IMPLEMENTING ROBOTIC PROCESS AUTOMATION TO GAIN A COMPETITIVE ADVANTAGE OVER COMPETITORS AND DECREASING HUMAN EFFORT
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Abstract
Businesses are increasingly finding ways to gain competitive advantage as well as improving how their employees perform their duties. The study proposes RPA as an effective innovation for helping corporations achieve their goals in these two areas. Evidence from a qualitative research that deploys a survey design reveals that organisations that use RPA improve their performance compared to their competitors and also decrease human effort invested in performing repetitive tasks. The current research has its limitations but it is possible to perform better researches of similar nature in future by taking several factors into account, encompassing including more participants beyond the UK and using a mixed research method that makes it possible to gather both qualitative and quantitative data.
Implementing Robotic Process Automation to Gain a Competitive Advantage over Competitors and Decreasing Human Effort
Introduction
Technology has for many years enhanced businesses to advance overall outcome. Moreover, businesses can now take advantage of the chance to enhance the effectiveness of knowledge-based labour through Robotic Process Automation (RPA). The study, therefore, seeks to acquire clear understanding on the implementation of RPAs and to examine some of the underlying components impacting on functioning. Moreover, the research will be of significance to firms aiming at expanding a model of embracing the solutions of RPA to complete particular tasks (Patil 2019; Sadasiva 2019). The analysis serves as a detailed examination to form the effects of implementing RPA while assessing all relevant concepts to achieve competitive advantage over competing firms. The study seeks to establish guidelines, which encompass process plan, modelling, execution, and assessment, and also continuous quality advancement (Patil 2019). Consequently, it is expected that the process will improve workflows that consumes little time and use a decreased amount of money besides increasing consumer satisfaction (Madakam et al. 2019, p. 3). Moreover, the study will examine the interpretivist philosophy and utilizes an inductive approach, including significant qualitative data gathered during interviews with both organizational leaders and members of staff who have actively interacted with RPA operations.
Consequently, the paper pays attention to the implications of implementing RPA on the workforce and describes the real process, more specifically how they achieve competitive edge while utilising automation techniques and how that can be beneficial to large firms from the retail sector to remain competitive in their areas by hastening product development and delivery as well as other key processes such as minimising costs, minimising errors, and enhancing compliance (Gami et al., 2019). Retail automation has improved significantly and is deemed to be in persistent growth and development. Moreover, processes of retail sales are also constantly advancing because of various issues such as alterations in consumer behaviour, altered demand patterns, and changing demographic factors among other reasons. However, one of the most difficult constraints facing the retail sector is adjusting to the online avenue and embracing advanced technology, especially in marketing and sales. It is the reason why firms such as Amazon that deploy superior technology continue making steady growth.
Aim of the Research
The research aims at investigating the possible positive and negative implications of implementing RPA to assist widen the use of RPA in distributing goods. The study will achieve this aim by collecting as much information as possible that already exist about the process and analyze them adequately.
Research Objectives
The current research aspires to show how RPA can be utilised as a reliable framework by organisational leaders in the contemporary business world to perform repetitive human obligations more effectively and competently, utilising a managerial use case with much emphasis on the retail sector. Moreover, the study seeks to contribute to the available research by fusing together past identified perceptions to further realise the following equally important objectives;
- To assess the merits and demerits of RPA
- To find out whether there is adequate RPA use to meet individual interventions entirely
- To examine what is the chief purpose of the automation process
- To determine the necessary processes for RPA implementation
- To find out the possible constraints of using the automation system
- To develop practices that could enhance productivity while making use of RPA and human workforce
Research Questions
The following research questions guide the study;
- Will the RPA be capable to entirely cover human labour without any human intervention?
- What are the merits of using Robotic Process Automation?
- What kind of limitations can emerge when using Robotic Process Automation?
- Who are the main firms that utilize Robotic Process Automation?
- Which are the main drivers for implementing RPA making the business increasingly competitive?
