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Turning Robotic Process Automation Into Commercial Success - Case Opuscapita
Turning Robotic Process Automation Into Commercial Success - Case Opuscapita
Turning Robotic Process Automation Into Commercial Success - Case Opuscapita
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Cite as: Asatiani, A., & Penttinen, E. (2016). Turning robotic process automation into commercial
success–Case OpusCapita. Journal of Information Technology Teaching Cases, 6(2), 67-74.
ABSTRACT
OpusCapita Group is a Finnish company offering financial processes and outsourcing services to
medium-sized companies and large corporations. OpusCapita particularly focuses on comprehensive
Purchase-to-Pay and Order-to-Cash processes. In hopes to stay ahead of the curve in financial process
automation, OpusCapita is betting on Robotic Process Automation (RPA). This teaching case presents
challenges faced by Mr. Petri Karjalainen, Senior Vice President at OpusCapita Group, who is looking
for ways to introduce RPA to the market, and provide added value to new and existing customers.
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INTRODUCTION
The offices of OpusCapita are located in Keilaniemi, a peaceful district in the Finnish city of Espoo,
offering spectacular views on the Baltic Sea and the nearby islands, especially during long, summer
days. On one of such August days, Mr. Petri Karjalainen, Senior Vice President responsible for the
Ventures unit at OpusCapita, was standing in front of a window in his office, gazing at the horizon. It is
this time of the year when Finns are coming back from their vacations, refreshed and ready for new
challenges at work. A perfect time to kick-start something ambitious. Mr. Karjalainen has a very clear
Robotic Process Automation (RPA) is a cutting edge technology in the business process automation
game. Early adopters of RPA in markets such as the U.K. report encouraging results automating their
back-office tasks (Lacity and Willcocks, 2016; Willcocks et al., 2015). OpusCapita saw the promise of
RPA early on, and successfully piloted and implemented software robots internally. Moreover,
OpusCapita successfully deployed their software robots with a number of clients. Implementations
were progressing smoothly, and even skeptical clients expressed their delight over RPA within weeks
Everything seemed to be set for success. OpusCapita’s vision of being the one to “set the new standard
for financial processes” (OpusCapita Group, 2015a) was just around the corner. However, Mr.
Karjalainen was not celebrating, in fact, he was concerned. It seemed as if by gazing at the sea, Mr.
Karjalainen was looking not for the beautiful scenery, but for answers. Amid early success of RPA, Mr.
Karjalainen had a problem at hand, a problem that could jeopardize all the RPA achievements of
OpusCapita to date. The problem is simplicity and self-sufficiency of RPA compared to traditional
back-end integration process. Therefore, once a client bought and implemented a software robot, which
takes just 2-4 weeks, there is no business to be done after that. By implementing RPA clients are
looking for self-sufficiency and independence from external parties. On the other hand looking at the
market size for financial process automation, merely selling robots did not seem to be sustainable in the
long run. Therefore, questions on Mr. Karjalainen’s mind were: What business model to choose for the
technology? What should be OpusCapita’s strategy to ensure RPA market leadership in the long run?
What customer value can OpusCapita provide to their customers in the long run? With these questions
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CASE COMPANY: OPUSCAPITA
OpusCapita Group Ltd. is a company offering financial processes and outsourcing services, based in
Espoo, Finland (see Appendix Exhibit 1). OpusCapita is the financial process automation spin off from
the Posti Group Corporation, a Finnish postal services and logistics provider. Formerly known as Itella
Information, in 2013 the company changed its name to OpusCapita, the name borrowed from one of
the OpusCapita’s former acquisitions. Having been in business for over 30 years, OpusCapita initially
Pay and Order-to-Cash processes” (OpusCapita Group, 2015a). OpusCapita serves large companies
and public organizations helping them automate their financial processes, or taking over the processes
OpusCapita has always tried to be ahead of the curve in financial process automation and outsourcing.
