their overall IT strategy IT investments. weeks can be decided within seconds, and ensure that implementing RPA fits. It which will likely have a direct and is a collaborative task for both business “ immediate effect on customer and IT, to ensure not to work on the Thomas Budny, Commerzbank AG satisfaction. symptoms only by introducing RPA, if a stable system interface can be the better If back office processes meet the following option to fix the issue at the source. checklist, then it is worth thinking about introducing Robotic Process Automation.

Figure 9: Criteria for candidate processes and tasks

Processes that require access to multiple systems

Processes prone to human error

Processes that can be broken down into unambiguous rules

Process once started, need limited human intervention

Processes that require limited exception handling

Processes executed frequently, in large numbers or with signiﬁcant peaks in workload

Process has no strategic ﬁt

15 16 Robotic Process Automation - Robots conquer business processes in back offices 5 Key findings

Introduction to key findings

Capgemini Consulting distributed a survey • Implementation drivers and expected affects an organization. Hardly any partici- to many large companies and based benefits: When companies think about pants believe that RPA is just a piece of on the responses, was able to draw the robotics, cost, quality and better coding or that it is just another marketing following conclusions: compliance are the main drivers and tactic and companies clearly realize that • Size doesn’t matter: Companies benefits expected. RPA is not just an IT transformation, but of all sizes already use or intend to • Optimization and standardization: rather an organizational transformation implement robotics within the next 3 - RPA is an enabler of process affecting the business as a whole. The 5 years. optimization, not a trigger for process graph below demonstrates the percentage • Robots march out: Companies standardization of people that agree to strongly agree with each of the statements. take advantage of Robotic Process The first question in the survey presented Automation in their own sphere of participants with a series of statements It is clear that RPA is the next digital influence where participants either agreed or transformation, affecting organizations, • Robot tasks: Process candidates for disagreed with the statement. This enabled processes, and technology at the same RPA can be found in all back office Capgemini Consulting to identify the time. Companies realize that RPA dramati- areas current understanding of RPA in regard cally changes the entire organization, to the advantages that RPA presents and including the process chain and the way how this technological transformation

Figure 10: Participants’ statements about RPA

Robotic Process Automation… Agree / Strongly Agree

It’s clearly understood ... changes the organization and the way people work 86% that RPA implementation 1 affects all areas ... is a signi cant digital transformation 81% Organization, Processes and Technology. ... changes the process chain 71%

17 in which people work. However, robotics • Work item and exception queuing to only 44% of participants expect significant does not transfer responsiblites from the be processed by a robot or adviser reduction in process complexity. business functions to IT. Rather IT and the • Activity monitoring that captures and The following section investigates the business functions must work together. analyzes data on an adviser’s desktop present and future of Robotic Process

While robots may replace some employees application usage Automation by delving into the six key in back office processes, new jobs will be The main benefits that companies expect findings mentioned above. created because employees and robots to see are cost reduction, improvements must co-exist, and 85% of participants in the quality of work produced, reduced agree to strongly agree with this time spent on repetitive tasks as well as “ statement. reduced risk and increased compliance. In a nutshell, Robotic Process Automation These benefits are expected because “Robotics is a completely new has five key functionalities: RPA can work faster than a human, and ball game – none of incumbent vendors on the market and no $$$$-implemen- • Non-intrusive business system will make fewer mistakes on mundane tation-budgets needed. integration, primarily through the user tasks, where processes are complex, yet “ interface highly rules-based, and employees are • Data aggregation that presents a subject to losing concentration. In fact, Tobias Maier, Allianz SE consolidated view from different 86% of participants agree to strongly back-end systems agree that RPA will significantly reduce • Business rule execution based on costs and 91% indicate that RPA will save defined logic and self-learning them time on repetitive tasks. However,

Figure 11: Participants’ statements about RPA

Robotic Process Automation… Agree / Strongly Agree

... can save you time on repetitive tasks 91% Main bene ts expected are Cost Reduction, Quality ... can improve the quality of work produced 89% 2 Improvement, Process Speed-up and better ... can signi cantly reduce costs 86% Compliance ... can reduce risk and increase compliance 86%

... can reduce process complexity 44%

18 Robotic Process Automation - Robots conquer business processes in back offices Size doesn’t matter

Companies of all sizes already use or About 39% of companies that took part Even though Robotic Process Automation intend to implement robotics within the in the survey are already using RPA, is currently used in nearly all outsourcing next 3 - 5 years. Regardless of the particularly in Finance & Accounting companies, others just started this kind individual implementation approach, and Customer Service. A wide range of of process optimization. Moreover, the RPA is a major digital transformation software has been used by participants in initiatives are independent of the size for companies and it is picking order to benefit from RPA. of the company, defined by revenues in up momentum. Euros earned per annum.

Figure 12: Actual use of Robotic Automation

Have you already implemented In which functions do you currently use Robotic Process Automation? Robotic Process Automation?

In which functions do you use RPA?

39% Finance & Accounting 53%

Customer Service 30% 61% Sales & Delivery 13% Yes % of those who already Human Resource Management 7% implemented RPA – No multi-quotes possible

Figure 13: Actual use of Robotic Automation

What is your solution in place?