Literature Review
For a significant time now, RPA technology has been an area of close scientific assessment and observation. Marciniak and Stanisławski (2021, p. 2) assert that this is because of the fact that it is deemed to be a critical aspect of the aforementioned digital changes in business. Choi et al. (2021) and Deloitte (2020) inform that RPA is a new technology that facilitates the automation of high-volume, habitual, and tiresome human tasks. The primary objective of RPA according to Choi et al. (2021) is to replace monotonous human jobs with a digital worker or virtual workforce working on the same jobs the human employee was performing but on an improved level. Choi et al. (2021) further argue that the innovation allows human employees to pay attention to problem solving and difficult duties. Choi et al. (2021) also think that RPA tools are effective because they are deemed simple but powerful for automation of particular business practices. A common aspect of all industrial changes and intelligent corporate automation remedies is the likelihood of significantly escalating the production scale of businesses, with the variation that industrial changes advanced physical processes, and automation with the use of AI (artificial intelligence) has permitted the entire automation of virtual works (House of Commons 2019, p. 7; Ribeiro et al. 2021, p. 54). The various sectors very fast noticed the substantial effects of the new IT innovation, which was first employee in specific fields, including telecommunication firms such as Telefonica, banking groups such as Nordea, consulting companies such Deloitte, and accounting and finance institutions such as OpusCapita (Marciniak & Stanisławski, 2021, p. 2). Presently, RPA structure offers experience a relentless escalation in the demand for the software. An example of the expanding need for intelligent techniques is their application in retail, human resources, finances, and public institutions, not only manufacturing firms.
An analysis by Maguire (2020) indicates that the RPA sector has witnessed significant expansion over the recent years. Maguire (2020) argues that RPA software is an example of an area that is developing so fast across the whole software sector. Maguire (2020) further asserts that the total projected sales of RPA software are anticipated to grow from an estimated $1 billion at the start of 2020 to about $2.6 billion by 2023. The chart below signifies how much the RPA market is encountering exponential expansion as firms increasingly use automation to improve worker productivity;
Maguire (2020)
In the context of business corporations, the application of RPA solutions is related with the utilisation of two forms of models. The initial is the formation of RPA Centres of Excellence (CoE) with the motive of acquiring the necessary height of competence to internally enhance the firm’s operations. Building one’s team developing the so called RPA CoE is one of the avenues for excellence. The duty of the CoE is the formation of certain technologies with the objective of selling connected services or to adequately implement the technology in the organisational structure (Marciniak & Stanisławski, 2021, p. 2). The second framework, because of the fact that the market of such innovations is still developing, implies outsourcing and acquiring RPA services from external sources. Nonetheless, regardless of the applied model, the need for RPA services is expanding every day. The growth is further evidenced by the projected incresase in revenue if leading technology firms such as Blueprism in the UK, UiPath in Romania, and Automation Anywhere in the U.S (Marciniak & Stanisławski, 2021, p. 2). Hence, corporations should turn their attention to RPA if they want to improve their operations.
