Podcast: How RPA Can Pay for your ERP

Listen to the first in a series of how RPA synergies with ERP, when done correctly, can save you enough to actually pay for your ERP. Who wants free ERP?? You get free ERP! And you get free ERP! And you get free ERP!

Transcript

Speaker 1:

Welcome to the Tech Pro Unicorn Podcast, brought to you by RPI Consultants. A Podcast about the magic of digital transformation through technology, each week we’ll cover topics related to ERP, RPA, Business Transformation, Leadership, Healthcare and Unicorns.

Speaker 2:

Hey, there, welcome back to another episode of Tech Pro Unicorn. Today, and this week actually, we are going to be talking a lot about RPA and ERP. And you might ask, well, Unicorn why are we focused on this? You keep talking about RPA and now you want to confuse me even more with ERP. I really want to talk about applications. And my desire to have you think about applications more holistically.

Speaker 2:

So helicopter up with me for a minute, and look at applications as a landscape. And you have trees, you have shrubs, and you have grass, and you have all these things along your path. Those things really are application, kind of a road or a path, if you will, or a landscape or a portfolio. They’re gatherings of things in your garden. When you think about those applications, you have to think about their usefulness and their costs to the organization.

Speaker 2:

Now, many of us have gathered these things over time. They’ve either been legacy because they’ve been there for a while, or perhaps they, where something that we put in because we’re meeting a specific business need. But in most cases, they’ve evolved over a period of 15 to 20 years and maybe we’ve done some upgrades into maintenance or some pruning, but what we really haven’t done is to really think about, what’s in our garden? What’s in our portfolio. From a holistic perspective.

Speaker 2:

And then what’s available now from a modern cloud application capability. And then really re-evaluate all of those things, right. Group them together, and comparing contrast them to some of the more modern technologies like an ERP for back office. Now why do I keep harping on ERP? And why do I keep harping on RPA? Because that’s where the money is.

Speaker 2:

10 years ago, the money was in a ERP, putting it in, and then you could get all this supply chain benefit. And you could improve the efficiency of your supply chain. And that was going to pay for your ERP. Today I want to give you free ERP, the ERP of your choice, I don’t care. Pick Oracle, pick Workday, pick Infor CloudSuite. I want that to be free to you. And how is it going to be free? RPA is going to make it free.

Speaker 2:

What I really mean by that is to just put in a new ERP, doesn’t automatically get rid of all your current application cost. It doesn’t make all your legacy apps just go away. It doesn’t get rid of all the people that are still required to do all the transactions that go into your ERP. But if you do RPA correctly, and if you think about your application landscape correctly. You can indeed make sense out of this, reduce your costs significantly.

Speaker 2:

Without sacrificing a lot of your functionality. So let’s talk about that. Because that’s often the argument, when you say, Michael, yeah, I’m going to go to this new ERP, but it can’t do budgeting like my other budgeting software can. Well, you’re attached to that because you’re probably the person that brought it into the organization. But reality says it probably can. It can probably get you to 70% to 80% of your functionality.

Speaker 2:

And I questioned that extra 20% whether you need it or not, because let’s go back to our previous podcast. The differentiator for you to compete in the marketplace with your customers, regardless of your business. But let’s say healthcare is not going to be in your budgeting or in your ERP. That is not where the differentiators are coming in. That is not where it we’re going to have a huge difference.

Speaker 2:

How you provide services and how you treat your customers is a differentiator. What ERP software you use on the backend is not, so continuing that thought process a little bit. If I can get you 80% of the way there, it’s strong business reason to then convert that functionality to your standard European. So you go in, you consolidate into your ERP. Now you’re starting to reduce licensing costs. And not only that you’re reducing your application portfolio, which reduces your maintenance costs, which is mostly a human element.

Speaker 2:

And you’re reducing your integration costs. Now you’re not having to create all these interfaces and having to deal with those. So there’s when you’re starting to start paying for that ERP. Right. Okay. Michael, so say I do that. Does that get me all the way now? Absolutely, won’t get you all the way there, but what will get you there is then going, okay.

Speaker 2:

How many of these processes in your ERP really need people? Not a whole lot, sadly. A lot of the tools within the ERP can be automated. A lot of the processes that you do are rules-based. Meaning you don’t just wake up and go out today. I think I’m going to enter a GL entry for $3,423, and it’s going to hit this account and that account because, that’s what I feel like today. It’s all based on some sort of a transaction, some event that happens.

Speaker 2:

Some rule tells you that if I incur these costs, they have to be accrued. Right. And so right now you have teams of people that go and they ferret that out by hand or by Excel queries and such, and then they make an entry. Guess what a robot can do that. And then if you think about all the processes that are like that across Finance, across HR, across Supply Chain that are all these rule-based.

Speaker 2:

We know they’re going to happen. We know how they’re going to happen. We know where the data is, it’s going to cause them to happen. All those can be automated with RPA. That reduces your need for people’s. You’re able to do more with less, that reduces your costs.

