Robotic process automation deployments: a step-by-step method to investment appraisal

Abstract

PurposeRobotic process automation (RPA) has recently emerged as a technology focusing on the automation of repetitive, frequent, voluminous and rule-based tasks. Despite a few practical examples that document successful RPA deployments in organizations, evidence of its economic benefits has been mostly anecdotal. The purpose of this paper is to present a step-by-step method to RPA investment appraisal and a business case demonstrating how the steps can be applied to practice.Design/methodology/approachThe methodology relies on design science research (DSR). The step-by-step method is a design artefact that builds on the mapping of processes and modelling of the associated costs. Due to the longitudinal nature of capital investments, modelling uses discounted cashflow and present value methods. Empirical grounding characteristic to DSR is achieved by field testing the artefact.FindingsThe step-by-step method is comprised of a preparatory step, three modelling steps and a concluding step. The modelling consists of compounding the interest rate, discounting the investment costs and establishing measures for comparison. These steps were applied to seven business processes to be automated by the case company, Estate Blend. The decision to deploy RPA was found to be trivial, not only based on the initial case data, but also based on multiple sensitivity analyses that showed how resistant RPA investments are to changing circumstances.Practical implicationsBy following the provided step-by-step method, executives and managers can quantify the costs and benefits of RPA. The developed method enables any organization to directly compare investment alternatives against each other and against the probable status quo where many tasks in organizations are still carried out manually with little to no automation.Originality/valueThe paper addresses a growing new domain in the field of business process management by capitalizing on DSR and modelling-based approaches to RPA investment appraisal.

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“…One potential approach is to connect STEM studies to globally meaningful development targets, which both genders would find valuable and good objective to be able to contribute into. For example success of SMEs and sustainability [134] trough digitalization, digital and real-life robotization for corporations work force acquiring problem and work safety issues solving capabilities [135][136], Digital citizen science solution development [137][138], Industry 4.0 and circularity and [139] and University-Industry collaboration for sustainability purposes [140]. Also, based on our findings, studies on the role of parental support in forming boys' and girls' subjective assessments of their achievements using interviews with STEM students and women working in STEM would be essential to be continued.…”

The implementation of Lean Six Sigma for the optimization of robotic process automation systems in financial service operations

“…Therefore, the various academic calls for empirical research on RPA implementation, covering among others implementation barriers, performance measurement and improvement (Da Silva Costa et al. , 2022; Ylä-Kujala et al. , 2023), and socio-technical implications (Danilova, 2019; Hartley and Sawaya, 2019; Syed et al.…”

“…More systematic enquiries into RPA implementation research to date revealed an absence of industry specific guidance or implementation models, and a general absence of practical validation of the procedural models that have been presented to date (da Silva Costa et al, 2022;Krakau et al, 2021). Therefore, the various academic calls for empirical research on RPA implementation, covering among others implementation barriers, performance measurement and improvement (Da Silva Costa et al, 2022;Yl€ a-Kujala et al, 2023), and socio-technical implications (Danilova, 2019;Hartley and Sawaya, 2019;Syed et al, 2020), provide the rationale for this case study.…”