Whinshuttle 3% Not quoted Blueprism 22% Winauto 3% 28%

Kofax/Capow 3% NICE JitBit 3% 13%

UiPath Invoinet 3% 10%

BlackLine 3% Automation Anywhere 9%

% of those who already implemented RPA – multi-quotes possible © Capgemini Consulting 2016

19 Although only 39% of companies are currently using robotic solutions, 77% are Figure 14: RPA usage and plans by company size planning to implement RPA within the next 3 - 5 years. Majority of companies of all sizes plan to invest in RPA

When analysing where companies plan 100% to implement RPA in the next 3 - 5 years, it becomes clear that all back office 80% functions will be affected. Finance & Accounting currently seem to be the 60% pacemakers, followed by Human Resource Management and Customer 40% investigating Service. These three functions are the RPA in use or planned well-known targets for Shared Services 20% and Outsourcing decisions since their 0% wide-spread introduction in the 1990s. up to 1 more than However, Procurement, Sales & Delivery billion 1 billion and Customer Service will definitely see © Capgemini Consulting 2016 some changes in the near future. Produc- tion Planning is lagging behind, and will not see any significant RPA implementation in the near future.

This illustrates the increasingly important role that robotics plays in companies’ process improvement. Figure 15: Increase in RPA usage within the next 3 - 5 years (multiple answers possible)

The number of RPA users will nearly double within the next three to ﬁve years

+97%

77%

39%

Actual use Planned use

20 Robotic Process Automation - Robots conquer business processes in back offices Figure 16: Process areas - where companies plan to use RPA

25% Finance & Accounting 75%

3% Human Resource Management 43%

14% Customer Service 33%

0% Procurement & Warehousing 27%

6% Sales & Delivery 22%

0% Production Planning Actual use 6% Planned usage in the next 3-5 years

21 Robots march out

Companies take advantage of Robotic pilots to grow further rather than control- • Pure availability of powerful and Process Automation in their own sphere ling every last bit of the implementation. up-to-date RPA software, with a of influence. focus on ease of access rather than To sum it up, an agile RPA implementa- 100% complete cross-system Now that major companies from around tion is recommended to be managed in a integration. the world have reaped the benefits of combination of: labour arbitrage, and system harmoniza- Allow the change to happen rather than • Change management, enablement tion and process standardization have trying to control it to the very last bit and qualification for the business – come to a reasonable level, automation of of detail. which is sought by the operational remaining tasks and processes is the new business as soon as they learned Those who are willing to install robots tend target. about the power of RPA and reach to focus on their own sphere of influence. RPA requires neither a full organizational their own limits in a rather demand In fact, 46% of companies plan to intro- make-over nor a huge IT transformation – than control driven approach; e.g. by duce RPA in their own line of business it typically comes from the business and is implementation RPA-multiplicator roles or retained functions, while 51% plan implemented in a very bottom-up driven in the business. to implement RPA in their captive Shared approach. No bigger back-end IT changes Service Centres. In addition, 24% of • Governance – for use case are needed. For attended robotics, stan- companies expect their outsourcing identification, benefit tracking and dard desktop application software is rolled partners to utilize RPA in order to benefit support the agile way of working. out, and for unattended robotics, a virtual from cost, speed and quality advantages. desktop server is set up or RPA is inte- grated into given virtual desktop environments such as Citrix. This makes it very easy to implement – the transformation focus should be on enablement, qualifica- Figure 17: Sourcing areas-- where companies intend to implement RPA tion and on the overall RPA governance (multiple answers possible) rather than on the typical IT requirements and developments. So instead of following Implementation plans by sourcing strategy classic waterfall based approaches, agile (multiple answers possible) methods must be leveraged: the typical 51% implementation is mostly based on small use-cases, which are step-wise iterated 46% to medium-size process changes in a few sprints.

Still, this bears the risk of a high operational bottom-up dynamics which can be difficult to control and is very atypical to the classic top-down culture in large companies. To steer (not to control) this, the participants recommend setting-up an implementation governance that is small, 24% yet has significant control over the implementation process, its benefits and Onshore Captive Outsourcing enabling the cultural change. Agile SSC requires cultural change – and RPA does too. It is important to focus on setting up © Capgemini Consulting 2016 a powerful environment helping high speed

