How to be smart about an RPA Implementation? Does RPA work in all scenarios? What should be the approach? How to derive ROI from an automation implementation? How to calculate ROI? Webinar presentation made for the RPA Institute in New York

1. APrimeronImplementation
andReturnonInvestment
PROCESS
AUTOMATION

2. 1 PROCESS AUTOMATION AND DIGITAL TRANSFORMATION (DX)
2 SMART PROCESS AUTOMATION
3 IMPLEMENTATION APPROACH
4 RETURN ON INVESTMENT
5 ABOUT 3nayan
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PROCESS AUTOMATION | IMPLEMENTATION
STAGES
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The implementation stages are defined, and the eco-system is impressive
COGNITIVE STAGE
ORCHESTRATION STAGE
FOUNDATION STAGE
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3
2
FrontLoadedInvestment/Complexity
GROUP 2
Business Process Modelling
Process Automation
GROUP 1
Web Scraping
Text / Numerical Analysis
Data, Information Extraction
Optical Character Recognition
GROUP 3
Workforce Orchestration
Basic Cognitive Automation
Machine Learning
GROUP 4
Planning Insights & Strategy
Strategic Planning
Decision Making
Cognitive Load Shifting
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PROCESS AUTOMATION | IMPLEMENTATION
STAGES
4
The implementation stages are defined, and the eco-system is impressive
COGNITIVE STAGE
ORCHESTRATION STAGE
FOUNDATION STAGE
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3
2
FrontLoadedInvestment/Complexity
AETracker
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PROCESS AUTOMATION | IMPLEMENTATION AND ROI
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But, the needs of an enterprise might be broader, and not be fulfilled
by just RPA.
RPA delivers the Return on Investment the fastest…
Infographic courtesy: Everest Group
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DIGITAL TRANSFORMATION (DX)| THE NEED
Has an impact on Customers, Vendors, People, Processes and Technology of an
organization
Customers, Vendors
o Improved
communications
o Increased revenues and
profits
People
o Raised workforce
productivity
o Engaged workforce
Process and Technology
o Competitive advantage
through technology
o Improved organization’s
efficiency and reduced
costs
Positively
Impacted
Employee
Morale
Increased
Market
Share
Greater
Volume of
Digital
Traffic
Increased
Revenue
Data courtesy: Huffington Post
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Increased
Customer
Engagement

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DX | ELEMENTS
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Digital Transformation needs to encompass the transformations of Customer Experience, Operational
Processes, Business Models and Organizational Behavior.
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NEW
DIGITAL
BUSINESS
TOP-LINE
GROWTH
CUSTOMER
TOUCH POINTS
DIGITAL
GLOBALIZATION
PERFORMANCE
MANAGEMENT
WORKER
ENABLEMENT
PROCESS
DIGITIZATION
DIGITALLY
MODIFIED
BUSINESS
CUSTOMER
UNDERSTANDING
Leading digital change requires organizations to have a vision of how to transform
themselves and which digital activities represent good opportunities for the
business

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ROBOTIC PROCESS AUTOMATION (SRPA)
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SPA is more than RPA, and has more to do with Process than Automation
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PART OF DX
A TOOL TOWARDS
IMPLEMENTATION OF DX, AND JUST
ONE ARROW IN THE DX QUIVER
NON-STOP
MOVES AT THE SPEED OF
BUSINESS, OPERATES 24X 7
ADAPTABILITY
COMPLEMENTS THE CURRENT
ENVIRONMENT, AND ADAPTS TO THE
ORGANIZATION
LET HUMANS BE HUMANS
RE-ALLOCATES TIME FOR A BUSY
WORKFORCE
IMPROVE QUALITY
ELIMINATES HUMAN ERRORS
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SPA | WHAT CAN IT DO FOR YOU
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Rapid implementation, scalability, low invasiveness, ability to integrate and navigation through digital
landscapes
Read And Write Databases
Log Into Applications
Copy Paste
Open Emails, Attachments Or
Provide Standard Answers
Fill In Forms, Move Files To Folders
Scrape Data From Documents
Extract Structured Data From
Documents
Make Rule Based Calculations
Follow Basic Decision Rules
Connect To System APIs
Monitor Manual Processes And
Learn How To Perform Them
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SPA | AREAS OF APPLICATION
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SPA enhances performance
by
Rapid implementation time
Scales quickly and is
modifiable
Non-invasive, but integrates
with other systems at
enterprise level
Built for complexity and
navigates different digital
landscapes
From Macros on Steroids, RPA now replicates human tasks at a rapid rate in an error free fashion
Procure to Pay
HR
Administration

