Module 1: RPA Foundations

1.1 What is RPA?

• RPA stands for Robotic Process Automation.
• It is the technology used for software tools that automate human tasks, which are manual,
rule-based, or repetitive.
• Typically, it is like a bot that performs such tasks at a much higher rate than a human alone.
• These RPA software bots never sleep and make zero mistakes, and can interact with in-house
applications, websites, user portals, etc.
• They can log into applications, enter data,
open emails and attachments, calculate
and complete tasks, and then log out
• The word 'Robot' in 'RPA' is not a physical robot but a virtual system that helps in automating the
repetitive manual computing or business process tasks.
Why RPA
• Robotic Process Automation is economically capable as compared to any other automation
solutions.
• It is the new buzz word in the IT industry. It has shifted the traditional way of doing the business
task manually into an automatic task within an organization.
• RPA technology uses bots that interact with web applications, web sites, excel worksheets, and
emails to automate the tasks just like a human.
BENEFITS OF RPA
• Robotic Process Automation technology provides the following benefits:
Cost Savings
• RPA helps organizations to save a huge amount of cost as it is typically cheaper than hiring an
employee to perform the same set of tasks.
Less Error
• RPA works on standard logic and does not get bored, distracted, or tired. Hence, the probability
of making errors reduces to a great extent, which means less re-work and an enhanced
Faster Processing
• RPA works faster than human employees as computer software does not need breaks, food, rest,
etc., and can perform repetitive operations tirelessly. With RPA, processing time becomes
predictable and consistent, which ensures high-quality customer service across the operations.
Better Regulatory Compliance
• RPA software works on the logic and data fed to it and does what is only needed as per the given
instructions. Hence, there are minimal chances of not complying with the standard regulations.
Better Customer Service
• When RPA is implemented in a business, it frees many of its employees who can spend their time
working on customer-related services. It is very beneficial for businesses that receive a lot of
customer queries. It also leads to increased productivity for employees
Auditable & Secure
• RPA bots will only access the data for which they are given permission and create a detailed audit
trail of all activity.
Low Technical Barrier
• RPA does not require any programming skills to configure the software robot. Since it is a code-free
technology, any non-technical person can set up the bot using drag and drop features. It also
includes the 'Recorder' to record the steps of automation.
Agility
• Reducing and increasing the number of robot resources requires managing the volume of the business process. This is just a click
away. More robots can be deployed to perform the same task easily. Redeployment of resources does not require any kind of coding
or reconfiguration.
Versatility
• RPA is applicable across industries performing a wide range of tasks from small to large businesses, simple to complex processes.
Scalability
• RPA is highly scalable, up as well as down. Whether one requires an increase or reduction in the virtual workforce, Robots can be
quickly deployed at zero or minimal costs while maintaining consistency in the quality of work
Non-invasive
• RPA works at the user interface just like a human would. This ensures that it can be implemented without bringing changes to the
existing computer systems. This helps in reducing risks and complexities that would arise in the case of traditional IT deployments.
Increased employee satisfaction
• RPA does not take away work, it just frees human from tedious, mind-numbing work, giving us an opportunity to engage in much
more.
The Impact of Small Improvements:
• On the surface, an employee who saves 10 to 20 seconds on a task – even something as simple as a series of cut-and-paste actions
–may seem trivial. But it’s not. When scaled across thousands of employees across a global organization, the impact can certainly
be significant.
• For example, some companies will keep track of the metric of how many hours are saved by using RPA, which becomes a part of the
overall ROI(return on investment) calculation.
The bottom line:
• The people implementing RPA will get to their objectives quicker and the IT department will have more time to devote to higher
Compliance:
• Just one violation of a government regulation can have a serious adverse impact on a company. It could even be a threat to its very
existence.
