According to marketsandmarkets.com, the global robotic process automation (RPA) market is predicted to reach $2.46 Billion by 2022. Therefore growing at a CAGR of 30.14% between 2017 and 2022.
This market growth is attributed to the merging of RPA with traditional business process industries.
Particularly, the banking, financial services, and insurance industries have been exploiting RPA to improve competence, efficiency, and speed up business processes since 2010.
In Malaysia, RPA is offering new technological salvation for organisations seeking to enhance business productivity and efficiency. Furthermore, when merged with conventional business solutions, RPA stimulates digital transformation. This is by enabling enterprises to better control end-to-end business processes.
In terms of RPA adoption, Malaysia is quickly gaining momentum as more companies seek to increase their RPA investment in the next 2-4 years.
Government Support for RPA Adoption in Malaysia
Additionally, as a critical part of the Digital Investments Future 5 Strategy, Malaysia’s Digital Economy Corporation (MDEC) plans to increase efforts to grow the digital global business services, by encouraging the adoption of RPA.
The industries that RPA can serve in Malaysia
- Banking, financial services, and insurance
- Healthcare and pharmaceutical
- Telecom and IT
- Retail and consumer goods
- Travel, hospitality, and transportation
- Manufacturing and logistics
- Energy and utility, government, and academics
RPA benefits for Malaysian companies
- Productivity: In contrast to humans, RPA bots complete tasks about five times faster. Furthermore, they can work non-stop, 24/7. This, in turn, translates into higher productivity as they get more done, which creates capacity for more businesses.
- Accuracy: Robots are more accurate, consistent, and compliant with policies than humans. Robots are also less prone to clerical errors and eliminate the small mistakes humans make that can have a cumulative impact on customer satisfaction.
- Security: Robotic process automation functions on a granular level. This means that as an RPA bot executes only single tasks, there is less risk of information leakage.
Therefore, the data access is well controlled and documented, resulting in significant security benefits.
- Resource Utilisation: Leaving mundane tasks to RPA robots frees up teams to execute tasks that add the most value to a business. Furthermore, RPA technology is fully scalable, enabling businesses to respond to any spike in demand.
- Return on investment (ROI): RPA technology can pay for itself. Its return on investment is measurable as operating costs tend to drop quickly once it’s adopted. Though some IT expenditures take years to demonstrate ROI, with RPA, you’ll start seeing ROI in weeks.
Potential applications of RPA in Malaysia
RPA technology promises positive effects on business productivity in Malaysia. Sectors like insurance, banking, and financial services in Malaysia are already experiencing the benefits of RPA. To illustrate the applications of RPA, let’s see some potential real-world use cases.
In the utility sector, oil-and-gas companies can handle 15,000 change-of-address requests every month. Robots can be used for creating new accounts in a CRM system. And as a result, dramatically reduce the average time for a change request to drop.
In the financial sector, lenders can use RPA technology to help ensure that their agents remain compliant with regulations.
Where is Malaysia on its RPA journey?
Generally speaking, RPA adoption is still in its infancy in Malaysia. However, operational efficiency, resilience, cost-cutting, and error reduction are still major drivers of RPA adoption in the nation.
Currently, more organisations in Malaysia are scaling up their digital workforces and are seeking ways of delivering more connected customer experiences. This is in addition to new differentiated products, rather than focusing only on cost efficiency.
This means that Malaysia has an unrivaled opportunity to accelerate RPA adoption.
However, there are still some hurdles to overcome, namely:
- Lack of management buy-in.
- Use of legacy systems.
- Organisations still being unsure of how and where to start.
- Difficulties in selecting the right RPA vendor.
- Challenges convincing and upskilling employees.
Because RPA technology can pay for itself in the first year, many more organisations are jumping on the train. Currently, the main vendors in the robotic process automation space are:
- Automation Anywhere
- Blue Prism
- Celaton Ltd
- and Xerox Corporation
In summary, the future of RPA looks more promising than ever before. Today, multiple sectors in Malaysia like banking and finance, human resources, insurance agencies, marketing and sales, and customer relationship management are ready to deploy RPA technology.
The key driver for RPA adoption is its ability to improve process quality, speed, and productivity. As a result, businesses in Malaysia should consider its adoption to reduce costs during the Covid-19 pandemic.
Fundamentally, automation has been a major driving force in reshaping work long before the advent of the pandemic. However, now, RPA is taking on a new sense of urgency for more Malaysian companies.
Therefore, companies that choose to adopt RPA solutions will have a better insight into what their primary business goals are.
Overall, RPA automation is a user-friendly tool to meet any organisation’s automation objectives. Even if its processes, platforms, and software applications are outdated, RPA can still solve its issues.
The article is a part of our comprehensive guide on “The A to Z of robotic process automation”.
LinkedIn : Mr. Chin Wee Chia
Mr Chia Chin Wee is one of the key founding members of DF Automation & Robotics with more than 10 years experience in robotics and technologies. Currently, he is the Marketing Manager focusing on the marketing and sales of AGV robotics solution in Asia and International market.
He graduated from Universiti Teknologi Malaysia (UTM) with First class honors of Bachelor’s Degree in Instrumentation and Control. During his time in university, he has represented Malaysia in the prestigious ABU Asia-Pacific Robot Content (ROBOCON). Before joining DF Automation and Robotics, Chin Wee has close to a decade of R&D working experience in Altera FPGA, Intel SoC and Broadcom Corporation involving in semiconductor chipset frontend design and development activities. He has several US patents and company trade secrets related to mouse sensor tracking technology and application methods.
With his vast experiences in both technical and corporate, he is leading and strategizing DF to be one of the leading robotic companies in this region.