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.

As technology and business automation advance, more and more businesses turn to digital transformation to improve processes, smooth workflows, and increase revenue. But what happens when a recession hits? Is digital transformation still viable? Should businesses further invest in digital solutions or stop spending on digital innovation?

Since we may be headed toward a recession, these are valid questions for companies to be asking. Recessions create a delicate balance between knowing when to cut back and continue moving forward. While recessions are often treated as a disaster for business, several companies have altered their business models that not only allowed them to weather the recession but come out on the other side stronger than before.

What is a Recession?

Let's take a step back and review some basics. A recession is a significant decline in the economy that happens over the course of several months or even years. According to Forbes, a recession is declared “when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.”

Recessions are common throughout history and many businesses stay on alert so they’re ready when another recession may hit. With the COVID-19 pandemic, countries experienced millions of jobs lost, lock-down regulations, people choosing to stay at home to remain safe, and a decrease in general spending. With all these factors, it’s no surprise that many businesses are preparing for a possible upcoming recession.

Recessions always present difficulties, but there's also a chance for opportunity and it's important for businesses to consider these opportunities including:

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• - An urgency to reevaluate processes to determine if there are any inefficiencies that can be solved to increase efficiency
• - Less competition in the market
• - Highly talented people looking for employment
• - A change in customers’ needs as they look for more convenient or economical alternatives to their purchases and services
•  

Considering these opportunities during a recession or before a recession is declared, can help businesses shape their strategy and digital transformation to push through the recession.

How Digital Transformation Helped Companies in the Past

We don't need to go back far in history to see how digital transformation helped companies through a recession. One such example is Netflix, a streaming giant that really took off during the 2008 recession. What started in 1997 as a company that rented and mailed DVDs to customers has now become one of the biggest streaming companies in the world. One aspect that catapulted them into their position was how they handled the 2008 recession.

Netflix launched its streaming service in 2007, just a year before the recession. Many people didn't believe it was going to last. However, Netflix offered a low subscription cost making their service a viable option even for those who were unemployed or had limited income.

They also partnered with Roku, Microsoft, LG, and other streaming services so that users could stream Netflix on a variety of devices including video game consoles. By using streaming technology and partnering with other companies, Netflix was able to better connect with prospective and current customers, offering them a wide range of selections and the ability to stream from various devices.

Now we see Netflix creating their own original shows and movies while continually improving their streaming service based on the analytics they received from the usage of their service. By finding that opportunity to provide a convenient digital platform for people to still be entertained at an economical rate, Netflix weathered the 2008 recession.

Another company that changed its business strategy due to the 2008 recession is Mailchimp, an email marketing service. Mailchimp was originally developed for enterprise businesses. However, with businesses cutting costs in 2008, MailChimp needed to change its business strategy and find a new way to gain revenue.

In 2009 they introduced their freemium platform, opening their technology up to a whole new market of small and medium businesses. Because of this, they saw a tremendous spike with 85,000 users gained within a year. They leveraged their technology and expanded their customer base to increase their revenue.

Both Netflix and Mailchimp found opportunities through digital transformation or using their existing digital platform during a recession and leveraged them to create a recession-proof plan.

How Digital Transformation Aids Businesses in the Current Recession

So that was the last recession, but what are companies doing now to keep revenue coming?

When the pandemic began and the lockdowns took place, many businesses scrambled to put digital solutions into place so they could remain connected to their customers and enable their employees to work efficiently from home. Digital technologies helped smooth the transition between working from the office and working from home. With their digital solutions still in place, businesses may find themselves at an advantage again during the recession.

Businesses continue to use their digital solutions or invest in digital solutions that give more power to the customers. As an example, some companies are investing in tools that offer self-service options which both simplify the purchasing process and give customers more control over their purchasing such as buy online pick up in store services.

Companies are also focusing on a digital-first touch point for their customers which, once again gives, more control to the customer to receive the service they require. This includes service portals, e-commerce stores and apps, and more.

Recessions require a delicate balance between businesses cutting costs and spending more. Many companies are trying to decide where that line is - where to focus on spending and where to focus on cutting. Businesses not only need to think about weathering the current recession but also recovering after the recession.

Throughout the decades, one constant has been the advancement of business through the internet. Businesses are still trying to find ways to leverage this to better connect with their customers. For this reason, companies may choose to invest further into online options and digital solutions. Despite multiple recessions, the internet has continued to advance forward.

Ensuring Your Digital Transformation is Recession Proof

Looking at the companies that thrived in 2008 and the companies that are pushing ahead now, there's a pattern to be noted here. Once a recession hits, companies focus on current customer needs. Just as the recession changes the needs of a business, the consumers' needs will also change. Companies need to reassess the needs of their current customers and prospective customers to provide an innovative solution that solves any current problems.

We saw Netflix do this by providing entertainment that was inexpensive so that those who had lost their jobs could still have entertainment in their own home. They didn't need to use gas to go to the store and rent a DVD; they were able to select a movie they wanted to watch on a streaming service, and thus Netflix took off. MailChimp is much the same way by expanding their customer base and providing more people with their digital platform.

