Mitigate Benefits Gap using RPA at Scale

Strategy and execution are the backbone of every successful organization. A good long-term strategy is one where assets are matched appropriately with the various financial obligations. The method to measure how well matched the timing and maturity between cash inflow (from assets) and outflow (from liabilities) are, is called Duration Gap. This is applicable to companies of all sizes and in all sectors but only few have the perfect match between the timing and the maturities. 

Asset liability mismatches can be controlled, mitigated or hedged

CXOs and transformational leaders are under pressure to attain capabilities and benefits with their IT programs. But in many cases, the maturity of their program fails to match the timing of their benefits goals.

For instance, the target of a program is to achieve certain benefits in two years. But there are no IT programs available that will make this attainable in that time frame. This then becomes the ‘Benefits Gap’ that needs to be controlled and mitigated.

RPA can play a vital role in reducing this crucial gap thanks to its speed and ROI

Companies can implement several types transformational programs to boost efficiency or add capabilities. Here are some of the typical programs that may exist in a transformation portfolio:

1)     Transformational program: Programs that enable a new strategic focus in the organization, such as, how they go to customer, improve customer intimacy or the core value proposition

2)     IT build: Investing in a platform or application that can add larger or newer capabilities to the organization.

3)     IT upgrade: Enterprise software can provide IT support to the entire value chain.

4)     GBS journey: A BPO journey that includes standardization, optimization, cost reduction etc.

5)     Process excellence drive: The program to identify and improve processes across various functions and create end-to-end process views

But in all these programs, the probability of the Benefits Gap occurring is very high. That’s where RPA becomes an asset. RPA addresses this gap with its speed and ROI and provides a more effective and stable solution for short to mid-term benefits; boosting overall IT investment ROI.

 RPA at Scale is like a T-Bill program

T-Bills or Treasury Bills are investment instruments given by the government of the USA, with assured returns in a short span of time. This short-term debt obligation gives investors more liquidity and a return.

An RPA program can be compared to a T-Bill program as its benefits are assured and can be realized in the short-term. It can give distinct ROI within a short time frame and accelerate the transformation journey of an organization.

Why RPA at Scale?

As highlighted earlier, an organization must invest in programs that help increase efficiency and ultimately makes it the industry leader. For this, it is imperative to match the right set of IT programs (capabilities) with proper timing for the benefits needed. In other words, mitigate the Benefits Gap.

In this situation, CXOs need to answer the following:

1. What are the capabilities for tomorrow?
2. What is the spend and timing of the transformation programs?
3. When is the timing of the benefit realization from these programs?
4. How confident are they about the benefits?
5. What are the benefits need in the short to mid-term?
6. What is the benefits gap?

 There are companies that must act now, and some that may have more time. But all are under pressure to improve their value chain and provide better value and service to their stakeholders. Hence, the need to match programs with benefits becomes even more important and RPA plays a vital role in achieving this.

Integrate RPA at Scale into your transformation portfolio

Here’s how it works:

1)     RPA delivers benefits: Companies have various measures to attain in a set time frame. This could be operational metrics, business outcomes or cost related such as increasing efficiency, quality, compliance ,FTE reduction, cost take out and the like. A well-charted RPA roadmap can define a series of automation with clear outcomes and deliver results efficiently in the stipulated time. Adequate governance, sponsorship and right prioritization of demand should help set the right roadmap. Competing internal programs, lack of automation mandate, lack of senior sponsorship and lack of decision principles are usual hindrances to this.

 2)     RPA delivers now: Each use case or process in the roadmap can be placed the roadmap based on the technical feasibility, complexity, cost and benefits. This should only have those use cases which has feasibility, clear tangible plus intangible benefits and appropriate ROI. RPA build to deploy cycle should be short and predictable. Right scoping, detailed process definitions, proper design, best practice build, reusability and right level of testing should drive repeatability and structure into the deliver. Unplanned IT changes, misapplication of agile developments and insufficient delivery and support model are usual hindrances to this.

 3)     RPA delivers a positive ROI:  The roadmap with aggregated process assessment should translate into a positive financial business case. This is clear and transparent as each use case in it should also be beneficial. Correct technical assessment, end to end process view, right baseline measures of process volumes, FTEs and an efficient delivery engine will help deliver this. Incorrect assessment, wrong baseline values and a weak delivery team are usual hindrances to this

4)     RPA can be integrated with any transformation program: RPA can be easily integrated with any transformational program be it BPO journey, enterprise software build or upgrade, process excellence drive. Proper assessment of scope overlap of process, machine first principle, timing and dependency between programs can help in structuring a cohesive plan.

Become an industry leader with RPA

To be the leader in its industry, an organization must always be one step ahead of its competition. The organization can set the pace of its journey and choose the type of programs to invest in for short- and long-term benefits and capabilities. To enable acceleration and simultaneously attain benefits, the organization must invest in RPA at Scale, and integrate RPA into various portfolios.

RPA is the way forward and it is here now. Don’t miss this opportunity to be effective and deliver assured success for you and your organization.

#RPA #RoboticProcessAutomation #Automation

Note. The postings on this site are my own and don't necessarily represent IBM's positions, strategies or opinions.Images by Shutterstock.com