Moreover, technology is constantly changing and based on a study performed by Deloitte it emerges that about 90% of chief executive officers believe that their workers are by impacted by the fast pace of technological transformations and are finding it hard to prepare for what comes ahead. To begin with, Balasundaram and Venkatagiri (2020, p. 1) inform that innovations such as big data, cloud computing, Internet of Things (IoT), augmented reality (AR), simulation, and cyber security among others – are transforming industrial operations and the entire landscape. Logan (2020) and Siderska (2021, p. 2) inform that RPA proves to be a technology that assist firms make appropriate use of the of the technology they are already know with enhanced efficiency, minimised cost and increased morale. Operators in various sectors are looking into RPA because of the enhanced efficiency associated with the process (Enríquez et al. 2020, p. 39113; UiPath 2021, p. 4). The operational technique permits operators to increase output by automating time-consuming (Ribeiro et al. 2021, p. 56), labour intensive, and repetitive jobs. More importantly, RPA permits one to perform more tasks with less. Highly competent members of staff can utilise their time to pay attention to high value-business activities while automation facilitates manual and routine processes. Another reason why firms are increasingly turning their focus on RPA is that the process enhances productivity, which increases a group’s likelihood for achieving competitive advantage. Logan (2020) asserts that RPA is quick to implement and does not generate any downtime in organisational operations. Often, employees and the at large encounter significant constraints embracing new technology but this is not the case with RPA that Logan (2020) identifies as having some of the minimal worker resistance of most information technology (IT) implementation initiatives – with only about 16% reporting opposition from members of staff. Improved efficiency and increased productivity as a result of implementing RPA allow businesses to stay competitive because the innovation offers a substantial chance when it comes to strengthening the firm’s competitive advantage. With reduced repetitive, time-consuming jobs to perform, workers are better placed to pay attention to high-value jobs positioning for the organisational success.
A significant effect of RPA is that it significantly minimizes human effort, especially when workers have to engage in repetitive or monotonous labor. A report by Intellera (2021) informs that in the modern day’s technology-enhanced workforce, corporate owners are increasingly finding new forms to enhance efficiency, minimise costs, and improving productivity. The report further informs that one effective way of attaining that is by adopting a remedy that permits robots to perform the rule-based functions presently conducted by employees in nearly all forms of businesses (Intellera 2021). BBC (2020) informs that RPA comprises of software that robots that have the capacity to conduct repetitive duties instead of humans. Not only does this form of automation permit businesses to minimise human effort, it is also significantly influences human error, resulting in a better service delivery and enhancements in overall quality of the product (Intellera 2021; Partington 2019). Other than reducing human effort, the innovation can perform laborious, high-volume, and indispensable duties much faster and with more preciseness, resulting in decreased error mitigation, reduced waste, and faster services (SDLC Partners 2021). Thus, whereas RPA decreases human effort associated with certain repetitive tasks such as making calculations, reading and writing to databases, copying and pasting data, and reading and writing to databases, it also offers an opportunity to enhance human efforts while increasing speed, preciseness, and efficiency (SDLC Partners 2021). Consequently, organisational leaders should invest in the technology and acknowledge that RPA is not an application that will fade soon. Instead, the innovation is here to stay and dedicated to enabling firms to improve human resources and offer more to what they develop or perform. Hence, it is imperative for team leaders to find ways of incorporating the technology at the workplace, especially if the firm has the capacity to install such forms.
Nonetheless, despite the many benefits associated with implementing RPA, it is imperative to consider some of the possible limitations that are likely to emerge when using the automation approach. One of the major concerns associated with RPA is that it is a difficult process to use and corporations that excel in this area make substantial sacrifice and commitment (IT Central Station 2021). One of the factors that make it difficult to use RPA is that the system requires structured data yet a significant portion of corporate data is stored in unstructured ways in the form of letters, emails, and invoices among others. Moreover, human intervention is highly needed for the development of the structured data, which makes RPA much dependent on human workforce. The information by IT Central Station (2021) further suggests that presently, RPA is still restricted to human creating and determining the workflow. It is not formed smart enough to develop and sustain its operations. Although using unstructured data may be a significant challenge for bots, other mechanisms can be utilised to structure available data before utilising robotic process automation bots. Some tech firms that have deployed the system report difficulty scrutinising and interpreting graphic data or image (Jogani et al. 2018). For example, Anurag Vishnoi who serves as the leader of RPA at Nokia reported an encounter where it was not possible to read particular machine drawing or network topology (IT Central Station 2021). Such challenges call for increased familiarisation with how the system works to understand its potential flaws and how to address them. IT Central Station (2021) informs that it is possible to mitigate all the flaws of RPA in an adequately straightforward approaches if implementers are conversant with the other appliances that are essential for developing intelligent automation remedies for business.
