The ROI (Return on Investment) of Robotic Process Automation process

The ROI (Return on Investment) of Robotic Process Automation process

Robotic process automation (RPA) is an incredible tool for businesses due to its ability to increase innovation, enhance productivity, and help companies deliver a much better customer experience.

RPA, in the last few years, has become a powerful automation technology used across businesses.

Using software robots to communicate with business applications, it not only reduces the burden on employees but also streamline processes.

What is RPA ROI?

ROI in RPA is a way to quantify the expected and actual returns on an investment in RPA that can help companies make better decisions, optimize their solutions, and learn from any pitfalls.

Developing these metrics are critical to creating an effective road map for implementation, building support, and validating assumptions.

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. 

Formula to calculate ROI

Return On Investment = (Net Return on Investment / Cost of Investment) * 100

IMPORTANCE OF RPA ROI METRICS

The process of using ROI as a benchmark can be broken down into three primary phases:

  • Initial phase – Before implementation, project managers can use ROI data and parameters (from other implementations) to build the case for RPA.
  • Interim phase – With the progress of the RPA implementation project, organizations need to understand and collect ROI data, including customer experience, as it helps in both validating initial assumptions as well as identifying areas for improvement.
  • Ongoing phase – As RPA technology continues to evolve, it has been applied to a growing number of business processes.

Businesses should, therefore, continuously track the ROI of RPA implementation and look for more areas that could benefit from automation.

Effective measures to calculate the ROI of the RPA Projects

1. Choosing the right pilot project

It is essential for businesses that they choose the right processes for automation. Picking up processes that are either repetitive in nature or prone to errors leads to a significant increase in ROI.

2. Accurate bot counts and proper utilization

Often, businesses wonder why they aren’t able to achieve the expected business value even after deploying multiple bots. The need here is to focus on proper utilization of bots keeping in mind both the short term & long term business goals with the aim of achieving higher ROI.

3. Proper programming

Businesses need to understand the fact that software robots are programmed to follow instructions, and will only perform the tasks assigned to them.

In order to achieve more significant automation ROI, the bots must be appropriately programmed for efficient and faster completion of tasks.

4. Process speed estimation

Estimating process speed is yet another vital metric to measure the ROI of your RPA deployment. It is absolutely essential to compare the total time taken from input to output once the bots are deployed for the completion of a particular task to assess the overall increase in process velocity. 

The fact that software robots work continuously without needing breaks, tasks associated with the processes are bound to be completed much faster.

5. Improved compliance

By ensuring that you include automatic compliance check-ups in the workflow, all the compliance & regulation criteria can be easily dealt with. 

Moreover, robots are also equipped to handle the task of regulatory reports production, thus improving the speed as well as the accuracy of the processes.

6. Enhanced accuracy

Accurate and faster outputs indicate increased productivity of the business.  It is, therefore, safe to say that the rise in productivity is a combined measure of the improved outcomes obtained via robotic process automation deployment.

Other RPA Investments

Inevitably, there will be some one-time costs associated with your initial purchase and implementation. In addition to the cost of RPA software itself, you’ll want to assess and plan for the cost of:

  • IT infrastructure
  • Initial integration with existing systems
  • User training
  • Creation and management of procedures and frameworks

As you scale your digital workforce and automate more processes, the savings will overtake these initial costs. However, you will still be left with some maintenance costs, such as:

  • Software licenses
  • Software maintenance and upgrades
  • Development and testing
  • User support and ongoing training
  • Infrastructure updates
  • Program management

The more you expand your automation and scale to include more software robots, the more these costs will be offset, resulting in a higher RPA ROI

Conclusion:

There is no denying the fact that RPA solutions offer the advantage of efficient processes and significant cost-savings to companies. However, businesses looking to adopt robotic process automation services need to understand the key performance metrics to measure the ROI of RPA accurately as well as to take into account various costs associated with deploying the project.

If you wish to deploy RPA effectively in your organization, it is imperative to make ROI a significant focus during different stages of deployment -planning, implementation as well as governance.

Now that you know how to calculate ROI for an RPA project, it’s time to see how SOAIS can help you in automating your processes.

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Welcome to SOAIS Newsletter of September 2021!

Continuous Testing with Remote Execution
 
The speed of innovation continues to increase, driving rapid and relentless change for today’s ever-evolving IT landscapes, creating greater risk as IT and business teams scramble to ensure timely delivery. How can your organization keep pace? Test more, worry less. With Worksoft’s Connective Automation Platform, you can easily build and maintain automated tests, accelerating testing time without losing scope or volume. You can schedule and execute remote, continuous tests to intercept defects sooner and prioritize remediation - without sacrificing your nights and weekends. Explore how continuous test automation and remote execution can empower your organization.

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Skip Costly Rework with Dynamic Change Resiliency​

Change resiliency is imperative in ever-evolving IT environments. Our patented object action framework streamlines change management by assigning object definitions to your shared assets. The same object may be used in a thousand automation steps, but it can be easily updated by making one simple change to the model definition. The change automatically propagates to every single instance where that object may have been used without a single line of code or manual human involvement. For more change readiness you can also engage our Impact Analysis for SAP to predict how changes in SAP transports will affect your business processes. 

Please click here to watch the video to get a gist.
 

SOAIS Blog – Nuts and bolts of Certify Database Maintenance​

One of the key thing, which is often missed by the organizations, who have invested in using Worksoft Certify for automating their Business Process Validation initiatives, is implementing a Database Maintenance Plan. While the business and the test automation consultants get excited about the shiny new thing that they have got and start building the regression suite; planning and executing a database maintenance plan for most of the customers gets pushed down the priority list. However, since all the test assets in Certify are stored in a Database, a robust database maintenance plan is very important to maintain smooth operation of Certify with acceptable performance criteria. The customers usually start facing issues once they have built significant number of Certify processes which they have started executing on regular basis. Such executions add a lot of data to the tables storing results data and increase the overall size of the Certify database.

Please click here to read the complete blog.
 

Worksoft Blog – Process Intelligence: A Multi-Dimensional Approach

The ability to extract process knowledge has become easier through the years. Technology has evolved to the point where we can deploy capabilities that connect at multiple levels to extract different types of process insight. In the past, organizations were forced to spend enormous energy extracting data manually from different applications and databases. Then, they would have to use things like spreadsheets to transform the data and convert it into meaningful information. 

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