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Robotic
Skills and competencies for digital process
transformation – a critical automation
Abstract
Purpose – Digital transformation of organizations has major implications for required skills and competencies
of the workforce, both as a prerequisite for implementation, and, as a consequence of the transformation. The
purpose of this study is to analyze required skills and competencies for digital transformation using the context of
robotic process automation (RPA) as an example.
Design/methodology/approach – This study is based on an explorative, thematic coding analysis of
119 job advertisements related to RPA. The data was collected from major online job platforms, qualitatively
coded and subsequently analyzed quantitatively.
Findings – The research highlights the general importance of specific skills and competencies for digital
transformation and shows a gap between available skills and required skills. Moreover, it is concluded that
reskilling the existing workforce might be difficult. Many emerging positions can be found in the consulting
sector, which raises questions about the permanent vs temporary nature of the requirements, as well as the
difficulty of acquiring the required knowledge.
Originality/value – This paper contributes to knowledge by providing new empirical findings and a novel
perspective to the ongoing discussion of digital skills, employment effects and reskilling demands of the
existing workforce owing to recent technological developments and automation in the overall context of
digital transformation.
Keywords Knowledge, Workforce, Digital transformation, Digital skills, Digital divide, RPA
Paper type Research paper
Introduction
Digital transformation has initiated a radical change of societies and the business world
(George, 2020). Virtually all business sectors and corporate functions have been affected by
its disruptive nature (Matzler et al., 2018), and we can observe a profound change from
traditional business models to digital or hybrid ones. Moreover, we witnessed that Big Tech
companies such as Amazon, Alphabet, Facebook and so forth have obtained an unprecedented
influence and power. Digital transformation will continue to change organizations, processes
and technologies within a business firm context. Skills and competencies of employees can be
considered as a prerequisite for a successful digital transformation (Peter et al., 2020; Vial, 2019)
and the resistance of employees might be considered as a major barrier for the implementation
of digital technologies (Vial, 2019). Based on a comprehensive review of the literature, Nadkarni International Journal of
Organizational Analysis
and Prügl (2020) argue that the transformation of digital skills of employees has been largely © Emerald Publishing Limited
1934-8835
neglected by current research. DOI 10.1108/IJOA-04-2021-2707
IJOA Morakanyane et al. (2017) indicate that especially operational processes are affected by
digital transformation (Gimpel et al., 2018) and robotic process automation (RPA), as a key
technology with regard to administrative processes, plays a major role in these
developments (Anagnoste, 2017; Deloitte, 2018; Osmundsen et al., 2019; RolandBerger, 2018).
Given the above identified neglection of skills and competencies in research, this paper uses
RPA as a context to address this issue.
The overall research objective of this study is to analyze required skills and competencies
for digital transformation, using the context of RPA as an example. To address this
objective, a literature review as well as an empirical study using qualitative data from job
advertisements is conducted. This paper contributes to knowledge by providing empirical
findings and adding a novel perspective to the ongoing discussion of digital skills, employment
effects and reskilling demands of the existing workforce initiated by recent technological
developments with regard to RPA in the overall context of digital transformation.
The paper is structured as follows. The following literature review section discusses the
theoretical lens applied in this research and provides contextual background on the
phenomena of digital transformation and RPA. Moreover, the authors proceed with a
concise discussion of prior seminal work regarding required knowledge and competencies in
the context of digital transformation. Afterwards, the methodological approach of this
research is discussed. Finally, the authors present the results of the empirical study and
provide an in-depth discussion and reflection of the findings in the context of the literature.
The paper ends with a conclusion synthesizing the main findings and implications as well
as discussing limitations related to this research.
Literature review
Theoretical basis
Owing to the recent enormous technological change, it can be observed that firms experience
considerable pressure to adopt new digital technologies as well as to transform their
business models (Kohli and Melville, 2019; Kraus et al., 2019). The capability of a firm to
respond to these developments is crucial for long-term survival, and knowledge has been
identified as a key issue within this transformation (Lucas and Goh, 2009; Schneider, 2018;
Syed et al., 2020a, 2020b).
The role of knowledge, and also resources more generally, have been intensively
discussed by business and management scholars for decades (Barney, 1991; Bollinger and
Smith, 2001; Caputo et al., 2019; Ferreira et al., 2018; Grant, 1996, 1997; Kogut and Zander,
1992; Sveiby, 2001; Teece et al., 1997; Wernerfelt, 1995, 1984). It has been Penrose (2009), in
her seminal work on the growth of the firm, who exemplified the importance of skills and
knowledge of employees and clarifies that “the firm suffers a loss akin to a capital loss when
such employees leave the firm at the height of their abilities” (p. 22).
The importance of knowledge is also reflected in the theory of the knowledge-based view
(KBV) of the firm which can be considered as a core theoretical lens in management research
(Caputo et al., 2019; Ferreira et al., 2018; Kengatharan, 2019). KBV sees knowledge as a
central resource for value creation which is stimulated by the interaction between people
and the exchange of ideas, feedback and so forth (Sveiby, 2001). The discussion of Low and
Ho (2016) shows that value creation relies on such internal capabilities to create knowledge
but simultaneously also on the ability to manage external relationships with regard to
knowledge transfer. Some scholars argue that based on the resource-based view (RBV) of
the firm (Barney, 1991; Wernerfelt, 1984, 1995), KBV has been developed (Grant, 1996, 1997;
Kogut and Zander, 1992). However, the discussion of Eisenhardt and Santos (2006), for
instance, exemplifies that KBV can also be seen as an extension of organizational learning,
which would emphasize that KBV is not just a mere advancement of RBV. Apart from these Robotic
theoretical discussions, it indeed can be argued that knowledge is a strategic resource process
(Ferreira et al., 2018), and it is beyond doubt that the majority of scholars underline the
importance of knowledge and skills for the competitive situation of a firm (Bollinger and
automation
Smith, 2001; Caputo et al., 2019; Kogut and Zander, 1992; Spender and Grant, 1996) and
especially for digital transformation as indicated above.
Grant (1996) has done major conceptual groundwork developing a KBV as a theory of the
firm within the field of management studies. He synthetized the very core of knowledge
within a management context and identified the following characteristics of knowledge:
Transferability: concerns the transfer and sharing of knowledge, especially within
the firm but also between firms;
Capacity for aggregation: refers to the additivity of individual parts of knowledge
and hence also the capacity to absorb knowledge;
Appropriability: relates to the usage and application of knowledge and the return an
owner may receive owing to the value that is created by means of this resource;
Specialization in knowledge acquisition: deals with the efficiency in the knowledge
generation process and how a specialization in particular professional areas relates
to an efficient creation of knowledge; and
Knowledge creation of production: exemplifies the role of knowledge within the
production process and the transformation of input (critical is knowledge) to output.
Digital transformation
Digital transformation is probably one of the biggest challenges for traditional companies,
affecting all business functions, procedures, processes, operations, services and products
(Bouncken et al., 2019; Dehnert, 2020). According to Verhoef et al. (2021), digital
transformation comprises several aspects and facets, which can be illustrated as follows:
External drivers of digital transformation: digital technologies, digital competition
and digital customer behavior;
IJOA Phases of digital transformation: digitization, digitalization and digital transformation;
and
Strategic imperatives of digital transformation: digital resources, organizational
structure, growth strategy, metrics and goals.
Digitization can be understood as some kind of technical process which is concerned with
converting analog signals to digital ones, whereas digitalization can be seen in the context of
applying digital techniques to a broader social and institutional surrounding in order to
develop the capabilities to use digital technologies (Kindermann et al., 2020; Tilson et al.,
2010). The impact and consequence of digital transformation is even more decisive.
According to Hanelt et al. (2020, p. 2), digital transformation can be defined “as organizational
change that is triggered and shaped by the widespread diffusion of digital technologies.”
Morakanyane et al. (2017, p. 437) define digital transformation as “an evolutionary process
that leverages digital capabilities and technologies to enable business models, operational
processes and customer experiences to create value.” There can be found various definitions in
the literature.
