Introduction to RPA

ROI: Building a Business Case

 Learning Objectives

By the end of this lesson, you will be able to:

Measure ROI for RPA

Calculate velocity

Derive productivity

Measure quality

Derive compliance
Return of Investment
 ROI for RPA

Expressed in Used for

percentage personal
financial
decisions

ROI
Compares company’s
profitability or
efficiency
 ROI Calculation

ROI is calculated using:

• Key performance indicators

• Profitability of an expenditure
Methods of Calculation
 Methods of Calculation

There are four ways to calculate ROI for RPI initiatives within an organization.

Velocity

Compliance Productivity

Quality
 Velocity

The total time taken at a back-office process from start to finish is velocity.

For example:

Data processing Billing Accounting

 Velocity

RPA deployment has improved

process speed between 20% and
1 110%.

ROI

RPA can complete

repetitive tasks in just RPA is better than humans
hours. 3 2 because companies have
experienced improved SLA.
 Velocity

Velocity = Measurement of start Velocity = Measurement of start to

to finish time for back-office finish time for back-office process
process with RPA without RPA
 Productivity

Robots cut down time for repetitive

RPA deployment leads to an tasks. Research has shown productivity
average of 70% reduction of savings to a 1000%.
manual work.

Robots bring efficiency and

effectiveness to scalability.
 Productivity

Productivity is measured by the Productivity is measured by the

time taken by human time taken by robots to
employees to complete a task. complete the same task.
 Quality

Are the RPA inputs accurate? If a company has installed the

• If they are, a company should see correct rules, the correct
100% accurate output because governances, and the correct
robots do not deviate from the decisions, then the human error is
design process. eliminated completely.
 Quality

Quality = Measure output Quality = Measure output

accuracy after RPA accuracy before RPA
deployment deployment
 Compliance

Are the robots making sure that rules, laws, or regulations that govern some
processes are being followed?

• Robots can be programmed for compliance issues.

• Robots alert employees for compliance issues.
• Robots make sure that specifically set compliance
criteria are met and eliminate human error.
 Compliance

Compliance = Measuring Compliance = Measuring

compliance after RPA compliance before RPA
deployment deployment
 RPA Deployment Time

Followed by a 60 to 90 days
6 to 12 weeks
nesting period

Vendors tweak the robots, add

efficiencies, and tighten the
rules and governances.
 Key Takeaways

RPA bots once implemented ensure 100% quality and

compliance for ROI.

Velocity is in terms of hours and not days for RPA.

Productivity for RPA is exponentially higher than human

counterparts.

ROI for RPA can also be calculated via quality and compliance.