Business case for RPA
To calculate the business case for RPA (Robotic Process Automation), you must include these two elements: the cost part and the savings part.
They are interlinked and determine each other. For example, if you have a high-frequency process you need to automate, you will need more robots to execute the work. Also, complex process automation will impact the price of the implementation.
COST OF IMPLEMENTING RPA SOFTWARE
The cost part consists of three components:
Licenses for technology
Services needed for implementation
We have an open prices policy and different licensing models. You can choose an option that suits your needs, and you can easily calculate the licensing price here.
On the other hand, estimating the cost of implementation is a bit trickier. Mostly, it depends on the level of details you provide us (or our partners) and the complexity of the processes in scope.
Try to provide as detailed process specifications as possible, so our partners could make a more accurate implementation cost estimate. In the table below, you will find estimations for different process complexities. It's a general rule of thumb, and it serves as a guideline. Take the average man/day price in your country, and you will have a general cost estimation of the process automation. Furthermore, maintenance is 20% of the implementation cost annually.
SAVINGS AFTER IMPLEMENTING RPA SOFTWARE
Savings are the most impressive part of the equation. They will mostly depend on what process you pick for the scope. A good process selection is crucial to get the most from our RPA robot.
When selecting processes, you can follow these guidelines:
Focus on processes with a high frequency that are rule-based:
To utilize the most from our RPA software, automate every high-frequency process. Also, the process has to be exact and rule-based.
Avoid processes that deal with unstructured data:
Unstructured data, such as scanned PDFs or unstructured emails, require OCR (Optical Character Recognition) or NLP (Natural Language Processing) components, which increase the cost significantly.
Follow the Pareto principle (80/20 rule):
Focus on 80% of the most frequent cases, and humans will cover the other 20% - it's not necessary to automate the process end-to-end. Perhaps you can automate the repetitive task within it, and that way, you can lower the cost and simplify the maintenance.
Look at the big picture:
When choosing the processes you want to automate, try having a holistic approach and talk with everyone from your organization. Often, we see that the initiative comes from one department within a company, and they only focus on their processes. To avoid missing a process that can bring you significant savings, include everyone's input.
When calculating the savings, and choosing the process candidates, include this information into the equation:
Then we can calculate savings = volume * duration * cost. Try to create a scoring matrix and then compare all your process candidates. In the end, choose those that give you the best ROI.
With this information, we can calculate the entire business case and the ROI period. One of the most appealing values of RPA software is fast ROI, and with the guidelines we provided, you have a big chance of making a significant impact in your organization.