22 Robotic Process Automation - Robots conquer business processes in back offices Among participants, there is clearly a good party. Implementing RPA is definitely a advantage of the technology available to understanding as to how Robotic Process significant transformation for companies; them. Companies that choose to imple- Automation can help companies. Robotic however, companies that choose to implement RPA in a BPO do not have to make Process Automation is no longer a secret ment RPA either onshore or in a captive a significant investment or be concerned weapon used by outsourcing partners, SSC will benefit the most. This is because that they have too many processes— and all companies want to, and intend advantages such as reduction in head- these problems are now outsourced. It to, benefit from the advantages. As illus- count, cost savings and the improved is clear that those who implement RPA trated in figure 17, companies want to speed of processes will be felt directly onshore or in a SSC will benefit the implement RPA in all sourcing partners, by the company. While companies will most in the long-term. but captive Shared Service Centres will also experience the advantages by As companies have seen with other see the biggest increase in Robotic implementing RPA in an outsourcing technologies, the speed of the techno- Process Automation, closely followed partner, the benefits will not be as intense logical revolution is incredible—companies by onshore. The more companies are compared to companies that undergo an can expect RPA to continually develop, experienced with the usage of RPA organizational transformation and make offering further advantages to companies, technology, the more they tend to use the technological investment in RPA especially those made the investment in it onshore. Companies new to RPA themselves. RPA early on. are more likely to utilize RPA in their Nevertheless, utilizing RPA in a BPO outsourcing partner. partner is beneficial for companies that This is a very interesting contradiction and do not want to undergo a significant both options offer different benefits to each transformation, but still want to take

23 Robots tasks

Process candidates for RPA can be found in all back office areas. Figure 18: Understanding of RPA’s impact

It’s clearly understood that RPA implemen- Robotic Process Automation… tation affects all areas, including: Organiza- agree / strongly agree tions (86%), Processes (71%) and …changes the organization and Technology (81%). 86% the way people work Although robotic software is a non-intrusive package, it is still an add-on to the IT …is a signi cant digital transformation 81% environment. Topics such as local installa- tions on users’ desktops, server architec- …changes the process chain 71% ture, connectivity, user and authorization concepts, licence agreements for RPA solutions and called systems and applica- © Capgemini Consulting 2016 tions are to be investigated. Involving IT departments in this organizational organization, so the human workforce a robot or artifact is started within a transformation is highly recommended. needs to be prepared and effective short period of time to minimize the Change Management will play a key role stress curve, having a positive effect on From an organizational standpoint, it is in a successful implementation. Activities both employee satisfaction and health. worth thinking about different phases. and responsibilities may change and Looking at the processes targeted by During the concept, design and implemen- people should be involved according companies, all back office areas are tation phases, dedicated people are to the corporate culture. The following worth looking into. affected and Centers of Excellence are diagram illustrates an effect that RPA can introduced or enriched through the imple- have on organizations: Participants have been asked which of mentation of RPA tasks. Once imple- the processes are the most suitable for a If peaks in workload are an issue, robots mented, the robots are part of the living RPA implementation. can easily be ramped up. Once defined,

Figure 19: Workforce planning and ﬂexible deployment of robots

Robots can easily be used to deal with peaks in workload – regular or unexpected

robot

overtime average compensation

d1 d2 d3 d4 d5 d6 d7 d8 d9 d10d11d12d13d14d15 d16 d17d18 d19 d20d21d22d23 d24 d25d26 d27d28 d29d30 d31

24 Robotic Process Automation - Robots conquer business processes in back offices Process potentials and implemen- tasks in a process could be automated. more detail, it becomes clear that there tation plans in Finance & Accounting An example of this is the estimations that are processes that are typically nominated were given concerning Intercompany as primary candidates for RPA. For both the participants that have already transactions. 74% of participants inexperi- implemented RPA as well as for those who High volume, repetitive and rules-based enced with RPA believe that more than have not, Accounts Payable, Accounts transactional processes in Finance & 25% of processes could be automated, Receivable and Travel & Expense Calcula- Accounting are top priorities on compa- but only 58% of experienced companies tion are the processes indicated as the nies’ agendas. Some process tasks are believe that more than 25% of tasks could most suitable for RPA. heavily investigated for a potential RPA be automated by RPA in Intercompany. implementation, depending on the indi- In fact, 79% of all participants said that Hesitations were also indicated by those vidual environment and company specific more than 25% of Accounts Payable experienced with RPA when it comes to issues. These include: invoice verification transactions and sub-processes could be Taxes, Regulatory Reporting, and Travel and reductions, penalty claims and credit completed by RPA. Expense Calculation, when compared to note handling in Accounts Payable, cash those who have not yet implemented RPA. In addition to Accounts Payable, three collection and cash allocation or pre-dun- fourths of participants also believe that Understanding the potential leads to actual ning reminders in Accounts Receivable, more than a quarter of all Accounts Receiv- investment plans into Robotic Process Master Data Management, OPEX / CAPEX able processes could be completed by Automation capabilities. allocation or preparation of stock taking in robotic automation. Fixed Assets Accounting, and journal Finance & Accounting currently seem to be entries, interface and account reconcilia- Companies that are more experienced with the early starters, followed by Human tion, as well as account clearing in General RPA are sometimes more reluctant to Resource Management and Customer Ledger Accounting. indicate that a significant percentage of Service (see Figure 16). When delving into

Figure 20: Automation potential in Finance & Accounting

What percentage of the following Finance & Accounting processes do you think could be more than 25% automated by RPA?

