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Vickie Romanchuk Gartner

0 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Robotic Process Automation (RPA):
From Hype to Reality

Frances Karamouzis
Vice President, Distinguished Analyst

16 years at Gartner, 28 years industry experience

She is Gartner's worldwide lead for smart-machine-enabled services and
North American lead for enterprise sourcing strategies. Ms. Karamouzis is
focused on research that addresses both mainstream managed services deals
(that is, evaluations, business cases and service delivery capabilities), as well https://www.linkedin.com/in/frances-karamouzis
as disruptive trends, such as digital business and the shift from labor arbitrage
to automation arbitrage through the use of smart machines (Gartner's term
for cognitive computing, virtual workers, intelligent processes and artificial Gartner Blog Network: http://blogs.gartner.com/frances-karamouzis/
intelligence). The business and IT service lines that she focuses on include
application services (inclusive of SaaS) and business process services (BPS),
which includes BPaaS, BPO and KPO.
For a broader insight into Gartner you can find us: @Gartner_inc on Twitter and Gartner on LinkedIn.
New Reality …

Challenge the idea that …

"talent" or "work" and human beings are synonymous.

"Virtual Talent" or "Virtual Workers" will be the new

fuel for sourcing.

2 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Scales are Tipping from Labor to Value Driven

Cheaper

Better

Labor-based

Intellectual Property-driven
3 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Arbitrage Journey
Labor Arbitrage Automation Arbitrage

Cheaper Cheaper
Better

Faster Faster

Better Cheaper

4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Arbitrage Journey
Automation Arbitrage

Better

Process Arbitrage

Faster Standardization
Predictability
Labor Arbitrage Scalability

Cheaper

5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Simple Metaphor

Take Responsibility and

Don't Let Me or Anyone Else Mess It Up
Nonoptional Automation

Overrideable Automation Take Responsibility Until

I Tell You Otherwise

Opt-In Automation
Do This Task for Me

Advisory Guidance Help Me as I Go

Specific Information Give Me a Suggestion

Give Me the Facts

General Information

6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Intelligent Automation Mapping
New Business Models
Disrupts Industry
Transform Society
Reimagined
Process New
Process Revenue
Level Streams OR
Incremental
Profit
Process Change

Selective Immediate
Workflow Savings
Selective
Task (Task-Specific
Elements Within
Level
a Process)

Mimics Enhances Enables Interprets/ Create

7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Intuits Unexpected
Value
Intelligent Automation Mapping
New Business Models

Reimagined
Process
CHATBOTS
Process
Level Virtual Personal
Assistants
Virtual
Customer
Incremental (VPA) Assistants
Process Change (VCA)

Business
Enablement /
Process
Orchestration

Selective
Workflow
Selective IT Process
Task (Task-Specific Enablement /
Elements Within Infrastructure
Level Gateway Technologies Operations:
a Process) Surface Tools
IT Process
Robotic Process Automation
Automation

Mimics Enhances Enables Interprets/ Create

8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Intuits Unexpected
Value
Intelligent Automation Mapping
New Business Models

Reimagined
Process
Process VPA VCA
Level Speaktoit, x.ai, Nuance,
Incremental Apple Siri,
Amazon Echo,
Openstream,
Creative Virtual,
Process Change Wit.ai Next IT, Artificial
Solutions, eGain
WorkFusion
Cognitive
Worksoft
Scale
Infosys
MANA
Selective Wipro
HOLMES
Workflow
Selective
Task (Task-Specific IT Process
Elements Within Automation
Level
a Process) Gateway Technologies Arago, Ayehu Software
Technologies, Automic,
(Aka RPA)
Cortex, TCS (Digitate
Blue Prism, UiPath, Automation
ignio), ServiceNow, BMC
Anywhere, Redwood, NICE,
Kryon, OpenSpan,

Mimics Enhances Enables Interprets/ Create

9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Intuits Unexpected
Value
Understanding Ecosystem

Ecosystem
combinations of
“intelligent” AND legacy
w/ heterogeneous vendors
Process Level
Solutions
Offerings

Technologies

10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

What Is RPA (Robotic Process Automation)?

