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®

Automation Today – State of the Market

26 July, 2019

Proprietary & Confidential. © 2019, Everest Global, Inc. 2®

Not for distribution – for internal consumption only

Disclaimer

Everest Group does not endorse any vendor, product or service depicted in

its research publications, and does not advise technology users to select

only those vendors with the highest ratings or other designation. Everest

Group research publications consist of the opinions of Everest Group’s

research organization and should not be construed as statements of fact.

Everest Group is not an investment advisor and its publications, opinions

and reports should not be construed as investment advice. Everest Group

disclaims all warranties, expressed or implied, with respect to this

research, including any warranties of merchantability or fitness for a

particular purpose



Contents

⚫ Introduction to Intelligent Automation (IA)

⚫ RPA market overview

⚫ IDP market overview

⚫ Intelligent automation solution of the future



Key solution: AI is often used to enable solutions such as

chatbots, Intelligent Virtual Agents (IVA), and Intelligent

Document Processing (IDP)

Intelligent automation | Definition

What is intelligent automation?: Solutions that combine RPA and AI to automate

processes

Diffe

rentia

tin

g c

ap

ab

ilitie

s

Robotic Process Automation (RPA) Artificial Intelligence (AI)

⚫ Mimics a user’s activities

⚫ Follows a non-invasive approach

⚫ Rules-based automation; no learning capabilities

⚫ Highly deterministic

⚫ Mimics human thought process

⚫ Can augment RPA by processing semi- or unstructured

data

⚫ Can “learn” over time

⚫ Probabilistic but can have safeguards to make it

deterministic

⚫ Screen scraping

⚫ Rules engine

⚫ Robot performance analytics

⚫ Machine learning (ML) and library of ML algorithms

⚫ Natural Language Processing (NLP)

⚫ Data capture and Advanced analytics

⚫ Automated training and self-learning

Ke

y c

ha

racte

ristics

Key limitation: Unable to process unstructured data and

most semi-structured data

Intelligent automation RPA and AI solutions augment each other to form intelligent automation to deliver greater business value



Everest Group’s Intelligent Automation (IA) spectrum

Intelligent automation includes a spectrum of solutions / capabilities for automating

processes

Note: In this report, we have referred to rules-based/deterministic intelligent automation solutions (i.e., RDA, RPA, and autonomics) collectively as RPA

High Low

Inte

llig

en

ce

Hu

man

in

vo

lvem

en

t

Fu

ture

tech

Matu

rity Robotic Desktop

Automation (RDA)

Robotic Process

Automation (RPA)

Autonomics

Narrow Artificial

Intelligence

General Artificial

Intelligence

Ability to handle

input data type

Structured only

Structured and

semi-structured

Structured and

semi-structured

All types of data

including

unstructured

All types of data

including

unstructured

Processing

approach

Deterministic

Deterministic

Deterministic

Probabilistic

Probabilistic

Ability to

learn

No

No

No

Yes, but

limited to a

particular area

Yes, across

multiple

areas

Context

awareness

Minimal

Minimal

Yes, but

limited to its

computing

environment

Yes, but

limited to a

particular

domain

Yes, across

multiple

domains

and similar to

human brain

Approach

Human

triggers

Orchestrated

process

automation

Distributed

computing

Cognitive computing

(machine learning,

deep learning, and

NLP)

Unsupervised learning

and transfer learning;

still a conceptual

discussion



RPA, IDP, and IVA are the key intelligent automation solutions that

have taken productized shape and are moving beyond early stages of

development

Source: Everest Group (2018)

Markets covered today

Prominent automation markets

⚫ Uses AI technologies to

process unstructured data

from emails, contracts,

handwritten documents, etc.

IDP

⚫ Helps automate rules-based

business tasks

⚫ Can handle structured and

semi-structured data

RPA

⚫ AI-powered conversational

robots that offer round-the-

clock support for enterprises

and improve customer

satisfaction

IVA



Contents



– RPA market size and adoption trends

– RPA technology trends

– Key investment themes by RPA vendors

– Outlook for 2019-2021





2017 2018 2020E

The RPA software market has seen accelerated growth over the last

few years and is expected to continue growing rapidly in the future

RPA software market size1

US$ million

XX CAGR (2018-2020)

68%32% 70%-85%

Revenue from

software license

Revenue from

professional services

100% = US$1,030-1,060 million

1 RPA software market is calculated based on the revenue that independent technology vendors have generated from RPA licenses. Does not include revenue generated by cognitive

technology vendors, IT automation vendors, service providers, consultancy firms, or system integrators


