What Is Robotic Process Automation (RPA)?

What Is Robotic Process Automation (RPA)?

Let me explain Robotic Process Automation, or RPA, directly to you. It's when we automate basic tasks using software or hardware systems that work across different applications, just like human workers would. This approach can significantly cut down on labor costs and boost efficiency by speeding up processes and reducing human errors to a minimum.

You can teach the software or robot a workflow that involves multiple steps and applications—for instance, receiving forms, sending receipt messages, checking for completeness, filing them in folders, and updating spreadsheets with details like the form name and filing date. RPA is built to lighten the load on employees by handling these repetitive, straightforward tasks.

Key Takeaways on RPA

Here's what you need to know about RPA in straightforward terms. It refers to software that's easily programmed to perform basic, repetitive tasks across various applications. RPA creates and deploys software robots capable of launching and operating other software. It's mainly designed for office-type functions, acting like a digital assistant that handles routine, burdensome tasks that otherwise consume employees' time. Today, you'll find RPA in a wide range of industries and applications. However, RPA without human oversight can cause problems, as seen with mortgage 'robo-signers'.

Understanding Robotic Process Automation

Let me break down RPA for you. It's designed primarily for office functions that require performing several tasks in a specific order. It deploys a software robot that can launch and operate other software. Think of it as similar to traditional manufacturing automation, where you automate one part of a workflow or a single task with a specialized robot. In office work, we often deal with the same repetitive efforts, but since it's about manipulating data across platforms and applications, you don't need a physical robot.

Important Note on Automation

Keep this in mind: while companies often pursue automation to streamline processes and reduce labor costs, there have been cases where it has backfired.

Benefits of Robotic Process Automation (RPA)

The software in RPA is programmed by employees to handle tasks in a specific workflow with little human help. Unlike big data analysis or enterprise resource management software, RPA doesn't learn on its own or seek new efficiencies—it's more like a digital assistant that clears away the simple, time-consuming tasks that fill every office worker's day. This makes RPA simpler and cheaper than AI-driven systems or comprehensive enterprise software that integrates all data. For companies with legacy systems, RPA's compatibility makes it easier to implement than other automation solutions.

Industry research indicates the global RPA market will grow to nearly $600 billion in 2022.

Where Can RPA Be Applied?

RPA is common in the financial services industry, where banks, insurers, and investment firms face increasing compliance and regulatory requirements. Tasks like ensuring up-to-date Know Your Client forms or including recent credit checks on loan applications are perfect for RPA. This frees employees to focus on higher-value work and speeds up processing times.

But RPA isn't limited to finance—any industry dealing with data and filing can benefit. When software reduces costs and boosts efficiency without complex implementation, it finds applications everywhere.

Challenges for RPA

RPA has its downsides, though. These systems can be expensive to customize and deploy, and they may not suit complex tasks needing human judgment or creativity. Without checks, RPA can go wrong, like with 'robo-signers' in the mortgage industry that automatically approved foreclosures, even questionable ones, leading to scandals after the 2008-09 financial crisis. This resulted in manual reexaminations and penalties for involved companies.

What Is the Goal of Robotic Process Automation (RPA)?

The goal of RPA is to automate and streamline redundant clerical processes in an organization using software or related technologies. This reduces costs and increases efficiency.

Does Robotic Process Automation Require Coding?

RPA systems are often customized for a specific organization's needs, so they must be coded accordingly. This can make development more time-consuming and expensive than turnkey automation options.

Is Robotic Process Automation a Good Career?

While RPA reduces overall labor costs, developers of RPA systems are in high demand. Roles include software developers, product managers, and business analysts.

What Are the Two Main Types of Robotic Process Automation?

Traditional RPA uses hard-coding for routine tasks and remains the most common form. Increasingly, machine learning and AI are integrated with RPA to handle sophisticated tasks like recognizing images, text, or speech, or analyzing unstructured data.