So, you’ve decided to implement a robotic process automation (RPA) solution and integrate it with your Microsoft Dynamics ERP solution but are wondering what the pay-out will be for your organization. It’s a question we hear all the time – how much ROI can I expect to see in the first six months? In the first year? In the first 18 months?
The task of transitioning your processes from manual to automated is exciting but may also seem daunting. And when it comes to measuring ROI and making a business case for an RPA solution, it can be difficult to know what to measure and when you should begin measuring. That’s why we’ve compiled some tips and tricks to make sure that you’re keeping careful track of your ROI, even before implementation.
- Start measuring ROI even before implementation. It’s important to look at the ROI of other implementations that you’ve done in the past to foreshadow what the ROI may look like when you implement RPA. Whether it was implementing your Microsoft Dynamics ERP, or automating another process or procedure, examine what the ROI of that transition to more automation looked like and you’ll have an idea of what another step toward digital transformation will result in. Estimate the costs of current processes prior to any software implementation, including:
- Labor costs
- Payment Times
- Vendor Payment Terms
- Storage Costs
- Operating Costs
We also recommend that you establish a baseline. Examine how you currently evaluate employees and the metrics that you use, like employee speed of certain tasks, accuracy and customer satisfaction. Make sure to establish what fits into the category of hard ROI (labor costs, payment times, accuracy, etc.) so that you can accurately analyze ROI data moving forward.
- Start collecting ROI data right away. As soon as the implementation project deploys, start looking at the data coming in as it relates to ROI. How have your processes been improved? Has customer satisfaction increased because employees are spending less time hunting down documents? Identify areas of success, as well as areas that still need some improvement.
- Don’t forget to look at the soft ROI, too. Sometimes the ROI of a technology implementation isn’t always so obvious and measurable. In addition to the hard ROI mentioned above, there are a host of savings available from RPA that are more difficult to quantify. These include:
- Visibility into spending
- Decreasing dispute resolution time
- Increasing staff efficiency
- Reducing compliance risks
- Letting managers manage and spend less time on busywork
- Reducing the impact of a lost document in terms of cost and liability
- Continuously track ROI after deployment and look for additional areas of your business to implement RPA technology. Once you identify the hard and soft ROI of your RPA solution in one area of your organization, you can start to predict what the return will look like in other departments for a more full-scale digital transformation. Look at areas like productivity (the length of time employees are spending on tasks), velocity (the start and stop time of processes before and after RPA deployment), accuracy (the number of mistakes that are being made throughout processes before and after deployment), and compliance (how well you are meeting government retention regulations before and after RPA deployment).
Measuring ROI is essential when it comes to a project as large-scale as RPA implementation and integration with your Microsoft Dynamics ERP solution, but it doesn’t have to be as difficult, stressful or cryptic as you think. Make sure you're watching your ROI carefully throughout implementation and beyond!