Proving Automation ROI: 3 Ways to Show RPA Is Worth It
Developing ROI metrics for RPA is critical to creating an effective roadmap for implementation, building support, and validating assumptions. Quantifying the expected and actual returns on an investment in RPA can help companies make better decisions, optimize their solutions, and learn from any pitfalls. However, it is necessary for companies to understand what data to collect, which benchmarks are valuable, and how to best make use of the information they gather. Here are 3 different places to measure automation ROI to help you make the case that RPA is worth it at your organization.
The key metrics in determining your financial ROI are implementation costs and recurring costs associated both with the RPA tool and labor. Finding a solution that allows for immediate automation, as well as training services to enrich continued automation, could result in shorter time to value with a full-time RPA resource as opposed to consultancy resources.
To avoid locking in unfavorable recurring costs, organizations can choose to conduct proofs of concept prior to finalizing. This helps them find the provider that matches their precise requirements and can show that the solution will deliver significant benefits.
Subscription fees can be one of the largest costs associated with RPA. There are a wide range of pricing structures and companies should carefully examine vendor options in order to choose a solution that will deliver the greatest ROI. It sometimes is possible to pay on a price-per-bot basis or purchase an entire bot deployment. Many vendors also charge additional fees at regular intervals. By purchasing a perpetual license, companies can avoid these fees.
The primary reason that most companies implement RPA is to improve efficiency across the organization. The RPA implementation team should devise an efficiency calculation to compare human and robot productivity to showcase robotic efficiency and prove that the solution is saving costly man hours. The efficiency benefits of RPA are not meant to demoralize employees or prove that humans are less efficient, but rather highlight that human labor can focus on higher-value tasks that require more advanced cognitive abilities and not just speed through repetitive tasks and activities. This is one of the greatest benefits of RPA, as it allows companies to more effectively deploy their employees and innovate.
Customer Service ROI
Another major area that can increase the ROI of RPA solutions is customer experience. Although this may not provide immediate cost reduction, fast and accurate processing means improved quality and minimal error, which implies improvement in customer experience. Over time, this may improve the value of the brand and lead to increased sales. Establishing a baseline customer satisfaction level prior to implementation can help companies measure this impact.
Different parts of the business may respond differently to each type of ROI, which is important to think about when looking for buy-in for RPA. Whether it’s dollars and hours saved or customers satisfied and retained, ROI is essential to consider as you choose an RPA tool to implement.
Download the guide to learn how to calculate and evaluate ROI for your RPA project.