79% Accounts Payable 79% Accounts Receivable 75% 76% 45% External Reporting 47% Fixed Asset Accounting 70% 64% General Ledger Accounting 60% 53% Intercompany 58% 74% Management Accounting 60% 50% Regulatory Reporting 46% 66% Taxes 46% 51% Travel Expense Calculation 70% 82% Treasury 62% 44% Companies already implemented RPA Companies not yet implemented RPA

25 Process potentials and implementa- theless, RPA can definitely help in HR pro- automated by robots. Similar quotes apply tion plans in Human Resource cesses and companies are realizing this. to HR Reporting, and in addition Opera- Management tional Management / HR Administration Master Data Management, Compensation and Compensation & Benefits are regarded In general, participants believe that HR & Benefits, HR Reporting and Operational as highly suitable by the majority of partici- processes cannot be automated to as Management / HR Administration (with pants. These processes are currently the significant a percent as Finance & Accoun- its major activity of Payroll Management), leading candidates for RPA in Human ting tasks. This could be because many are the RPA candidates in HR the most Resource Management. tasks in F&A are known to be highly rules- frequently mentioned. More than 65% of based, whereas some HR processes may respondents say that more than 25% of require more human intervention. Never- Master Data Management tasks could be

Figure 21: RPA plans for Finance & Accounting

21% Accounts Payable 79%

Accounts Receivable 13% 64%

External Reporting 13% 43%

Fixed Asset Accounting 0% 62%

2% General Ledger Accounting 68%

9% Intercompany 26%

6% Management Accounting 23%

2% Regulatory Reporting 9%

4% Taxes 47%

Travel Expense Calculation 4% 11% Actual use 2% Treasury 6% Planned usage in the next 3-5 years

26 Robotic Process Automation - Robots conquer business processes in back offices Although HR executives seem to be planning, payroll administration, salary However, the processes and tasks that more reserved compared to Financial garnishment and assignment as well are selected is higly dependent on com- executives, they still plan significant as collection of performance appraisal pany specifics, such as the current setup implementations in RPA technology. and bonus calculation are mentioned by of process as well as the system and Processes with regular workload peaks HR executives. application environment. An indepth that require access to multiple systems investigation into the objectives and The significant percentage of people that seem to be of current interest among measures of success for a RPA implemen- plan to implement RPA clearly indicates executives. In particular, Cost Centre tation is highly recommended in order to that companies recognize the consider- reallocation of staff and departments, ensure that the decisions are based on able advantages that RPA can provide. application for leave and workforce the business case.

Figure 22: Automation potential in Human Resource Management

What percentage of the following Human Resource Management processes do you think could be completed by Robotic Process Automation (automation potential >25)?

HR Strategy & Governance 22% 5% Master Data Management 65% 79% Recruiting 37% 26%

Learning & Development 37% 43% Operational Management / HR Administration 56% 55%

Mobility 43% 38% 52% Compensation & Bene ts 51%

Exit Management 50% 36%

HR Reporting 63% 72%

Companies already implemented RPA Companies not yet implemented RPA

27 Figure 23: RPA plans for Human Resource Management

HR Strategy & Governance 0% 7%

Master Data Management 0% 52%

Recruiting 0% 26%

4% Learning & Development 22%

4% HR Administration 44%

0% Mobility 15%

0% Compensation & Beneﬁts 37%

0% Exit Management 22%

0% HR Reporting 44%

Actual use Planned usage in the next 3-5 years

28 Robotic Process Automation - Robots conquer business processes in back offices

Drivers and expected benefits Cost reduction, quality improvement, and Company executives clearly see the “ better compliance are the main drivers benefits of introducing RPA in terms of “Robotics is the great chance to and benefits expected when companies cost reduction, quality improvement and minimize simple and stupid processes for think about implementing robots. better compliance. Increased speed of the employees, so it is a great chance for process execution and reduced time spent When discussing the substantial benefits personnel cost reduction. on repetitive tasks also enable the people of Robotic Process Automation, the typical “ responsible for the back office processes areas affected are: effectiveness, quality, to improve process effectiveness Thomas Budny, Commerzbank AG compliance, scalability, risk optimization and efficiency. and workforce performance.

Figure 24: Beneﬁts of RPA

01 Effectiveness Transition to service-through- software from services-through-labor People Performance 06 Codify human knowledge into Increase productivity and digital labor. retention Resources focus on high value 02 Quality activities Better mean time to respond: Hours Minutes and Minutes Seconds Signi cant reduction in error rates

Proactive Risk Management 05 Compliance Human Error Rising labour Rates Virtual Engineers that follow the runbooks 100% of the time Staff attrition & Knowledge Loss 03 Automation drives adherence Agility and forward looking focus to standards Scalability 04 Decoupling of labour from quantity of devices supported Ability to deliver superhuman capabilities