The company introduced electronic invoicing already in 1990s, and expanded their portfolio of services
to financial and payroll outsourcing in 2000s. Now the company is looking to be a standard-setter in
financial processes. The Ventures unit is one of the five main divisions in OpusCapita (see Appendix
Exhibit 2). The unit is responsible for keeping OpusCapita on the forefront of innovation. As
technologies such as cloud, artificial intelligence and robotics make strides towards commercial
applications, the Ventures unit is now focusing on RPA. OpusCapita wants to build on this trend and
be a competitive player in offering comprehensive RPA of financial services, in Finland and in Europe.
The visionary Senior Vice President Petri Karjalainen is determined to ensure OpusCapita has a
Robotic Process Automation or RPA is the technological imitation of a human worker, the goal of
which is to tackle structured tasks in a fast and cost-efficient manner (Fung, 2014; Slaby, 2012). RPA
is implemented through a software robot, which mimics human worker using software such as ERP
systems or productivity tools. While a word robot may produce a mental image of a human-like metal
machine, akin to C-3PO from Star Wars, RPA robots exist only as software installed on a computer.
RPA software earns the term robot based on its operating principle. An RPA robot is integrated across
IT systems via front-end, as opposed to traditional software, which communicates with other IT
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systems via back-end. In practice, this means that the software robot uses IT systems exactly the same
way a human would, repeating precise, rule-based steps, and reacting to the events on a computer
While designing software, which communicates to other software by mimicking human behavior, may
sound counter-intuitive, this approach has a number of advantages. First, it is possible to integrate RPA
with virtually any software used by a human worker, regardless of its openness to third party
integration. Many corporate IT systems are proprietary with no public API’s, which greatly limits their
ability to communicate with any other systems. RPA solves this issue. Second, RPA can be
implemented in a very short timeframe. Implementation time of two to four weeks is a blink of an eye
compared to enterprise software integration, which can take months or even years. Third, processes
automated via software robots are easily modifiable, even by the users of the system. Traditional
software requires advanced coding skills to make any major modifications to the way it operates. On
the other hand, software robots can be instructed through modifying relatively simple logical
statements, screen capture of the process performed by a human, or even modifying graphical process
looking to outsource routine, non-core tasks requiring a lot of FTEs (full-time equivalent)2, such as
invoice processing, bookkeeping or data entry, to low-cost destinations such as India. While
outsourcing helps to reduce staff costs and concentrate on core operations, there are some challenges to
complex service level agreements. The promise of RPA is not only to reduce costs even further (robots
can work around the clock with no salary), but also to eliminate the problems with management and
robot can cost an equivalent of 0.1 (Prangnell and Wright, 2015) to 0.19 (Slaby, 2012) of an in-house
FTE, and 0.33 (Willcocks et al., 2015) to 0.5 (Institute for Robotic Process Automation, 2015; Slaby,
1
To read more on automation and RPA, we refer the reader to a list of suggested reading at the end of this
teaching case.
2
Full-time equivalent is a measurement unit for a workload required for a task. One FTE equals to one employee
working full-time on a task.
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As discussed previously, RPA does not require changing the existing IT systems, as robots mimic
human behavior. Thus, robots can operate fully within the user interface (UI), leaving IT systems
Another potential benefit of RPA compared to offshore outsourcing could be avoiding the backlash
related to sending jobs abroad. RPA providers claim that people employed on routine tasks can be
moved to more productive jobs. In the long run, robotic automation itself could create jobs in robot
However, there are some downsides to RPA as well. First, while front-end integration brings flexibility
and speed at which it can be implemented, it is still inferior to back-end integration designed for
machine-to-machine communication. In the current state, RPA represents a temporary solution, which
fills the gap between manual processes based on legacy IT systems and redesigned processes running
Second, in spite of the disadvantages associated with outsourcing, the practice of outsourcing has a
proven track record, backed up with a variety of business cases and decades of experience. RPA, on the
other hand, while highly promising, lacks similar credentials. Therefore, potential clients of RPA need
A third source of skepticism is the impact of RPA on current employees. While the RPA post-
implementation feedback has been mostly positive and no significant job losses have been observed
due to RPA (Lacity and Willcocks, 2015), employees may still see robots as their direct competitors for
a job. This may create tensions between management and employees, even have a destructive impact
on employee morale. Therefore, any introduction and deployment of RPA has to be handled delicately
And finally, currently RPA is suitable only for a particular type of processes that include only clearly
defined, rule-based tasks, devoid of subjective human judgment. Next we will explore the suitability of
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Task suitability for RPA
To assess the suitability of any given task to RPA, one should evaluate whether the task is routine or
non-routine and whether it requires the use of manual or cognitive affordances (see Figure 1). Highly
cognitive tasks requiring creative thinking, as well as non-routine tasks with no or little recurring
patterns and high variability, are a bad fit for automation. The rule of thumb for task suitability for
automation is to determine whether one can precisely write down all the steps of the process, taking
into account all possible events and outcomes along the way. While the advancements in Artificial
Intelligence (AI) enabled automation of some non-routine tasks, the general principle remains same.