Methodology
Research Approach
The study employs the qualitative research approach, which refers to a research technique that seeks to find data via conversational and open-ended communication. However, a researcher can also deploy closed-ended questionnaires that require respondents to adhere to particular guidelines. The research design is not only about what people know or think, but also why they think so (Crescentini & Mainardi 2009, p. 431). A key feature of qualitative research is that it entails gathering and analysing non-numerical data such as texts, audio, or speech to comprehend certain experiences, opinions, or concepts (Palmer & Bolderston 2006, p. 16). The research design can be utilised to collect in-depth insights into a particular issue or develop new ideologies for research (Palmer & Bolderston 2006, p. 16). Qualitative research is the opposite of quantitative research, which entails gathering and assessing numerical data for statistical purposes.
Research Design
The research approach that is applicable in this case is surveys, which entails distributing questionnaires (either open- or closes-ended). The researcher offers or administers a survey to a selected sample or the whole population to understand and describe the characteristics, behaviors, opinions, and attitude of the population (Ponto, 2015, p. 168). The approach is advantageous because it offers the opportunity to gather a large volume of data in a considerably short time (Ponto, 2015, p. 169). Moreover, surveys are less costly than many other forms of gathering data. Another merit of surveys is that it can be deployed to gather data on a wide range of factors, encompassing opinions, behaviours, attitudes, and personal information among others (Glasow 2015, p. 2). The research design is also suitable for this study because it offers convenience in collecting data, increases the likelihood for gathering precise outcomes, and has no or little subjectivity. However, it is imperative to consider that the technique is not appropriate for controversial topics and may subject the study group to inappropriate questions (Glasow 2015, p. 2). Hence, it is important to consider both the merits and demerits when deploying the technology.
Sample
A researcher must select a sample from a larger population when conducting a research to avoid incurring insolvencies when engaging interacting with a larger group. Specifically, a sample in research terms is a group of items, objects, of people that are selected from a larger group for assessment (Shaheen et al. 2019, p. 27). A good sample is one that is representative of the larger population to ensure the researcher can generalise the results from the selected sample to the entire population (Shaheen et al. 2019, p. 27). Typically, qualitative researchers make sampling decisions that allow them to strengthen comprehension of whatever topic is being examined. This study deploys the stratified systematic sampling technique that is applied to selected stratum of the target group where sample participants are chosen within the stratum based on a random starting point and in periodic intervals (Mostafa & Ahmad 2017, p. 1). The stratified systematic sampling approach accounts for these variations by choosing a systematic sample within each of the identified sub-populations (Mostafa & Ahmad 2017, p. 2). Using the approach presents a suitable chance to select a sample that is conversant with the research questions as opposed to using simple random sampling where it is possible to select participants who may not be conversant with the matter under investigation (Mostafa & Ahmad 2017, p. 2). Therefore, sampling is a fundamental process when conducting a qualitative research.
The study in this case comprises of IT managers in five firms in London that deploy RPA to facilitate their operations. The IT managers constantly interact with their workers while using RPA to guide them on how to use the technology, hence, are conversant with how the technology works. The sample is selected from a group of fifteen IT managers in their respective companies that all use RPA to facilitate business operations. However, the other ten fail to make it to the final participants because five of the IT managers assert that their firms have only used the technology in the past four to eight months, which makes it difficult to come up with a true representation of the impact of the technology on business operations, especially in terms of gaining competitive advantage. Three of those who fail to ultimately take part in the exercise submit their message prior to the research date that they will be attending other fundamental business duties that just emerged after accepting that they will be taking part in the study. However, the other two were not reachable during the research day, hence resulting in their exclusion. Nonetheless, the five IT managers taking part in the study report that their firms have deployed RPA for more than two years and have monitored the impact of the technology on their operations. The ages of the participants range from 42- 51 years old, and they all come from diverse backgrounds. Four participants are male and one is female.
