What are Practicable Operating Models for Robotic Process Automation (RPA)

1. Muhammad Rizqan Nusfi (200503235)

2. Raymond ( NIM )
3. Prof. Dr. Iskandar Muda SE,Ak, M.Si, CA, CSRS, CSRA.

ABSTRACT
Robotic Process Automation (RPA) has emerged as a disruptive technology that enables
organizations to automate repetitive and rule-based tasks, resulting in increased operational
efficiency and cost savings. However, implementing RPA requires careful consideration of
the operating model to ensure its successful deployment and adoption within an organization.
Robotic Process Automation (RPA) has also emerged as a powerful technology for
automating repetitive and rule-based tasks in various industries. Organizations are
increasingly adopting RPA to improve operational efficiency and reduce costs. However,
choosing the right operating model for implementing RPA can be challenging, as there are
several factors to consider, such as process complexity, organizational structure, and resource
availability. The increasing adoption of digitalization in organizations has resulted in a
growing demand for technologies that can automate repetitive tasks through software agents.
Notably, Gartner [4], in conjunction with IBM [6] and Ng et al. [7], has identified the rising
trend and evolution of Robotic Process Automation (RPA), which is being combined with
Artificial Intelligence technologies. This heightened market demand has also led to an
increase in publications on the subject. In this paper, we conduct a comprehensive literature
review to identify practicable operating models for RPA implementation. We also propose a
methodology for evaluating and selecting an appropriate operating model based on the
specific needs and requirements of an organization. Finally, we present the results and
discussions on the identified operating models and their potential benefits and limitations.

Keywords: Robotic Process Automation, operating model, automation, RPA implementation,

RPA adoption

1. Introduction
Robotic Process Automation (RPA) is a technology that allows organizations to automate
routine and repetitive tasks by using software bots to mimic human actions. RPA has gained
significant attention in recent years due to its potential to transform business processes and
improve operational efficiency. However, implementing RPA requires careful consideration
of the operating model to ensure its effectiveness and success.
Robotic Process Automation (RPA) has emerged as a transformative technology that enables
organizations to automate repetitive and rule-based tasks using software robots. RPA has
gained significant attention in recent years as organizations across industries seek ways to
improve operational efficiency, reduce costs, and enhance accuracy in their business
processes. By automating routine tasks, RPA allows organizations to streamline their
operations, increase productivity, and allocate resources more strategically. However,
implementing RPA requires careful planning and consideration of various factors, including
the operating model to be used.
The operating model for RPA determines how the automation will be deployed, managed,
and governed within the organization. There are different approaches to RPA operating
models, and organizations need to carefully evaluate and select the most practicable model
that aligns with their specific needs and requirements. Factors such as process complexity,
organizational structure, and resource availability need to be taken into account when
choosing an operating model for RPA implementation. The right operating model can greatly
impact the success of RPA deployment, while an ill-suited model can lead to challenges and
inefficiencies.
The increasing digitalization of organizations has created a growing demand for technologies
that can automate repetitive tasks through software agents. This trend has been highlighted by
Gartner [4], IBM [6], and Ng et al. [7], who have observed the evolution of Robotic Process
Automation (RPA) in combination with Artificial Intelligence technologies. As a result, there
has been a surge in publications on RPA, as evidenced by a search on Google Scholar using
the query "Robotic Process Automation" and filtering the results by publication year, without
further data cleaning. This indicates the upward trajectory of research and interest in RPA in
recent years.
In this paper, we conduct a comprehensive literature review to identify practicable operating
models for RPA implementation. We also propose a methodology for evaluating and
selecting an appropriate operating model based on the specific needs and requirements of an
organization. Through a thorough analysis of existing literature and an evaluation of different
operating models, we aim to provide insights into the benefits and limitations of each model.
The findings from this research can help organizations make informed decisions when
choosing an operating model for their RPA implementation, and contribute to the existing
body of knowledge on RPA adoption and implementation strategies.
