The Impact of RPA and Digital Technologies on Finance Processes

This report examines Robotic Process Automation (RPA) and its profound impact on finance functions. It defines RPA as software-based virtual workforce controlled by business teams, highlighting its potential to optimize finance processes by shifting tasks to low-operation times. The report explores the classifications and advantages of robots, particularly in environments unsuitable for humans. It delves into the impact of RPA on people, anticipating potential workforce reductions due to automation. The report also explores how digital technologies, including ERP, EPM, RPA, and cloud computing, can transform finance processes, emphasizing the development of new business models and the advantages of cloud-based solutions, such as data backup and analytics. It references sources to support the analysis.

What do you understand by the term Robotic Process Automation (RPA)? In your view,
how will RPA impact the finance function? Please explore impact across aspects of process
and people. Please add once example.
Robotics process automation is a software that operates as a workforce that is virtual and is
controlled by business teams. Robots are mechanical agents able to do certain mechanical tasks
usually performed by a human being or an animal. Their actions are enabled through software
programs, a set of commands or artificial intelligence. In my view, RPA will impact finance
functions as it “contributes to the optimization of finance processes by moving the processing of
the robotized tasks from the critical path to the low operations time (e.g. overnight or weekend).”
(Millington, Monfared & Vera, 2019). Robotic technology and automation go together.
According to the NASA, robots are classified into different types based on:-
a) The places they work – earth or outer space
b) The industry they work – automobile, medical, military, manufacturing
c) The jobs or tasks they do – grooming, mechanical jobs, rescue operations, inspection,
working in an environment hazardous for human beings
The advantage of having robots to do tasks is that they can work in environments where
humans or animals cannot work due to the hazardous conditions. Besides, in some situations,
there is a need to have greater control over the manner in which the tasks are performed. For
example, today many of the surgical operations require control to prevent microscopic damage of
the tissues, nerves and tiny blood vessels (Kurka & Díaz, 2019). Several procedures for example
laparoscopic operations are done through keyhole openings by robots. RPA impact upon people
will be severe as less people will be employed due to the automations brought about by RPA.

With the blend of many technologies, please explain how digital technology can impact /
transform the finance process/function/ department of an organization. Sample of
technologies - ERP, EPM, RPA, Master Data Management, Corporate performance and
management (CPM) ,Deployment of cloud vs online premise
Most of the technologies in use are preferred because they simplify the financial processes
that they are applied in. digital technology is more than adopting different technologies such as
cloud computing or the use of big data. Digital technology especially in finance is aimed at
developing new business models. These business models will ensure that all consumers and
markets can harmoniously participate. For instance, Enterprise Resource Planning software
allows organizations to use multiple technologies to automate business processes and many
functions of the office including finance and human resources among other technological
integrations (Pratap, 2019).
On the other hand, the use of cloud computing and other technologies such as edge
computing ensures that a company will have its data backed up in many locations and eliminate
the need to have data warehouses. Also, cloud computing technologies is offered embedded with
other capabilities such as big data analytics and predictions which are all advantageous for any
organization adopting cloud computing models.
Additionally, CPM has revolutionized the way financial processes are handled. CPM uses
business intelligence to monitor and manage organization’s key performance indicators such as
Return on Investment (ROI), revenue, overhead and operational costs among others. CPM is also
known as Enterprise performance management (EPM) (Jackson, 2019).

References
Jackson, T. (2019, February 2). What Is Corporate Performance Management? | ClearPoint
Strategy. Retrieved March 25, 2019, from https://www.clearpointstrategy.com/what-is-
corporate-performance-management/
Kurka, P. R. G., & Díaz Salazar, A. A. (2019). Applications of image processing in robotics and
instrumentation. Mechanical Systems and Signal Processing, 124, 142–169.
https://doi.org/10.1016/j.ymssp.2019.01.015
Millington, J., Monfared, R. P., & Vera, D. (2019). Innovative mechanism to identify robot
alignment in an automation system. Robotics and Autonomous Systems, 114, 144–154.
https://doi.org/10.1016/j.robot.2019.01.015
Pratap, M. (2019, January 2). Digital Transformation in Finance – Hacker Noon. Retrieved
March 25, 2019, from https://hackernoon.com/digital-transformation-in-finance-23faefa35a45