Record Investment In RPA: Why It Matters
If you’ve been thinking of digitally transforming your company’s processes, the record investment in RPA (robotic process automation) that we’ve seen over a few short years might have caught your attention.
By 2025, the global market for RPA is expected to reach $3.97 billion. Between now and then, it will expand at a CAGR (compound annual growth rate) of 31.1%.
Businesses have been looking at RPA as a means to streamline their work processes and establish a more efficient organization.
Today we’re going to be taking a look at why the surge in RPA adoption is so important to small and midsize business and the reasons behind it.
Why Is There Record Investment In RPA and Why Now?
While automation is hardly an alien concept in business, the speed with which RPA has taken precedence is worth paying attention to.
Using software solutions to alleviate boring and repetitive tasks from employees is hardly a new concept for decision makers.
It’s for this reason that we have more familiar platforms like CRMs and unified communication suites—to streamline work and give staff an easier time of things.
We still, however, lag woefully behind when it comes to productivity. 90% of employees are burdened with menial tasks which can be easily automated, which essentially translates to a lot of lost time and money.
Where a productivity crisis can lead to an enormous loss of value from workers, automation can get you back on track by allowing them to focus their efforts instead on work that truly needs a human touch and doesn’t waste their time and your money.
RPA is no different, and its uses range from payroll processing to report aggregation—processes that most be would agree could hugely benefit from being automated.
While larger enterprises have already been pouring $100s of millions into automation strategies a number of years now, many SMBs have had to wait patiently for the technology to become an affordable and viable option.
Now we’re seeing small and midsize businesses across the board begin to invest heavily in RPA to help along their transformations.
How Much Are Businesses Investing In RPA?
For owners and decision makers wondering about their strategies to change their company for the better, a lot of emphasis has been placed on exactly which technologies will provide them the most bang for their buck as we enter a new decade.
Digital transformation, after all, encompasses a huge swathe of different methods and tech—from cybersecurity to augmented reality.
Digital transformation is oftentimes dominated by trends—cloud adoption of course looms large, along with other popular innovative and useful technologies such as the utilization of the Internet of Things.
So where does RPA fit in?
Well, the answer might surprise you. In 2019, investment in RPA was the number one focus for SMBs.
A survey conducted by HFS Research suggests that more investment is being made in RPA than any other area, including the cloud, Internet of Things, and analytics.
The RPA industry, worth $250 million in 2016, is projected to be worth $2.9 billion next year
In 2020, it is expected to be edged out by artificial intelligence, which is enjoying a meteoric rise to the top of the digital landscape.
In any case, AI and RPA overlap in several instances, effectively meaning that bettering processes through automation remains the top priority.
Nonetheless, RPA is being viewed as an essential aspect of a successful digital transformation by the vast majority of SMBs.
53% of companies have already started their journey with investment in RPA, and this number is expected to increase to 72% in the next two years. If current trends continue, RPA will achieve near-universal adoption in the next five years.
What It Means for the Future of Digital Transformation
By now, we’re largely accustomed to how landscape for digital transformation can change dramatically.
As new technologies emerge, priorities and objectives shift along with the needs of business.
Among respondents in a Deloitte survey, the majority of them indicated that RPA meets and exceeds expectations in terms of compliance, quality, accuracy, productivity, and cost reduction
The question on everyone’s lips is whether RPA is worth investing in for the future for SMBs.
The simple answer to this is it depends. So long as automation provides the opportunity for organizations to save money through labor and time, RPA will continue to have prominence across every industry.
For very small companies, there may not be a great demand for automation, but for many SMBs, there is a growing hunger to optimize processes as much as possible—often spurred by acknowledging the digitization of their competitors.
Utilizing automation and implementing an RPA solution to futureproof the business is a desired and necessary step in improving business processes.
2020 is sure to continue this trend, and as tech solutions become more affordable and ubiquitous among small and midsize organizations, we can expect greater adoption going forward.
- RPA can be used for a variety of common purposes across industries, mostly related to timesaving as regards repetitive processes
- Investment among businesses, particularly SMBs, has risen drastically and will continue to do so
- With automation a top priority for organizations seeking to improve their processes and save on costs, it’s likely that RPA will be a central aspect of the digital ambitions of decision makers
Learn More About What RPA Means for the Future
Robotic process automation helps companies achieve and maintain a competitive advantage in their industry. Through leveraging the tools available, which increase staff productivity and decrease costs—companies can enjoy higher operating capacity while delivering superior customer experience.
RPA is just one aspect of digital transformation which is changing the way small businesses operate in today’s constantly evolving landscape. To learn more about how you can modernize your organization, reach out to our Managed IT team and speak to one of our experts today!