29 Figure 25: Beneﬁts expected by survey participants

Robotic Process Automation…

agree / strongly agree

... can save you time on repetitive tasks 91%

... can improve the quality of work produced 89%

... can signi cantly reduce costs 86%

... can reduce risk and increase compliance 86%

... can improve process effectiveness and ef ciency 86%

... helps us eliminate captive Shared Service Center tasks 65%

... differs from BPM because it affects both controlling and processes 59%

... helps us eliminate BPO tasks 50%

... can reduce process complexity 44%

30 Robotic Process Automation - Robots conquer business processes in back offices There is not much difference in statements difficulties, accelerates the process addition, a robot can also be used to given by companies that already imple- execution and can help increase monitor human transactions, prompting mented RPA (39%) and those who accuracy. alerts for any out of the ordinary activites haven’t (61%). (in some countries, a workers’ council Reducing risk and increasing compliance must be consulted before implementa- 86% of all participants indicated that RPA is also seen as a valuable asset of RPA. tions). Think of a robot that can check any can significantly reduce costs. While partici- This can be analysed from two angles. It purchasing or sales agreements on the fly, pants clearly understand the benefits that is the robot and its artifacts, which is as well as sign-offs for invoice differences, RPA can provide, they do not expect RPA executing specific, repetitive tasks. Once cash transfer initiations with predefined to help reduce process complexity. Never- designed, the same routines will be exe- patterns and the robot can ring the alarm theless, companies do expect RPA to work cuted daily in a transactional manner bell in any odd cases. RPA definitely has with a higher process complexity, similar without unforeseen activities changing the the potential to act as a great tool for to other technical enablers. If complexity pattern. Any exceptions to the designed internal audits. is defined as processes where cause and workflow will cause an automatic alert to effect are dynamic and require more the supervisor for immediate intervention More remarkable, however, are RPA users’ thoughtful decision-making, the processes and result in total robot shut down if statements, when it comes to the idea are not likely to be the ideal candidates for required. Moreover, by implementing that robots can help eliminate captive RPA. However, if complexity is defined as robotics, no errors caused by loss of Shared Service Centres and outsourced requiring many interconnected steps and concentration will occur as it does with tasks. Among experienced users, the the control of a number of variables, RPA humans doing the same mundane tasks share of those who support this concept can manage this complexity, since the for hours. Robots cannot be accused of is 15 - 18 percentage points higher process is rules-based. As a conclusion, any criminal intention, especially if external compared to those who have not yet RPA will not make a poor process a better intervention can be denied based on the implemented RPA. one, it just helps to handle the existing existing network security and firewalls. In

Figure 26: Beneﬁts expected by companies already implemented RPA vs. companies not yet implemented RPA

Robotic Process Automation…

agree / strongly agree

... helps us eliminate captive Shared Service Center tasks 81% 61% ... helps us eliminate BPO tasks 66% 48%

Companies already implemented RPA Companies not yet implemented RPA

For the ones already experienced with of those experienced with RPA indicated RPA, the most important measures to that they either met or exceeded their cost Robotics offers the opportunity“ to justify the success of a RPA implementa- reduction expectations, and given the relieve human beings from simple, repe- tion include cost reduction, named by evidence, cost reduction potentials titive work and at the same time allows to 65% of participants as very important or between 20% - 50% are achievable. drive quality in results by leveraging the rds extremely important, as well as the speed Finally, 2/3 of users are satisfied with “precision of machines. of processes, with 58% mentioning this their SLA achievements, increased speed to be a very or extremely important quan- of processes and improved quality of work tifiable measure of success. Over a half and data. Thorsten Hieber, Daimler AG

Figure 27: Quantiﬁable measures and success reported

How do you classify the following quantiﬁable measures of success for your last implementation of Robotic Process Automation and to what extent have you achieved your quantiﬁable measures stated?

Measures Success that companies use to companies indicate to what determine the success of their extent measures met or RPA implementation very to exceeded expectations extremely important

Speed of process 58% … 65%

Improving the quality of work and data 48% … 65%

SLA achievment levels 46% … 64%

Employee satisfaction 43% … 53%

Cost reduction 65% … 52%

Reducing risk and improving … compliance 52% 40%

Increasing the % of … standardization 50% 40%

Reduction in headcount 39% … 40%

32 Robotic Process Automation - Robots conquer business processes in back offices It is also interesting to see what positive who already implemented RPA in at least “ improvements with regard to process one of their processes plan to add more “Robotics is like ASPIRIN®: it speed and error avoidance end users within the next 3 - 5 years. For an addi- cures the symptoms but not indicate, who work with RPA. tional 13%, their decision was not articu- the illness. lated; however, it can be assumed that The positive results enable companies many companies will continue on the path “ to continue to introduce more robots towards further RPA implementation. Tobias S. Unger, Siemens AG and artifacts. More than 80% of those

Figure 28: Quantiﬁable measures and success reported

What feedback have you received from employees that are working with RPA?

Less time spent on repetitive tasks 73%

Fewer errors in work 47%

Reduced workload peaks 37%

33 Based on the experiences that compa- In most areas new-joiners’ quotes are quite ance, quality improvements as well as SLA nies have had with RPA to date the future similar to those of early adopters. Cost achievement levels. Remarkably, 78% of quantifiable measures, which indicate the reduction and the speed of processes are beginners mentioned quality as being success of a RPA implementation, will also focus areas for those who have not either very or extremely important to them, slightly change. While companies currently yet implemented RPA, but intend to do while 65% also named increase in stan- focus more on cost reduction and the so in the next 3 - 5 years. Moreover, the dardization being of greater importance. speed of processes, standardization participants who intend to execute their However, only 40% of companies who aspects and risk and compliance topics first RPA implementation in the next 3 – 5 already use RPA software believe that have taken a back seat. years also believe that their approach will increasing standardization is a very or achieve better results in risk and compli- extremely important measure to define the success of a RPA implementation.