Data Collection
Selecting the most suitable data collection for the study increases the likelihood for achieving the targeted goals. The most suitable data collection for this research is through closed-ended questionnaires that requires respondents to make a decision based on provided responses (Desai & Reimers 2018). Specifically, in this research participants identify whether they agree, strongly agree, disagree, or strongly disagree with the asked question. The data collection approach is preferable to open-ended questionnaires because they are easier and quicker to respond to, and helps to gain increased awareness through provided options (Hyman & Sierra 2016, p. 2). In addition, the data collection method is suitable because it makes it possible to avoid irrelevant responses that are likely to emerge when using open-ended questionnaires. The sample of the questionnaire for this study appears in the appendix section.
Ethical Considerations
The study takes into account various ethical concerns to avoid hurting any participants or elements contributing towards the final outcome. Research ethics are essential for a number of reasons. They encourage the aims of the study, such as expounding knowledge (Arifin 2018, p. 31). Besides, research ethics encourage the values needed for collaborative work such as mutual fairness and respect (Arifin 2018, p. 31). Researchers also need to consider ethical factors because they promote moral and social values, such as the principle of not harming others (Akaranga & Makau, B 2016, p. 6). Therefore, this study will consider the ethical factors that are likely to impact on the research outcomes and the entire process. An essential ethical element in this study is allowing the participants to submit their informed consent that shows they are willing to take part in the exercise and that they understand all the requirements associated with the exercise. Another critical ethical factor considered in this case is to do no harm to the participants because this would guarantee their safety and well-being while taking part in the exercise. The research adheres to the ethical framework of utilitarianism that requires one to act in a way that yields the best outcome for most of the people. More fundamentally, the study allows participants to enjoy autonomy, which suggests that the respondents are free to give their views and opinions on research-related issues or other matters that they think are important. However, failing to consider ethical factors when conducting the research could derail outcome and possibly tamper with the entire process.
Data Analysis Methods
The most effective data analysis method for this research is descriptive data analysis. The objective of this data analysis technique is to describe a concept or phenomenon and its elements. The data analysis method pays more attention to the “what” and “why” or “how” something transpired (Yellapu 2018, p. 61). The qualitative research deployed in this study gathers data qualitatively, and the technique of analysis is also chiefly qualitative.
The research while analysing data using the descriptive data analysis technique adheres to five key steps. The first is preparing and organising the collected data, a process that can also be known as transcribing interviews (Bhandari 2020). The initial step presents a suitable chance to handle the process effectively and without unnecessary disruptions that could harm the whole exercise. The second phase when analysing data using the descriptive approach is reviewing and exploring available data (Bhandari 2020). Here the analyst examines the data for repeated concepts, ideas, or patterns that emerge from the generated data. For example, the researcher in this instance may find out if most of the participants acknowledge that using RPA enables the firm to gain competitive advantage and permits them to minimise human effort when performing repetitive and monotonous tasks. The third step in the data analysis process is developing a data coding structure (Bhandari 2020). Based on the initial generated ideas, the analyst establishes a set of codes that they can use to categorize the data. The fourth indispensable phase in the data analysis process is assigning codes to the generated datasets (Bhandari 2020). For instance, in such a qualitative survey analysis, this may imply assessing each of the participant’s answers and aligning them with codes in excel or spreadsheet. As the researcher goes through the data, he creates additional codes to add to the system if appropriate. The final and equally essential step is to identify recurring themes and concepts in the analysed data (Bhandari 2020). Here the analyst links codes together into overarching and cohesive ideas and themes (Bhandari 2020). Adhering to the identified steps offered an opportunity to come up with findings that help to understand the potential impact of RPA on business operations. However, it is imperative to understand that there are specific techniques to analysing qualitative data. Although these techniques share similar practices and processes, they stress on different concepts.
Limitations of the Research
The research has certain limitations that influence the outcomes of the study. One of the evident limitations is that it incorporates few participants thus restricting the likelihood for generating more informative and reliable data. The other limitation in the study is that it is void of quantitative data that is equally informative. Nonetheless, the research still provides findings despite the limitations.