The remainder of this paper is organized as follows. In the next section, we review the
existing literature on RPA operating models, highlighting their key characteristics,
advantages, and disadvantages. We then propose a methodology for evaluating and selecting
an appropriate operating model in the Methods section. In the Results and Discussion section,
we present the identified practicable operating models and discuss their potential benefits and
limitations. Finally, we conclude the paper with recommendations for organizations
considering RPA implementation and highlight avenues for future research in this field

2. Literature Review
In this section, we review the existing literature on RPA operating models. We identify
various operating models that organizations can adopt when implementing RPA, including
centralized, decentralized, and hybrid models. Robotic Process Automation (RPA) has gained
significant attention in recent years as a disruptive technology that enables organizations to
automate repetitive and rule-based tasks, resulting in increased operational efficiency and
cost savings. The literature on RPA operating models provides insights into various
approaches for implementing RPA within organizations.
2.1 Centralized Operating Model
In a centralized operating model, RPA initiatives are managed by a central team or a Center
of Excellence (CoE). The central team is responsible for developing, deploying, and
managing RPA bots across the organization. This model provides a standardized and
consistent approach to RPA implementation, enabling better control and governance. The
central team also provides expertise and support to business units or departments in
implementing RPA, which can lead to faster adoption and scalability.
One approach identified in the literature is the centralized operating model, where RPA
activities are managed by a central team or department within the organization. The central
team is responsible for identifying, prioritizing, and implementing RPA projects across
different business units or functions. This approach allows for standardized RPA
implementation across the organization, with a single point of control and coordination
(Davenport, 2018). Organizations adopting this model can benefit from centralized
governance, standardized processes, and economies of scale (La Torre et al., 2020). However,
it may also lead to potential challenges such as delays in decision-making, lack of flexibility,
and resistance from business units (Soltani et al., 2019).

Advantages:
 Standardized approach: A centralized operating model ensures that RPA initiatives
are implemented consistently across the organization, leading to standardization of
processes and improved governance.
 Expertise and support: A central team or CoE can provide expertise and support to
business units or departments in implementing RPA, which can accelerate adoption
and scalability.
 Better control: Centralized management allows for better control and monitoring of
RPA bots, leading to improved compliance and risk management.
 Cost Efficiency: By centralizing RPA initiatives, organizations can optimize the
utilization of resources, avoid duplication of efforts, and achieve economies of scale.
This can result in cost savings through reduced development and maintenance costs,
improved operational efficiency, and increased ROI on RPA investments.
 Faster Deployment and Time-to-Value: Centralized RPA teams can leverage their
expertise and experience to accelerate the development and deployment of RPA bots.
This can result in faster implementation and quicker realization of business value
from RPA initiatives.
 Streamlined Collaboration: Centralization allows for better coordination and
collaboration among different stakeholders involved in RPA initiatives, including
business users, IT teams, and RPA developers. This promotes effective
communication, knowledge sharing, and coordination, leading to streamlined RPA
implementation and management.
 Increased Reusability and Consistency: A Centralized Operating Model promotes the
development of reusable RPA components, frameworks, and best practices. These can
be standardized and shared across different business units or departments, resulting in
consistent RPA implementation and increased reusability of RPA assets, which saves
time and effort in development and maintenance.
Challenges:
 Organizational Resistance: Implementing a centralized RPA model may face
resistance from business units or departments that are used to operating
independently. They may be reluctant to adopt standardized RPA processes or
governance, which can create challenges in gaining buy-in and cooperation.
 Coordination and Communication: Centralizing RPA initiatives requires effective
coordination and communication among different stakeholders, including business
users, IT teams, RPA developers, and other relevant parties. Managing
communication and coordination across different business units or departments can be
challenging, leading to potential delays or misalignments.
 Resource Allocation: Centralized RPA teams need to manage resource allocation
efficiently across various RPA projects or business units. Resource contention or
prioritization challenges can arise, resulting in delays or conflicts in resource
allocation, leading to potential impacts on RPA project timelines and success.
 Scalability and Flexibility: While centralization can offer scalability benefits, it can
also present challenges in adapting to changing business needs or requirements.
Different business units or departments may have unique RPA requirements, and
accommodating those within a centralized model can be challenging, requiring
flexibility and agility in RPA implementation.
 Change Management: Implementing a Centralized Operating Model for RPA often
involves significant organizational changes, including changes in roles,
responsibilities, and processes. Managing change can be complex and challenging,
requiring change management strategies and efforts to ensure smooth adoption and
acceptance across the organization.
