Unlocking RPA Success: A Fun Guide to Calculating ROI with Innobot Health
Robotic Process Automation (RPA) is like the superhero of the business world—zooming in to save the day by boosting data accuracy, speeding up processes, and slashing operational costs faster than you can say "automation!" But how do you measure just how much of a superhero RPA really is for your business? The secret lies in a little something called Return On Investment (ROI). Don’t worry; calculating it isn’t as tricky as it sounds—especially with our guide (and our free ROI calculator!).
The Quest for the Perfect RPA Project
So, you’re all set to bring RPA into your business. But where do you start? Imagine your business is a vast orchard filled with processes ripe for automation. Some of these processes are low-hanging fruit—easy to automate and ready to deliver quick returns. Others might be more complex, higher up in the branches but still packed with juicy benefits.
The trick? Start with the low-hanging fruit. Pick tasks that are both high in value and low in complexity for the quickest bang for your buck. For those more intricate tasks, which might be core to your revenue or cash flow, don’t worry—they’re still worth automating. They just might take a bit longer to tackle.
Here’s a quick stat to chew on: According to a Deloitte study, 78% of organizations that have implemented RPA expect to increase their investment over the next three years. Why? Because they’re seeing significant ROI, often within a matter of months.
Measuring RPA Success: What You’ll Need
Before we dive into the calculations, let’s gather the ingredients you’ll need:
Full-Time Equivalent (FTE) Resources
Think of this as your team’s horsepower. If you have three full-time workers handling invoicing, your FTE resources for that task are 3.
Number of Tasks Per Day
How many invoices are flying out the door each day? This number gives you a sense of your daily workload.
Task Duration (In Minutes)
How long does it take to process one invoice? Use minutes to keep things precise.
Average Fully Loaded FTE Cost (Per Hour)
Employees are more than just their hourly wages. Factor in benefits, infrastructure, and all those hidden costs to get a true sense of what each hour costs you.
Initial RPA Implementation Cost
This is your upfront investment in RPA, including licensing and deployment costs. It’s the amount you’re looking to recoup with your ROI.
Once you have these numbers, you’re ready to move on to the fun part—calculating your ROI!
Step-by-Step: Calculating ROI for RPA
Calculate the Current Cost of the Task
Start by figuring out how much your task costs without automation. Here’s the magic formula:
Multiply the Hourly Task Cost by the hours spent each week to get your Weekly Task Cost, then multiply that by 4 for your Monthly Task Cost.
Determine the Cost of Implementing RPA
This is where you consider the initial setup fee and the ongoing costs of running RPA. These are your baseline numbers for calculating ROI.
Create a Monthly Cost Comparison Table
Chart it out! Compare your current monthly costs to those with RPA in place. The first month where the “Difference” column hits 0 or goes negative is when you achieve ROI. Anything after that? Pure savings, baby!
For a more concrete example, let’s imagine you’re automating an invoicing process. Currently, your team of three FTEs processes 200 invoices per day, each taking about 5 minutes. With an average fully loaded cost of $30 per hour per FTE, you’re looking at an hourly task cost of approximately $37.50. Multiply that by the 8 hours per day, and you’ve got a daily task cost of $300, or $6,000 per month.
Let’s say your RPA implementation costs $20,000 upfront, with a monthly maintenance fee of $1,000. If your automated process cuts the invoicing time to 1 minute per invoice, your new hourly task cost drops to just $7.50, or $1,500 per month. Your ROI would be realized in about five months, and after that, you’d be saving $4,500 every single month!
Hourly Task Cost Calculator
Beyond ROI: The Ongoing Value of RPA with Innobot Health
Now that you’ve nailed down your ROI, it’s time to look at the bigger picture—what we like to call the “Return from Investment.” This isn’t just about when you’ll recoup your initial costs; it’s about the ongoing benefits that RPA will bring to your business over time. Think of it as your RPA investment paying dividends long after you’ve broken even.
One study from Forrester found that companies implementing RPA saw an average ROI of 150-300% in just the first year. Imagine the long-term benefits when your RPA is up and running efficiently!
Scaling with RPA: The Growth Factor
One of the most exciting aspects of RPA is its ability to grow with your business. As your operations expand, the value of your RPA investment increases. Let’s say you’re processing 100 invoices a day now, but your business is booming, and you expect to add another 5 invoices each month. With RPA, you’re not just keeping up with this growth—you’re thriving. The more your business scales, the more significant the savings, and the better your ROI looks.
Here’s how to keep track of this:
Growth Rate Percentage
Estimate how much growth you expect in your task volume over time. This percentage helps you forecast how RPA will continue to save you money as your business scales.
Monthly Task Cost with RPA
Every RPA platform has ongoing costs—maintenance, support, upgrades, and so on. These are minor compared to the manual process costs you’re eliminating, but they’re essential for accurate ROI calculation. Don’t forget to factor these into your cost comparison table.
According to McKinsey, RPA can deliver an ROI of 30-200% in the first year alone, depending on the complexity and scale of the automation. So, when you’re forecasting growth, you’re not just looking at the immediate savings—RPA can actually help you manage and control future costs, making scaling up a breeze.
Ready to See the Results?
By now, you’re probably buzzing with excitement about what RPA can do for your business. And why wouldn’t you be? With the potential for significant savings, streamlined processes, and a happier, more productive team, RPA is the gift that keeps on giving.
Ready to see how much you can save? Grab our free ROI calculator and start your automation journey with Innobot Health today! Whether you’re looking to cut costs, speed up processes, or just make your team’s lives a little easier, RPA is your go-to superhero. And remember, this is just the beginning—the real magic happens when you see those savings start to roll in month after month.
The Future is Automated
Automation isn’t just a buzzword—it’s the future of business. With RPA, you’re not only cutting costs and improving efficiency; you’re setting your business up for sustainable growth. As you look ahead, consider RPA not just as an investment in technology but as an investment in the future of your company. And with Innobot Health by your side, that future looks incredibly bright.
So, what are you waiting for? Dive into the world of RPA, calculate your ROI, and start reaping the benefits today. The future is automated, and it’s time for your business to join the revolution!
7 Game-Changing Ways Automation is Revolutionizing Medical Claims Processing
7 Game-Changing Ways Automation is Revolutionizing Medical Claims Processing Medical...
Read More
How Workflow Automation Improves Patient Care and Operations
How Workflow Automation Improves Patient Care and Operations In today’s...
Read More
10 Proven Ways To Increase Work Efficiency With Automation
10 Proven Ways To Increase Work Efficiency With Automation In...
Read More
Revolutionize Healthcare: How AI and Automation Can Slash Administrative Costs with Innobot Health
Revolutionize Healthcare: How AI and Automation Can Slash Administrative Costs...
Read More