Report
Generation Quote to Cash
Inventory
Management Claims Processing
Sales and Invoice
Processing

C O N N E C T I N
G P R O C E S S
I S L A N D S
D I G I T A L
A N D
O N L I N E
I N T I A T I V E
S B A C K O F F I C E
A D M I N I S T R A T I
O N
D A T A
M I G R A T I O N
A N D
M A N A G E M E N T
C U S T O M E R
S E R V I C E
A N D
S U P P O R T
D E S K
I T A N D
I N F R A S T R U C T U R
E S U P P O R T
,
S M A R T
P R O C E S S
A U T O M A T I O N


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SPA | BEFORE AND AFTER (PO PROCESSING)
RPA is a natural progress from Manual towards Cognitive computing
Periodically logs
into system to
check for orders
With another
human
confirmation, she
validates PO
Applies specific
pricing & discounts
to order based on
client contract
Applies additional
discount if outlined
in protocol
PO shipped,
invoiced with error
Manual Process
Software pulls data
from system,
checks for new PO
PO downloaded
and pushed
automatically into
legacy system
Manual validation
based on customer
contract terms
Discounts
automatically
applied
Software uploads
PO to customer
system
Robotics Process Automation
Software pulls data
from system,
checks for new PO
PO downloaded
and pushed
automatically into
legacy system
Customer contract
processed with NLP
to extract terms and
match with order
Discounts
automatically
applied
Software uploads
PO to customer
system
Cognitive Process Automation
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Manual Automated Cognitive Computing
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Illustrative Example

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PRESENTATION LAYER
INTEGRATION PATH
BUSINESS LOGIC LAYER
INTEGRATION PATH
SPA | IMPLEMENTATION APPROACH
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Enterprise-wide process automation must use a balance of business layer based and
presentation layer based approaches
Presentation layer based integration can relatively be faster, cheaper, easier to
implement, change, better to integrate.
But, Business layer based integration usually performs better, data from all layers
can be accessed.
PROCESS
ADAPTERS ADAPTERSBUSINESS LOGIC UI
PROCESS
application 1
application 2
application n
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SPA | IMPLEMENTATION APPROACH
3nayan recommends
Considering Process Automation as part of overall Digital Transformation.
Preceding PA with revisiting the business processes to simplify, standardize and industrialize them. Most
manual processes exist in the operational process areas though.
Starting with pilots in operational process areas where the risk and investment per process are both low, but
can provide large benefits overall.
The long-tail of use cases provides lower-risk opportunities for SPA implementation in
most organizations
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Long tail of operational processes provides an
easy path into RPA
RPA
App-level Macros
Macro Readers
Core Business Processes
Vital for Business
Operational Processes
Risk,cost
Volume

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SPA| IMPLEMENTATION JOURNEY
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The journey of process automation isn’t much different from …
ASSESS
For automation
opportunities
BUILD
The business case
DETERMINE
The optimal
operating model
IDENTIFY
Your automation
partners
PLAN
The automation
roadmap
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ROI | TOP 5 COMPONENTS
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“an RPA software robot costs about one-third the price of an offshore full-time employee (FTE) and
one one-fifth the price of an onshore worker.” – IRPAAI
“45 percent of the activities individuals are paid to perform can be automated by adapting currently
demonstrated technologies.” – McKinsey & Co.
ROI on process automation must take into account elements other than flat cost reduction as well
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LABOUR COST REDUCTION
LESS NUMBER OF PEOPLE
REQUIRED TO DO THE SAME
JOB, AND PRODUCE SAME
OUTPUT
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BASIC FINANCIAL
ANALYSIS
STANDARD ROI FORMULA;
CATCH ALL
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BUSINESS PROCESS
PROFICIENCY
MORE EFFICIENT PRODUCT
LINE, LESS NUMBER OF
HANDOFFS
04
CYCLE TIME
LESS NUMBER OF
BOTTLENECKS, HIGHER
FLOW RATE; MORE OUTPUT
IN SAME TIME. POSSIBLE
24x7 OPERATIONS
05
CUSTOMER DELIGHT
LIKELY TO LEAD TO
RENEWAL OF CONTRACTS,
LARGER SHARE OF WALLET,
MORE REVENUE

