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“Want to Deploy Innovations to Quickly Achieve Meaningful Business Values for ERP – Think RPA” by Duy Nguyen

by Debbie Wilson  |  July 5, 2019  |  Comments Off on “Want to Deploy Innovations to Quickly Achieve Meaningful Business Values for ERP – Think RPA” by Duy Nguyen

According to Gartner’s research, the RPA market grew from $519 million in 2017 to $846 in 2018, the fastest rate compared to all software subsegments (RPA Market Share 2019).  The most notable increase came from Japan where the adoption rate grew 124% from $35.7 million in 2017 to $79.9 million in 2018.  As companies are looking for quick wins to support new business innovations, a small investment in RPA can provide a rate of return that outweighs many other options when it comes to business transformation.

As I talk to customers looking to extend their current ERP legacy systems, especially those that have selected to opt for third party maintenance, they are looking to adopt RPA to improve their business processes rather than adhere to mega vendors’ pressure to upgrade.  When an established company has a number of unconnected applications, it is not easy to go through a big bang implementation of an ERP without severely disrupting the business.  When users are spending more time to rekey data into an ERP systems, that process doesn’t end with an adoption of new ERP system without addressing how to capture the data automatically.

Often IT complains that they cannot get the time from the business to help with planning for the next ERP strategy and roadmap.  Perhaps IT is shooting for a trip to Mars when all they need is to figure out how to get back to the Moon first.  As RPA is becoming more appealing to the functional business units, it will help them to eliminate a number of tedious activities and enable them to step back and spend more time on business process re-engineering.

Out of all the industries, the public sector has always been the slowest to adopt new ERP systems because it takes a long time to implement.  Most of these customers do not have the appetite to go through another ERP major upgrade, not to mention transitioning to a new ERP Cloud.  However, they too have started to embrace RPA to help solve some of their business challenges.  In the U.S., government agencies across local, state, and federal are using RPA to:

  • Replace high cost staffing with low skill process that can be executed by RPA such as monthly data load of government program enrollments for benefits.
  • Eliminate manual approval process for program eligibility determination when criteria are met using a well-defined set of rules.
  • Extracting data from invoices to pay vendors on time and eliminating backlogs by not having enough AP support.

For the next couple of years, RPA will play a vital role in achieving short term business values and enable organizations, both commercial and public sectors, to plan for their long term AI and ML adoptions.  IT leaders need to capitalize on this latest trend to score quick wins and better business outcomes in addition to longer term goals.

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Category: applications  erp  

Deborah R Wilson
Managing Vice President, ERP Strategy Team
12 years at Gartner
20 years IT industry

Deborah Wilson, a recovering Gartner research analyst, leads the Gartner ERP strategy research team. Read Full Bio

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