Published: 14 Jul 2022 | Author: Matthew Oen
The most compelling reason to introduce automation into your business is actually a hidden one: automation ROI can pay for your business objectives. Any business intending to undergo a transformation or implementation project will understand the significant costs involved. From the software costs to change management, projects like these are an expensive but necessary venture to drive growth. But not all businesses can easily fund their strategic objectives. This is where automation holds the key. This post explains how automation can be used to fund your business objectives and save you money.
The core driver behind automation is the ‘Automation ROI’. This is calculated as the benefits you can expect from automating a particular process. The calculation is:
(Number of Time Process Is Run Per Month)*(Length of Time Process Runs For In Minutes)*(12/60)*(Avg. $ Cost of Running Process Per Hour)
For example, a business may have an invoice processing process that is run 60 times a month, usually takes 30 minutes, and pays staff on average $40 per hour. The Automation ROI for this would be:
(60*30*12/60*40) = $14,400
This means that by automating this process you effectively get back $14,400 per year of staff time that you can re-invest into the business. This would also not be the final-result as further ROI can be generated from automating additional processes with the spare capacity of the automation.
Businesses that want to grow will typically undertake a variety of big projects including:
These projects will come with significant costs attached including disruption and staff retraining. Many businesses overlook these costs, and inevitably end up paying more, as these projects have a tendency to go sideways or suffer delays which ultimately adds up to wasted time and money. But, we can cleverly use the money that we have saved from automation to pay for these costs. For example:
This is how smart businesses are approaching all their growth-focused projects – by examining where they can obtain money from within the business already and using that to pay for business objectives.
To start paying for your business objectives, you have to:
This method can be applied across the business and for every project. Once you get into the habit of performing the analysis, you can effectively plan your objectives and actively commence your important growth-driving projects knowing that you have secured funding to pay for the anticipated costs.
If you want to know how to pay for your business objectives, please contact us.
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Specialising in all invoice-related processes, he has been trained to quickly learn specific invoice-related processes.