What Processes can RPA Automate ?
Updated: Feb 21, 2022
RPA might be like a Magic Genie. But as soon as people learn about RPA, they want to know:
Which processes can RPA automate ?
Does it have any restrictions ?
What type of processes does it work best with ?
In this blog post, we will try to answer this question. Hopefully, this will help our readers understand where all they can use RPA
1. Stable Processes
RPA should only be used to automate a stable and mature process. Automating an unstable process will not give good returns.
When you ask us “what processes RPA can automate for my organization ?”. Then our recommendation will be to stabilize the process you want to automate first
2. Rule Based
The process that RPA automates must be rule based.
It should not require too much manual intervention or exception handling for Ad-hoc decision making.
Example of rules based process: As long as a customer placed their order within last 30 days RPA should create a return order if the customer's number is in the Excel file fed to it.
Example of exception driven process: If a customer's number is in Excel file fed to RPA bot and they placed their order outside last 30 days but if they are amongst our top customers that give us 50% of our orders then send it for supervisor who then has to use discretion. This means this process will go for supervisor's review quite a few times.
3. Digital
The process to be automated must be triggered through digital means . For example : Email received , file received , document created, clicking of a button etc.
A process without a Digital touchpoint cannot be automated by RPA.
4. High Volume
The highest ROI can be achieved with RPA for processes that process high transaction volumes . Like Sales order entry , Purchase order entry , Invoice creation etc. Look at the below 2 examples to understand how different volumes of transactions can give very different savings with RPA for the same automation.
Which of the 2 processes will give higher savings using RPA ?
Process details | Process 1 | Process 2 |
Total number of employees involved | 8 | 2 |
Time taken by employee to enter one order | 30 Minutes | 30 Minutes |
Average number of daily orders received by company | 128 | 32 |
Time taken by RPA Bot operated by an employee to enter one order | 5 Minutes | 5 Minutes |
Employees needed for process after implementing RPA | 2 | 1 |
How much $ savings does RPA give you in a year ?
Process details | Formula | Process 1 | Process 2 |
$ saved by RPA per day | Number of FTEs reduced X Hours worked by an FTE per day X Hourly rate | = 6 X 8 X 20 = $960 | = 8 X 20 = $160 |
$ saved by RPA per month | Average working days in a month X Saving per day | = $960 X 20 = $ 19200 | = $160 X 20 = $ 3200 |
$ saved by RPA per year | 12 X $ Saving per month | = $19200 X 12 = $ 230,400 | = $ 3200 X 12 = $ 27,400 |
Conclusion :
Higher the volume of transactions in the process automated by RPA, better is the return.