Analytics as a Service (AaaS) is a service that vendors offer to companies looking to implement large-scale automation projects. The service is also aimed at companies looking to scale automation across their organization.
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AaaS is about adaptive automated services offered by technology companies to various industry verticals. It enablesautomate workflow andincrease productivity by a substantial margin.
There are two types of Aaas: knowledge-based automation and rule-based automation. The former is largely powered by artificial intelligence (AI). Rule-based automation is much more defined by si-then rules.
Compared to SaaS (Software as a Service), AaaS is more holistic. The service is effectively designed to help companies evolve automation in their organization.
The RPP (Robotic process automation) and theAI and thecognitive automation make up the AaaS. The banking, financial services and insurance sector (BFSI) is the sector with the largest market share global AaaS market.
Examples of AaaS applications or use cases
Here are some examples of applications or use cases of AaaS in the banking industry. AaaS can be used in the banking industry to shorten processing times Automated Clearing House (ACH).
This service is also used to improve ACH exception handling and reduce ACH-related errors. It can also be used to simplify the processing of mortgages or loans. AaaS also saves bank employees time for more productive work.
AaaS can be implemented to make the banking experience faster and error-free for customers. In addition, banks can rely on AaaS providers to support their contingency or disaster recovery plans.
The McKinsey Global Institute found that 40% of the activities in the financial services industry can be fully automated. Cash disbursements, general operations and revenue management are excellent candidates for full automation.
Implementing Automation as a Service
From the way vendors describe their offerings, it appears that the AaaS implementation is divided into three key stages. There is use case identification, consulting, building and support.
In the first phase, automation candidates are selected from a pool of common use cases submitted by the vendor and unique use cases submitted by the customer. In the next, automation solutions are planned, analyzed, prioritized, and integrated into sprints.
Finally, in the last phase, the robots or automated solutions are developed, tested, deployed and maintained. These three stages are further divided into six sub-stages : entry for engagement, automation program office, automation robot factory, test, production, support and maintenance.
AaaS is a fully managed service that starts with initial scoping and ends with ongoing optimization. This is deployed either on-premises or via a private or public cloud. On-premises deployment accounts for 66.9% of the global AaaS market.
Advantages and disadvantages of automation as a service
There are several benefits for businesses when using AaaS. This service
- Improves speed, agility and service delivery.
- Also reduces manual processing and IT expenses
- Improves productivity in all departments.
- Also allows for faster troubleshooting.
And it generates tangible results. Employees’ ability to focus on customer results, for example, increases by 40%. Cycle or processing times are reduced by 40%. And processing costs are reduced by 30% to 80%.
AaaS requires no large upfront payment. The service is provided on a subscription or more affordable pay-per-use basis. It is scalable and costs vary depending on the level of automation required. In addition, users do not need to make separate payments for software upgrades.
Historically, banks have encountered difficulties in implementing enterprise-level or end-to-end automation. Some banks have found it difficult to scale their automation projects. This is due to lack of internal resources among other reasons.
In which case, AaaS providers present themselves as the best solution. They have the training, experience and expertise to help these banks implement automation at the enterprise level.
Constant change in the automation technology landscape is one of the main, but not the only rare disadvantages of AaaS. The same applies to the lack of technical manpower. There are also the risks of redundancy, which can however be mitigated by retraining.
A market fueled by the rising demand for virtual labor
The Automation as a Service (AaaS) Market is expected to reach $10.914 billion by 2023. The growth of the market can be attributed to the increasing demand for virtual workforce. Advances in artificial intelligence (AI) and cognitive computing are also participating in this development.
In addition, increasing demand for business process automation and decreasing cost of automation software and services are increasing the demand for automation as a service platform.
The market is divided into solutions and services. Solution dominated the automation as a service market in 2017. Globally, theNorth America brought the largest share of the market with 43.3% of the solutions that same year. This is due to a greater concentration of information technology (IT) industries.
The United States among the largest markets
The United States are benefiting from the presence of major IT companies Apple, Amazon, Alphabet, Microsoft, IBM, Intel and HP. This allows the country to generate the highest revenues in the computer industry worldwide.
However, theAsia-Pacific (APAC) is expected to register the fastest growth rate Of in the solutions market. During the period 2018-2023, this region will register a CAGR of 26.7%.
This is due to the increasing digitization in APAC countries including China, India, Australia, and South Korea. The increase in urbanization explains this digitalization.
The banking, financial services, and insurance (BFSI) category recorded the highest share of the automation as a service market in 2017. North America held the highest share of over 40% in the BFSI category during the same year.
This is thanks to a growing demand for automation in processes like customer service, compliance, invoice scanning. The same is true for credit card approvals, mortgage processing, fraud detection, know your customer (KYC) processing, general ledger updating, reporting, and the account closing process.
AaaS market: the rapid growth of APAC
APAC expected to become the fastest growing AaaS market in the coming years. This market is expected to to generate $2.444 billion by 2023. Developing countries such as India and China are the major contributors to the growth of the APAC market. The development of AaaS is supported by the growth of BFSI and the manufacturing sector in these countries.
Four out of five of the world’s largest banks are based in China. In addition, the growing demand for consumer products is forcing manufacturers to adopt efficient and cost-effective automated manufacturing processes. This could provide lucrative automation opportunities for AaaS providers.
AaaS and Data Centers
AaaS will also make it easier to gather, organize, collect and deliver data. This is particularly important in the age of cloud services. The increased dependence on various external platforms can indeed make it more difficult to organize data collection.
On the other hand, through automation, IT departments can build an “Orchestrated Data Center”. Data centers now extend far beyond the company’s on-site servers and equipment.
A modern data center will also include cloud and external services. With automation as a service, an agile IT department can Create the infrastructure needed to ensure security. This also ensures the consistency and the compliance while facilitating access and exploitation of data.
Companies can also use AaaS to automate end-to-end IT processes, including the :
- Automating common user requests, such as setting up a group file server
- Infrastructure as code via the cloud.
- Deploying self-recovery scripts to resolve problems in servers or applications.
- Automatic deployment of low-risk changes in the production environment.
By using AaaS, organizations can save valuable resources (i.e. time and money). These are usually spent on deploying and managing the technology. This allows the focus to be on the core mission and the delivery of products and services. The ones that customers want and need.