The performance assessment framework (PPAFR) for RPA implementation in a loan application process using process mining

Abstract

When a company decides to automate its business processes by means of RPA (Robotic Process Automation), there are two fundamental questions that need to be answered. Firstly, what activities should the company automate and what characteristics make them suitable for RPA. The aim of the presented research is to design and demonstrate a data-driven performance framework assessing the impact of RPA implementation using process mining (PPAFR). Firstly, we comment on and summarise existing trends in process mining and RPA. Secondly, we describe research objectives and methods following the Design Science Research Methodology. Then, we identify critical factors for RPA implementation and design process stages of PPAFR. We demonstrate the design on real data from a loan application process. The demonstration consists of a process discovery using process mining methods, process analysis, and process simulation with assessment of RPA candidates. Based on the research results, a redesign of the process is proposed with emphasis on RPA implementation. Finally, we discuss the usefulness of PPAFR by helping companies to identify potentially suitable activities for RPA implementation and not overestimating potential gains. Obtained results show that within the loan application process, waiting times are the main causes of extended cases. If the waiting times are generated internally, it will be much easier for the company to address them. If the automation is focused mainly on processing times, the impact of automation on the overall performance of the process is insignificant or very low. Moreover, the research identified several characteristics which have to be considered when implementing RPA due to the impact on the overall performance of the process.

A typology of challenges in the context of robotic process automation implementation projects

“…Conducting a systematic review of the literature and based on primary data, Herm et al (2023) have developed a framework for RPA implementation projects, which consists of the activities identification of RPA demand, alignment with business strategy, screening of technologies, process selection, software selection, RPA pilot, evaluation of the business case and rollout. Šperka and Halaška (2022) developed a framework for RPA implementation in loan application processes, including data preparation, process discovery, process analysis, process simulation and assessment of RPA candidates. While both frameworks provide substantial support within the RPA implementation process, they do not specifically address the challenges that occur during RPA implementation.…”

Business Process Automation in SMEs: A Systematic Literature Review

“…The description of the characteristics for a process to be eligible for automation (found in the literature) is listed in the next items [14,60,62]:…”

“…Administrative business process digitalization can involve automation or simple, more careful management. Business processes (administrative) can be defined as a collection of related activities (events), resources, and decisions that involve roles (actors) that lead to a valuable output, fulfilling customer needs and implementing the strategic objectives of the organization [4,[6][7][8][9][10][11][12][13][14]. Business processes are the arterial system in organizations and interorganizational structures (essential for any competitive advantage) [4,[15][16].…”

“…It is usual to find a use of RPA technology in BPM and BPA [14-15, 23, 26, 31, 38, 48]. They complement each other [14,31,57]. RPA complements BPM in many areas and vice versa but does not replace it [14].…”

“…They complement each other [14,31,57]. RPA complements BPM in many areas and vice versa but does not replace it [14]. While BPM provides companies with actual knowledge about their business processes and workflows, RPA is concerned with developing bots whose function is to imitate human interaction with information systems [31].…”