Source: book-aesthete.tumblr.com/post/26149565334/player-piano-kurt-vonnegut-new-york
11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
RPA (Gateway Technology) Case Study 1

Mobile Phone Activation Process

Listen Assign
Talk to Validate Enter Onto Credit Issue Send
Appraise Account Activate
Customer Details Systems Check Product Letters
Interpret Number

12 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

RPA (Gateway Technology) Case Study 1

Specific Tasks Selected

For Automation

POWERED BY
Robotic Process Automation

Listen
Talk to
Appraise
Customer Validate
Enter
Credit
Assign
Issue Send
Onto Account Activate
Interpret Details
Systems
Check
Number
Product Letters

13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

RPA (Gateway Technology) Case Study 1

1 Hour Down From 24

1.1 million Monthly
Transactions
POWERED BY
Robotic Process Automation 50% of Total Monthly
Volume (2 Million
Listen Enter Assign
Talk to
Customer
Appraise
Validate
Details
Onto
Credit
Check
Account
Issue
Product
Send
Letters
Activate Transactions)
Interpret Systems Number

160 "Robotic" Instances

>100 FTEs Work Saved

14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

RPA (Gateway Technology) Case Study 2

Mortgage Approval Process

for a Leading Financial Instituion
4 Processes
8 "Robotic" Instances
550 Daily Transactions

Send Email Confirmation

80 FTEs Work Saved

10 Day Reduction in
Cycle Time for Mortgage Approval

15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Why the Hype?

Fast Implementations 3 to 4 Months

Low Cost $1,500 to $9,000
Return on Investment 3 to 6 Months

16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

How and When Does RPA Save Money?
Relatively low entry point &
2 to 4 3 to 6 decreases over time with:
Months Weeks (a) STRONG governance
(b) “consistency” of tools

Business Select and Design and Months 3 to 6

Process Buy Deploy RPA Recognize
Design Software tool Savings

Identify Range Range

Process
Steps
$1,500- $75 K to +$
$9,000 $250 K or
Bundled
17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
 RPA Is the Low-Hanging Fruit

18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Smart Machine Mapping
New Business Models

Reimagined
Process
Process
Level
Incremental
Process Change

Selective
Workflow
Selective
Task (Task-Specific
Gateway Technologies
Elements Within
Level Surface Tools
a Process)
Robotic Process
Automation

Mimics Enhances Enables Interprets/ Create

19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Intuits Unexpected
Value
Hype Cycle Framework
Peak of Inflated
Expectations

Plateau of
Productivity

Innovation Slope of

Trigger Enlightenment
Trough of
Disillusionment

20 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

2016 Applications Services Hype Cycle
RPA Future of RPA Offerings
Offerings (a) Acquisitions
(b) Addressable Market Cap
Business Process as a Service (BPaaS)
(c) Higher End Tools will include
RPA functionality
Virtual Customer Assistants

Intelligent Process Services

Cognitive-Enabled Services

Bots
As of July 2016
Peak of
Innovation Trough of Plateau of
Inflated Slope of Enlightenment
Trigger Disillusionment Productivity
Expectations
time
Years to mainstream adoption:
obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years
before plateau
From "Hype Cycle for Application Services, 2016," 12 July 2016 (G00290044)
21 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Who Are the Stakeholders/Constituencies for RPA?

1. Buyers
2. Product Vendors
3. Delivery Options

Specialty Consultants

Mainstream Firms

BPO Vendors

22 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Market Dynamics
Design and Deploy Manage
RPA and Operate

Outsourced
BPO Specialty BPO
Business Process Vendor
Vendor Consultant

In-House In-House
In-House Specialty
Business Process Consultant Team
Team

23 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Who Are the Players for Delivery?

Specialty Consultants Mainstream Firms BPO Vendors

1. Genfour 1. Accenture 1. WNS

2. Symphony Ventures 2. Capgemini 2. Genpact
3. Virtual Operations 3. Deloitte 7. TCS 3. Xerox
4. KPMG 8. Infosys 4. EXL
5. Mphasis 9. Wipro 5. IBM
6. Syntel 10.Cognizant 6. Accenture
7. TCS
... Dozens more ... Dozens more

24 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Who Are the Players Offering Products?

Pure Product Service

Providers
Vendors (Proprietary)

1. Automation Anywhere 1. Xerox

2. Blue Prism* 2. WNS
3. EnableSoft 3. Syntel
4. Epiance 4. TCS (N)
5. Kryon Systems 5. HCL(N)
Bundled
6. UiPath 6. Infosys(N) Product and
7. Nice 7. Wipro(N) Service
8. OpenConnect
9. OpenSpan* (N) = Multiple Products
10. Redwood

* Major Event
Frequently Asked Questions

Business Process Picking the Right Architecture Footprint or Load:

Analysis and Design Tasks (Processes) Questions Desktop or Server

Compliance and Activity-Based Scalability & Heterogeneous Systems /

Audit Trial Analysis Interoperability Concurrent Instances

Reuse/ How Many ADDITIONAL Tasks Can Integration Core & Legacy Systems
Leveragability This Be Applied To? Points API Management

Analytics Quality Tradeoffs

PRICE
$$$$
26 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
What Are the Benefits?