Figure 29: Quantiﬁable measures and success reported

Will companies who already have RPA in place continue to implement further RPA?

13% 6% additional implementation planned additional implementation not planned unspeci ed 81%

What are your quantiﬁable measures … last time? … next time? of success… 76% Cost Reduction 65% 78%

Speed of Process 58% 63% 64%

Improving the Quality 48% 48% 78%

44% Reduction in Headcount 39% 44% 42% SLA achievment levels 46% 51% 40% Increasing the % of Standardization 50% 65% 33% Reducing Risk and Improving Compliance 52% 49%

employee satisfaction 33% 43% 36%

Companies already using RPA Companies not yet using

34 Robotic Process Automation - Robots conquer business processes in back offices Optimization and standardization

When it comes to implementing RPA, the Figure 30: When is the right time to optimize processes? road to automation acts more as a process optimization enabler, than as a trigger to standardize processes.

More than 70% of the participants stated that from their point of view RPA changes the process chain, offering the chance for 63% processes to be standardized. Yet, only 51% believe that RPA only works on standardized processes, meaning that participants do not see the necessity for process 22% standardization since robots can follow 9% 6% heterogeneous processes that have rules and routines. 86% of companies rated increasing the percentage of processes that are standardized as important or very important, meaning incorporation of robots Before During After Not needed standardizes remaining human tasks with homogeneous inbound and outbound Process Optimization process steps and data. Nevertheless, only © Capgemini Consulting 2016 43% met or exceeded their expectations in increasing the percentage of processes that are standardized. This mismatch of The majority of participants start their pro- some company representatives mentioned expectations and actual achievements cess optimization either before or adjust bugfixing and improving artifacts as showcases the potentials and the limits of their processes during the RPA implemen- reasons for their late process optimization. Robotics in back office functions. tation phase. In face-to-face interviews Others said – and this seems to be the

Figure 31: Current degree of standardization in Finance & Accounting

How standardized are your current Finance & Accounting processes?

mostly or even completely standardized 84% Accounts Payable Fixed Asset Accounting 74% Accounts Receivable 72% Travel Expense Calculation 72% Intercompany 67% General Ledger Accounting 60% Treasury 60% Regulatory Reporting 59% External Reporting 57% Management Accounting 49% Taxes 43%

35 smarter approach – that late optimization Consequently, RPA can be a vital part of participants described as mostly or even was caused by the fact that RPA was used the Business Process Management completely standardized. In fact, Accounts as a quick win solution in the game of pro- environment, giving transparency to Payable and Accounts Receivable are cess optimization. Business Process the process flow and indicating further on the top of the list of processes where Management is the first to suggest improvement potentials. companies plan to implement RPA. improvement potential in certain process- The degree of standardization indicates Results from Human Resource Manage- es. Heterogeneous system landscapes, strong RPA candidates. Current RPA ment point in the same direction. Master cross-system process execution or loops usage correlates to the current degree of Data Management, Compensation & in workflow, to name only a few criteria, let process standardization. Processes with a Benefits, HR Reporting and Operational companies look at RPA as a means to higher degree of standardization such as Management / HR Administration with non-intrusive solutions for quick wins, Accounts Payable, Accounts Receivable its major activity of Payroll Management rather than going for time-consuming or Customer Service processes are are the processes with highest degree process reengineering within a complex generally the processes selected in the of standardization. enterprise resource planning (ERP) environ- initial RPA implementation phase. ment. The robots begin by assisting with Once again, these processes are regarded smaller activities and process steps, In addition to the above mentioned results the most suitable for a RPA implementa- sending precisely defined exception rules on companies’ beliefs with regard to tion, according to the participants. and exit notifications to their supervisors. process suitability and correlated plans Companies intend to invest in RPA in Step by step the robot scope increases by to implement RPA, Capgemini also asked these four areas. defining work routines for these excep- for the current degree of standardization In conclusion, standardization is a strong tions. These optimizations can affect both in each of the respective processes. indicator as to the scope of RPA, but the robot processes themselves, prede- Accounts Payable, Accounts Receivable, introducing robots will not increase the cessor processes, and input data which and Travel Expense Calculation are again degree of standardization in itself. is streamlined throughout the process flow. are the processes that 72% - 84% of

Figure 32: Current degree of Standardization in Human Resource Management

How standardized are your current Human Resource Management processes?

mostly or even completely standardized

Master Data Management 54%

Compensation & Bene ts 53%

Operational Management / HR Administration 51%

HR Reporting 51%

Recruiting 50%

Mobility 46%

Learning & Development 44%

Exit Management 44%

HR Strategy & Governance 39%

36 Robotic Process Automation - Robots conquer business processes in back offices 37 Companies across all industries RPA is the next big RPA affects all around the globe will introduce thing in process +97% areas: Organization, RPA in their back of ce functions automation Processes and +150 Participants Technologyy

77% overnance Main bene ts expected G are Process Speed-up, 21% 39% Discover Quality Improvement 79% and Cost Reduction Board Functional Actual use Planned use members executives

