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RPA and the system integration gap – can robotic process automation bridge it?

@mindbox

Zespół Mindbox

8 minutes

The existence of an integration gap in IT systems is a derivative of a phenomenon that Nelson and Phelps described back in the 1960s[i] and called the technological gap. In the context of robotization and integration, an integration gap refers to the difference in the quality of business process handling between a loose collection of IT systems and a fully integrated solution. Companies growing naturally are constantly striving to improve their operations and manage a growing number of tasks and processes, the complexity of which is increasing rapidly. IT systems called in for support assist employees with the most critical activities. It usually starts with financial and accounting systems, then human capital management applications become necessary, and a brand-new CRM system handles the avalanche of new and potential clients. In finance, they eventually need something for controlling, and logistics teams also have their own essential needs. Of course, this can be handled in one move by implementing an ERP-class solution immediately, but even then, not all problems will disappear at once – different domain systems from various vendors will still function within one organization. As a result, repeatedly entering the same data into different databases becomes unavoidable, and the difficulty in maintaining consistency and accuracy causes frustration for many. Fortunately, this effort, energy, and the not-insignificant sums spent on system modifications and integration can be used much better.    

Which integration gaps can RPA help with?

Attempting to integrate existing business systems to comprehensively handle all processes in a company is very risky. It is an expensive, complex, and time-consuming endeavor. Moreover, there is no guarantee of success. Are those who find themselves in an integration gap at a disadvantage compared to those who have undertaken the effort of merging their IT solutions? Of course not! A bridge that allows avoiding the dangers and costs associated with chasing the competition is Robotic Process Automation – RPA, or (Robotic Process Automation). Due to the great diversity and functional capabilities of modern software bots, every organization is able to select a set of solutions suitable for itself so that, without undertaking extensive system integration, it can achieve the primary goal – handling selected business processes cheaper, better, and faster. An integration gap can appear in practically every area of a company’s operations where IT systems processing input data are used – from accounting and HR, through sales and marketing, logistics and warehousing, customer service, complaints, and call centers, all the way to IT and administration.

How does RPA work with system integration to help organizations achieve goals faster and more economically than ever before?

In principle, every software robot is programmed and trained to perform the tasks of a specific human. The difference is that a bot does not get tired, does not get bored, and can work without vacations or labor unions. The work is done, just faster and cheaper. The most important fact for understanding the context is that bots can move between different IT systems, copying and pasting data into their screens and forms just as a human does. If it weren’t for robotic process automation, it would be necessary to laboriously integrate these applications, not only at the database level but across the entire system architecture. RPA bots use advanced machine learning, artificial intelligence, and text and sound recognition algorithms, which allows, for example, for the creation of effective chatbots and polite, well-mannered virtual assistants. The ability to move between systems and recognize structured data provides practically unlimited possibilities for handling processes. In HR, this could be conducting onboarding for new employees, validating work schedules, and entering hours into the payroll system. Robots can then calculate salaries taking into account the number of days worked, sick leave, and vacations. In accounting, bots can process invoices along with entering them into ERP systems and posting them. It is also possible to automate bank statement reconciliation, allocate payments, and prepare transfers. The procedure for checking anti-money laundering compliance is also subject to automation. In manufacturing companies, business process automation includes demand and supply planning and handling production orders. Robots are helpful in managing predictive machine maintenance. Customer service teams can use the potential of automation and robotization to assign customer inquiries to the appropriate employees, process returns, appeals, or validate credit applications online. In IT departments, bots can perform tedious and repetitive tasks related to granting and resetting passwords, access, and permissions for employees, creating virtual machines, or monitoring event logs and managing system updates. This is invaluable help, especially in companies with high employee turnover. The functional scope of processes subject to automation in IT departments is so broad that a new category has been created for it – ITPA (Information Technology Process Automation). For all employees for whom the monotonous entry of data into forms of various systems, e.g., CRM or Workflow, is a nightmare, software bots are a true salvation. They can clean data to ensure format consistency, eliminate incorrect data, and minimize the number of exceptions requiring human intervention. Bots can read data from various documents in different formats, including handwritten notes, and enter them into the appropriate systems.    