Split of RPA ISV revenue by segments

Revenue in percentage

~340-350

~700-720

2,000-2,500

Emerging findings



With numerous success stories, many new enterprises are looking to

adopt RPA; Existing clients continue to drive growth by scaling up

their RPA deployments

RPA independent technology vendor client base

Total number of clients1

15,000-15,200

23,400-23,600

2017 2018

Software/license revenue per client

Revenue in US$ 000’s

20-25

28-33

2017 2018

As maturity in the market increases and the success stories of RPA implementation gain more visibility, new buyers for RPA emerge not only

in similar industries and geographies as existing buyers, but from new areas as well

1 Total number of clients indicates the sum of clients (not unique clients) across vendors in the RPA market


Emerging findings



45% 45%

23%19%

16%19%

12% 12%

2% 2%2% 3%

2017 2018

North America dominates the RPA market, followed by Continental

Europe and APAC

RPA software market size by buyer geography

License revenue in percentage; US$ million

North America

UK

Continental Europe

APAC

LATAM

145-150%

65-75%

110-115%

135-140%

340-350100% = 700-720 CAGR (2017-2018)

100-110%

MEA 125-130%


Emerging findings



BFSI and telecom dominate the RPA market with over 50% share

* Others include energy & utilities and logistics

Note: Banking and capital markets account for 26% and the insurance industry accounts for 11% of the overall market share in 2018


38% 37%

16% 17%

10% 9%

7% 8%

8% 6%

4% 5%

3% 5%2% 3%

11% 10%

2017 2018

RPA software market size by buyer industry


Government

Retail

BFSI

Healthcare

Manufacturing

Travel & logistics

Others*

Telecom

Media & entertainment85-90%

120-125%

230-240%

130-135%

65-70%

125-130%

85-90%

120-125%

95-100%

340-350100% = 700-720 CAGR (2017-2018)

Emerging findings



Processes in regulated industries such as BFSI and healthcare form

the bulk of the RPA market; growth is being driven by areas such as

F&A and HR

RPA software market size by business process/function

License revenue in percentage

<85% 85-115% >115%CAGR (2017-18)

100% = 700-720

31% 21% 16% 9% 7% 4% 4% 1% 7%

Industry-

specific

F&A Contact

center

Procurement HR IT services Web-based Document

management

Others

15%

Banking

6%Insurance

5%Healthcare

payer

Capital market

Energy & utilities

Pharma

2%2%

1%

Emerging findings



While large-sized buyers have grown significantly, small- and mid-

sized buyers continue to hold a considerable share of the overall pie

RPA software market by buyer size (excluding Softomotive)

Percentage of clients


64% 60%

23%21%

13%19%

2017 2018

110-120%

45-50%

CAGR

(2017-2018)

45-50%

41% 40%

34%28%

25%32%

2017 2018

115-120%

40-45%

CAGR

(2017-2018)

60-65%

RPA software market by buyer size (including Softomotive4)

Percentage of clients

Large-sized

buyers

Small-sized

buyers

Mid-sized

buyers

Large-sized

buyers

Small-sized

buyers

Mid-sized

buyers

Emerging findings



RPA technology continues to evolve with a host of capabilities to

help enterprises achieve strategic business outcomes

Computer vision

Workflow orchestration (BPM)

AI-based next-best-action

Online digital worker marketplace

Intelligent workload balancing

Automation recommender

Automating the automation

Private user libraries for

reusable assets

Predictive SLA monitoring

Human-in-the-loop

Text analytics / NLP Process-level business

intelligence

Security and compliance

Built-in wireframe for developing

automations

Robot life cycle management

On-screen agent guidance

Unified screenDynamic workload balancing

IT infrastructure monitoringAuto-scalability

ICA protocol / native support

for Citrix

Emerging findings



Technologies such as online digital worker marketplace, predictive

SLA monitoring, and workload balancing are likely to witness

increasing adoption over the next twelve months

Online digital worker

marketplace

Technology

AI-based computer vision for

surface automation

AI-based next-best-action

recommendation

Intelligent workload

balancing

Automating the automation

2018

Initial pilot

Initial pilot

2019

Early adoption

Initial pilot

Early adoption

2020

Early adoption

IT Infrastructure monitoring

Early adoption –

industry adoption

Predictive SLA

monitoringEarly adoption

Industry adoption

Innovation introduction Initial pilot

Innovation introduction

Initial pilot Early adoptionInnovation introduction

Initial pilot Early adoptionEarly adoption –

industry adoption

Initial pilot Early adoptionEarly adoption –

industry adoption

Emerging findings



Technology capabilities Partnerships Training

⚫ RPA vendors are investing

to develop:

– Built-in cognitive

capabilities, such as ML

and NLP

– In-house capabilities for

process mining and IDP

With technology vendors

⚫ Vendors are partnering

with IDP, IVA, and

process mining vendors

to enhance their value

proposition

With service providers

⚫ They are also

partnering with service

providers to enter into

new geographies and

industries

⚫ Vendors are constituting

dedicated online portal for

training, as well as launching

official programs for training

partners, to increase global

RPA supply and address

automation skills shortage

RPA vendors have been investing in building their technology

capabilities, expanding their partner ecosystem, and building robust

training programs for clients

Major investment themes by RPA vendors


Emerging findings



Outlook for 2019-2021 (page 1 of 2)

RPA market to experience strong growth in

the coming years

RPA to witness increasing adoption across geographies and industries

Partnerships to rise significantly

RPA technologies will have increasing levels of

intelligence

Rise of cloud-based delivery model

Emerging findings



Outlook for 2019-2021 (page 2 of 2)

Increasing focus on employee enablement

Emergence of process mining technology

Vendors to invest in expanding platform

outreach and product support

Increasing investor interest

Emergence of more RPA vendors, followed by

consolidation in the long term

Emerging findings



™

®

Everest Group’s PEAK Matrix™ assessment provides a view

of the vendor landscape

1 Star Performers are selected based on a relative comparison of vendors’ performance along both the market impact and vision & capability dimensions between our previous and

current PEAK MatrixTM assessment. Those vendors with the greatest year-over-year improvement are designated as Star Performers

2 Analysis for Blue Prism and Thoughtonomy is based on capabilities before Blue Prism announced its intent to acquire Thoughtonomy

3 Analysis for Nintex is based on Foxtrot RPA capabilities before the acquisition of EnableSoft by Nintex

Leaders

Major Contenders

Aspirants

Star Performers1

Everest Group Robotic Process Automation (RPA) Products PEAK Matrix™ Assessment 2019

LeadersMajor Contenders

Mark

et

imp

act

(Measure

s im

pact cre

ate

d in the m

ark

et)

High

Vision & capability

(Measures ability to deliver products successfully)

Low

UiPath

Automation Anywhere

NICE

Softomotive

Kryon

PegasystemsKofax

EdgeVerve

WorkFusionThoughtonomy2

AntWorks

Servicetrace

Another MondayJidoka

HelpSystems

Jacada

AutomationEdge

Nintex3

Datamatics

Intellibot

Nividous

Low High

Aspirants

Blue Prism2



Contents




– Introduction to IDP and its evolution over time

– IDP market size and adoption trends

– Key investment themes by IDP vendors

– Challenges to IDP adoption and outlook for 2019-2020




Understanding IDP solutions

IDP software solutions blend the power of AI technologies to process all types of

documents and feed the output into downstream applications

Incoming

documents

IDP solution

Data

capture

ClassificationExtraction of

relevant data

Generates report

on processed

data for human

verificationPowering AI

technologiesComputer

vision and

OCR

Text mining and

ML

NLP and

machine / deep

learning

Integrated

applicationsERP, CRM,

and SAP legacy

systems

RPA

Feeds output

(structured data)

into downstream

applications

Integrated apps

via APIS



Core technologies powering IDP capabilities

NLP

Machine learning &

deep learning models

Computer visionOCR



The IDP market stood at ~US$350-450 million in 2018 and is

expected to grow at CAGR of 70-80% over the next two years

1 Based on revenue estimates of 16 IDP technology vendors projected out to estimate the total IDP technology vendor market. It does not include revenue generated by service

providers, consultancy firms, or system integrators


IDP independent technology vendor market size1

Revenue in US$ million

~350-450

~1,000-1,50070-80%

2020E2018

XX CAGR

The key growth drivers of IDP adoption are:

⚫ Rising need for enterprises to process

large volumes of semi-structured and

unstructured documents with greater

accuracy and speed

⚫ Increased adoption of complementary

technology solutions such as RPA and the

demand among enterprises to enable end-

to-end process automation with integrated

RPA and IDP capabilities

⚫ Improved sophistication of AI technologies

powering IDP solutions, which significantly

increases their accuracy rates in

processing documents compared to

traditional OCR solutions



BFSI and healthcare enterprises are the early adopters of IDP

solutions with over 50% share

IDP software market size by buyer industry


44%

12%

9%

8%

8%

8%

6%2%

Manufacturing

Government & public sector

BFSI

Healthcare

Travel & logistics

High-tech & telecom

Others (3%)

CPG & retail

2018

350-450100% =

Media &

entertainment

Note: Based on the capability assessment of 16 IDP technology vendors


The key growth drivers of IDP adoption are:

⚫ Adoption of IDP solutions in BFSI industry

driven mainly by the need to process huge

volumes of semi-structured and

unstructured documents such as KYC

documents and invoices

⚫ The adoption of IDP solutions is highly

prevalent in the healthcare industry across

multiple use cases such as patient

onboarding, support of electronic medical

records, and processing physician

referrals

⚫ CPG & retail, travel & logistics,

manufacturing, and telecom are also

deploying IDP solutions to process

documents in proof of delivery, custom

declarations, driver logs, maintenance

logs, etc.