Capgemini Consulting’s Implementation Methodology The leading factors will become even more important Exploit 76% Cost Reduction 65% Automate 78% Speed of Process 58% 63% Process optimization before 64% the RPA implementation “plants” C t Improving the Quality 48% 48% ha en 78% sustainable success nge Managem 44% Reduction in Headcount 39% 44% 42% SLA achievment levels 46% 51% 40% Increasing the % of Standardization 50% 65% 33% Reducing Risk and Improving Compliance 52% 49% Employee Satisfation 43% 33% 63% 36%

Robots tasks will increase in every function

22% 9% 6%

Before During After Not needed

Process Optimization

38 Robotic Process Automation - Robots conquer business processes in back offices Companies across all industries RPA is the next big RPA affects all around the globe will introduce thing in process +97% areas: Organization, RPA in their back of ce functions automation Processes and +150 Participants Technologyy

77% overnance Main bene ts expected G are Process Speed-up, 21% 39% Discover Quality Improvement 79% and Cost Reduction Board Functional Actual use Planned use members executives

Robots tasks will increase in every function

22% 9% 6%

Before During After Not needed

Process Optimization

39 6 Future Outlook

While it is clear that RPA is going to underestimate this topic. Furthermore, about the number of different systems that transform back offices, the next question companies need to ensure that they they currently have in place—however, becomes, how can companies drive a prioritize which processes will initially this is in fact one of the advantages that successful RPA transformation within their use RPA, and develop a transformation RPA offers; RPA is able to work across company and ensure a thriving, long- roadmap based on the individual many different systems in a non-intrusive lasting and sustainable strategy? requirements. In general, RPA should manner. Therefore, companies can be embedded into a greater Business expect to see a good return on their RPA The Capgemini Robotic Process Process Management framework to investment. Automation survey clearly demonstrates clearly determine whether RPA is the the growing trend towards increasing While RPA currently works with rules- right answer for current issues in certain robotic automation within back office based processes, RPA will push process steps, being it a quick win, a processes in all sourcing areas, but boundaries and eventually be able to short term optimization and / or a long- particularly onshore and in Shared work within the all cognitive periphery. lasting solution. Remarkably, experienced Service Centers. Undoubtedly, some jobs will be lost, as companies raise fewer concerns about was seen in the automation of assembly Companies, that already use RPA take cost and implementation time for artifacts, lines. However, organizations and the data protection and cyber security very compared to companies not yet using way people work will change and new seriously and in fact, companies that RPA software. Capgemini also noticed opportunities will arise. Remarkably, all the want to start any initiative should not that some companies were concerned

Figure 33: Current concerns about RPA implementation

What concerns do you have about Robotic Process Automation?

34% Data protection and cyber security 18%

25% Too many processes 22%

Too expensive to integrate the various 16% technologies 20%

RPA implementation costs too high 13% compared to ROI 22%

6% Implementing artifacts is very tedious 10%

Companies already using RPA Companies not yet using

40 Robotic Process Automation - Robots conquer business processes in back offices people who already implemented RPA in Companies must ensure that they to dramatically change the work that is the study agree that while RPA is going to consider all the aspects of an attended to in these functions. The robots help in the back offices, employees and implementation in terms of people, are coming in droves and Capgemini is RPA must still co-exist. More than ever, processes and technology. excited to be a part of this transformation. Change Management is a vital aspect to As discovered throughout the study, be considered in the journey towards a RPA is without a doubt the next digital successful RPA implementation. transformation in back offices and is going

Figure 34: People impact

Robotic Process Automation…

Agree / Disagree / Strongly Agree Strongly Disagree

... can help ll the shortage of skilled workers 51% 49%

... will replace employees in back of ce processes 75% 25%

... changes the organization and the way people work 92% 8%

…robots and employees must co-exist 92% 8%

41 7 Capgemini Consulting’s Implementation Offering

While back office processes may not be Capgemini Consulting provides support sure that there is employee buy-in, a fundamental to the bottom line of a firm, for every possible implementation strategic path, and clear communication they still play a fundamental role. Many of scenario: throughout the organization. these tasks are relatively repetitive, mun- Scenario 1: Tool Focused RPA Scenario 3: Factory Service dane, and follow specific structures and Implementation Capgemini Consulting will work directly rules. Currently, these tasks are taking The client will purchase the rights to RPA with the service provider of the clients’ time away from personnel who could software and lead their own implementa- choice. Since this partner already has RPA instead be focusing all of their time and tion, while our experts provide technical in place, additional technical support will energy on value-adding initiatives. and strategic support. not be necessary. Instead, we can help Robotic Process Automation can be mas- companies concentrate on RPA’s added sively beneficial in improving process Scenario 2: Assisted RPA business value to ensure that companies effectiveness, efficiency, the quality of work Implementation get the most out of their RPA implementa- produced, as well as drastically decrease Our managing consultants will partner tion. It will be essential to ensure that the amount of time spent on a given task. directly with a RPA software provider to organizations have clear goals that are ensure that our client has a smooth RPA Capgemini Consulting is well-prepared to communicated throughout the firm, as implementation. Moreover, Capgemini work with clients throughout every imple- well as quantifiable measures to determine Consulting will play a significant role in mentation process and scenario. We want the success of an implementation. facilitating the organizational transforma- to support clients to ensure that their orga- Capgemini also provides full factory tion, to ensure that the people, processes, nizations have a clear strategic direction service by Capgemini Business Services and technology all have a seamless that facilitates a smooth implementation for clients around the globe. process and long term sustainable transition. We will support both the success. business side and the IT side to make