Speaker 2:

That reduced costs coupled with the improved functionality of ERP, that’s your synergy. That’s where you’re going to pay for your ERP. And you’re going to go, Michael, moving to cloud suite moves my expense from a capital cost to an operating cost. Well, your labors and operating costs too. So let’s reduce some of your operating costs. Let’s reduce some of that labor costs. That’ll help absorb along with some of your maintenance costs. At a hope absorb over an ROI, what’s your ERP 10 years, but let’s even cut that in half.

Speaker 2:

Let’s go five years. The ROI starts making sense, but it doesn’t make sense with just ERP. And it doesn’t make sense necessarily with just RPA. Where it does make sense is when I combine the two. So now let’s focus just on healthcare applications. Let’s start talking healthcare applications. And when we look in those people go, well, I have to focus on my ADT system, and my ADT system and my ERP system. And because I need a provider that can do both of those.

Speaker 2:

Your ADT system really feeds your ERP system. And the only way that that becomes magical is if you’re truly talking about not only, not only the admissions discharge information, but you add acuity to it. When you add acuity to it, then you can really start looking at your staffing. And then you empower your frontline managers with AI to help them make better staffing decisions. To avoid overtime, to drive your cost down, then absolutely integration between your ADT system and your ERP enabled with RPA enabled with AI can become magical, absolutely.

Speaker 2:

99% of people aren’t doing that. You get sold that. You get sold that in your ADT system, you get sold that in your Workforce Management System. Most people never get there. The maturity cycle Peters out long before we truly get there. So you can indeed get some secret sauce there, but a lot of work. So a lot of people say, Michael, we need high integration with our clinical system.

Speaker 2:

Absolutely. Infor has a great product Clinical bridge absolutely need that.. Your clinical really, when it comes into your ERP, typically sits in around, your supply chain. That’s where the information typically get goes like, Oh, these are the procedures that I have helped me, get the supplies over to this area of the facility or the company. So that they can be ready for the procedure, so that the case card can be built so that we can perform their procedure.

Speaker 2:

And then we can bill, billing and rev cycle. Let’s talk about rev cycle. Rev cycle really only comes in your financials. Getting appropriate reimbursement obviously is important. It’s great that we do all this work in healthcare, but if we don’t get paid for it at the end of the day. It’s not sustainable, so rev cycle absolutely important to feed your financials and you should know through analytics. You should know what your costs are back to your ERP. Right, back to your ERP for supplies and labor costs of all your procedures, which couples you together with your rev cycle.

Speaker 2:

So all these things right. Lead to AI and analytics, but they have to be addressed holistically. You can’t just do one and then move to the next one without thinking about all of them together, how they all play, what comes first? Where can I get some synergies? How do I save money? Right. That can then pay for you to springboard into these other areas. And when you get these all firing together, absolutely, you’ve got this amazing, Amazing, an intelligent system.

Speaker 2:

Most people don’t get there. They get base function of all these systems, and then they go, we’re not getting what we need from this. Well, because you didn’t do it. Quite honestly. And to do it right, is hard. And it’s not quick, it’s a multi-year journey. So getting those synergies between ERP and RPA is important. Start small, start small, start small, start with RPA, get one robot, get a couple of processes and start building, right. We’re working with a couple of customers right now that are doing this. And they’re being very successful and they’re starting to expand. So happy to help the next series that I want to talk about here. We’re going to talk about some of the new applications specifically, like what do I do with interoperability and how do I get to move around? And in integrations and such, we’re going to talk about RPA.

Speaker 2:

That’s going to be the next series. Then we’re going to talk about how do I ERP and RPA? Michael, you said I needed to do it. You kind of gave me some examples, but specifically outlining how to do that. Where do I start? I’m going to give you that answer. And then series four in this five-part series is going to give you a very specific example. We’re going to actually walk through it. We’re going to give a client example of how they came about it, what they believe their ROI is what we think our estimate is to develop it, what tools we’re using and how that’s going to get put into production so they can actually achieve it. And then step five is just going to kind of sum that up in an outline again, what are the important steps? What do I do now?

Speaker 2:

And I’m going to give you a freebie. I’m going to give you something for free. You’re going to be able to a, get an hour consult with me for absolutely free. And then I’ve got another teaser on there that I’m going to give you for free. That is worth literally worth thousands and thousands of dollars. So that’s also going to be available to you, but that’s a teaser in part five. So stay tuned for that. Hope you enjoy it. If you have questions, feel free. [email protected] You can also reach me [email protected] Thanks folks. Have a great day until next time.

Speaker 1:

Thanks for joining us this week on the Tech Pro Unicorn Podcast, make sure to visit our website at www.techprounicorn.com. Where you can subscribe to the show and catch our latest blog articles. While you’re at it if you found value in this show, we’d appreciate a rating on iTunes. Be sure to tune in next week for our next episode, remember unicorns represent the magic of digital transformation that occurs when business process is enabled with technology.

Want More Content?

Sign up and get access to all our new Knowledge Base content, including new and upcoming Webinars, Virtual User Groups, Product Demos, White Papers, & Case Studies.

  • This field is for validation purposes and should be left unchanged.

Follow us online for faster access to announcements, knowledge base updates, and upcoming events!