What is Robotic Process Automation (RPA)? – Simple Guide

Written in December 2024

Before looking at Robotic Process Automation (RPA) in detail, it’s worth considering the issue of business IT automation as a whole, and whether it’s something your business should be thinking about.

This may seem like an unnecessary question, as it’s virtually impossible to run a business in the 21st century without embracing some degree of automation. That said, all too often the adoption of IT automation is piecemeal and reactive, with systems installed, modified and upgraded over many years. A more effective approach would be strategic and proactive. Thinking about IT automation from the ground up can help ensure that your systems deliver the maximum benefit, especially as your competitors will almost certainly have done it already.

A global survey of industrial leaders conducted by McKinsey in August 2022 found that over 80% of companies were either likely to adopt, or had already adopted, automation in key use cases.

Turning to RPA itself, figures published by Gartner show that around 80% of finance leaders expect to start utilising RPA to reduce costs, minimise efforts and improve speed and accuracy during 2023. The same analysts predict that by 2025, 90% of RPA vendors will offer generative-AI-assisted automation, indicating a significant shift towards integrating AI capabilities into RPA solutions.

All of this paints a clear picture of the dominant role which IT automation in general, and RPA in particular, seem set to play in the world of business in the immediate future, and why getting to grips with RPA – how it works and what it offers – is vital for any business hoping to stay ahead of the competition.

What is Robotic Process Automation (RPA)?

Robotic Process Automation (RPA) refers to the use of software tools to automate tasks, either partly or completely, which are rule-based, repetitive and manual. Once implemented, RPA replicates activities that would otherwise require a person to interact with software applications. Common tasks suited to RPA include data entry, responding to customer service enquiries and processing basic transactions. For example, many website chat facilities now use ‘chatbots,’ an RPA tool that handles basic queries like resetting passwords or directing users to specific parts of a site.

RPA tools don’t replace the core applications a business relies on but automate manual, repetitive tasks that otherwise consume significant employee time. Essentially, RPA tools interact with the same screens employees use, pulling relevant data from specific locations and completing fields that would typically be filled manually. This means RPA can handle essential but low-value tasks like data entry, freeing employees to engage in activities which require creativity, experience and decision-making skills. At the same time, RPA ensures consistency, eliminates the risk of human error and completes tasks at a much faster speed than is possible with manual processes.

How RPA Works in Practice

Using RPA in a business typically involves three basic steps:

Step 1: Training the Bot

Once a specific robot, or ‘bot’ is installed within a system, it needs instructions, known as training. The advantage of RPA is that training doesn’t require technical skills or programming knowledge. Most bots can be trained through a simple screen capture of the task in question being performed. Once the bot captures the relevant file directories and the steps needed to complete the task, it can replicate the process independently.

Step 2: Attended or Unattended Operation

• Attended RPA: This requires a user to trigger the bot to start or stop the task. Employees may also need to make minor adjustments, such as updating file destinations.
• Unattended RPA: This type operates without manual intervention, often running on a virtual machine or server. The bot starts automatically in response to a trigger event and completes its task independently.

Step 3: Managing Multiple Bots

If multiple robots are used to perform a range of tasks across a business, they must be coordinated to work efficiently. This involves using a control panel to install bots, assign tasks and monitor the overall performance of individual bots and the network as a whole.
native of cognitive automation. This is delivered by state of the art software which is advanced enough to recognise images including handwritten text, and to recognise human speech.

Types of RPA

There are generally two types of RPA: traditional and cognitive.

Traditional RPA uses software to perform simple tasks that don’t require decision-making or cognitive ability. This type of RPA operates based on a set of rules that govern task execution, such as when and where to log in, what data to collect and where to transfer that data. Most RPA systems in use today rely on rule-based bots of this kind. Providers offer ‘off-the-shelf’ solutions that cover multiple business processes, with hundreds of options available. However, traditional RPA has its limitations. It cannot handle tasks like recognising human speech or responding to changes in a user interface.
Cognitive Automation, on the other hand, uses advanced, state-of-the-art software capable of recognising images, including handwritten text, and understanding human speech. This makes it ideal for more complex tasks that go beyond the capabilities of traditional RPA.

Examples of RPA in Action

RPA has a wide range of applications and can be utilised in virtually every industry. However, some industries are particularly well-suited to its capabilities. The tasks subject to RPA in these industries provide insight into its potential:

Banking
RPA can be applied to tasks such as opening and closing accounts, collecting data in a digital format to generate an order for account openings or performing manual tasks like cancelling direct debits when an account is closed. It can also gather data from various sources to support loan applications and create summaries for employees to use when deciding whether to approve a loan.

Insurance
The insurance industry operates under a strict and complex regulatory landscape. RPA can handle high-volume tasks with the accuracy required for regulatory compliance, ensuring they are completed without errors. Additionally, RPA integrates seamlessly with legacy applications often found in well-established industries like insurance.

