KEYS TO RPA SUCCESS
[Pages:15]Keys to RPA Success
Executive Research Report
KEYS TO RPA SUCCESS
Part Two: Resolving Key Selection Challenges: Sourcing, Platform and Total Value
How Blue Prism Clients Gain Superior Long-Term Business Value
By
Dr. Leslie Willcocks Dr. John Hindle Dr. Mary Lacity
August 2018 With market adoption of Robotic Process Automation reaching levels that support rigorous quantitative measurement and analysis, Knowledge Capital Partners has developed proprietary research tools and assessment models with the goal of establishing evidence-based performance benchmarks to inform technology selection and deployment. This report summarizes the key RPA management practices that have produced superior results and value for Blue Prism customers as revealed in multiple quantitative surveys and live deployment analyses.
Overview
Blue Prism, the inventor of the term Robotic Process Automation (RPA) and the market leader in enterprise RPA, recently engaged Knowledge Capital Partners (KCP) to survey their client deployments. We used proprietary KCP research tools, and this report summarizes our findings. Based on finalized quantitative survey results as well as our ever-growing library of qualitative case investigations, the report analyzes the management practices and behaviors that underpin the exceptional value achieved by Blue Prism customers as outlined in our January 2018 report "Robotic Process Automation: Benchmarking the Client Experience."
Copyright ? Hindle, Willcocks, and Lacity 2018
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Contents
Introduction:........................................................................................... 4 Sourcing Approach:............................................................................. 5 Tool/Platform Selection........................................................................ 8 Cost/Benefit Measurement Models: From ROI to TVO.................................................................................... 11 Conclusion.............................................................................................. 14 Research Base........................................................................................ 14 About Knowledge Capital Partners................................................. 15
Copyright ? Hindle, Willcocks, and Lacity 2018
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Introodduucctitoionn: :
In "Becoming Strategic with RPA," the first paper of the series, we examined the exceptional results Blue Prism clients achieved with their RPA deployments from taking a disciplined, strategic approach. In this paper we analyze their approach to the key selection challenges facing buyers in three areas: sourcing model, platform selection, and value measurement.
In choosing a sourcing model, we have identified in our research five major risks facing organizations as they decide how to introduce RPA. We have seen clients choose to self-administer their automation program without recognizing, developing, or acquiring the required skills. We have seen others pick the wrong advisors or partners, or pick the right ones too late. There are clients who have gained suboptimal value from choosing to rely too heavily on their business process outsourcing (BPO) providers. And while cloud-based RPA-as-a-Service offerings have emerged as an attractive sourcing option, they can bring extra data protection risks for clients in highly regulated industries.
Tool/platform selection can also be hazardous. Given pervasive hype and confusion in the marketplace, clients risk choosing the wrong tool(s), too many tools, or bad tools. The proliferation of vendors marketing `RPA' ? over 45 vendors claiming RPA offerings as at summer 2018 ? has not helped. In fact, even amongst the top three vendors, products vary significantly. The follow-on risk from initially choosing the wrong tool can mean costly `lock-in' and a complicated exit path.
There are reliable ways of mitigating these risks, as we have established in previous publications.i In this paper we enrich this analysis, then introduce a further key practice identified in our research-inprogress on delivering RPA business value: measuring Total Value of Ownership.