Findings
The study reveals that firms gain significant gains by using RPA regardless of the challenges associated with the process. The participants agree that the technology facilitates how an organisation gains competitive advantage as well as shows that groups that use the innovation decrease human effort. The findings affirm that technology is fast changing how businesses perform their operations. However, it emerges that lack of knowledge and financial resources to install the technology deter some firms from benefitting from RPA. On the other hand, it appears that companies that have made significant progress in their implementation of the technology have a higher chance of gaining from RPA.
Evaluation of Results
The research findings affirm that RPA is beneficial to businesses but it is important to take certain factors into consideration. One major consideration that businesses need to consider to achieve impressive outcomes when using RPA is to equip members of staff with the knowledge and skills needed to deploy the technology in the most effective manner. Offering training is the best option in this case because it enables employees to understand the key elements associated with using RPA. The fact that the technology influences business operations should encourage organisational leaders to dedicate adequate resources to the technology that is rapidly changing how various corporations conduct their activities. For example, it is necessary to channel enough financial resources to facilitating how the technology functions considering that some elements associated with the practice are quite costly. It is also important to find effective remedies to the challenges associated with the technology to avoid possible constraints that could affect how RPA impacts on operations.
Conclusion and Future Research
The study examines the possible effects of RPA on enhancing organisational competitiveness and minimising human effort. It shows that more firms are turning their attention towards this automation system because it has high return on investment. The research indicates that some firms still struggle with the challenges of RPA but it is encouraging that it is possible to find suitable remedies to the identified constraints. The study performs a qualitative research to further help understand whether RPA enhances competiveness and reduces human effort. It turns out that despite the challenges associated with the technology, an organisation increases its chances of competing effectively by incorporating the innovation in their tasks as well as stand a chance of reducing human effort utilised in performing monotonous duties. Using the survey research design makes it possible to administer questionnaires to a sample of five IT managers working in various firms that have used RPA for at least two years and are able to monitor the effects of the technology in their operations.
Future researchers can make their researches more impactful by taking certain factors into consideration. The most suitable factors to consider would be to improve on the limitations witnessed in the current research. It would be necessary to engage more participants to increase the likelihood for gathering a wide range of data and findings that would help to understand the potential impact of RPA on business practices. Future researchers should also consider using a mixed method research approach that allows for use of both qualitative and quantitative aspects when conducting the research. In addition, future researchers would come up with more informative findings by engaging participants outside the UK to find out whether RPA has similar effects on organisational operations outside the UK. Nonetheless, failing to consider these critical factors could derail how researchers seek to fully understand the effects of RPA on enhancing competitive advantage and reducing human effort.
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Appendix
Study Questionnaire
NB: Please place a visible mark on your response
Question One: Will the technological innovation (RPA) be able to completely replace human labour without any human intervention?
Answer One: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Two: Do you think potential advantages of using Robotic Process Automation (RPA) outweigh its possible limitations?
Answer Two: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Three: The limitations that can emerge when using Robotic Process Automation (RPA) are manageable and firms can significantly gain from the technology by enacting measures to address challenges that deter effective implementation of RPA?
Answer Three: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Four: There are specific companies that utilize Robotic Process Automation (RPA) whereas the application may not be as necessary in certain areas or organisations.
Answer Four: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Five: There are certain main drivers for implementing RPA, which make the business increasingly competitive.
Answer Five: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Six: Firms encounter lack of knowledge and skills on effective implementation techniques.
Answer Six: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Seven: Training workers, especially those interacting with RPA increases the likelihood for achieving the best results when using the innovation.
Answer Seven: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
Question Eight: Addressing the challenges of using RPA as soon as possible increases the chances for gaining competitive advantage, minimising human effort, and benefitting in other ways from using the technology.
Answer Eight: A – Strongly agree, B – Agree, C – Strongly disagree, D – Disagree
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