When strategically implemented, Robotic Process Automation (RPA) can yield substantial returns on investment. According to Automation Anywhere's latest Now & Next report, businesses typically achieve an average ROI of 250%, recouping their initial investment within six to nine months after RPA deployment. Looking at the higher side, this ROI percentage can go up to 380%!
These figures underscore the significant business value that RPA technology offers. RPA refers to the deployment of software robots, or "bots," to perform repetitive, rule-based tasks traditionally handled by human workers. These bots eliminate tasks that often encompass time-consuming and error prone processes.
Robotic Process Automation (RPA) for process optimization
Robotic Process Automation (RPA) assumes responsibility for the repetitive tasks that tend to consume a substantial amount of time when handled by human team members. These tasks typically revolve around clerical and data management functions, which play a pivotal role in the day-to-day operations of a business. Errors in these tasks can have potentially costly ramifications. Here are 5 things everyone should know about RPA.
Robotic Process Automation (RPA) has revolutionized the way businesses operate, enabling them to streamline their operations, reduce human error, and enhance efficiency. However, one of the key questions that often arises is, "What is the return on investment (ROI) for RPA implementation?" In this blog, we'll delve into the essential aspects of calculating the ROI for RPA efforts and how companies can do it effectively.
Here are the key steps that you need to follow to calculate ROI on your RPA efforts:
Step 1: Identify your automation goals
Before calculating ROI, it's essential to determine your specific automation objectives. Ask yourself what you aim to achieve with RPA and be as specific as you can be. Are you looking to reduce manual data entry tasks, improve data accuracy, enhance customer service, or expedite processes? Setting clear and measurable goals will provide a foundation for your ROI calculation.
Step 2: Calculate implementation costs
To determine ROI, you must first calculate the costs associated with implementing RPA to ensure you are keeping an account of everything. These costs can include:
a. Licensing and software costs: Consider the cost of RPA software licenses, which vary based on the vendor and the number of bots you need.
b. Hardware costs: If you need to invest in additional servers or computing power, account for these expenses.
c. Training costs: Training your employees and developing in-house expertise for RPA tools should also be included in your cost calculations.
d. Implementation services: If you're outsourcing the development and deployment of RPA solutions, factor in the costs of professional services.
e. Maintenance and support: Ongoing maintenance, software updates, and support expenses should be considered.
Step 3: Estimate savings and benefits
Once you've determined the implementation costs, identify the areas where RPA will generate savings and benefits. This has to be in line with your goals, so it’s a good idea to start by tracking how RPA is making a difference to your set goals.
a. Labor cost savings: Calculate the reduction in labor hours required for repetitive, rule-based tasks that RPA will automate. Remember, implementing RPA can take some time before it starts showing results.
b. Error reduction: Quantify the cost savings associated with the reduction in errors and their consequences (e.g., rework, customer complaints, fines). These reports might take some digging and would require inputs from your team where the automation was implemented. Do remember to keep a uniform tracker to take inputs from everyone involved.
c. Increased productivity: Estimate the increase in productivity due to faster process execution and round-the-clock automation.
d. Improved customer satisfaction: If RPA enhances customer service, assess the potential for increased customer loyalty and sales. You can track these through survey and feedback forms.
e. Compliance and risk mitigation: Account for potential savings in terms of reduced compliance violations or risks.
Step 4: Assign monetary values
To calculate ROI, you'll need to assign monetary values to the savings and benefits identified in step 3. These values will depend on various factors, such as labor rates, error costs, and customer acquisition or retention metrics. Ensure that your estimations are as accurate as possible to create a reliable ROI calculation.
Step 5: Calculate ROI on your RPA efforts
The ROI formula is pretty straightforward:
ROI = (Net Benefits / Total Costs) x 100
Where: Net Benefits = Total Savings + Total Benefits - Total Costs
Using this formula, you can calculate the ROI of your RPA efforts.
Step 6: Monitor, iterate and expand
ROI calculations shouldn't be a one-time exercise. Continuously monitor the performance of your RPA systems, and regularly update your calculations. This will allow you to track ROI over time and make adjustments as needed to maximize the benefits of your automation efforts. Keep an eye on your processes and understand if there are any bottlenecks.
Through strategic planning, effective implementation, and consistent maintenance, you can optimize the tangible influence that Robotic Process Automation (RPA) has on your company. Make sure to stay informed about every single enhancement - each success stemming from your RPA investment is worth acknowledging, regardless of its scale!
Robotic Process Automation efforts are essential for businesses looking to make informed decisions about technology investments. Exela’s RPA solution utilizes our cutting-edge EON software and leverages intelligent automation to optimize your business processes, leading to remarkable gains in productivity and operational efficiency.
By automating routine, rule-driven tasks, Exela’s RPA solution empowers your team to prioritize strategic, value-added activities, fostering innovation. With the flexibility to adapt as your business expands, our RPA solution can be easily and seamlessly adjusted to align with your requirements. Want to learn more about Exela’s RPA solution and how automation can benefit your business? Get in touch with us.