Figure 1. Guide to automation potential of the task (adapted from Frey and Osborne (2013))
To determine whether a task is suitable for RPA, more factors need to be taken into consideration.
Table 1 presents the generic criteria for deciding whether a task is suitable for RPA. Beyond the
manual and routine nature of a task described previously, a company willing to take on RPA needs to
consider whether it is viable to replace humans with software robots for particular tasks and what
would be the long-term implications of such decisions. These criteria also inform strategic decisions of
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Table 1. Criteria for Robotic Process Automation (based on Fung, (2014) and Slaby, (2012))
Criteria Description
RPA AT OPUSCAPITA
OpusCapita promotes software robots as virtual assistants for employees engaged in repetitive tasks
associated with financial processes3. According to OpusCapita’s vision, after a brief “training” these
virtual assistants will be able to carry the burden of routine tasks, allowing companies to reallocate
human employees to more productive and creative tasks. Among other things, supervising and
OpusCapita is leveraging its existing knowledge and experience in financial process automation and
outsourcing to establish itself as a credible RPA provider to their potential clients. One of the main
selling points is the perfect fit of financial processes to robotic automation. According to Jaakko
Lehtinen, a manager in the OpusCapita’s Ventures unit, “The financial department is a perfectly suited
environment for robotic process automation (RPA), a new technology driving dramatic improvements
3
OpusCapita Software Robots https://www.youtube.com/watch?v=yZ8FouJc6ow
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in the quality and efficiency of business processes in a number of areas at the moment” (OpusCapita
Group, 2015b).
Currently, OpusCapita takes a number of steps before the actual implementation of RPA in a client
organization. While the overall idea of RPA is simple, OpusCapita devotes time to evaluation, analysis
and planning. These steps are required to successfully configure and deploy a robot, and to demonstrate
a clear business case to the skeptical clients. Figure 2 summarizes the main phases of RPA introduction
Business
RPA potential analysis Process case RPA
workshop assessment implementation
proposal
During the first stage, OpusCapita consultants conduct a two-hour RPA workshop to understand the
overall RPA potential within the prospective client organization. This includes reviewing of the
processes currently performed by the organization, and identifying of potential areas eligible for RPA.
OpusCapita uses a set of task suitability criteria similar to the ones outlined in the previous section.
In the second stage, OpusCapita assesses the processes and the underlying tasks with the employees
currently performing these tasks. The goal here is to break down and map the process into concrete
rule-based steps. The OpusCapita consultants observe employees performing the task, record a process
flow, and note some necessary tweaks in the process to make it more “robot friendly“. This stage
In the third stage, OpusCapita produces a business case for the company based on the information
gathered. The business case outlines how the robots will automate the process and how robotic and
other automation can be combined with the existing human resources to achieve cost efficiency and
enhanced productivity.
If the client company approves the deal based on the business case, OpusCapita configures a software
robot to perform the processes in question and delivers the robot to the client. In order to guide the
software robots through the task, OpusCapita experts create process libraries based on the process flow
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recorded previously. The process library contains step-by-step instructions for robots to follow (see
Exhibit 3 in Appendix for a simplified example of robot instructions). In practice, the process library
resembles a complex flowchart, with a multitude of decision points and branches. Once the
configuration is complete, the robot can be deployed to perform the tasks immediately.
