Nuances & Importance of ROI in RPA Implementation
In the present circumstances, every business needs to reach seamless Business Process Automation. In addition, they are destined to offer the best possible customer experience. Hence, the introduction of RPA services (Robotic Process Automation). Implementation of RPA is crucial in simplifying your business processes. Moreover, Its benefits are difficult to overstate.
As a matter of fact, the implementation of RPA is not as complex as it appears to be. On the contrary, calculating the Return On Investment for RPA automation isn’t a plain-sailing.
Estimating return on investment (ROI) for Robotic Process Automation has always been a brawl. The main reason behind it is the ‘costs and gains are not straight-arrow’. In addition, you have to account for things that don’t even look accountable.
Importance of ROI
Providing the ROI will be in a comfortable level, where in you can justify it. The same is applicable for RPA, where displaying great ROI in different business areas can have a huge impact.
Nevertheless, it is vital that any project you undertake in a business should have a better ROI in comparison to the other competing ideas. Importance of ROI can be felt in the critical arena of businesses, in particular.
How to Measure ROI
If you want to measure ROI in RPA in an effective way, you need to do it right from the beginning of an RPA project.
Here are just a few metrics that a business like yours might put on track to visualize how valuable its RPA is.
1. Employee Satisfaction
The processes that RPA automates are the ones which are yearned by the employees. Taking the busywork completely out of their days makes for happier and more productive employees. Since this is a form of soft ROI, it’s highly trickier to measure. Nevertheless, you may notice it in the variations like lower employee turnover rates, employee satisfaction surveys, productivity, and much more.
2. Customer Service Availability & Quality
The modern customers doesn’t like to wait for service and it is the happening trend. It has inspired many organizations to come up with RPA-powered service 24/7/365, similar to chat bots. This is the segment where service availability comes into play. It is also phenomenal to ruminate the value of improved customer service availability.
3. Enhanced Business Agility
RPA can jack up technological flexibility and can save appreciable amount of time for human employees. As a result, any upheaval to business agility is regarded as a critical success measurement to track.
4. Full Time Equivalent
Full Time Equivalent (FTE) is the number of working hours that a single employee fulfills in a month, year, or other particularized time period. When a manual process moves into automation, the question will be: ‘how much time are you saving by taking humans out of the equation?’ Nonetheless the process would have required hiring temporary workers to get the job done. But the cost vanishes when you give the nod for robots aboard instead.
5. Process Lead Time
‘Process Lead Time’ is the time mirroring the start of the work through its finish for any given process. Many processes include some form of waiting, which is almost time gone for a toss. When you optimize a process with RPA, however, you can scamper these inefficiencies.
6. Hours Back to Business
You would have probably heard: “RPA is going to take away all our jobs?” This is a myth, undeniably. Processes automated by RPA rarely lay off their former employee attendees. It can be duly said that- RPA takes the robot out of the human subsequently.
7. Business Continuity Impact
RPA has become familiar for its efficacy encircling business continuity and disaster recovery, and for a good reason. In general, organizations that mow down their dependency on human employees can witness a reduced business continuity risk. You should ensure the calculation of the cost of potential downtime an incident could cause, in particular.
8. RPA Savings
When there are minimal errors to resolve, there’s obviously more time for productivity elsewhere. The time which was once devoted to preventing, identifying, and addressing errors are termed as quality costs.
Why ROI Counts in RPA
ROI, or “Return on Investment,” is a project’s expected return in terms of percentage. ROI is deemed as a critical tool for measuring the impact of your RPA investment. Nevertheless to say, it is with Real Data. With a complete understanding of RPA you can:
Defend the initial investment to business leaders with the data-driven evidence
Forge strategic decisions about the technology while planning
Plan and fabricate support for subsequent investments
Surge up and scale your RPA solutions more effectively
On the whole, it’s essential to understand that ROI isn’t just a final step to cross-check at the end of your RPA journey. You want a successful RPA implementation that delivers continual returns over time, isn’t it? To make this happen, you must concoct ROI with prime focus. It should happen during planning, implementation, and governance subsequently.
3 Phases of ROI for RPA
1. Pre-Implementation
This is the planning phase undeniably. Establish a baseline that grabs where your processes are now. It will be beneficial when you yearn to measure ROI down the road.
2. Implementation
As soon as your RPA implementation is off the ground running, start measuring and examining data relating to your automated processes. Such data may compulsorily include various changes. They are: rate of errors, time saved, customer satisfaction among others depending on the processes in question.
3. Ongoing
Know that even after your RPA implementation period has ended, there’s always room for improvement. After all, RPA should not be considered as an one-time investment.
Wrap-up:
RPA will definitely speed up the task that is now being automated. For instance, if a process that initially took around 10 days is now being completed within three days, it can definitely usher in profits. Calculating ROI for RPA automation can initially be a tough nut to crack. But, it isn’t an impossible task. By keenly following all the steps mentioned above you can get by it easily. Still, if you need any clarification you can always reach us @ www.rannsolve.com