Do you know how to calculate Automation savings?
💰 Last week at the #IAweek in Chicago, Emmanuel Lai shared how your time is expensive and how time savings can help determine automation project savings.
🤔 If we stop and think about time for a second, time is precious inside and outside of work.
💡One of the biggest things I like to share is that optimizing processes and applying automation (RPA, IA, etc.) helps improve the time it takes to do work which can result in hard savings. Some ideas to think about when trying to apply hard dollar savings to your projects that can help you build a business case with the CFO:
✅ Increased productivity can equate to reducing the cost of doing business by reducing labor costs or increasing workload without additional costs.
✅ Reduced rework and errors: By eliminating or reducing errors and the need for rework, organizations can save costs associated with rectifying mistakes, such as material waste, product recalls, or customer complaints. The time saved from not having to correct errors can result in direct cost savings.
✅ Cost reduction through resource optimization: This can include reducing staff requirements, minimizing overtime or temporary labor expenses, optimizing inventory levels, or optimizing equipment utilization.
💵 These are just some ideas to help you quantify the savings to show true ROI.
💡When approaching automation projects, I use the CI approach of creating the business case with the business problem and improvement goal. The business problem should include what the problem is costing your company through hard dollars.
👉In what ways have you shown ROI for your projects?
👉If you would like to learn more about applying this, let’s schedule a time to talk.