Healthcare
Healthcare systems generate and collect vast amounts of data, from patient records to appointment slips. Cognitive RPA can digitise handwritten records, transferring them to electronic systems, and traditional RPA bots can be trained to send notifications to patients based on scheduling software. As wearable technology becomes more prevalent, RPA can gather, filter and organise the data generated by these devices.

eCommerce
Handling customer returns is one of the most time-consuming tasks for eCommerce businesses. RPA can integrate across various software systems to gather and verify data such as inventory levels, customer details and billing information, streamlining the returns process.

RPA Software and Tools

As these examples demonstrate, RPA can apply across a range of industries and multiple processes each individual business requires. Some of the leading RPA software solutions are:

Blue Prism
Blue Prism is designed for medium to large organisations and is known for its focus on security and compliance. It requires some programming knowledge to set up and works well across different environments and software systems. Its strong compliance and data integrity features make it a popular choice for industries with strict regulatory requirements, such as finance and healthcare.

Microsoft Power Automate
Formerly known as Microsoft Flow, Power Automate is a cloud-based tool that simplifies the automation of workflows by connecting various systems and applications. It integrates seamlessly with Microsoft 365, making it ideal for businesses already using Microsoft’s services. Power Automate is easy to use and doesn’t require advanced technical skills, making it accessible for non-developers.

UiPath
UiPath is a versatile RPA platform that works for businesses of all sizes. Its intuitive drag-and-drop interface makes it easy to use, even for automating complex tasks. UiPath supports a wide range of applications and platforms, making it highly adaptable to different business needs.

Automation Anywhere
Automation Anywhere provides a powerful RPA platform that can be deployed on-premises or in the cloud. Its user-friendly interface makes it easy to automate processes across various platforms. The tool also includes cognitive automation features, allowing it to work with unstructured data and incorporate AI for more advanced tasks.

Pega
Pega is a cloud-based RPA solution that works with Windows, Linux and Mac systems. It delivers fast and reliable automation, with a focus on combining RPA with Business Process Management (BPM) and AI. This integration allows businesses to streamline processes and handle complex automation needs in a single platform.

The Benefits of RPA

A vast majority of RPA tools and software are easy to use and can be applied to a wide range of business processes, making them suitable for organisations of virtually every size and type. Some of the benefits have been mentioned already, but it’s worth detailing exactly how RPA could impact your business:

• Improved Employee Morale – Automating repetitive and tedious tasks allows employees to focus on more meaningful work. Freed from mundane duties, team members can engage in creative, strategic or customer-focused activities that add greater value to the business and provide a more rewarding work experience.
• Increased Productivity – Automated tasks are completed faster and more consistently than manual processes. RPA eliminates human error in repetitive tasks, reducing the need for revisions and avoiding delays. When deployed across multiple workflows, RPA significantly increases overall business efficiency.
• Scalability – Bots can handle increased demand without the need to hire new employees or retrain existing ones. This makes it easier and faster to scale operations during busy periods or as your business grows, simply by deploying additional bots or adjusting workflows.
• Better Data Management – RPA collects and processes large amounts of data from various internal and external sources without overlooking critical details. Unlike manual methods, which can lose track of information under pressure, RPA ensures data is organised, stored and presented in ways that support long-term strategic planning and decision-making.
• Enhanced Customer Experience – By automating routine processes, RPA frees up your team to focus on delivering better service to your customers. Faster response times and fewer errors in customer-facing processes translate into a smoother, more reliable experience for your clients.
• Seamless Integration – RPA works alongside your existing systems, tools and platforms without requiring disruptive changes. It enhances your current processes by automating repetitive tasks, improving efficiency without interfering with day-to-day operations.
• Future-Proofing – As demonstrated by some of the figures quoted earlier, automation is a well-established part of a huge number of businesses and this is a trend set to become even more present in the immediate future. By implementing RPA now, your business builds a framework that can evolve to handle increasingly complex tasks, keeping you ahead of industry trends and competition.

5 Tips for Introducing RPA to your business

At Littlefish, we draw on over 20 years’ experience with the technology that sits at the heart of IT. Working closely with our customers, we provide a managed RPA service that combines the best the technology has to offer with a deep understanding of what works best for each individual business. Our practical experience with RPA in real-world scenarios has helped us develop these tips for any business considering this transformative technology:

1. Establish which repetitive processes you want to automate and define the tasks within your business that fit RPA criteria. These are typically processes based on clear steps with simple objectives that can be streamlined and completed without human decision-making.
2. Decide whether traditional or cognitive RPA is more suitable for your needs, as traditional tools work well for simple, rule-based tasks, while cognitive automation is better for complex activities like digitising handwritten documents or recognising speech.
3. Having decided which processes you wish to automate and the demands that will be placed on your RPA, research the market for an off-the-shelf solution that best meets your needs
4. Start with a small-scale trial to assess the value RPA brings to your business, and if successful, gradually scale up to automate more processes, involving your operations team to identify additional areas for improvement.
5. Calculate the return on investment by comparing the improvements in productivity and accuracy to the costs of the RPA solution, factoring in any integration expenses such as APIs or cognitive modules.

If you’d like to learn more about managed RPA and how it could work within your business, please contact us. Automation is a fact of life for virtually every type of business, and we can work with yours to ensure that you keep pace with your competition.

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