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The Total Cost of Robotic Process Automation

Robotic Process Automation Robotic Process Automation Total Cost of Automation

Total Cost of Automation

Table of Contents

3 4 5 6 7 8 9 10 11 12 13

Introduction

What Is the RPA Lifecycle, and Where Does a Center of Excellence Fit in?

Components of Total Cost of Automation

How Kryon Optimizes TCA

Optimizing the Costs of Choosing Processes to Automate

Optimizing the Costs of Developing and Deploying RPA Technology

Optimizing the Organizational Costs of RPA

How Do the One-Time Costs of Using Kryon Compare with Other Solutions?

How Do the Ongoing Costs of Using Kryon Compare with Other Solutions?

Top-down Approach to Automation Opportunity Assessment

Bottom-up Approach to Automation Opportunity Assessment

Introduction

When evaluating an RPA solution, it is common for business analysts to consider its total cost of ownership (TCO). This measure generally includes not only the costs of RPA technology, but also those of developing automations and managing projects on an ongoing basis.

But to get a clear picture of the impact an RPA solution has on a real business, we need to take an even more holistic view and instead examine its total cost of automation (TCA). Calculating TCA involves taking an integrated businesstechnology approach and factoring in all the costs of business transformation – including those of technology, automation development, and ongoing control and maintenance.

One major factor in TCA (and a critical step affecting RPA success) is the establishment of an in-house center of excellence (CoE). The key goals of a successful CoE should include maintaining a central RPA program, cooperating with all of a company’s business units on specific RPA projects, and providing automation support company-wide.

Total Cost of Automation

Cost of technology

• •

• • •

RPA license Virtual machine Hardware

• • •

Development Configuration Integrations

Center of excellence Process analysis and optimization Monitoring

What Is the RPA Lifecycle, and Where Does a Center of Excellence Fit in?

Far from a one-time project, robotic process automation is an ongoing process involving continuous improvement of existing automations, as well as the initiation and development of new automations.

A mature automation lifecycle is a loop of standardized activities including process identification, process prioritization, automation development and deployment, and ongoing maintenance and control. That lifecycle is the basis of the RPA operating model – starting with the building of a center of excellence (CoE) that will act as the owner of a company’s RPA implementation, working with core business units to automate their tasks. Employing this

model will enable consistent execution and delivery as RPA scales enterprise-wide.

It is recommended to start with a centralized CoE within one of your company’s business units, making it easy for your automation experts to build localized RPA capabilities. As your company expands its use of RPA, you may prefer to leave your CoE within this business unit – but to assign some of its members to work with other business units, helping them automate their work processes.

The total cost of automation covers all the costs related to the RPA lifecycle, including the deployment of the CoE operating model.

Process identification

An End-to-End View of RPA Execution

Plan

Build

Run

Process prioritization

Automation development

Automation deployment

Operations and optimization

Components of Total Cost of Automation

To calculate the total cost of automation, we must examine both the costs of technology and those of organizational transformation – including both one-time and ongoing expenses.

When people think of the steps involved in implementing a new technology, they tend to think of infrastructure preparation, a proof of concept, licensing, and development and configuration. However, the full picture should

Cost of Technology

One-time – technology deployment

• Hardware/software infrastructure • Proof of concept (PoC) • RPA software implementation • Third-party integrations

Ongoing – technology maintenance

• System architecture and infrastructure maintenance • Vendor management • RPA license fees • Third-party integration license fees • SLAs • Expert network

also include the technology’s impact on the organization itself, such as the development of new skills, measurements, and controls – as well as changing processes, roles, and responsibilities.

The table below gives an overview of the TCA, including one-time and ongoing expenses related to both technology and organizational change:

Cost of Organizational Transformation

One-time – CoE establishment

• Automation development and deployment • Business-change management • Roles, responsibilities, and procedures • Skill development and training

Ongoing – CoE operations

• Continuous process optimization • IT support for RPA • Measurement of operational and performance metrics • Assessment and planning of new automation opportunities • Knowledge management

How Kryon Optimizes TCA

Minimal Reliance on IT Resources

Quick Development → Faster ROI (expected 25% shorter delivery cycles)

Runs on any application, with no need for third-party integrations

However, users have the option of integrating with a wide variety of platforms, such as CyberArk, Tableau, Kibana, ABBYY, and others.

Designed for business users

Reduces reliance on expensive, skilled employees or thirdparty consultants.

One-click process recording

Eliminates need for manual workflow design.

Patented, AI-driven computer vision technology

Accelerated automation development.

