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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% Unspecied 8% 79% Manufacturing 18% Financial Services Board members Functional executives © Capgemini Consulting 2016 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) Unspecied 43% (68) Others © Capgemini Consulting 2016 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
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