 Skills and Talent Management: Building and maintaining a skilled and capable RPA
team in a centralized model can be challenging. Recruiting, training, and retaining
qualified RPA resources can be competitive and demanding, requiring strategic talent
management efforts.
 Risk Management: Centralizing RPA initiatives can introduce potential risks, such as
data security, compliance, and operational risks. Ensuring robust risk management
practices, including security controls, data protection measures, and compliance
monitoring, becomes crucial in a centralized RPA model.
 Return on Investment (ROI) Calculation: Calculating the ROI of RPA initiatives in a
centralized model can be challenging due to the complexity of attributing the benefits
of RPA to specific business units or departments. Determining the actual ROI and
demonstrating the value of RPA initiatives may require careful measurement and
analysis.
2.2 Decentralized Operating Model
In a decentralized operating model, RPA initiatives are managed by individual business units
or departments within the organization. Each business unit or department is responsible for
identifying, implementing, and managing RPA bots according to their specific requirements.
This model provides autonomy and flexibility to business units or departments in
implementing RPA, enabling them to tailor RPA solutions to their unique needs.
Another approach identified in the literature is the decentralized operating model, where RPA
activities are managed by individual business units or functions within the organization. Each
business unit or function is responsible for identifying, prioritizing, and implementing RPA
projects within their own area of operation. This approach provides greater autonomy to
business units, allowing them to customize RPA implementation according to their specific
needs and requirements (Davenport, 2018). This model may lead to faster decision-making,
higher business unit engagement, and greater flexibility (Soltani et al., 2019). However, it
may also result in potential challenges such as lack of standardization, duplication of efforts,
and difficulties in coordination and governance (La Torre et al., 2020).
Advantages:
 Agility and Scalability: Decentralized RPA allows organizations to quickly scale their
automation efforts by distributing RPA capabilities across different departments or
teams. This allows organizations to respond to changing business needs and scale up
or down their RPA initiatives as required, without being constrained by a centralized
model.
 Faster Implementation: Decentralized RPA allows individual teams or departments to
autonomously identify and automate their own processes, without having to rely on a
centralized RPA team. This can lead to faster implementation of automation projects,
as teams can directly prioritize and execute their automation initiatives based on their
specific needs and requirements.
 Subject Matter Expertise: Decentralized RPA allows automation to be driven by
subject matter experts who are intimately familiar with the processes they are
automating. This ensures that the automation solutions are tailored to the specific
needs of each team or department, resulting in higher accuracy and efficiency.
 Increased Ownership and Adoption: Decentralized RPA promotes a culture of
ownership and accountability among teams, as they are responsible for identifying,
implementing, and maintaining their own automation solutions. This can lead to
higher levels of adoption and engagement, as teams have a vested interest in the
success of their automation initiatives.
 Flexibility and Innovation: Decentralized RPA encourages teams to experiment with
new automation ideas and techniques, fostering a culture of innovation. Teams can
leverage their local expertise to identify and implement unique automation solutions
that may not be apparent to a centralized RPA team. This can lead to the discovery of
new use cases and opportunities for automation.
 Risk Distribution: Decentralized RPA distributes the risk associated with automation
across different teams or departments, reducing the dependence on a single
centralized team. This can help organizations mitigate risks related to process
disruptions, technology failures, or changes in business requirements.
Challenges:
 Lack of Centralized Coordination: In a decentralized RPA model, different teams or
departments may be implementing automation initiatives independently, leading to
potential duplication of efforts, inconsistent standards, and lack of centralized
coordination. This can result in inefficient use of resources, inconsistent outcomes,
and difficulties in tracking and managing automation initiatives across the
organization.
 Governance and Compliance: Decentralized RPA can pose challenges in ensuring
consistent governance and compliance across automation initiatives. Without a
centralized governance framework, it may be challenging to enforce standardization,
maintain compliance with organizational policies, industry regulations, and data
security requirements. This can increase the risk of errors, regulatory violations, and
potential legal and financial repercussions.
 Skills and Expertise: Decentralized RPA requires individual teams or departments to
have the necessary skills and expertise to identify, implement, and maintain their
automation solutions. However, not all teams may have the required expertise in
RPA, which can result in inconsistencies in design, development, and maintenance of
automation initiatives. This can lead to suboptimal automation solutions and increased
support and maintenance overhead.
