Intelligent process automation (IPA) is a term that encompasses a range of technologies that combine process redesign, robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML) to automate and optimize business processes.
IPA can help organizations achieve higher productivity, efficiency, quality, and customer satisfaction, while reducing operational costs, risks, and errors. In this article, we will explore the costs associated with IPA, the benefits it can bring, and the best practices for implementing it successfully.
The Costs of IPA
IPA is not a one-size-fits-all solution. The costs of IPA depend on various factors, such as the complexity and scope of the processes to be automated, the level of integration and customization required, the choice of tools and platforms, the availability of skills and resources, and the expected return on investment (ROI). According to a report by McKinsey, the typical costs of IPA include:
Software licenses and maintenance fees
These are the costs of acquiring and maintaining the software tools and platforms that enable IPA, such as RPA bots, AI engines, ML models, optical character recognition (OCR) systems, natural language processing (NLP) systems, etc. The costs may vary depending on the vendor, the number of licenses, the type of subscription, and the level of support.
Hardware and infrastructure costs
These are the costs of procuring and operating the hardware and infrastructure that support IPA, such as servers, storage, network, cloud services, etc. The costs may depend on the scale and performance of the infrastructure, the type of deployment (on-premise or cloud-based), and the security and compliance requirements.
Implementation and integration costs
These are the costs of designing, developing, testing, deploying, and integrating IPA solutions with existing systems and processes. The costs may depend on the complexity and duration of the implementation project, the number of stakeholders involved, the degree of customization needed, and the quality standards expected.
Change management and training costs
These are the costs of managing the organizational and cultural changes that IPA may entail, such as redefining roles and responsibilities, communicating benefits and expectations, addressing resistance and fears, providing training and support to employees and customers, etc. The costs may depend on the size and readiness of the organization, the impact and scope of IPA on business functions and processes, and the effectiveness of change management strategies.
The Benefits of IPA
Despite its costs, IPA can offer significant benefits to organizations that adopt it strategically and effectively. According to various studies, some of the benefits of IPA include:
Increased productivity
IPA can automate repetitive, manual, or rule-based tasks that consume a lot of time and resources. This can free up employees to focus on more value-added or creative activities that require human judgment or skills. IPA can also enhance the speed and accuracy of tasks by reducing human errors or delays.
Reduced costs
IPA can lower operational costs by eliminating or minimizing human labor or intervention in certain tasks or processes. This can also reduce overheads such as training or hiring expenses. IPA can also optimize resource utilization by scaling up or down according to demand or workload fluctuations.
Improved quality
IPA can improve the quality and consistency of outputs or outcomes by applying standardized rules or criteria to tasks or processes. This can also enhance compliance with regulations or policies by ensuring adherence to best practices or guidelines. IPA can also monitor and measure performance or results by using data analytics or feedback mechanisms.
Enhanced customer experience
IPA can enhance customer satisfaction and loyalty by delivering faster, more personalized, and more reliable services or products. This can also increase customer retention and acquisition by creating competitive advantages or differentiation in the market. IPA can also enable customer self-service or engagement by providing interactive or intelligent interfaces or channels.
Best Practices for IPA
To maximize the benefits and minimize the risks of IPA, organizations need to follow some best practices that can guide them through their IPA journey. Some of these best practices are:
Identify and prioritize the processes to be automated
Not all processes are suitable or feasible for automation. Organizations need to assess and select the processes that have high potential for automation based on criteria such as:
- The maturity, stability, and complexity of the process
- The volume, variability, and predictability of the process
- The availability, quality, and structure of the data involved in the process
- The expected benefits, costs, and risks of automating the process
- The alignment of the process with the strategic goals and priorities of the organization
Choose the right tools and platforms for automation
There are many tools and platforms available in the market that offer different capabilities and features for IPA. Organizations need to evaluate and select the tools and platforms that best fit their needs and requirements based on factors such as:
- The functionality, performance, and scalability of the tool or platform
- The compatibility, interoperability, and integration of the tool or platform with existing systems and processes
- The ease of use, maintenance, and support of the tool or platform
- The security, reliability, and compliance of the tool or platform with industry standards and regulations
Implement and integrate IPA solutions with agility and flexibility
IPA implementation projects can be complex and challenging, involving multiple stakeholders, technologies, and processes. Organizations need to adopt agile and flexible methodologies and practices that can enable them to:
- Define clear and realistic scope, objectives, and deliverables for each IPA project
- Break down large and complex IPA projects into smaller and manageable sprints or phases
- Involve cross-functional teams and users in the design, development, testing, and deployment of IPA solutions
- Incorporate feedback and learning from each sprint or phase to improve or adjust IPA solutions accordingly
- Ensure smooth and seamless integration of IPA solutions with existing systems and processes, avoiding disruptions or conflicts
Manage the change and impact of IPA on people and culture
IPA can have significant implications for the people and culture of an organization, affecting roles, responsibilities, skills, mindsets, and behaviors. Organizations need to manage the change and impact of IPA on their human capital by:
- Communicating the vision, benefits, and expectations of IPA to all stakeholders, addressing their concerns or questions
- Providing adequate training, coaching, and support to employees and customers on how to use or interact with IPA solutions
- Redesigning or redefining roles and responsibilities to leverage the new capabilities or opportunities created by IPA
- Fostering a culture of innovation, collaboration, and continuous improvement that embraces IPA as a strategic enabler rather than a threat
Conclusion
IPA is a powerful and promising technology that can help organizations transform their business processes and outcomes. However, it also requires careful planning, execution, and management to ensure its success. By following the best practices outlined in this article, organizations can leverage IPA to achieve higher productivity, efficiency, quality, and customer satisfaction, while reducing costs, risks, and errors.
