The key objective of establishing a well-defined Target Operating Model (TOM) for RPA is to create an opportunity for client organizations to maximize business value by harnessing the virtual workforce and other organizational resources to the best effect while maintaining control over future costs and with stronger risk mitigation strategies.
Client organizations and service providers would be well served by establishing a well-structured TOM before transitioning from the robot build and design phase to Business-As-Usual (BAU) / steady state. This is important as the operations team should be aware of the prerequisites of robotic process automation, i.e., what needs to be completed in advance, well before processes are automated and transitioned from human operators to robot applications. This is possible when a stable IT environment exists and there are no issues with hardware or software systems either operating on-premise or in a cloud-based environment.
Some key areas that clients should concentrate on while establishing a robotic operating model from the current one are:
Understanding the Components of a Robotic Process Automation Operating Model
For organizations to use robotic process automation efficiently, the RPA Target Operating Model is a vital guideline. Consider these important factors when developing an RPA OM:
- Will a decentralized or centralized team create and carry out services? Is the RPA group working closely with the business or IT?
- What functions do roles like "Business Analyst," "RPA Designer," and "RPA Controller" have in the RPA organization?
- What are the necessary quality gates and escalation paths?
- How does your RPA automation solution integrate with the IT environment you already have?
- A standardized demand process supports structuring the pipeline - how should this look?
- What processes earn the highest benefits with reasonable effort for development and maintenance?
- When should the concepts of change communication and personnel qualification be specified?
Why Is The RPA Target Operating Model Important For Sustainable Success?
Managing a small Shared Service Centre (SSC) is similar to setting up and managing a successful RPA automation operation. Ensure clear and defined roles, structures, and processes to enable the management to oversee and direct their RPA CoE. KPIs must be established and included in developing guidelines, tracking robot execution data, and reporting in an organized manner to fully comprehend the costs and benefits of implementing robotic process automation. Organizations can confidently choose their operational strategies if they're equipped with this information about cost-benefit drivers.
Unforeseen Risks of Implementing RPA Without a Well-Defined Operating Model
Without an established automation operating model, the chances of achieving long-term robotic process automation success are drastically reduced. Applications created with only the initial build in mind may see success initially. But when it comes time for upkeep and maintenance, issues can arise due to differences in programming standards from one developer to the next. This can lead to decreased robot utilization and difficulty patching up any faulty code or omissions that have been made. To avoid such risks, creating a noteworthy automation operating model is essential for reliable results.
TARGET OPERATING MODEL FOR RPA
Target Operating Model (TOM) – Points to consider
|Refining ownership structures||
|Defining roles and responsibilities
in a virtual workforce environment
|Robot workforce management||
|Governance||Having appropriate levels of RPA governance are in place is an essential element of ensuring the RPA tools deliver on expected business outcomes. Key considerations include:
|Reverse Transition Plan||Buyers should develop Reverse Transition Plan to have flexibility to move or swap with another RPA tool or service provider|
Types of Process
Due Diligence Steps
Ownership and Pricing Strategy
|Not yet outsourced||
Key Points for consideration for Service provider
- Ability to package a solution with value added services would be key factor.
- Need to move up the value chain beyond being reseller of RPA tools.
- Pricing of in-house tools should be competitive.
- M&A strategy to acquire RPA tool inorganically.
- Proactive to offer RPA solutions to existing clients and cannibalize the current revenue to grow for tomorrow otherwise client might be lost to competitors with strong RPA offerings.
Key Points for consideration for buy side organisations
- The ownership of niche RPA tool is critical as they are attractive acquisition targets by competing service provider.
- Reverse Transition strategies should be planned and tested on regular basis. This will provide flexibility to swap between different and better RPA tools (if need arises).
- Pricing contracts should be of terms no more than 12 to 18 months.
- Train and develop in-house capabilities (onshore/offshore) in RPA tools domain.
- Continuously evaluate existing and emerging RPA tools in the market.
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