SOFTWARE ROBOTS REDUCE OPERATING COSTS

By JASON GREENBERG

Kinetic Consulting Services, the leading management consulting company for business transformation, has released its latest findings on Robotic Process Automation (RPA). The 20 page report outlines the business case for the introduction of RPA into an organisation. Cost savings of approximately 90% can be achieved when a business process performed by a full-time equivalent human is replaced by a software robot.

RPA is the automation of back and front office processes that are largely rules based, structured and repetitive. The automation replaces or augments humans normally performing the task with “robotic” equivalents. These are software robots and not physical ones.

Process automation has recently achieved a level of maturity and is building momentum in the business world. This has been driven by the release of multiple sophisticated software solutions not previously available and also by the growing demand for organisations to optimize operating costs and to increase quality of services.

Unlike their human counterpart software robots make less mistakes, don’t complain and work 24×7 if required. “Our research, explored the range of solutions available and real-world examples of how organisations were using them and also the benefits they were getting from the implementation. There are a number of commercial and strategic considerations that need to be made when considering an RPA implementation. Not every organisation will be ready to introduce a digital workforce just yet. However, our report clearly concludes that RPA has to be on the corporate agenda for 2016 and should be given serious consideration. RPA has been cited as an example of what economists are calling, the ‘Fourth Industrial Revolution’. The need to take action is further reinforced because of the increasing economic pressures inflicted on organisations from digital disruption,” added Joe Tawfik, CEO and author of the report.

The traditional model of outsourcing low-value processes to reduce operating costs is no longer the only option available. RPA offers organisations an alternative to outsourcing to a low-cost base country to gain a labor arbitrage advantage. There is also the advantage of keeping a process onshore, maintaining greater control, and at the same time saving more than if the process is sent to a low cost base country such as India or the Philippines.

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