Why do some companies struggle with the system integration gap when it comes to implementing RPA in their business processes?

If attempts at robotization encounter serious difficulties, it is most often due to a lack of optimization of all process paths. Regardless of whether a company decides to integrate its solutions or move towards robotization, it must review the available IT infrastructure and necessary investments in this area, as well as estimate the necessary human resources and project implementation time. This requires a reliable and objective look at the entire organization, ignoring the particular interests of individual organizational units. It is irrational to robotize unnecessary or overly complex activities whose automation will bring relatively small benefits. It is also not worth devoting attention to processes that continue only by inertia and are inefficient. Employee habits are most often the factor that traps companies in an integration gap. Their crowning argument is, “that’s how it’s always been.”   

Which organizations using RPA are most successful today and what lessons can be learned from them?

Successes in business process robotization are achieved by those companies that have been able to prepare process maps very well. Only a good map allows for the correct programming of a robot for a specific task. A company implementing a robot, instead of many months of work as in the case of system integration, spends time counted in hours working with an RPA developer. That is exactly enough to write a process instruction and answer questions from the RPA developer. Then, after testing the solution and training the bot operators, a new virtual employee appears in the company. If a company is not afraid of being a pioneer and uses the latest machine learning (ML) and artificial intelligence (AI) technologies, it can benefit a lot. An excellent example is the implementation of accounting robots by Mindbox at Link International Transport. Approximately 50,000 invoices are processed there annually. The robots are intelligent enough that when a new supplier appears, it only takes 3 to 5 documents for it to learn to read each subsequent one correctly. Therefore, the more invoices flow through the system, the more effective the model becomes. The error rate decreases very quickly, and the operator’s tasks are limited to occasionally manually pointing out a field on a document. The company saved no less than 75% of the time previously needed to process the same number of invoices through the implementation. Time means employee labor costs, workstations, and material resources. As a result, the financial savings are truly significant. The conclusions are self-evident – successes in robotization will be achieved by companies with organized and described processes that are not afraid of challenges and for which digital transformation is a permanent component of their business strategy. Eliminating the integration gap and business process robotization must become additional fuel driving business development.    

How can the system integration gap that many companies face when trying to implement process robotization be overcome?

Overcoming the effects of an integration gap through robotization requires a great deal of experience, knowledge, and programming skills. It is not the case that RPA will solve all problems[ii]. The scalability of solutions of this class is a problem in itself. However, the benefits of RPA are so large and measurable that few hesitate. Difficulties in realizing ambitious process automation plans can almost always be overcome by choosing the right technology partner who has proven themselves in similar implementations and by deciding to choose the right automation platform[iii]. An additional necessary ingredient for success is your own solid work on process optimization, without which the entire undertaking makes no sense. [i] Nelson, R. and Phelps, E. (1966). Investment in humans, technological diffusion, and economic growth. American Economic Review: Papers and Proceedings, 61, 69-75. [ii] https://www2.deloitte.com/bg/en/pages/technology/articles/deloitte-global-rpa-survey-2018.html [iii] https://www.uipath.com/resources/automation-analyst-reports/gartner-magic-quadrant-robotic-process-automation?utm_source=GoogleSearch&utm_medium=cpc&utm_term=rpa%20platform-p&utm_content=543961977820&utm_campaign=AR21GMQ&gclid=Cj0KCQiAtJeNBhCVARIsANJUJ2HsM2wXC9jFnpBqW0MrpDLTUcIk1c2PTAPlvm6K9kiQHpNI46IJz8AaAt1HEALw_wcB&gclsrc=aw.ds

@mindbox

Zespół Mindbox

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