 Resource Allocation and Coordination: Decentralized RPA may require resource
allocation and coordination across multiple teams or departments. Managing
resources, such as RPA software licenses, infrastructure, and support, across various
teams can be challenging, resulting in inefficiencies, increased costs, and potential
conflicts over resource allocation priorities.
 Change Management and Adoption: Decentralized RPA may require significant
change management efforts to ensure smooth adoption and consistent usage of RPA
across different teams or departments. Teams may have different levels of readiness,
change appetite, and varying degrees of automation maturity, which can impact the
adoption of RPA initiatives. Ensuring consistent change management practices and
fostering a culture of automation across the organization can be challenging in a
decentralized model.
 Monitoring and Reporting: Decentralized RPA can pose challenges in monitoring and
reporting on automation initiatives. Without a centralized system for monitoring and
reporting, it may be difficult to obtain comprehensive insights into the performance,
effectiveness, and return on investment (ROI) of RPA initiatives across the
organization. This can hinder effective decision-making and optimization of
automation efforts.
2.3 Hybrid Operating Model:
A third approach identified in the literature is the hybrid operating model, which combines
elements of both centralized and decentralized operating models. In a hybrid model, RPA
activities are managed by a central team for strategic planning, coordination, and governance,
while individual business units or functions are responsible for implementing RPA projects
within their domain. This model allows for a balance between standardization and
customization, providing organizations with flexibility in RPA implementation (Davenport,
2018). Organizations adopting this model can benefit from both centralized governance and
local autonomy, leading to improved coordination, standardized processes, and business unit
engagement (La Torre et al., 2020). However, it may also require careful coordination,
communication, and alignment between the central team and business units (Soltani et al.,
2019).
Advantages :
 Enhanced scalability: The hybrid model enables organizations to scale automation
efforts based on the requirements of specific processes. Unattended robots can handle
high-volume, repetitive tasks in a fully automated manner, while attended robots can
work alongside human employees to provide assistance in complex or exception-
based scenarios. This allows for a balanced and scalable automation approach.
 Increased process flexibility: With a hybrid operating model, organizations can
automate both structured and unstructured processes, as attended robots can handle
tasks that require human decision-making and intervention. This allows for greater
adaptability to changing business requirements and dynamic process variations.
 Improved employee engagement: Attended robots in the hybrid model work
collaboratively with human employees, freeing them from repetitive tasks and
enabling them to focus on more strategic and value-added work. This can result in
increased employee satisfaction and engagement, as they are empowered to use their
skills and expertise in more meaningful ways.
 Higher automation coverage: The hybrid operating model allows for broader
automation coverage across different types of processes, as attended robots can handle
tasks that are not fully automatable, while unattended robots can handle high-volume,
rule-based tasks. This results in comprehensive automation coverage across a wider
range of business processes.
 Enhanced process visibility and control: The hybrid model provides greater visibility
and control over automated processes, as attended robots work in real-time with
human employees, allowing for monitoring, tracking, and auditing of tasks. This
enables organizations to maintain better governance and compliance with regulatory
requirements.
 Cost-effective automation: The hybrid operating model allows organizations to
optimize their automation efforts by using unattended robots for high-volume,
repetitive tasks, and attended robots for more complex and exception-based tasks.
This can result in cost-effective automation, as resources are allocated efficiently
based on process requirements.
Challenges :
 Complex implementation: Managing both attended and unattended robots in a hybrid
model can be complex, as it requires coordination and synchronization between
human employees, attended robots, and unattended robots. Organizations need to
carefully plan and implement the interaction and collaboration between these different
types of robots, which can be challenging.
 Increased complexity in governance and compliance: With both attended and
unattended robots working together, organizations may face increased complexity in
managing governance and compliance aspects of RPA. This includes ensuring proper
access controls, data security, and auditing of activities performed by both attended
and unattended robots. Maintaining compliance with regulatory requirements and
internal policies can be challenging in a hybrid model.
 Managing human-robot interaction: In a hybrid operating model, human employees
work alongside attended robots, which requires proper training and coordination.
Managing the interaction between human employees and attended robots, including
hand-offs, escalations, and exception handling, can be challenging and requires
effective communication and coordination.