• Examples like Enron or Theranos:
• (While employees are usually diligent and trustworthy, they do make mistakes or they may not understand some of the regulations. Yet this
is not an issue with RPA. You can easily configure a bot to make sure the actions are compliant with regulatory requirements. Many RPA
vendors also have built in their own compliance systems, handling such laws as the Sarbanes–Oxley Act, General Data Protection
Regulation (GDPR), and HIPAA (Health Insurance Portability and Accountability Act of 1996)).
• Another compliance benefit is that there will be less intervention with the data from people, which lessens the possibility of fraud.
Wide Application:
• It’s common for an enterprise application to focus on a certain part of a company’s departments or functions. But RPA is wide. It can be
used for virtually any part of a company, such as legal, finance, HR, marketing, sales and so on.
Data Quality:
• It should be greatly improved as there will be less chance of human error. In fact, there will probably be much more data because of the
scalability of the automation. In other words, the datasets for analytics and AI will be more robust and useful.
Digital Transformation:
•This is a major priority for CEOs. But many companies have legacy systems that would be expensive to replace or integrate. However, RPA is an
approach that can help with this process, which is often quicker and less costly.
Scalability:
•If there is a sudden jump in demand, it can be extremely difficult to hire new employees. But RPA can be a solution. It is much cheaper and
faster to ramp up new bots to meet the demand.
1.2 Flavours of RPA
• On a high level, you can divide the flavors into the following:
1) Attended RPA (which may be referred to as robotic desktop automation or RDA):
• This was the first form of RPA that emerged, back in 2003 or so.
• Attended RPA means that the software provides collaboration with a person for certain tasks.
• Example: would be in the call center, where a rep can have the RPA system handle looking up
information while he or she talks to a customer.
2) Unattended RPA:
• This technology was the second generation of RPA.
• With unattended RPA, you can automate a process without the need for human involvement –
that is, the bot is triggered when certain events happen,
• Example: such as when a customer e-mails an invoice.
• Consider that unattended RPA is generally for back-office functions.
3) Intelligent process automation or IPA (this may also be referred to as cognitive RPA):
• This is the latest generation of RPA technology, which leverages AI to allow the system to learn
over time
• Example: would be the interpretation of documents, such as invoices.
1.3 History of RPA
• During the past 70 or so years that computers have been a major catalyst for this trend.
Along the way, there have been different period’s of automation, based on the types of
technologies available. They would also provide a foundation for RPA platforms.
• Mainframe Era: These were huge machines developed by companies like IBM. They
were expensive and mostly available to large companies (although, innovators like Ross
Perot would create outsourcing services to provide affordable options). Yet they were
incredibly useful in helping manage core functions for companies, such as payroll and
customer accounts.
• PC Revolution: Intel’s development of the microprocessor and Microsoft’s
development of its operating system revolutionized the technology industry. As a
result, just about any business could automate processes; say by using word processors
and spreadsheets.
• But the automation technologies – while powerful – still had their drawbacks. They could
easily result in complex IT environments, which required expensive and time-consuming
integrations and custom coding.
• From this emerged the key elements for RPA, which came about in the early 2000s.
• A big part of this was screen scraping, which is the automation of moving data among
 • But the nascent RPA market got scant attention. It was mostly perceived as low-tech and a commodity.
• Instead, investors and entrepreneurs in Silicon Valley focused their attention on the rapidly growing cloud
market that was disrupting traditional IT systems.
• But around 2012 or so, the RPA market hit an inflection point. There was a convergence of trends that
made this happen, such as the following:
• In the aftermath of the financial crisis, companies were looking for ways to lower their costs. Simply
put, traditional technologies like ERP were reaching maturation. So companies needed to look for
new drivers.
• Companies also realized they had to find ways to not be disrupted from technology companies. RPA
was considered an easier and more cost-effective way to go digital.
• Some industries like banking were becoming more subject to regulation. In other words, there was a
compelling need to find ways to lessen the paperwork and improve audit, security, and control.
• RPA technology was starting to get more sophisticated and easier to use, allowing for higher ROI
(return on investment).
• Large companies were starting to use RPA for mission-critical applications.