Know what Know

Fasterwhat
Error Reduction
to do (ReducetoCycle
do Time)

Know what Know what

Standardization Scalability
to do to do

Know what
Cost Reduction
to do

27 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Profile Process and Data
Rules-Based,
Routine,
Predictable Automate
Enable
(Mimic)

Efficiency Efficacy

Process/Task
Profile

Enhance Augment
Judgment Based
Business Agility Innovation
Dynamic/Ad Hoc
Unpredictable

Structured, Stable, Unstructured, Volatile,

Low Velocity High Velocity
Data Profile

28 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

How to Decide Where to Apply RPA?
Rules-Based,
Routine,
Predictable RPA

Process/Task
Profile

Judgment Based
Dynamic/Ad Hoc
Unpredictable

Structured, Stable, Unstructured, Volatile,

Low Velocity High Velocity
Data Profile

29 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Intelligent Automation Services Planning
Rules-Based, Robotic
Routine, Process
Predictable Automation
Gateway
Technologies

IT Process Business Enablement /

Process/Task Enablement / Process Orchestration
Profile Infrastructure
Operations:
IT Process
Automation
Cognitive
“like”

Judgment Based
Dynamic/Ad Hoc
Unpredictable

Structured, Stable, Unstructured, Volatile,

Low Velocity High Velocity
Data Profile

30 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Illustrative Cost Trajectories for Intelligent Automation

Ecosystem /
Orchestration
Gateway Technology Tools

Cost

30% 60% 90%

Percentage of Automation Across

31 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Overall Business & IT Processes
Illustrative Cost Trajectories for Intelligent Automation
Cost to Automate targeted
“Tasks”
Starts out relatively low cost
& decreases over time with:
(a) STRONG governance
(b) “consistency” of tools Ecosystem /
(c) investment in skills Orchestration
Gateway Technology Tools

Cost

30% 60% 90%

Percentage of Automation Across

32 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Overall Business & IT Processes
Illustrative Cost Trajectories for Intelligent Automation

Ecosystem /
Orchestration
Gateway Technology Tools
Challenges:
(a) Need for “Human in the Digital Loop”
Cost (b) Complexity & Integration of
Workflows & Processes
(c) Lack of Standardization & Consistency
(d) Exceptions (type and volume)

30% 60% 90%

Percentage of Automation Across

33 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Overall Business & IT Processes
Illustrative Cost Trajectories for Intelligent Automation

Ecosystem /
Orchestration

Gateway Technology Tools

Cost
“Last Mile” of Intelligent Automation
Demands a NEW CURVE after shifts in
(a) Enterprise Architecture
(b) IT Skills levels
(c) Behavioral / Organizational Change

30% 60% 90%

Percentage of Automation Across

34 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Overall Business & IT Processes
Standardization Versus Differentiation

More
More Better Business Outcomes
Scale and Value

Gateway Automation
(Task/Workflow level)
Standardization

Less
Chaotic
More Standardization Control More Differentiation

35 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Standardization Versus Differentiation

More
Digitalization Intelligent Automation
(Ecosystem)
More Better Business Outcomes
Scale and Value

Differentiation

Gateway Automation
(Task/Workflow level)
Standardization

Less
Chaotic
More Standardization Control More Differentiation

36 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommendations
 Get Started ASAP with low hanging fruit:
– Focus on business process not technology
– Target data entry, routine work, tasks that are rules-based
– Gateway Technologies (i.e. RPA) are low risk, relatively low cost.
– Continuous focus on identifying the new/right tasks
 Focus on enterprise wide journey for Intelligent Automation Services
– Race with the machines, not against them!
– Form multi-disciplinary teams and experiment
– Continuous ideation, proofs of concept,links back to business
– Educate peers and management team
– Help others adapt to change
37 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research

 Predicts 2016: The Rise of the Machine Leads to Obsolescence of

Offshoring for Competitive Advantage
Frances Karamouzis and others (G00292804)
 Mandate Investigation of Smart-Machine-Enabled Services to
Accelerate Business Outcomes
Frances Karamouzis and Ruby Jivan (G00269974)
 Sourcing Smart-Machine-Enabled Services Drives Competitive
Advantage and Future Patent Revenue
Frances Karamouzis (G00272722)

38 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

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Gartner’s webinars Follow Gartner Technical difficulties?
Email
Connect with us @Vickier0729 @Gartner_Inc gartnerwebinars@gartner.com

Vickie Romanchuk Gartner

40 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.