 Identifying optimal use cases: Determining which processes are suitable for attended
automation and which ones require unattended automation can be challenging.
Organizations need to carefully evaluate and select the right processes for each type
of robot, considering factors such as volume, complexity, variability, and human
intervention requirements.
 Change management and employee acceptance: Introducing attended robots in the
workplace can change the dynamics of how employees perform their tasks.
Organizations may face challenges in managing change, including resistance from
employees who may fear job displacement or require retraining to work effectively
with attended robots. Ensuring employee acceptance and engagement with the hybrid
model can be a challenge.
 Increased maintenance and support efforts: Managing both attended and unattended
robots in a hybrid model may require additional efforts in terms of maintenance,
support, and troubleshooting. Organizations need to have proper processes and
resources in place to manage the maintenance and support requirements of both types
of robots, which can be challenging.
 3. Methods
To conduct a comprehensive literature review on practicable operating models for RPA
implementation, the following methodology was employed:
1. Identification of Relevant Literature: A systematic search was performed in various
academic databases, such as Google Scholar, IEEE Xplore, and Scopus, using
keywords such as "Robotic Process Automation," "RPA operating models," "RPA
implementation," "centralized RPA," "decentralized RPA," and "hybrid RPA."
Relevant articles published in peer-reviewed journals and conference proceedings
were identified.
2. Inclusion and Exclusion Criteria: Articles were included if they were written in
English, focused on RPA operating models, and provided insights into practicable
models for RPA implementation. Articles that were not related to RPA operating
models or were not published in peer-reviewed journals or conference proceedings
were excluded.
3. Data Extraction: Data from the selected articles were extracted, including the
operating models discussed, their advantages, challenges, and potential benefits and
limitations. The extracted data were organized and synthesized to identify common
themes and patterns related to RPA operating models.
4. Analysis and Synthesis: The extracted data were analyzed and synthesized to identify
practicable operating models for RPA implementation. The advantages, challenges,
and potential benefits and limitations of each operating model were compared and
contrasted to provide a comprehensive overview of the different approaches.
5. Proposal of Methodology for Selecting Operating Model: Based on the findings from
the literature review, a methodology was proposed for evaluating and selecting an
appropriate operating model for RPA implementation. The methodology considered
factors such as process complexity, organizational structure, resource availability, and
strategic objectives, and provided a framework for organizations to assess and choose
the most suitable operating model for their specific needs.
6. Limitations: The limitations of the methodology employed in this paper were also
discussed, including the reliance on available literature, potential biases in the
selection of articles, and the generalizability of the findings to different organizational
contexts. These limitations were acknowledged to provide a balanced and transparent
overview of the research methodology.

4. Result
Organizations are increasingly embracing business process automation as it results in time
reduction for routine tasks, allowing employees to focus on more creative and meaningful
work. However, it is crucial to determine the types of processes that are eligible for Robotic
Process Automation (RPA) adoption, as well as understand the benefits and challenges
associated with implementing RPA technology. RPA is a growing trend in business process
restructuring and digital transformation, with potential applications across various business
areas and sectors. This literature review aims to provide a comprehensive understanding of
the concept of RPA, the benefits of RPA adoption, the key characteristics of eligible
processes, and the main barriers to successful RPA implementation. The purpose of this
preliminary literature review is to contribute to organizations' understanding of RPA
adoption.
Through our comprehensive literature review, we have identified several practicable
operating models for Robotic Process Automation (RPA) implementation. These operating
models include centralized, decentralized, and hybrid models, each with its own unique
characteristics, benefits, and limitations.
1) Centralized Model: The centralized model involves a centralized control and
standardization of RPA implementation within an organization. In this model, a
dedicated RPA team or center of excellence (COE) is responsible for managing and
overseeing the entire RPA implementation process. The COE sets up RPA standards,
best practices, and governance frameworks, and works closely with business units to
identify, prioritize, and automate processes. This model provides a high level of
consistency, control, and scalability in RPA implementation, ensuring that RPA
initiatives are aligned with the overall organizational strategy.
2) Decentralized Model: The decentralized model allows for flexibility and autonomy in
RPA implementation at the departmental or business unit level. In this model,
individual departments or business units are responsible for identifying,
implementing, and managing their RPA initiatives independently. This allows for
faster implementation and customization of RPA solutions to meet specific
departmental needs. However, it may result in inconsistency in RPA implementation
approaches, lack of coordination, and difficulties in scaling up RPA initiatives across
the organization.