Since the inception of RPA, Mr. Karjalainen and his team at OpusCapita have been discussing possible
business models for their RPA offering. From these discussions four major models have emerged: 1)
Outsourcing partner (see Table 2). All of the models, however, had some significant flaws, which
needed to be addressed, and Mr. Karjalainen was not fully convinced by any of the four. The search for
the perfect business model was also complicated by the fact that one would need to think not only
about the current state of the RPA market, but also envision developments in the near future. Being on
the cutting edge of process automation, developments in RPA business are rapid and turbulent. Thus it
was important to think strategically, in order to ensure OpusCapita’s market leadership in the future.
License reseller is the most straightforward model of the four. Here, OpusCapita would resell licenses
for the third party software robots to their clients, profiting from commission fees. A ballpark price for
such a robot is 3000-5000€, and the commission fees range from 10% to 20%. This model is the easiest
one to execute, as the market entry barriers are low and so are the risks. The model requires no
significant investments into software development or building up RPA related expertise. However, this
model also opens the door for potential competition. Profit margins for resellers are also small, and
since no long-term business relationships are developed with the client after the deal, OpusCapita
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Table 2. Possible business models for RPA
License reseller Sell licenses for RPA - Easy to enter the - No long-term
solutions, bundled with market early on. business.
standard process - No special expertise - Low profit margins.
libraries. Pay-per- related to RPA is - Low threshold for
license. required. competition.
- No development,
maintenance, or
customization costs.
Software-as-a-Service Build RPA SaaS, which - Control over the - Limited customer
(SaaS) provider will easily enable any software. specific
company to use the - Mass-market customization.
service. Configuration appeal. - Market scale is
of the service will be left - Easy to scale. essential.
up to the user. Provider - Predictable income. - Chance for price
will offer some ready- competition driving
made process libraries. profit margins down.
Pay-per-use.
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Value-added consultant and reseller model resembles the current model of OpusCapita. Value-added
consultants aggregate the automation products into a coherent offering and guide clients through the
implementation process. The value-added consultant uses RPA and process redesign expertise to create
value for a client. In comparison to the reseller model, the value-added consultant has more space to
differentiate from competitors. As a result, profit margins tend to be bigger. However, the consultants’
business is limited to the initial implementation, and unlike big ERP projects, which could take
hundreds of billable hours to implement, RPA project takes only a few weeks. In addition, there is a
potential problem with scaling up the business rapidly. OpusCapita has a limited number of consultants
and training new ones takes time. This might become a bottleneck if OpusCapita’s RPA business starts
to grow fast. Furthermore, the value-added consultants are limited to the RPA software’s capabilities
maintained by a third party. Compared to the reseller model, it is more difficult for competitors to enter
the market; however, all in all, the threshold for competition is still low.
A SaaS provider licenses and delivers the software on subscription basis. In this model, a client pays
the provider for the right to use the software, which is centrally hosted by the provider. In this scenario,
OpusCapita would host, develop and maintain the software robots and sell licenses to all interested
parties. Generally, the SaaS provider model is the least personal, and designed to appeal to the mass
market. While the relationships between the provider and the client tend to be longer, the provider does
not customize the software for the client. Therefore, SaaS providers frequently compete on usability,
features and price, instead of value-added expertise. However, unlike “traditional“ self-service SaaS
(e.g. Dropbox), RPA would still require configuration and customization to a degree. Therefore, there
In the outsourcing partner model, OpusCapita would not expose its clients to RPA. Instead,
OpusCapita would make a regular outsourcing deal taking control over the outsourced processes from
the client. The difference here is that instead of moving process execution to low-cost countries,
OpusCapita employs a locally hosted RPA. With this model, OpusCapita would have the full control
over the processes and the robots, giving the company flexibility to rearrange processes and share
accumulated RPA experience and knowledge across different clients. Conceptually, this model is the
farthest from software business. Instead of delivering RPA to client companies through IT-projects
(delivering a software robot), in the outsourcing partner model, OpusCapita would focus on enticing
their client companies to make outsourcing contracts with OpusCapita. OpusCapita has rich experience
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and a set of competences in the outsourcing field, which they can leverage in this model. The
outsourcing model requires specific resources to setup and maintain outsourcing arrangements.
