There’s no doubt that RPA has been able to deliver significant value to organizations over the years. The kind of impact that RPA has had is well illustrated by the kind of growth that the RPA market has seen. As per a recent study, the RPA software market grew by 63.1% in 2018 and 62.9% in 2019 as compared to modest growth of 13.5% and 11.5% for enterprise software market as a whole1. Moreover, the RPA market is well poised to reach USD 25.66 billion by 20272.
Organizations of varying sizes and domains across the world have embraced RPA with open arms leading to such impressive growth numbers and projections. To derive maximum ROI out of an RPA program, it is important for business leaders to consciously recognize the kind of value that they expect from it along with the investments that would have to make.
Year after year, we see a huge jump in the number of enterprises selecting automation software to kick start their digital transformation journey. Analysts predict, almost 85 percent of large organizations would have implemented RPA in some form by the end of 20223. This says a lot about how RPA is benefitting enterprises globally. But, how do enterprises measure the success of their RPA implementation?
The value generated from an automation program is measured and tracked with the help of a variety of metrics:
Another key aspect that needs to be understood to track the ROI of an RPA program is the investment that an organization is making on an ongoing basis. Following are the cost factors that are applicable for an RPA program:
The method for calculating ROI for an RPA program is a trade-off between simplicity and accuracy. For example, in the simplest of calculations, organizations may only consider the person-hours saved for their employees due to RPA along with the per hour cost of employees for performing the mundane and now automated task as part of the value realized calculation. Whereas, for calculating the RPA investment, the organization may just consider the license and AMC cost for digital workers i.e. robots. While the above factors would help measure the value realized, investments made and ROI of an RPA program in the simplest of ways, organizations should not hesitate to consider any other factors that may be having a significant impact on ROI of their program.