Building a compelling business case is key to gaining approval for any process automation initiative.
While the benefits of automating manual, repetitive processes seem obvious, leadership teams still need hard numbers to justify the required investments.
By quantifying current costs and projected savings, you can demonstrate a clear return on investment (ROI) from automation projects. This upfront analysis is crucial for securing the stakeholders, resources and budget needed to implement new solutions smoothly.
Follow these steps to develop a rock-solid business case that proves the value of process automation for your organization:
Identify and Map Processes for Automation
The first step is compiling an inventory of all key business processes within your company. These likely include everything from HR and financial workflows to customer service and order processing.
For each process, document the current state in detail. Outline each step required, pain points experienced and areas prime for automation. Also, estimate the level of effort required for employees to complete every manual activity.
With this understanding of current workflows, you can then prioritize which to focus on automating first based on factors like:
- Process frequency
- Time/cost of manual execution
- Error rates
- Customer impact
The processes with the biggest potential impact will make the strongest business case for early phase automation projects.
Calculate Current Costs and Projected Savings
Next, put real numbers to the current costs of executing each process manually using employee time and effort. Add up:
- Employee hourly wages
- Benefits like insurance and retirement plans
- Employer taxes
- Overhead like facilities, equipment and management
Factor in both direct labor and all overhead costs for a full picture of current expenses.
With processes mapped and costs quantified, estimate the potential savings from automation by asking:
- What costs will be reduced or eliminated by automating each step?
- How much time will be saved and what is that worth?
- How will accuracy and quality improve?
- What downstream benefits occur by removing process bottlenecks?
Look at both hard and soft cost reductions like improved customer satisfaction. Project multiple years to demonstrate ongoing savings from automation.
Model the Process Automation ROI
With current costs and expected benefits defined, you can now model ROI and build financial justification. Plug your figures into an ROI calculator template to demonstrate:
- Payback period
- Net present value
- Internal rate of return
- Return on investment
Project 2-3 years conservatively, then show extended benefits over 5+ years. Highlight the break-even point when savings surpass automation costs to recoup the investment.
An attractive ROI proves the quantifiable business value of intelligent automation. It shows leadership that your initiatives will quickly pay for themselves.
Keep refining ROI projections with real data as you implement automations. Continually demonstrate above-average returns to justify expanding process automation across the organization.
Building a solid business case upfront is crucial for driving process automation success long-term. By quantifying current costs and projected benefits, you gain the stakeholder buy-in and budget needed to digitally transform workflows. The result is rapid ROI from optimized operations.
Supporting sources:
