RPA vs iPaaS: 2 Modern Solutions Reshaping the Workplace in '24

With the constant evolvement of the digital transformation landscape, there are always tools for streamlining more business processes. Two of the most widely-adopted solutions are:

• Robotic process automation (RPA) bots for automating repetitive, error prone processes
• iPaaS tools for connecting disparate applications with each other for efficient data synchronization, management, and usage

New adopters should know each tool’s functionality and specifications before investing in it. That’s because a poor due-diligence can have the following adverse effects:

1. Sunk implementation costs: Deployment is resource intensive. An unsuitable tool will lead to money wasted on implementation.
2. Sunk training costs: Using new tools requires training. Money spent on training your teams to use a tool that’s on the chopping block is moot.
3. Productivity loss: Unsuitable tools bring suboptimal results, especially if employees struggle to use it or if it disrupts their established workflows.
4. Maintenance and support costs: Ongoing maintenance and support costs on an ill-fitting tool will drain your resources.
5. Replacement costs: If you end up replacing your tool eventually, you will bear its sunk cost, as well as another round of procurement, implementation, training, and other associated costs.

In this article, we will discuss in-depth the functionalities of RPA vs iPaaS solutions and how they can be used in tandem with each other, even though they serve different purposes.

What is RPA (robotic process automation)?

RPA is a technology that uses software bots to automate business processes that are rule-based and repetitive. Although the range of RPA use cases is wide, their functionality depth is shallow, often restricted to UI automation.

Nevertheless, RPA’s flexibility to cover both back-office and front-office tasks have resulted in it becoming an enterprise-level opportunity, with 64% of respondents in a Deloitte survey having started on their RPA journey.

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What is iPaaS (integration platform as a service)?

Integration Platform as a Service (iPaaS) is a cloud-based platform for application integration. They connect applications, data sources, and APIs for:

• Coordinating cross-functional tasks
• Creating seamless workflows even between legacy systems
• Bringing data from disparate systems and services into one singular hub

As more companies use more SaaS products, there’s increased need for integrations platforms for connecting applications. The demand is evident by the growth¹ in global iPaaS market size, from $3.7B in 2021 to $13.9B in 2026.

What are the points of confusion between RPA and iPaaS?

RPA and iPaaS can be confused with each other because their functionalities can overlap.

Besides automation, RPA bots have some integration capabilities. That’s because they interact with applications at the UI level, mimicking human actions, some of which could include transferring data between systems. For example, if an two systems don’t have API integrations, an RPA bot can be programmed to manually pull data between systems.

On the other hand, integration platforms do some sort of automation. They can create automated workflows that trigger based on certain events or at specified times, providing data flows between apps. For instance, if a customer places a new order on the e-commerce system, the integration tool:

• Transmits the order info to a fulfillment system
• Updates the inventory management systems
• Sends an invoice to the customer via an accounting system

What’s the difference between RPA and iPaaS?

The primary difference between RPA and iPaaS lies in their approach to automation of business processes and application integration:

• RPA is task-centric
• Locked to the user interface
• Mirrors human actions to complete tasks and automate processes quickly and without changes to existing systems
  • However, any changes to the user interface can break the RPA scripts and require modifications 

In comparison, integration platforms and tangent tools like an enterprise service bus (ESB), are: 

• Data-centric 
• Behind the scenes, dealing with data layers to synchronize information and functionality across different systems and databases
• More versatile, able to handle custom integrations, complex integrations, and streamline data flows between sources

In terms of implementation, RPA implementation can be easier. No-code RPA tools have simplified setting them up. However, iPaaS tools need a more technical setup, involving API-based-integration, and data flows mapping.

For more on integration automation

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External Links

• 1. “iPaaS Stats.” MarketsandMarkets. March 3, 2023. Retrieved on June 19, 2023.