• Demographics were also key. As the millennials started to enter the workforce, they wanted more
engaging work. They wanted careers, not jobs.
• Fast forward to today, RPA is the fastest growing part of the software industry. According to
Gartner, the spending on this technology jumped by 63% to $850 million in 2018 and is
forecasted to reach $1.3 billion by 2019. Or consider the findings from Transparency Market
Research. The firm projects that the global market for RPA will soar to $5 billion by 2020.
1.5 Downside of RPA
RPA is definitely not a cure-all. The software has its inherent limitations and complexities.
• Cost of Ownership : the business models vary. Some have a subscription or multilayer license. Other
vendors may charge based on the number of bots.
• Technical Debt: this is an issue with RPA. As a company’s processes change, the bots may not work properly.
This is why RPA does require ongoing attention
• Enterprise Scale: it can be extremely difficult to manage the numerous bots and there also needs to be
strong collaboration among IT.
• Security: this is a growing risk with RPA implementations, especially as the technology covers more mission-
critical areas of a company’s processes. If there is a breach, then highly sensitive information could easily to
be obtained. Actually as RPA gets more pervasive in manufacturing, there may even be risks of property
damage and bodily harm. This would likely to be the case with attended RPA
• Expectations: according to survey from PEGA, the average time it takes to develop a quality bots was 18
months, with only 39 being deployed on time.
• Preparation: you need to do a deep dive in how your current tasks work. If not, you may automating bad
approaches
• Limits : RPA technology is somewhat constrained. For the most part, it works primarily for tasks that are
routine and repetitive. If there is a need for judgment say to approve a payment or to verify a document
then there should be human intervention. Although, as AI gets more pervasive, the issues are likely to fade
away
• Virtualized Environments : this is where a desktop accesses applications remotely, such as through a
1.6 RPA Compared to BPO, BPM, and BPA
• Business process management (BPM)
• Business process outsourcing (BPO)
• Business process automation (BPA)

BPM:
• For example, FileNet introduced a digital workflow management system to help better
handle documents (the company would eventually be purchased by IBM). Then there
would come onto the scene ERP vendors, such as PeopleSoft
• All of this would converge into a major wave called BPM .
• For the most part, the focus was on having a comprehensive improvement on business
processes. This would encompass both optimizing systems for employees but also IT assets.
• There were also various business process management software (BPMS) solutions to help
implement BPM.
• One was Laserfiche. Nien-Ling Wacker founded the company in 1987, when she saw the
opportunity to use OCR (optical character recognition) technology to allow users to search
huge volumes of text
So then how is BPM different from RPA?
With BPM, it requires much more time and effort with the implementation because it is about changing extensive
processes, not tasks. There also needs to be detailed documentation and training. Because of this rigorous approach,
BPM is often attractive to industries that are heavily regulated, such as financial services and healthcare.
However, the risk is that there may be too much structure, which can stifle innovation and agility.On the other hand,
RPA can be complementary to BPM. That is, you can first undergo a BPM implementation to greatly improve core
processes. Then you can look to RPA to fill in the gaps.

BPO :
• This is when a company outsources a business service function like payroll, customer support, procurement, and
HR.
• The market is massive, with revenues forecasted to reach $343.2 billion by 2025 (according to Grand View
Research). Some of the top players in the industry include ADP, Accenture, Infosys, IBM, TCS, and Cognizant.
• As should be no surprise, one of the big attractions of BPO is the benefit of lower wage rates in other countries
(this is often referred to as “labor arbitrage”). The employee bases will also often be educated and multilingual.
bases will also often be educated and multilingual.
BPO will have three types of strategies:
• Offshore: This is where the employees are in another country, usually far away.
• Nearshore: This is when the BPO is in a neighboring country. True, there are usually higher costs but there is the
benefit of being able to conveniently visit the vendor. This can greatly help with the collaboration.
• Onshore: The vendor is in the same country. For example, there can be wide differences in wages in the United
There are drawbacks with a BPO :
• Perhaps the most notable one is the quality issue (you know the situation when you call a
company and get an agent you can barely understand!).
