RPA business opportunities

Gartner recently announced that Robotics Automation Software (RPA) revenue increased by 63.1 percent in 2018 to $ 846 million, making it the market segment for enterprise software. the most growing. Gartner badysts also expect RPA software revenue to reach $ 1.3 billion this year alone.

Despite this robust growth, technology is often misunderstood by the broader enterprise automation community. Often, RPA is still wrongly badociated with artificial intelligence.

According to Deloitte, RPA is "the automation of rules-based processes with software that uses the user interface and can run on any software, including web applications, ERP systems, and mainframe systems." But what exactly does it mean? ? In this article, we will badyze the applications of RPA, the main market players, as well as the emerging trends that will shape the future of the sector.

What is RPA?

It is important to note that "robotics" in the automation of robotic processes is slightly misleading. This is because RPA is a software solution; it does not take a physical form. And although artificial intelligence (AI) software can work with RPA, there are two very different technologies.

Source: Deloitte – The robots are ready. Are you?

Why companies explore RPA

Continuous improvement and automation are the strategic priorities of organizations exploring RPA. Compared to expensive AI solutions, bots are generally inexpensive and easy to implement, requiring neither custom software nor extensive integration. As such, they remain an accessible piece of IT infrastructure.

These platforms are designed to automate repetitive, low-value activities such as insurance claims processing, payroll, form filling, and performing calculations. Removing these mundane practices from employee workflows gives employees more time for valuable tasks such as strategic planning and corporate governance.

Above: Gartner Magic Quadrant for RPA Software

Robotic process automation also offers opportunities for cost reduction. For example, a company may apply APR to reduce its internal recruitment needs and / or outsourcing, which can significantly reduce costs and increase employee productivity.

Beyond these benefits, RPA promises technical improvements. On the one hand, process automation helps eliminate human errors. RPA can also ensure a higher level of compliance through integrated regulatory and legal requirements. Finally, RPA monitors events during various workflows, including customer service activities and technical support.

Who is investing?

In a comprehensive badessment, Gartner found that the top five RPA vendors controlled 47 percent of the market in 2018. Further highlighting the strong growth of the sector, the sixth and seventh vendors reported triple-digit revenue growth between 2017 and 2018. Leading industry player, UiPath has raised $ 568 million in a series of Series D financing whose valuation reached $ 7 billion last year .

This funding was led by the Coatue Management hedge fund, which included Alphabet CapitalG, Sequoia, Accel, Madrona Venture Group, IVP, Dragoneer, Wellington, Sands Capital and funds advised by T. Rowe Price & Associates.

Also last year, Automation Anywhere, ranked second, raised $ 300 million from SoftBank for $ 2.6 billion. While venture capitalists continue to invest heavily in the sector, the potential for future growth remains the primary motivator. Many investors view RPA as the fundamental change needed to drive global digital transformation in virtually every sector.

Emerging trends

As a result of this ongoing capital investment, the RWA sector continues to evolve rapidly. In this dynamic environment, we observe some important trends.

1. Several industries are leading the APR. Although automation of robotic processes is widespread in all sectors, some are primarily responsible for adopting RPP. Banks, insurance companies, telephone companies and utilities all posted higher investment rates. Because RPA solutions easily integrate with existing systems, these organizations can leverage past technology investments while accelerating their digital transformation initiatives.

Source: International Trends in the Adoption of the RPA

2. RPA is a gateway to smarter technology. As mentioned, RPA and cognitive technologies such as AI remain significantly different, but they can create immense value when used together. For many companies, the automation of robotic processes begins the beginning of their digital transformation. That is, RPA acts as a gateway to further exploration of cognitive automation. Highlighting this trend, Deloitte found that 28% of those who implement and adapt RPA also implement cognitive automation. Only 6% of those who have not implemented RPA are pursuing cognitive automation.

The future of RPA

While RPA continues to attract substantial investment, heavyweights in the IT sector have begun to become aware of it. Major software vendors such as IBM, Microsoft and SAP enter into active partnerships with, or acquire, RPA providers. As a result, the technology has begun to reach an even wider consumer base. These conditions have clearly opened the door for new APR providers as they begin to deploy features that meet the specific needs of the digital enterprise. As the business automation market continues to gain momentum, the badociated transformation changes seem almost certain.

Howard Chau is a partner at Acorn Pacific Ventures in Silicon Valley.