So is digital transformation recession-proof? The answer here is yes, but it's imperative to invest in the right digital solutions. Businesses that look into opportunities and refocus their efforts on what their customers need now, can find digital solutions that help connect and entice customers. At the same time, recessions offer businesses the opportunity to discover ways to be more efficient while decreasing costs.

Final Thoughts on Digital Transformation During the Recession

Businesses that cut spending in digital transformation may find themselves behind by the time the recession ends. It's not only important to think about how to respond in the face of a recession, but it's also important to consider how the business will recover from it.

During a recession, businesses need to leverage the digital solutions they already have in place and invest in digital solutions that will meet current customers' needs. This may include creating a digital-first touch point or using digital transformation to further expand your customer base.

No matter the economy, technology and automation continue to surge forward. When reassessing spending, businesses need to continue to leverage digital transformation to make their business recession-proof.

Learn more about how digital transformation can improve your business by reaching out to us at Exela Technologies. We will help you find ways to increase savings and improve efficiency with the right digital solutions.

With the recent leaps in computing power and related technological breakthroughs, automation and digitization have been key business trends across industries in recent years. Robotic Process Automation (RPA) has emerged as one of the most popular options, particularly among businesses taking their first steps into the automation space.

To help you determine whether RPA could be a good fit for your organization, here are 5 things everyone should know about RPA:

1. RPA Doesn’t Involve Physical Robots

Despite literally having the word “robot” in its name, RPA doesn’t actually involve anything like the robots you’d find in movies or TV shows. In fact, it doesn’t even involve the robots that staff production lines and warehouses use in the real world. Instead, RPA systems utilize entirely digital “bots,” which are programmed to perform rule-based virtual tasks.

This makes RPA one of the most accessible and useful automation tools available, as it can be applied to nearly any part of the business, not just assembly or physical fabrication. RPA bots are capable of working 24/7 without sacrificing accuracy, making them ideal for handling high-volume internal tasks that may otherwise cause bottlenecks or employee burnout.

2. RPA Doesn’t Replace Jobs

One of the most common misconceptions about automation is that it is meant to replace human workers. Given that RPA bots are capable of performing tasks like data entry, data transfer, and data validation faster and more accurately than human workers, it’s not an unreasonable assumption.

In reality, RPA is essentially a productivity tool designed to improve efficiency and free up time for workers to focus on more complicated, higher-value tasks. By putting these bots to work, businesses can streamline operations while keeping employees more engaged in their work and focused on their most productive functions.

3. RPA Has Limitations

Despite being a very flexible solution, RPA isn’t necessarily the best fit for every task you may be hoping to automate. Generally, the ideal tasks to hand over to RPA are high-volume and definable by simple rules. Anything that requires reasoning or handling a large variety of exceptions may go beyond the abilities of the typical RPA system.

Whether or not RPA should be considered an Artificial Intelligence (AI) technology is a matter of some debate, largely because of a key feature it lacks - iterative improvements. Most systems identified as AI implement a feature often referred to as machine learning (ML), by which the system continually gathers data as it works and optimizes its processes automatically over time.

Versatile as they are, typical RPA systems are still best-suited for speeding up and increasing the accuracy of relatively simple digital tasks like report aggregation or inventory management.

4. RPA isn’t All-or-Nothing

One of the best things about RPA is its flexibility. Because it’s based on highly-programmable digital bots, RPA can be utilized for a wide variety of functions in nearly any part of the business. This also means organizations don’t have to make the leap to full implementation of automation all at once.

Businesses can even select specific tasks or parts of processes to turn over to RPA. Solutions that automate the more repetitive, monotonous steps in long, involved processes can go a long way towards improving efficiency and easing the workload for employees.

There are many examples in the government that would fit the bill for full or partial automation. These include the various steps in procurement (market research, vendor analysis, price analysis, RFP creation, award process, contracts closeout), finance (data entry, reconciliation, reports), Freedom of Information Act responses, analyzing data reported on forms, and data reconciliation between systems – to name a few.

5. RPA is Growing in Popularity

In order to remain competitive, businesses need to stay ahead of the latest trends, especially when it comes to efficiency-enabling technology. In a recent report, Deloitte found that 53% of organizations had already begun utilizing some form of RPA within their business, and predicted that number would continue to increase in the coming years.

Businesses still not taking advantage of the immense benefits RPA can bring to their organization in the form of greater efficiency, a more engaged and satisfied workforce, and improved accuracy, risk falling behind the competition.

Final Thoughts

In the wake of the Covid-19 pandemic, improving efficiency is going to be essential to business success. Digital solutions like RPA will be a major factor determining which organizations are able to quickly recover from this turbulent era of uncertainty brought about by the pandemic’s economic toll. Understanding how your company can best leverage RPA is an important first step in adapting to the new working environment.