By John Hintze
Protiviti: Surging RPA investment will drive uptake of new tech; companies that ignore it may be left behind.
Robotic process automation (RPA) is a major issue for companies globally, and while discussion about it at NeuGroup meetings suggests the technology is just starting to enter the treasury realm, its arrival is inevitable. Consultancy Protiviti recently surveyed 450 companies, the vast majority of which were nonfinancial firms across a variety of industries, and found that RPA leaders are spending five to 10 times more on the technology than other companies.
“Failing to invest sufficiently in RPA technology as well as people and governing processes can damage an organization as competitors outflank them in efficiency and effectiveness,” the survey report notes.
The survey found that many companies are still in the early stages of RPA implementation, but every company participating in the survey plans to expand its RPA usage within the next two years. Fewer than one in five surveyed companies are in the maturing or advanced stages of RPA development, but that portion is expected to more than double over the same period. The survey also found that companies are investing an average of $5 million annually in RPA, with the largest companies investing between $10 million and $20 million.
More than half the companies responding to the survey have revenues of $5 billion or more, and 78% have $1 billion or more. Nonfinancial corporates made up 84% of respondents.
Other key findings include:
- Companies are putting RPA to use to improve quality, speed and performance, and not just to provide cost savings. “We see RPA as a huge driver of improved performance and efficiency,” Prakash Mall, senior director of RPA and chat-bots at Target, said in the survey report. “That correlates back to productivity gains, accuracy and customer experience.”
- The top three criteria for business cases to adopt RPA are better quality, speed to market, and employee engagement.
- Corporate RPA leaders’ IT infrastructures can support RPA across the company and carefully monitor and maintain each application. They also want today’s RPA tools to support the adoption of more advanced artificial intelligence going ahead.
- To allay employees’ concerns about their job futures, companies leading in RPA actively explain their plans to them and train them for more productive work.
Survey respondents also reported significant challenges. For example, companies find it difficult to prioritize RPA projects and to choose the best applications and scale them across the enterprise. In addition, RPA talent is in short supply.
Other findings include:
- Financial services and technology/telecommunication companies are further ahead in terms of adopting RPA, while healthcare, consumer goods and manufacturing lag, and energy and utilities are even further behind. Companies currently in the lead are expected to remain so.
- Fewer than half (38%) of RPA leaders have seen revenue growth from RPA in the past year but 75% anticipate such growth within two years, while only 6% of RPA beginners have seen revenue growth and 75% expect it. “Eliminating a few hours of administrative work for executives can allow more time for generating and implementing new ideas. Moreover, RPA can be used to increase the frequency and amount of data reported to managers,” the survey report notes.
To build a comprehensive RPA technology plan, the survey found:
- Companies must build a scalable RPA solution that can be rolled out across the enterprise and support the use of AI and other emerging technologies.
- Processes must be standardized, digitized and secure before they are automated using robotics.
- RPA leaders engage key functions and business units in all phases of RPA, from identifying opportunities to assessing performance.