A survey study conducted by Peter et al. (2020) covering 1,854 Swiss firms identified
seven strategic action fields covering the areas of customers, infrastructure, technologies,
business models, marketing, processes and finally leadership and culture. It became evident
that digital transformation requires a fundamental change of organizations and will affect
almost all areas of a company, both internally and externally. Given the extent and the
complexity of digital transformation the ability to create, coordinate and harness knowledge
can be seen as an essential challenge for firms. At the very core of these changes are digital
technologies. In the literature, as well as, in the media more generally, various digital trends
and technologies are intensively discussed. Discussions include artificial intelligence (AI),
blockchain, cloud and mobile computing and also RPA, which seems to have an enormous
potential to automate a variety of administrative business processes and activities and
experiences an increased application in practice (Lacity and Willcocks, 2016), as will be
discussed in the following section.
Results
Qualification
RPA involves both business and IT-related activities. Therefore, it is not surprising that
companies are looking for graduates from different academic disciplines as shown in the
Table 2 below. Interestingly, it can also be observed that most job advertisements mention
several suitable disciplines, i.e. for the companies, it seems to be more important that the
candidates have a degree at all than having it in a particular discipline. The most popular
qualification, however, is an IT-related background which is mentioned in 71.4% of the job
advertisements, followed by a business or economic degree (63.9%). Some of the companies
(7.6%) do not specify the educational background and focus on required skills instead.
Software knowledge
Apart from programming expertise, many companies (65.6%) require expertise in particular
software, including RPA software, and other software. In terms of RPA software, 43
companies request skills in one or more particular tools. Among these tools, Blue Prism is
the most mentioned tool (28.6% of companies), followed by UiPath (25.2%) and automation
anywhere (18.5%).
The data show that many of the 43 companies in the sample mention more than one tool.
Although in many companies only one type of RPA software might be in operation, the
results are plausible owing to the high number of consulting companies in the sample. The
reason is that consulting companies do not use the candidates for internal purposes, but for
projects at different clients where also different RPA tools might be used. Indeed, a cross-
tabulation and chi-squared test (p < 0.1) shows that consulting firms are more likely to
mention several tools than only one tool, if they request specific tools at all (Table 4).
Concerning other software, 26.9% of the companies in the sample require their
candidates to have skills in one or more Microsoft Office software, in SAP ERP (19.3%), or
other particular software (10.1%) such as Tableau, PowerBI or Qlik.
None 33 43
Table 4. One 10 4
RPA Software Several 11 18
Discussion
The overall findings of this research highlight the importance of skills and competencies in
the realm of digital transformation and, as indicated by Nadkarni and Prügl (2020), these
have only been addressed marginally in current research, while there indeed seems to be
observable an increased interest in the phenomena related to digital skills and competencies.
Given the impact and pace of change owing to the developments in the context of digital
transformation, it can be argued that the development and management of digital skills and
competencies of employees should be a key priority for companies and likewise for scholarly
research.
While, in tendency, the literature applies a rather holistic view when addressing required
digital knowledge (Faina and Almeida, 2020; Sousa and Rocha, 2019), this research, in the
specific context of RPA, provides a more in-depth and detailed view on the necessary skills
and competencies of employees in this domain. Given the heterogeneity and variety of
digital technologies (e.g. AI vs. cloud computing vs. RPA), it can be assumed that a
considerably different set of competencies is required to be able to cope with the challenges
imposed on the firm by these technologies. Thus, openness toward change, creativity,
communication skills and so forth (Faina and Almeida, 2020; van Laar et al., 2018) will
remain key competencies in all spheres of digital transformation. This can also be confirmed
by this research, as competencies like communication skills, team orientation but also more
generally work experience and leadership skills are frequently referred to in the job
advertisements. Moreover, the present research sheds light on a number of specific
competencies required in the fields of programming languages (e.g. Visual Basic, C/Cþþ,
Java, Python) and experience in specific RPA software (such as Blue Prism, UiPath).
Consulting industry
Pearson’s r p-value
Table 7.
Mobility, willingness to travel 0.431 <0.001 Correlation between
Flexibility, ability to adapt 0.259 0.004 soft skills and
Self-reliance 0.330 <0.001 consulting industry
IJOA Hence, the present study confirms the general direction of prior studies but provides more
detailed results on specific skills and competencies for future employment in the field of
RPA, which indeed is a key contribution of this research. From a KBV perspective, the
identified need of specific competencies can be seen in the light of knowledge aggregation
and accumulation on the one side. On the other side, the empirical findings indicate that
firms do currently not seem to possess the appropriate level of knowledge in the context of
RPA to implement and develop the technology further (Grant, 1996).
