Will RPA ever go mainstream in finance departments?
THE finance department perform several tasks that are repetitive, which makes it the perfect candidate for robotic process automation (RPA).
However, quite a lot of organizations are concerned about handing over parts of such a critical function to technology — despite the contrary being proved by several studies that tested the accuracy of RPA against the probability of human error in the absence of RPA.
But all that is about to change, according to industry analysts at Gartner. They believe that RPA will go mainstream in finance departments by 2020 and will be adopted by nearly 3 in 4 controllers within the next two years.
This growth is expected to be driven partly by essential differences between RPA and traditional finance IT solutions.
Unlike traditional technologies, RPA allows finance leaders to automate a process, or parts of a process, much more quickly than traditional technology implementations.
RPA is capable of automating individual tasks or components within a process that make the overall process more efficient. This reduces the need for fully overhauling processes before the technology is introduced.
When it comes to implementing RPA, Gartner recommends that finance leaders explore the areas of their business that can be quickly automated and standardize these processes as they go, instead of standardizing first and then automating.
This will allow a much speedier process for adoption of robotics within finance departments, the majority of which will implement RPA in some fashion by 2020.
“While standardization still matters in adopting RPA, the flexibility of the technology means finance leaders can implement automation much faster than previously assumed, explained Gartner Finance Practice Leader Johanna Robinson.
“Standardize-as-you-go requires a shift in mindset from finance leaders, but the potential immediate benefits of RPA on current processes make this new approach worth implementing,” she added.
Beyond the attractive speed to implementation, RPA offers finance departments multiple short-term benefits, including the following:
# 1 | Creates capacity from day one:
Some parts of the process will be ready to automate today, and finance teams can start taking out manual hours from the process immediately and free up human capacity to address the more complex, hard-to-automate portions of the process.
# 2 | Eliminates potential rework:
During the automation process, teams build code using if/then logic, which helps identify underlying process inefficiencies and opportunities for standardization.
Teams that standardize first will still need to automate and may have to re-do some of all this work during the coding process.
# 3 | Minimizes disruption to the rest of the team:
Process standardization that requires people to change the way in which they work often requires significant change management and is subject to disruption and employee resistance.
Standardizing a process using robots instead of humans eliminates these challenges.
In the long term, RPA helps reshape the workforce, as full-time employees are redeployed from repetitive, manual tasks to higher-value tasks.
Further, as RPA implementations are increased within the organization, more benefits will accrue from combining disparate programs.
Unlike traditional technologies, RPA requires less ongoing upkeep, generates its own audit trail and as a result, minimizes additional work around regulatory compliance processes.