Optimized RPA Operations (expected robot utilization: 90%)

Center of excellence

• Lower cost of labor • Only 30-40% of users are programmers (60-70% are business process analysts).

Smart Analytics

Predictive analytics to optimize virtual workforce distribution and productivity.

Recently Released Solutions

Process Discovery

• Uses proprietary machine-learning technology to identify and prioritize business processes to be automated – all while automatically generating automation workflows.

Free trial of Kryon Studio

• Gives business users and RPA developers an opportunity to explore Kryon’s RPA development studio and experience its ease of use firsthand.

Optimizing the Costs of Choosing Processes to Automate

Kryon RPA has developed tools that allow significant savings over the RPA lifecycle, driven by its end-to-end solution and its focus on users without a strong technical background.

An End-to-End View of RPA Execution

Plan

Build

Run

Process identification

Process prioritization

Automation development

Automation deployment

Operations and optimization

One of the biggest hurdles to using RPA is the challenge of process mapping. It can take several months just to target the potential processes for automation.

Kryon Process Discovery is an AI-driven tool that gives an organization full visibility into all its automatable processes, analyzes and ranks them based on their suitability for automation, and generates seamlessly usable automation workflows. It drives down TCA by streamlining the steps involved in identifying, selecting, automating, and optimizing work processes.

Whereas other process-discovery/mining tools are limited by their reliance on system event logs to determine user behavior, the platform-agnostic Process Discovery solution instead uses proprietary visual recognition. Running silently on

employees’ computers, Process Discovery robots “watch” user actions in real time, collecting data without impairing employees’ performance or consuming their valuable time.

Because Kryon’s Process Discovery robots and AI engine analyze more data and learn faster than humans, they offer quicker automation recommendations – resulting in faster business transformation and ROI. And after a process has been identified, with the click of a button a user can export an automation workflow for it to the Kryon Studio, where they can easily edit it and then deploy it to Kryon’s software robots –minimizing the need for time-consuming RPA development.

Optimizing the Costs of Developing and Deploying RPA Technology

An End-to-End View of RPA Execution

Plan

Build

Run

Process identification

Process prioritization

Automation development

Automation deployment

Operations and optimization

Cost of Deployment

Using patented visual-recognition technologies, Kryon RPA can interact with any business application (desktop, web, legacy, Citrix, and others) – with no need for coding or integration with existing applications. As a result, companies can get their RPA projects up and running in days rather than weeks or months, leading to enormous cost savings and a quicker return on investment.

Cost of Automation Development

Kryon's RPA platform was specifically designed with business users in mind. Because the Kryon Studio is easy to learn and does not require programming experience, 60 to 70 percent of the team members of a typical center of excellence are business/process analysts, while only 30 to 40 percent are programmers.

End-to-End Solution

Kryon’s RPA solutions include built-in components such as optical character recognition (OCR), source control configuration, a credential vault, and analytics – saving customers the costs of additional integrations, configuration, and interface maintenance. As a result, Kryon’s technology can handle the entire RPA process as a standalone product, with no need to transfer data to third-party platforms.

One-Time and Ongoing Costs of Using RPA Development Tools

The Kryon Studio allows for fast and simple creation of automation scenarios – using drag-and-drop workflow editing, preconfigured connectors, and application-specific scripts. Its user-friendliness allows all types of users to quickly and easily learn to create automations.

Optimizing the Organizational Costs of RPA

An End-to-End View of RPA Execution

Plan

Build

Run

Process identification

Process prioritization

Automation development

Operations and optimization Automation deployment

Cost of Change

Kryon’s advanced visual technology allows it to handle changes or upgrades to underlying systems, applications, and other technology smoothly – with no need for complicated reworking of an automated process. In many cases, after a change in the underlying

Cost of Management

Kryon makes it simple to manage RPA projects, offering a web-based console that enables real-time monitoring, remote configuration, and scheduling and management of your robotic workforce. And when the volume of work to

technology, it is not even necessary for a process owner to redo the entire process recording, but only the portion that is affected by the change. Additionally, Kryon’s built-in version-management capabilities allow users to easily view edits made to an automation over time, with the option to roll them back if desired.

be performed by your automated workforce increases, Kryon’s smart analytics enable you to maximize your robots’ efficiency by automatically identifying and leveraging the ones that are underutilized.

How Do the One-Time Costs of Using Kryon Compare with Other Solutions?

