Digital Process Automation
In the last decade, in the technology landscape some of the
most spoken about buzzwords have been Artificial intelligence, Cloud computing,
Internet of things, Blockchain, and last but not the least, Automation. Although,
Automation tech is revolutionizing the modern business landscape, it's funny
how most of the times the discussion surrounding it remains limited to
answering the question - 'how automation is going to come and take away all the
jobs?'. Further, nine out of ten times the context of this discussion remains limited to
Industrial automation essentially missing out on a major category of automation,
namely, digital process automation. The market cap of Digital Process Automation(DPA) practice
globally stood at 6.77 billion dollars in 2018 with a CAGR of around 13%,
giving us a compelling reason that in a conversation involving automation, one
cannot ignore the role of DPA.
So, what
exactly is DPA?
In simple words, DPA is the use of digital technology to streamline
and optimize business processes by minimizing human interaction.
This simple definition when not understood in the right way can
become a tongue twister of the mind. So, let’s dive deep in and try to
understand DPA. Any business process over a period of time shows a severe decline
in its efficiency, this happens because the whole process when it was
conceptualized, was optimized to work in tandem with the IT infrastructure
existent at that time. Over the years this modern IT infrastructure of that
time becomes old and inefficient. In IT parlance it has become a 'legacy system'.
These legacy systems also bring down the efficiency of the business processes
giving the organizations to once again optimize these process workflows based
on current technology. This optimization and streamlining of already existent
process workflows are what we call DPA.
Let us now
try to appreciate DPA using a classic use case.
There was a time when we opened our bank account we used
to get a passbook, and It happened to be the go-to place for us to refer to our past
transactions. Every time we wanted to update our latest transactions in the
passbook we had to go to the bank where we submitted our passbook to the
cashier for updates. The cashier then manually entered our bank account number
into the system fetching our transaction details and then printing it in our
passbook. Can we imagine the number of passbooks we will exhaust today to print a month's transaction when the transactions are fuelled by cashless UPI apps? This glaring gap that has become existent due to outdated processes, is what
DPA bridges. Today, almost all of the banking operations from opening a bank
account to checking our past transactions can be done with the click of a
button using a mobile app.
How is DPA
different from Business Process Management(BPM) and Robotic Process Automation(RPA)?
Although Each of them is involved in automating a business process, the line drawn to differentiate them is almost invisible. Thus, making it important to understand the fundamental difference between them.
The traditional BPM technology focuses on building and automating business processes dependent on data and human decisions from scratch. The DPA tech apart from inculcating these traditional BPM qualities focuses on improving customer experience. This is achieved by eliminating the mechanical decision making that humans perform in a BPM process and replacing it with automated and intelligent process flows.
While the goal of DPA is to streamline and automate a business process in order to improve the customer experience by selectively minimizing human involvement from the business process. But when RPA is applied to a repetitive task it ensures that the task is performed with zero human involvement.
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