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Sourcing Approach: SSoouurrcciinnggAApppproroaachc:h:
IInn oouurr rreevviieeww ooff tthhee ggeenneerraall mmaarrkkeett,, wwee sseeee ffiivvee mmaaiinn ssoouurrcciinngg aapppprrooaacchheess::
I?nInosu?orurrecvIinniegswo(uDorfIcYtihn)eg g(DeInYe)ral market, we see five main sourcing approaches: ? Ins??ourcIIinngssoowuuirrtcchiinncggon(wDsiutIhYlta)cnocnysultancy ? RPA?? seIRrnvPsicAoeusprecrrionvvgicideweiprtshrocvoidnesrusltancy ? BP??O seRBrvPPicAOesspeerrrovvviiccideeepprrsroovviiddeerrss ? RPA?? -asBR-aPP-AOS-easrsev-ircave-icS(eeclrpovruiocdve)id(celrosud)
? RPA-as-a-Service (cloud)
Which ttoocchhoooossee??AAmmonognsgtsBt lBueluePriPsrmismcliecnlitesntthsethoeveorwvehrewlmheinlmglyinpgrlyefeprreefedrorepdtioonpitsioinnsiosuirncsinogur(cSinege WFFaA(Snii-gghSeRuuieecrrPhreeFvAiti11cgoo,,eurcbbr(hBeecolllPoo1ooOww,usdbe))p,,)e?,rwwlootAhiivwttmohhid)u,oeaagnwrhmmgiitsswhaatprreaggBrawiilcnnucolaaeetuillcaPlppedrrrrdmeeiesffxbmaeepyjrroeeecorcnnlinitteccyltyeenhati1sffsloos5ttorr%hoiienni.rniccOsoclleuulvnuddealdyiirsnniwn1ggcgh1leo%ccluomodonnifnscsBugoullmlltytuaaeepnnsrcPceytyrofiesssbrmuurepepcpdpploeoioerrrptcnt ett((is77oiv00nwe%%deisr))ae..insOOusluseuoitstunsssrgoocruuiRinsrrcPcgkiiyAnn(SgagAnetstodeoan RPA or BPO provider is practiced by only 15%. Only 11% of Blue Prism clients were using RPA AsAis-Sexeprveircieen(cceloduads), mthoorueguhswaeblweofourldaegxrpeeactet trhriasntgoerisoef taasskcslo.ud comes to be perceived as less risky and iTsheexspeeprireenfceerednacsesmsotraenudsianbmleafrokread gccrooennatttrreaarsstrtattonogooeuuorrf22t0a01s18k8sf.fininddininggssoonnththeeggeenneerraal lmmaarkrkeet,t,wwhheerere7722%% of clients reported tthhaatt tthheeyy rreelileiedd oonn tthheeiirr ccuurrrreenntt sseerrvviiccee pprroovviiddeerrss ttoo aauuttoommaattee services for them, These preferences stand in marked contrast to our 2018 findings on the general market, where 72% of clients reported that they relied on their current service providers to automate services for them,
Which best describes your RPA sourcing approach?
Which bWehsitchdbeesstcdreisbcreibsesyyoouurrRRPAPsAousrcoinugracpipnrogacah?pproach?
RPA Sourcing Approach
Insource and consulting
RPA Sourcing Approach
40.6%
Insource and coInnssouultrinceg
29.7%
40.6%
RPA SourcRiPngA SAopuprcoiancghApproach
CloudIn-ssoouurrccee
10.9%
29.7%
Outsource to an CRlPoAudp-rsoovuidrceer
7.8% 10.9%
Outsource wOiuthtsaoutrracdeittoioannalRBPPAOpprorovvidideer
77..88%%
Outsource with a traditional BPO prOotvhideer
3.1%
7.8%
n = 64
Other0.0% 0.0%
35..10%% 5.0%
10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Percent of Respondents Choosing Each Sourcing Approach
10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Percent of Respondents Choosing Each Sourcing Approach
40.0% 40.0%
45.0% 45.0%
n = 6F4 igure 1 ? Sourcing Approaches of Blue Prism Clients Figure 1 ?FSioguurrcein1g ?ApSporuoraccihnegs AofpBpluroeaPcrihsmesColifenBtlsue Prism Clients
Copyright ? Hindle, Willcocks, and Lacity 2018
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while 23% used RPA-as-a-Serviceii. Given the very positive results Blue Prism clients have achieved compared to more modest market trends, this suggests that building internal capabilities (augmented by expert consultancy) and fostering internal learning at the early stages of deployment are strategic keys to effective RPA performance, rather than leaning heavily on service providers. Drawing on external advisory expertise also seems to be a common and helpful practice.iii We note increasing use of RPA-as-a-service over the last year amongst Blue Prism and non-Blue Prism clients alike.iii
It would seem, then, that Blue Prism clients are seeking long term benefits from owning the RPA solution, and are more willing to pay for the learning curve and resource commitment required (see Figure 2, below). For clients using their BPO or RPA service providers, the benefits include a full suite of integrated services that combine labor arbitrage, process excellence, change management maturity and technology expertise. A downside, of course, is provider-lock in ? switching providers may mean having to re-jig automation with the new provider. We have also seen some BPO providers reluctant to share the full gains and benefits from automation, or adopt less radical kinds of automation to avoid cannibalizing their existing labor arbitrage model.