Cost Category

Hardware and cloud hosting

Software (e.g., virtual machine)

PoC development

Market Kryon

Standard Standard

Standard Standard

Up to 1 month Approximately 1-2 weeks

Automation deployment labor:

RPA system setup and configuration Standard Standard

Configuration of additional integrations:

OCR configuration

NLP configuration

Analytics environment configuration

Requires integration module

Optional integration development

Requires integration module

Source control configuration Requires configuration

Credentials vault configuration

Organizational change management – establishment of an RPA CoE

Requires integration module

Users with technical/ programming skills

Development of skills for a CoE (basic and advanced training)

Training designed for users with technical expertise

Built-in OCR and optional ABBYY integration

Optional integration development

Built-in analytics

Built-in source control and collaborative features

Built-in credentials vault

Mostly (60%-70%) business users, rather than programmers

• Intuitive learning • Developers’ community • Readymade templates and automation snippets

How Do the Ongoing Costs of Using Kryon Compare with Other Solutions?

Cost Category

Hardware maintenance

Market Kryon

Standard Standard

Software:

RPA license subscription

Per module and based on scaling

All-inclusive – based only on scaling

Virtual machine (subscription) Standard Standard

Integration subscription fees:

OCR Additional cost Included

NLP Additional cost Additional cost

Analytics Additional cost Included

Source control configuration Additional cost Included

Credentials vault Additional cost Included

Customer support and SLA

Standard Standard

Operating an RPA CoE

Monitoring and control of automations (time spent by full-time employees)

RPA developer might be needed

No additional hire needed

Technical support (IT for RPA) Internal IT Internal IT

Initiating and prioritizing projects

Internal resource or consultancy (mostly manual process)

Kryon Process Discovery (mostly automated process)

Top-down Approach to Automation Opportunity Assessment

30-60% reduction in manual documentprocessing work

Insurance: • Policy administration • Claims operations • Collections

25-40% reduction in manual transactional work

Banking: • Commercial operations • Customer service • Trading room

Finance: • Order to cash • Tax • Record to report • Vendor setup • Intercompany

60% reduction in cost to process invoices

80% reduction in cost to process payroll

HR: • Payroll • Benefits administration • Pay slip management • Time and attendance • Recruiting process

9%-20% drop in cost of solving supply-chain problems

Supply chain/P2P: • Source to pay • Master data management • Work order management • Returns processing

Nearly 30% of IT worktime is spent on low-level tasks

IT: • File transfer protocol • Server application and monitoring • Synchronizing data • File and email management

Bottom-up Approach to Automation Opportunity Assessment

We can estimate the automation potential of a given process based on the amount of time full-time employees spend on it.

The hours listed for High and Medium RPA candidates below reflect the portion of each type of process that could potentially be automated (not including time spent on tasks that are already automated, judgment-based activities,

etc.). The number of hours given for each Low RPA candidate refers to the number of work hours involved in the entire process, since each of these processes is expected to benefit relatively little from automation.

Please note that each effort estimate needs a more detailed review from an RPA perspective before being included in a final business case.

Area:

Procure to Pay

Source to Contract

Master Data Admin

Indirect Tax

Grand Total

Total Automation Potential

High Medium Low

# of processes # of hours per month # of processes # of hours per month # of processes # of hours per month # of processes # of hours per month

78 851.75 58 815.29 16 35.38 4 1.08

28 455.48 20 98.75 4 323.40 4 33.33

21 221 13 216.50 5 4.50 3 0

36 n/a 9 n/a 17 n/a 10 n/a

165 1528.26 100 1130.54 42 363.28 21 34.41

About Kryon

A trailblazer in the world of enterprise automation, Kryon offers today’s only solution integrating business-friendly robotic process automation (RPA) with Process Discovery technology that offers organizations full visibility into all their processes. Combining a deep understanding of our customers’ needs with cutting-edge technology, Kryon empowers businesses to maximize their ROI through their choice of desktop-based attended automation, virtual-machine-based unattended automation, and a hybrid combination of attended and unattended automation. In a field that often loses sight of the importance of ease of use, Kryon

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and

stands out for its uniquely intuitive interface, its one-touch process-recording capability, and its unmatched Kryon Process Discovery™ technology for accelerated deployment and continuous process optimization. Kryon’s globally recognized, AI-driven platform is used by a wide variety of enterprises worldwide, including AIG, Allianz, AT&T, Ernst & Young, Ferring Pharmaceuticals, HP, Microsoft, Santander Bank, Singtel Optus, Verizon and Wyndham Hotel Group. For more information about our organization, please visit kryonsystems.com.

for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Contributors:

Dor Almog — Senior Manager, EY RPA CoE Israel

Yulia Bezobrazova — Manager, EY RPA CoE Israel

Vita Zlotova — Business Development Lead, Kryon

Gidon Kadosh — Product Research Specialist, Kryon