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September 15 2024 · 7 min read time

Building an Effective Automation Department for Your Company: A Complete Guide [+ Infographic]

An Automation Department stands apart from a typical IT team by following a streamlined 'factory' model. It manages the entire automation lifecycle—from concept to implementation—by standardizing workflows, maintaining governance, and driving innovation through automated solutions.

Discover what an Automation Department entails and why it's essential for businesses adopting Robotic Process Automation (RPA).

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Dominik Put

RPA Consultant and Business Analyst at Destan

We strongly believe in the immense potential of Robotic Process Automation (RPA) to transform operations, increase efficiency, and redefine business practices. To fully capitalize on these advantages, it's essential for organizations to implement a structured framework that governs RPA's deployment and management. This is where an Automation Department (also known as a Center of Excellence) becomes essential. In the world of RPA, the Automation Department is far more than a trend; it’s a strategic investment that yields significant returns. Let’s explore what an Automation Department is and why it's crucial for businesses adopting RPA.

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What is an RPA Automation Department?

An Automation Department is a specialized team that unites leadership, training, best practices, and support to drive innovation in a focused area. For RPA, it acts as the "automation hub" of the organization, ensuring that every RPA initiative is aligned with the company's strategic objectives.

Think of the Automation Department as a factory: different departments and teams present their ideas, and the AD takes charge of the process from start to finish. This includes idea assessment, analysis, development, testing, and automation.

By centralizing RPA efforts, the Automation Department ensures that automation initiatives are not isolated but integrated across various business units, maximizing value and reducing risks.

Why Is an Automation Department Vital for Businesses?

An Automation Department plays a critical role in scaling automation initiatives within a business. With a well-organized structure, it helps prevent chaos and inefficiency. Here’s why having an AD is essential:

Strategic Alignment

Ensures RPA efforts are in sync with the company’s strategic objectives and overarching goals.

Resource Efficiency

Optimizes resource allocation and eliminates redundant efforts across various departments.

Standardization

Implements and maintains standardized processes, ensuring consistent quality and optimal performance.

Scalability

Enables the expansion of RPA initiatives by developing reusable assets and sharing knowledge.

Governance and Compliance

Ensures effective control over automation processes, maintaining compliance with regulatory and internal standards.

Innovation and Continuous Improvement

Fosters a culture of innovation and continuous growth by utilizing cutting-edge RPA technologies.

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Differentiating the Automation Department from a Standard IT Department

The key distinction between an Automation Department and a traditional IT Department lies in their structure, role, and scope of responsibility. A standard IT Department primarily focuses on the upkeep and support of the organization's IT infrastructure. Its role is mainly technical, concentrating on the operation of IT systems, networks, and providing user support.

In contrast, an Automation Department extends beyond the technical realm of IT. It adopts a more strategic approach, encompassing planning, governance, change management, and the ongoing improvement of automation efforts. This department sets the direction, establishes standards, allocates resources, and leads the implementation of automation initiatives throughout the organization. Its responsibilities include identifying opportunities for automation, developing and deploying bots, and ensuring the scalability and efficiency of automated workflows.

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A Fully Functional Automation Department in Action

An automation department can be established in-house, hired externally, or outsourced entirely. Here’s an example of how we successfully partnered with Pain Treatment Centers of America (PTCoA) to deliver automation services:

PTCoA reached out to us with the goal of automating their insurance claims submission process. Within just two weeks, we developed an automation bot that processed claims in a fraction of the time, reducing execution to a mere 45 seconds. This MVP project achieved a 100% ROI within 23 days, projecting $180,000 in savings for the first year.

The success of this project sparked PTCoA’s desire to automate further processes across their departments. As their outsourced automation partner, we worked closely with them to design and implement a suite of bots, significantly enhancing operational efficiency. Our solutions helped PTCoA streamline their processes, reduce manual work, and refocus their efforts on patient care and strategic expansion.

Taking into account the overall project costs, including the involvement of two RPA developers and licenses, the ROI for the first year is forecasted to reach 449%, with total savings surpassing $400,000.

The collaboration continues to thrive. New processes are constantly being added to the backlog, and we are evaluating their automation potential while planning new bots to enhance the network. PTCoA is on track for growth, with increased employee satisfaction, happy customers, and a healthier bottom line.

Outsourcing RPA development brings several benefits, such as quicker deployment, immediate cost savings, and access to specialized expertise. Organizations like PTCoA can focus on their core business while benefiting from scalable, cost-efficient automation solutions that deliver impressive ROI. Outsourcing also offers flexibility, allowing businesses to adjust resources based on project needs, without the burden of building and maintaining an internal team.

Conclusion

An Automation Department stands apart from a typical IT team by implementing a comprehensive "factory" model. This department oversees the entire automation lifecycle, from concept to full execution, ensuring process standardization, governance, and the creation of innovative automated solutions.

The Automation Department provides invaluable advantages, including aligning automation projects with broader organizational objectives, establishing and upholding standardized processes, enhancing cross-department collaboration, and managing resources for maximum ROI. Establishing such a department is key to optimizing your automation strategy and driving long-term success. At Destan, we're committed to helping you build an Automation Department that delivers sustainable value and aligns with your strategic vision. For expert advice or support, don't hesitate to connect with our team.

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Dominik Put

RPA Consultant and Business Analyst at Destan. Expert in Process Automation and Business Process Optimization.

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