Comparative Sourcing Options
Benefits: Cons:
Do It Yourself, and DIY + Consultancy
Own the solution Maintain independence (no tool lock-in) Capture all gains Reshoring opportunity in cases of "offshoring fatigue"
Technology learning curve Upfront investment costs Time/cost to build or acquire skills and capabilities; CoE
Service Provider (BPO or RPA)
Bypass learning curve BPOs may be best positioned to "take the robot out of the human" (they already do the work) Providers bring cross-client, cross-industry experience Expert at retraining robots when IT or business environment changes Receive an integrated, managed service
Tool lock-in Benefits shared with BPO provider
Figure 2 - DIY vs. BPO/RPA Service Provider
Copyright ? Hindle, Willcocks, and Lacity 2018
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How do Blue Prism clients choose RPA providers? Reputation, reference site, and advisor
recommendation are the top three criteria cited, in descending order (see Figure 3, below). Underlying
that overall ranking, a prior relationship with the provider is the strongest relatively weighted decision
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factor (followed by reputation and advisor recommendation). There is an anonymous business aphorism
that might well apply here: "All things being equal, you do business with people you know and trust; all
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REPUTATION
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descending order; underlying TOP THREE CRITERIA USED TO CHOOSE RPA PROVIDER (N=62)
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is the strongest relatively weighted decision factor
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Times Ra1n2ked Third
Mean9Rank (1=Firs2t .t0o73=Third)
10
15
20
25
30
35
40
45
50
18
9
6
116.84
9
12
7
2.109
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59
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2.10
know and trust; all things
Times Ranked First
Prior established
rFelIaNtioAnNshCipI AwLithR provider
E
S
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L
IFEinNanCcEial
Resili4ence
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Peer company recommend1at2ion
9
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5
Advisor rec2o.m42mendation
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being unequal, you still do Strong referencbe suitesinessRepwutaittiohn people you
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n = 62
Times Ranked Second
2
3
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9
9 2 7 3 1.57
9 6
12
16
9
9
Mean Rank (1=First to 3=Third)
1.57
2.42
2.10
1.84
2.07
1.79
n = 62
Prior established relationship with
provider
Financial Resilience
Peer company recommendation
Advisor recommendation
Strong reference site
Reputation
Times Ranked First
9
4
5
10
7
18
Times Ranked Second
2
3
9
9
12
16
Figure 3 ? Criteria For Choosing An RPA Provider Times Ranked Third
3
12
7
6
9
9
Mean Rank (1=First to 3=Third)
1.57
2.42
2.10
1.84
2.07
1.79
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Copyright ? Hindle, Willcocks, and Lacity 2018
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Tooooll//PPlalatftoformrmSeSelelcetciotinon
There are four major archetypes of process automation technology labeled `RPA' in the marketplace (see Figure 4, below). We see some clear trends: different types of buyers, with differing business and stakeholder objectives, and different technical backgrounds, will buy different kinds of RPA. For example, business operations managers seeking quick wins and independence from the IT queue often go for "recorded" RDA tools (Robotic Desktop Automation). Those wanting to customize the tool heavily, and `own' the technology, tend to go for offerings with extensive software development kits (SDK).
Automation TAeuchtonomloagtyioAnrcTheectyhpneos logy Archetypes
Realm of RPRA ealm of RPA
RealRmealmooff CCAAAI AI
Structured Data StructRurueldesD-abtaased Processes RulesD-beatseerdmPinroicsetiscseOsutcomes
Deterministic Outcomes
Unstructured Data InferencUen-bstaruscetdurePdroDcaetasses ProbabiInlifsetriecnOceu-btcaosemdePsrocesses
Probabilistic Outcomes
Variety of Tools
Desktop Enterprise Professional
RPA Server RPA IT software
development
Desktop RPA
Enterprise
tPoroolfses(sSioDnaKl)
Server RPA
IT software
Copyright ? Lacity and Willcocksde2v0e1lo8pment tools (SDK)
Cloud RPA
Cloud RPA
Copyright ? Lacity and Willcocks 2018
? Unstructured data into information ? Natural language processing ? Reasoning ? Prediction ? VUanrideetyrsotfaTnodoilnsg why events take
?pUlansctreuctured data into information
? Natural language processing
? Reasoning
? Prediction
? Understanding why events take place
Figure 4 ? Four RPA `archetypes'
Figure 4 ? Four RPA `archetypes'
Blue Prism clients express a clear preference for an RPA platform that is scalable, and that provides a secure, enterprise grade solution (see Figure 5, below). Speed to adopt and ease of use are more secondary, with lower priority also given to reusability, auditability, multi-skilling capability and cost. That said, we found Blue Prism clients registering high satisfaction levels on all these criteria, as well as on employee satisfaction, service quality and business value.iv
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