North America and Continental Europe dominate the market for IDP

solutions, largely driven by mature enterprises within BFSI

⚫ Within North America, the United States

has witnessed high adoption

⚫ The availability of IDP software products

with the ability to process documents in

multiple European languages has aided

adoption in Continental Europe

⚫ APAC has also witnessed moderate

adoption of IDP solutions

52%

21%

16%

7%2%

North America

Continental Europe

APAC

UK

LATAM (2%)MEA

2018

350-450100% =

IDP software market size by buyer geography






Industry-

specific

F&A Procurement HR Contact center Web-based/

e-commerce

Others

IDP solutions are largely deployed in industry-specific processes

within BFSI & healthcare and horizontal functions such as F&A

100% = 350-450

46% 29% 6% 4% 3% 2% 9%

18%

Banking

12%Insurance

Capital markets

Pharma

Energy & utilities

4%1%

<1%

IDP software market size by business function


10%Healthcare





Although large-sized buyers were the earliest adopters of IDP

solutions, mid-sized and small-sized buyers also recognize its

benefits and hold a major share of the overall pie

32%

35%

33%

IDP software market by buyer size1


Small-sized

buyers

Mid-sized buyers

Large-sized

buyers

100% = 350-450

⚫ A significant chunk of adoption among large-sized buyers is

driven by RPA partners and system integrators

⚫ Point solutions, that are typically focused on a specific

business function or industry, are increasingly being

adopted by mid-sized and small-sized buyers

1 Buyer size is defined as large (>US$5 billion in revenue), mid-sized (US$1-5 billion in revenue), and small (<US$1 billion in revenue)





IDP technology will evolve to include capabilities that make it easier

for the end-user to consume the solution

IDP product capability predictions for near future

More vertical-specific

packaged solutions

Availability of downloadable pre-trained models

and app store-based approach

Advanced image recognition

and processing capabilities

Processing unstructured content

such as speech and videos

Increased configurability

of platformsEnhanced integration with complementary

technology solutions including RPA, BPM etc.

Increased deployments on

public and private cloud



Barriers for IDP adoption

Various factors are acting as barriers in adoption and scaling of IDP solutions

Sophistication of IDP products

Time to start production

Difficulty in estimating the total benefits

ScalabilityPoor understanding of AI solutions

IDP vs. other solutions

Training set

Internal resistance



IDP technology vendor market is expected to post strong growth in the coming years

IDP solutions expected to get more sophisticated with technology

advancements

Emergence of new players, followed by consolidation in the long term

Outlook for 2019-2021

Increase in partnerships with RPA technology vendors, as well as

more reseller and implementation partnerships

Package-based solutions likely to become more prevalent than platform-

based solutions

Strong interest and increasing demand across geographies, industries, and

buyer size



™

®

Everest Group’s PEAK Matrix™ assessment provides a view

of the vendor landscape

Mark

et

Imp

act

(Measure

s im

pact cre

ate

d in the m

ark

et)

HighLeaders

Major Contenders

Aspirants

Low

Vision & capability

(Measures ability to deliver IDP products successfully)

HighLow

WorkFusion

ABBYY

Kofax

AntWorks

Parascript

Automation AnywhereInfrrd

HyperScience

EdgeVerve

Datamatics

Hyland

Extract Systems

Celaton

HCL Technologies

Ikarus

Rossum

LeadersMajor Contenders

Aspirants

1 PEAK Matrix specific to IDP software products using proprietary evaluation methodology

Everest Group Intelligent Document Processing (IDP) Products PEAK Matrix™ Assessment 20191



Contents







As enterprises mature in their automation journeys, they will seek access

to various, currently disparate capabilities; vendors and/or partners that

can align and bring together capabilities seamlessly stand to win

BPM

Analytics

Process mining



Contact information

Get in touch with Anil Vijayan to learn more.

[email protected]

@AnilVijayan11

www.everestgrp.com



Dallas (Headquarters)

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+44-207-129-1318

New York

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+1-646-805-4000

Toronto

[email protected]

+1-416-388-6765

®

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Documents

Everest Group Automation Today - State of the Market ...images.abbyy.com/Partner News/june19/Everest Group... · The RPA software market has seen accelerated growth over the last