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ROI | DIRECT COST TAKEOUT
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𝑅𝑂𝐼 =
𝐺𝑎𝑖𝑛 𝑓𝑟𝑜𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 −𝐶𝑜𝑠𝑡 𝑜𝑓 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝐿𝑎𝑏𝑜𝑢𝑟 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝐻𝑢𝑚𝑎𝑛 𝐻𝑜𝑢𝑟𝑠 𝑋 𝐻𝑢𝑚𝑎𝑛 𝑅𝑎𝑡𝑒 −(𝐵𝑜𝑡 𝐻𝑜𝑢𝑟𝑠 𝑋 𝐵𝑜𝑡 𝑅𝑎𝑡𝑒)
(𝐻𝑢𝑚𝑎𝑛 𝐻𝑜𝑢𝑟𝑠 𝑋 𝐻𝑢𝑚𝑎𝑛 𝑅𝑎𝑡𝑒)
Turning the FTE based costing (or pricing model) into outcome based model
can turn a cost center to a revenue center
FTEs
Avg Loaded Cost
/ FTE / hour
Monthly
Loaded Cost
Total Annual
Loaded Cost
Before SPA Implementation 150 $55 $114,125 $1,369,500
FTEs
Avg Loaded Cost
/ FTE / hour
Monthly
Loaded Cost
Total Loaded
Cost
During Implementation 150 $55 $114,125 $456,500
FTEs
Avg Loaded Cost
/ FTE / hour
Monthly
Loaded Cost
Savings /
Month
Post Implementation 80 $60 $66,400 $47,725
Months to Break Even
4.63
Technology Investment
Project Cost $220,800
Calculations shown are high level and directionally illustrative only
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ROI | NEW SERVICE OFFERING
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Enabling service providers to move to different business models will support
the initial investment made
Costs (Annual)
FTEs Avg. Payroll Cost Total Cost
PA team engaged 5 $9,375 $46,875
Process Team Engaged 2 $18,750 $37,500
Tech Team engaged 3 $7,813 $23,438
Payroll Cost $107,813
Loaded Cost (Additional 20%) $129,375
Training Cost
Duration Cost
Training 3 $100,000
Revenue Loss
During Training $230,400
Total Training Cost $330,400
Total Cost $459,775
Billable Projects (4-month duration)
Duration (Months) Hours / month Bill Rate / hr. Total Billing
3.5 160 $50 $140,000
2 160 $70 $44,800
2.5 160 $30 $36,000
Revenue Per Project $220,800
Calculations shown are high level and directionally illustrative only
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ROI | PREVENTING ATTRITION
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Liberate people through smart process automation, thereby impacting attrition
Recruitment Cost
Recruiter output p.m. (FTE) 8
Recruiter startup time (months) 1
Lag Time for Recruiter (months)
post resignation [Same as notice
period]
2
Recruiter Annual output 72
Annual Cost of Recruiter $10,000
Revenue Loss
New Recruit Notice Period (months) 3
New Recruit (FTE) Training Period (months) 1
Min Revenue Loss Period, including training (month) 4
FTE billing rate / hour $30
Revenue Loss Per FTE per month $4,800
Revenue Loss Per Attrition $19,200
Annual Revenue Loss for total attrition $1,382,400
Saving / Cost Avoidance
% Attrition Prevented 25%
Cost Avoidance $345,600
Calculations shown are high level and directionally illustrative only
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19. STRATEGY  TRANSFORMATION  EXECUTION
CAPABILITYProvide deep insight, expertise
and execution help enabling
clients reach their goals.
•
Strategies (with lucid business
cases) and execution which
integrate new operating models
with enhanced organizational
design, technology blueprint, and
sourcing strategies;
•
Strategies and implementations
which are outcome and not just
output based, thereby not just
reducing costs, but bringing in
real business value.
IDENTITYA group of highly qualified SMEs and
entrepreneurs who share a common mission of
making clients successful
•
Bring top tier global consulting and execution
expertise along with ease of engagement and
agility.
Helping organizations
be business and
people proficient

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Suhas Dutta
Strategy  Transformation  Execution
STRANZEX CONSULTING
LLP
W 3nayan.com
E suhas@3nayan.in
M +91 99807 11477
3nayan.com
reach@3nayan.in
/3nayanconsulting
@3nayanSpeaks