However, it may be more difficult to stand out among all other outsourcing providers, since for the
customer the only proxy for RPA benefits would be the price.
Market opportunity
Another major issue Mr. Karjalainen and the Ventures unit have to consider is market segment. To
visualize the market for RPA, Mr. Karjalainen uses the famous Long Tail 4 figure (see Figure 3).
According to this vision, the most lucrative market opportunity for OpusCapita lies between the head
of the market and the long tail. In this case, the head of the market refers to processes, which contain a
large number of tasks suitable for automation (based on the characteristics given in Table 1). The long
tail, on the other hand, consists of processes where there is only a limited number of tasks suitable for
automation. The market opportunity for RPA then lies in between these two extremes. The reasoning
for this is that while the head of the market would be very lucrative for RPA, a very competitive market
of back-end integration specialists and consultants already serves it. Back-end integration here means
that companies opt to modify their back-end systems in order to automate the process in question,
instead of using software robots that function on front end. This choice of relying on back-end
integration, in turn, is driven by the fact that there exist large number of repetitive manual tasks to
warrant a large back-end integration IT project. Also, the large-scale automation potential would
suggest that the client might be better off implementing RPA independently, in-house. The sheer scale
of the project would make it efficient to develop RPA competences internally, cancelling out the cost
advantage effect from economies of scale that third party providers usually have. On the other hand,
the long tail is problematic for RPA due to the fact that it is difficult to automate with RPA.
Implementing RPA into a process situated at the long tail would be too costly and the resulting benefits
limited. In other words, the processes in the long tail may not simply have enough tasks to automate, in
order to make a compelling business case. Figure 3 illustrates the head of the market and the long tail.
4
A term coined by Chris Anderson in 2004, which he explains in his book “the long tail.“
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Figure 3. Current vision for market opportunity for Robotic Process Automation
While there is some positive correlation between the size of a company and the number of tasks, this is
not always the case. A small company with labor-intensive routine tasks is more likely to be
OpusCapita’s client than a large multi-national with only few tasks fit for automation.
Therefore, Mr. Karjalainen is planning to capitalize on the middle of the market, a sweet spot, where
the processes have just the right number of automatable tasks to be persuaded to work with
OpusCapita. But what model would be the best for this market? Are some models a better fit for this
market than others? Could market opportunity lie elsewhere? Choices Mr. Karjalainen and the team
have to make are tough, with the success of the whole venture on the line.
Challenge ahead
Back in Keilaniemi Mr. Karjalainen was already rushing to a meeting with the Ventures team. “There
is no time to lose. If we want to win this game we need to act soon” thought Mr. Karjalainen. Decisions
needed to be made. What market should OpusCapita concentrate on? How to approach
commercialization of RPA? How to align short- and long-term goals? Original, well informed advice
from a professional would help OpusCapita to make the difficult choices and get it right. Or at least
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“Good afternoon ladies and gentlemen. It looks like everyone is here already. Let’s start our
meeting…“
DISCUSSION QUESTIONS
Your task is to build a compelling recommendation to Mr. Karjalainen. To get you started, consider the
following discussion questions:
1. Analyze the current market OpusCapita is operating in. How has market situation changed
from the one described in the case? Create a SWOT analysis of OpusCapita’s competitive
positioning.
2. Analyze the market opportunity for RPA. Discuss the assumptions made by OpusCapita; are
offering?
b. Should OpusCapita extend their offer to long tail of the market? Argue why or why
not.
3. What business model or models should OpusCapita adopt for RPA? Build a compelling
argument for the alternative model(s). Take into consideration short- and long-term goals. Be
creative and critical; do not restrict yourself to the four models proposed by OpusCapita.