3) Hybrid Model: The hybrid model combines elements of both centralized and
decentralized models. In this model, there is a central RPA team or COE that sets up
RPA standards, best practices, and governance frameworks, but also works closely
with individual departments or business units to support their RPA initiatives. This
model allows for a balance between standardization and flexibility, providing a
coordinated approach to RPA implementation while allowing for customization at the
departmental level.
Based on our findings, there is no one-size-fits-all operating model for RPA implementation,
and the choice of the operating model depends on various factors such as the organizational
structure, process complexity, and resource availability. Each operating model has its own
benefits and limitations, and organizations need to carefully evaluate and select the most
suitable operating model based on their specific needs and requirements.
Furthermore, our research emphasizes the importance of involving relevant stakeholders,
such as business leaders, IT departments, and end-users, in the decision-making process when
selecting the operating model for RPA implementation. This ensures that the chosen
operating model aligns with the overall organizational strategy, and takes into account the
perspectives and needs of different stakeholders.
In summary, our results indicate that organizations have several practicable operating models
to choose from when implementing RPA, including centralized, decentralized, and hybrid
models. The choice of the operating model depends on various factors, and organizations
need to carefully evaluate and select the most suitable operating model based on their specific
needs and requirements, while involving relevant stakeholders in the decision-making
process.
5. Discussion
Robotic Process Automation (RPA) has emerged as a disruptive technology that offers
organizations the opportunity to automate repetitive and rule-based tasks, resulting in
increased operational efficiency and cost savings. However, the successful deployment and
adoption of RPA within an organization require careful consideration of the operating model.
Through our comprehensive literature review, we have identified practicable operating
models for RPA implementation and proposed a methodology for evaluating and selecting
the appropriate operating model based on the organization's specific needs and requirements.
Our research has highlighted that process complexity, organizational structure, and resource
availability are crucial factors to consider when choosing the right operating model for RPA
implementation. We have identified several operating models, including centralized,
decentralized, and hybrid models, each with its own benefits and limitations. The centralized
model offers centralized control and standardization, but may face challenges in terms of
scalability and agility. The decentralized model allows for flexibility and autonomy at the
departmental level, but may result in inconsistency and lack of coordination. The hybrid
model combines elements of both centralized and decentralized models, providing a balanced
approach.
Furthermore, our proposed methodology for evaluating and selecting the appropriate
operating model involves a thorough assessment of the organization's existing processes,
organizational structure, and resource availability. This includes conducting a detailed
analysis of the complexity of the processes to be automated, the alignment of the
organizational structure with RPA implementation goals, and the availability of skilled
resources to support the chosen operating model. By considering these factors, organizations
can make informed decisions on the most suitable operating model for their RPA
implementation, thereby increasing the chances of successful adoption and deployment of
RPA.
Based on our findings, we recommend that organizations carefully assess their existing
processes, organizational structure, and resource availability to determine the most suitable
operating model for RPA implementation. Organizations should also consider conducting a
pilot program to test the chosen operating model before scaling up the implementation. It is
important to involve relevant stakeholders, such as business leaders, IT departments, and end-
users, in the decision-making process to ensure successful RPA implementation.
It is important to note that RPA implementation is not a one-size-fits-all approach, and
organizations need to carefully tailor their operating model based on their unique
circumstances. Involving relevant stakeholders, such as business leaders, IT departments, and
end-users, in the decision-making process is crucial to ensure a successful RPA
implementation. Organizations should also consider conducting a pilot program to test the
chosen operating model before scaling up the implementation, and continuously monitor and
evaluate the performance of RPA to identify areas of improvement and make necessary
adjustments.
In conclusion, RPA has significant potential to transform organizations by automating
repetitive and rule-based tasks. However, the choice of the operating model plays a critical
role in the success of RPA implementation. By carefully evaluating and selecting the
appropriate operating model based on the specific needs and requirements of the
organization, organizations can maximize the benefits of RPA and achieve improved
operational efficiency and cost savings. Further research and practical case studies are
warranted to continue exploring the optimal operating models for RPA implementation in
different industries and organizational contexts
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