• Yet here are some others to consider:
• Security: If a BPO company is developing an app with your company’s data, are there enough
precautions in place so there is not a breach? Even if so, it can still be difficult to enforce and
manage.
• Costs: Over the years, countries like China and India have seen rising labor costs. This has
resulted in companies moving to other locations, which can be disruptive and expensive.
• Politics: This can be a wildcard. Instability can easily mean having to abandon a BPO operator
in a particular country.
BPA :
• This is the use of technology to automate a complete process. One common use case is
onboarding.
• For example, bringing on a new employee involves many steps, which are repeatable and
entail lots of paperwork. For a large organization, the process can be time-consuming and
expensive. But BPA can streamline everything, allowing for the onboarding at scale.
• OK, this kind of sounds like RPA, right? Yes, this is true. But there is a difference in degree.
RPA is really about automating a part of the process, whereas BPA will take on all the steps.
1.7 Consumer Willingness for Automation
• The automation of consumer-facing activities, such as with chatbots on a smartphone or
web site, are becoming more ubiquitous.
• Consider a report from Helpshift, an AI-based digital customer service platform automating
80% of customer support issues for huge D2C (direct-to-consumer) brands including
companies like Flipboard, Microsoft, Tradesy, and 60 others. Its report is based on the
analysis of 75 million customer service tickets and 71 million bot-sent messages.
Here are some of the findings:
• A total of 55% of the respondents – and 65% of millennials – prefer chatbots with customer
service so long as it is more efficient and reduces phone time to resolve an issue and
explain a problem.
• A total of 49% say they appreciate the 24/7 availability of chatbots.- Granted, there is much
progress to be made. Chatbot technology is still in the early phases and can be glitchy, if
not downright annoying in certain circumstances. But in theyears to come, this form of
automation will likely become more important – and also a part of the RPA roadmap.
• According to the CEO of Helpshift, Linda Crawford: “Seeing as the vast majority of
Americans dread contacting customer support, there’s a huge opportunity here for
chatbots to fill the void and improve the customer support experience for consumers—and
1.8 The Workforce of the Future
• The interesting thing is that the fundamentals of work have not changed much since then. True, there has
been the trend of the gig economy, in which people get paid for offering services through Uber and Lyft. Yet
when it comes to office work, the structure has remained quite durable.
• According to research from the McKinsey Global Institute, white collar workers still spend 60% of their time on
manual tasks, such as with answering e-mails, using spreadsheets, writing notes, and making calls
• In light of all this, RPA is likely to have a significant impact on the workplace because more and more of the
repetitive processes will be automated away. One potential consequence is that there may be growing job
losses.
• A survey from Forrester predicts that – as of 2025 – software automation will mean the loss of 9% of the world’s jobs or
230 million. Then again, the new technologies and approaches will open up many new opportunities.
• Its analysis shows that technologies like RPA could automate a whopping 45% of the activities of a company’s workforce.
Now when a company engages in an automation project, the CEO will usually not talk about job loss. It’s something that
will frighten the workforce and generate awful headlines. Instead the messaging will be vague, focusing on the overall
benefits of the transformation.
• This may make it sound like not much is happening. But it does seem like a good bet that the reverberations will grow and
grow, as RPA systems get increasingly robust. As we’ve seen in prior periods where technology resulted in job loss – such as
in the Industrial Revolution – there are serious changes in politics and regulations.
• Companies really do try to avoid layoffs, since they are expensive and take a toll on the organization. But in the years
ahead, managers will probably need to find ways to navigate the changes from automation, such as finding new roles or
reskilling the workforce.
• All in all, the rise of automation has the potential for leading for a much better society. Again, workers can focus on more
interesting and engaging activities – not repetitive and mundane tasks. There will also be ongoing renewing of knowledge
and understanding. But there must be proactive efforts, say from companies and governments, to provide for a smoother
transition
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA
1.6 RPA Compared to BPO, BPM, and BPA