Figure 35: Capgemini Consulting fosters successful RPA implementations based on three scenarios

Implementation Scenarios Description Advantages

The client buys just a licence for an Tool Focused RPA tool. The provider can be used Implementation is conducted 1 RPA Imple- as technical support but the rest of with light external support mentation the implementation is led by the client

Robotic Process A management consultancy Organisational transition Automation Assisted RPA partners with a software provider and knowledge transfer is ensured 2 Imple- to be able to deliver a smooth RPA Success of the ﬁrst implementation mentation implementation and transition from phase is secured during both business and IT side project mode

The client procures a RPA solution Capabilities to develop, adjust and Factory as a service (Captive, Outsourcing) maintain robots is not required 3 Service and the service provider handles Client focuses on business everything else value added

42 Robotic Process Automation - Robots conquer business processes in back offices 43 8 Appendix: The participants

Capgemini would like to thank all of the Representative companies come from revenues over €1 billion Euros, making more than 150 individuals from companies many industries, with the largest these companies industry leaders and of all sizes who participated in the survey. sectors being Financial Services and ideal candidates to accurately indicate Board members and executives in various Manufacturing. The individuals that future trends. positions completed the survey. Positions participated in the survey are all well- The majority of companies surveyed are that participants hold include: Finance and informed about Robotic Process headquartered in Germany, Austria, and HR, Head of Robotic Automation Center, Automation and represent a mix of multi- Switzerland. However, a significant Operation Director in Global Business national, large, and medium sized com- number of companies that participated Services, Claims Executive, Senior Director, panies from all over the world. Ensuring are headquarterd in Scandinavia and Purchasing Executive, Strategy Officer, that companies are leaders in their fields North America. The global presence Vice President of Business Process provides assurances that these companies represented by participants guarantees Optimization, and Head of Finance & are trend setters and early adoptors. Nearly the accurate representation of global Accounting Shared Services. half of the companies surveyed have trends within back office processes.

44 Robotic Process Automation - Robots conquer business processes in back offices 45 9 Contacts

Germany

Christian Kroll Dr. Adam Bujak Volker Darius Senior Vice President Director Vice President Corporate Excellence & Transformation Global Head of Technology Transformation Corporate Excellence & Transformation Capgemini Consulting Capgemini Business Services Capgemini Consulting +49 151 4025 1253 +49 151 4015 1445 +49 151 4025 2497 [email protected] [email protected] [email protected]

Wolfgang Enders Marcus Esser Torsten Baumbach Principal Senior Manager Senior Manager Corporate Excellence & Transformation Global Head of Technology Innovation Corporate Excellence & Transformation Capgemini Consulting Capgemini Business Services Capgemini Consulting +49 151 4025 1887 +49 151 4025 0516 +49 151 4025 2884 [email protected] [email protected] [email protected] Belgium / Netherlands / Luxemburg

Robert van der Eijk Sanjay Jhamb Damien Dieryck Senior Vice President Principal Senior Manager CEO Capgemini Consulting BeLux FS Practice Leader Belux Capgemini Consulting +32 270 820 72 +32 270 814 57 +32 270 815 99 [email protected] [email protected] [email protected]

Liesbeth Bout Ruben Sardjoe Principal Consultant Managing Consultant Capgemini Consulting Capgemini Consulting +31 30 689 0388 +31 30 689 5316 [email protected] [email protected] UK Norway

Steve Wilson Gunnar Deinboll Vice President Vice President Operational Excellence Technology Transformation Capgemini Consulting Capgemini Consulting +44 (0) 7800 978 788 +47 992 446 49 [email protected] [email protected]

46 Robotic Process Automation - Robots conquer business processes in back offices France

Cédric Berthelot Martin Karaca Vice President Managing Consultant Corporate Excellence & Transformation Corporate Excellence & Transformation Capgemini Consulting Capgemini Consulting +33 682 657 210 +33 681 732 540 [email protected] [email protected] US

Ashley Skyrme Adrian Penka Vice President Vice President Capgemini Consulting Capgemini Consulting +12 022 715 943 +14 042 859 907 [email protected] [email protected] Asia / Pacific

Julien Bourdiniere Frederic Abecassis Vice President Vice President Capgemini Consulting Capgemini Consulting +86 186 2150 0719 +65 9066 2610 [email protected] [email protected] Latin America

Martin Leonel Romero Senior Manager Capgemini Consulting +54 114 735 8000 [email protected]

47 About Capgemini Consulting Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.

Find out more at www.de.capgemini-consulting.com

About Capgemini With more than 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.de.capgemini.com

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