4. Prepare a plan of action for Mr. Karjalainen and the Ventures unit. How should your advice be
implemented? Describe concrete steps and build a compelling case. How would you test and
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REFERENCES
Frey, C. and Osborne, M. (2013). The Future of Employment: How Susceptible are Jobs to
Computerisation? : 1–72.
Fung, H. P. (2014). Criteria, Use Cases and Effects of Information Technology Process Automation
Institute for Robotic Process Automation. (2015). Introduction To Robotic Process Automation.
Lacity, M. and Willcocks, L. (2015). What Knowledge Workers Stand to Gain from Automation,
knowledge-workers-stand-to-gain-from-automation
Lacity, M. and Willcocks, L. (2016). Robotic Process Automation at Telefónica O2, MIS Quarterly
OpusCapita Group. (2015a). About us, Opuscapita.com. Retrieved August 31, 2015, from
http://www.opuscapita.com/who-we-are
OpusCapita Group. (2015b). Robotic Process Automation: Farewell to the remaining manual routines!,
and-newsletter/newsletter/2015/robotic-process-automation-farewell-to-the-remaining-manual-
routines!
http://www.opuscapita.com/media/141315/opuscapita2014_en_final.pdf
Prangnell, N. and Wright, D. (2015). The robots are coming, A Deloitte Insight Report. Retrieved from
http://www2.deloitte.com/content/dam/Deloitte/uk/Documents/finance/deloitte-uk-finance-
robots-are-coming.pdf
Slaby, J. (2012). Robotic Automation Emerges As a Threat To Traditional Low-Cost Outsourcing, HfS
Research : 1–18.
Willcocks, L., Lacity, M. and Craig, A. (2015). Robotic Process Automation at Xchanging, The
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RECOMMENDED ADDITIONAL READING
Brynjolfsson, E., and McAfee, A. The second machine age: work, progress, and prosperity in a time of
Carr, N. (2014). The glass cage: automation and us. WW Norton & Company.
Chui, M., Manyika, J., & Miremadi, M. (2015) Four Fundamentals of Workplace Automation.
http://www.mckinsey.com/business-functions/business-technology/our-insights/four-
fundamentals-of-workplace-automation
Etzioni, O. (1996). Moving up the information food chain: deploying softbot on the World Wide Web,
Frey, C. and Osborne, M. (2015). Technology at work. The Future of Innovation and Employment, Citi
Institute for Robotic Process Automation. (2015). Introduction To Robotic Process Automation.
Lacity, M., & Willcocks, L. (2015). Robotic Process Automation: The Next Transformation Lever for
Shared Services. The Outsourcing Unit Working Paper Series (July 2015): 1-35.
Prangnell, N. and Wright, D. (2015). The robots are coming, A Deloitte Insight Report. Retrieved from
http://www2.deloitte.com/content/dam/Deloitte/uk/Documents/finance/deloitte-uk-finance-
robots-are-coming.pdf
Salovaara, A., Lyytinen, K. & Penttinen, E. (2015) Flexibility vs. Structure: How to Manage Reliably
Willcocks, L. and Lacity, M. (2016). Service Automation: Robots and the Future of Work, United
Willcocks, L. P., Lacity, M., & Craig, A. (2015). The IT function and robotic process automation. The
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APPENDIX
CEO
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Steps for software robots to complete
1. Pick first incomplete transaction from the work queue (the transactions in the queue could have
been formulated e.g. by receiving triggers, by reading a specific report, by accessing a specific
web portal etc.).
2. Launch application X.
3. Enter specific (fixed or variable) value into a specific field.
4. Click a specific button in an application.
5. Read value in a specific location in application X and store it in variable Z.
6. Launch application Y.
7. (…)
8. Enter variable Z into a specific field in application Y.
9. If an error message is shown, store result about error in a report and move to step 12.
Otherwise proceed to step 10.
10. (…)
11. Store result of a transaction in a report.
12. Pick next transaction and return to step 3.
Exhibit 3. Simplified example of instructions for a software robot operating across two systems.
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