Nowadays, every business needs to reach seamless Business Process Automation and offer the best possible customer experience. In 2021, the old-school way of going by your business won’t cut it. The introduction of RPA services (Robotic Process Automation) is crucial in simplifying your business processes. Its benefits are difficult to overstate.
Since it is non-disruptive, the implementation of RPA is not as complex as it appears to be. However, calculating the Return On Investment for RPA automation isn’t straightforward. You have to consider things that you won’t even realize are countable. Calculating the costs and gains for RPA services can put you in a pickle at times. But fret not.
HOW TO CALCULATE ROI FOR YOUR RPA PROJECT?
1. DETERMINE YOUR AUTOMATION GOALS
Before you start automating business processes with RPA services, you need to first step back and figure out what goals you want to achieve and where you want to be when you are done. Hence, find the answers to some of these questions first.
• What are your business goals? • Do these goals align with your overall business strategy? • What processes can you automate? • What processes should you automate? • What are the results that you are expecting?
2. FIGURE OUT THE SCOPE OF YOUR AUTOMATION TASKS
Let’s take an example to explain this point. Say you want to improve your customer experience. You can do this by improving the team’s overall efficiency. The best way to achieve that? That’s right. Automation! By having RPA services take over customer service by automating most of the process, you are freeing up your employees of mundane jobs and spending more time with the customers when they need human intervention.
3. DETERMINE SUCCESS METRICS AND KPIS
Now that the scope of the automation process is set, time to figure out what you expect at the end of a successful RPA automation implementation. Next, you must make these goals tangible by setting up appropriate success metrics and KPIs (Key Performance Indicators). According to studies, it has been found out that there are a minimum of four quantitative outcomes of a successful RPA implementation. Here are a few examples.
4. CALCULATE THE VALUE OF TIME GAINS (VTG)
One prevalent error in the calculation of ROI is mistaking the difference between the cost of processes executed by employees and the costs of processes executed by bots for ROI. It isn’t ROI. It is simply a component on which the calculation of overall ROI depends.
5. CALCULATE THE ROI FOR RPA
Value of process acceleration (VOPA) refers to how much RPA will speed up the task that is now being automated. For example, if a process that initially took ten days is now being completed within three days, it can usher in profits. Value of error reduction (VOER) refers to the amount of money saved by industries by eliminating human error and all costs to fix those errors. By using these two new factors, you can easily calculate the ROI for your RPA services.
BOTTOM LINE
Calculating ROI for RPA automation can be a tough nut to crack, but it isn’t an impossible task. Follow all the steps mentioned in the above blog, and you can get by it easily. Just make sure that you don’t skip a single step, and you are all set.
Source: https://www.zenesys.com/blog/determining-roi-for-your-rpa-project