While automation and robotics have been intensively discussed in the context of shop
floor and blue-collar settings, it is a relatively new phenomenon that administrative and
back-office activities, and hence typical white-collar settings, face an increasing pressure of
automation by means of the specific functionalities of RPA. Based on both the industries in
the sample and the skills mentioned in the job advertisement, it can be said that the financial
services sector and the finance and accounting function seem to be most severely affected by
the changes. This does not only mean that skills in this area are relevant for prospective
RPA experts but also that people working in these areas today might be predominately
affected by automation and reskilling requirements. This is in line with prior research that,
in general, sees a huge impact of digital transformation on the finance function (Greulich
and Riepolt, 2018; Langmann, 2019; Nuhn et al., 2018).
Given the results of our empirical study, we can observe a severe need for skills and
competencies with regard to the implementation and development of RPA. After having
analyzed the collected job advertisements, it can be assumed that current competencies, which
mainly have a strong content-related form, when, for instance, looking at an accounting clerk
or a payroll administrator, are insufficient. Hence, RPA and other automation technologies
imply a major reskilling demand for the existing workforce in many organizations. However,
considering the novel results of this research, the general idea and argument in many
discussions, that individual employees that are affected by automation can be retrained to a
position in which they supervise and operate “robots” has to be seen extremely critical. It is
acknowledged that a certain percentage of the existing workforce might engage in tasks such
as exception handling in an RPA ecosystem. However, most of the jobs identified in this study
are in the consulting sector and thus related to the implementation of RPA, including both
business analysis and technical implementation. A person that has been working as an
accounting clerk for most of their lifetime will hardly be able to master the challenges of
learning programming languages.
Grant (1997) has distinguished between explicit and tacit knowledge and tacit knowledge
very much relies on experience, intuitive knowledge and so forth and is only hardly
transferable, as such knowledge is typically obtained in various different projects. Given,
the complexity of digital transformation projects, also in the context of RPA, it is not
surprising that besides a focus on IT skills and competencies, also skills and competencies
in various sectors and functional areas as well as in business process management is
required and many of the competencies in this context have to be considered as rather tacit
ones. An explanation for this might be that in such a complex and changing environment
the aggregation of knowledge and specialization in knowledge acquisition (Grant, 1996) is a
time-intensive task.
With 55% of job advertisements in the sample, the consulting sector seems to offer most
job opportunities within the field of RPA. This is not surprising because consulting firms
often drive the adoption of new technologies in different industries. The predominance of
consulting-related job advertisements can also be seen as another indication of the tacit
nature of knowledge required for digital transformation. As opposed to other companies
where digital transformation projects are one-time endeavors, consulting firms are able to
acquire skills and competencies and continuously train employees in many consecutive Robotic
transformation projects at different client companies. Especially, with regard to the process
implementation of RPA software bots, one can even critically pose the question whether and
how long specific competencies in this context are required internally in a company and
automation
whether a set of different competencies is required for the operational side of RPA. The
ability to make us of external sources of knowledge and relationships with regard to digital
transformation might hence be important issue for the vast majority of firms (Low and Ho,
2016). Questions related to this and important for further research might be:
Can digital transformation related projects be seen as primarily temporary projects
and after implementation certain skills and competencies are no longer required?
Does digital transformation in general lead to more outsourcing when considering the
diversity of various digital technologies and the specific knowledge related to these?
In terms of overall employment effects, this also raises the question of whether the jobs will
be permanent or only be limited for the period of the main wave of the introduction of RPA.
Finally, the results of this study emphasize the interdisciplinary nature of RPA,
spanning, for example, accounting and IT. This might also lead to a further hybridization of
employees’ roles, which has already been observed in the context of enterprise resource
planning systems (Lois et al., 2020).
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Corresponding author
Dennis Schlegel can be contacted at: dennis.schlegel@reutlingen-university.de
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