As new applications of AI are hitting the market, automation is becoming a critical component in many aspects of business management. However, implementing these new technologies always comes with a cost for businesses.
To justify the investment, it becomes important that AI automation brings clear benefits. Find out how to maximize automation roi with process orchestration.
What is ROI in Automation?
ROI is an abbreviation for Return of Investment and it is calculated by comparing the cost of an investment with the gain or loss it has generated.
It shouldn’t be confused with the difference between total revenue and total cost (revenue – cost) because that is what we call Net Profit.
Instead, ROI is calculated as Net Profit / Cost of the Investment x 100. As you can see, ROI is expressed as a percentage.
But what revenue can automation generate? How can we calculate ROI?
Automation is not a product or service you sell. You can’t measure, that is, its ROI as directly as you’d do with an investment in a stock of shoes from a new supplier for your e-commerce.
ROI in automation must be calculated considering multiple parameters that can help understand how the implementation of new technology is benefitting your business.
The exact parameters you use will depend on the specifics of your business. Some typical examples are listed below:
- Cost reduction: The decrease in operational costs after the implementation of the new technology.
- Increased productivity: The number of tasks processed in a unit of time after the implementation of automation.
- Time saved: How much time does any task require after the implementation of automation compared to the time each task used to require before?
- Customer satisfaction: How the customer satisfaction levels have changed since the implementation of the new technology.
- Reduction of errors: The decrease in the number of mistakes occurring while processing a task.
- Resource optimization: The resources (human resources included) that can be dedicated to other priority tasks once some processes have been automated.
Now that you know how ROI is calculated in automation investments, you can better understand how you can maximize your return on investment by improving your automation system and optimizing time-saving, productivity, and the other parameters we’ve mentioned.
What is Orchestration in Automation?
Orchestration is the process of managing and coordinating complex automated workflows across multiple applications and systems. In other words, when we say “process automation”, we’re referring to a single process; when we say “orchestration”, we’re referring to a coordinated system in which multiple automated tasks operate in a cohesive way.
When you have implemented multiple automated processes within your business, orchestration is your key to efficiency and maximum ROI.
How to Implement Orchestration
Implementing orchestration requires a structured approach consisting of three main phases.
Phase 1: Planning
Your orchestration strategy should start with a definition of your goals and how you plan to reach them.
- Define your goals. Consider your business goals and identify how automation can help you reach them.
- Consider the resources at your disposal – budget, human resources, time – and how automation and orchestration can help allocate them more effectively.
- Set KPIs: Establish Key Performance Indicators to measure the success of your orchestration strategy. They should be objective and measurable. For example, it could be the time saved on invoice processing every week.
- Develop a roadmap. The last step of the planning phase consists of outlining a roadmap. At this stage, that is, you need to define all the steps that you’ll need to reach your automation and orchestration goals.
Phase 2: Tools Selection
Orchestration software and applications are the tools that allow you to implement your automation strategy. It’s important that you choose them according to your business’s needs and budget and, even more importantly, to your goals.
When selecting your orchestration tools, keep the following in mind:
- Compatibility: Make sure that the orchestration tool is compatible with the existing automation system.
- Flexibility: Consider the margin of personalization that the tool allows. The larger this margin the better, because customization options allow you to tailor the orchestration strategy around your specific needs.
- Cost-effectiveness: Consider the price of the tool. Compare it with the features it offers, your budget, and your needs.
- Customer support: Opt for an orchestration tool that comes with reliable customer support. In case of issues, you want to make sure there is always an expert to help you fix it and restore the workflow as soon as possible.
Phase 3: Ongoing Monitoring and Improvement
Once you’ve set up your orchestration strategy and the tool is deployed, your job isn’t done. An effective orchestration strategy needs continuous monitoring and adjusting.
Ongoing improvement is key because:
- It helps you maintain your orchestration system at its optimal performance level.
- It allows you to adapt your system as any changes occur to your business environment.
- It is cost-effective because it allows you to identify cost-saving opportunities and strategies as you go.
How Orchestration Maximize Automation ROI
Orchestration strategies help maximize automation ROI because:
- They enhance efficiency. Automation systems would become more efficient in pursuing the goals you’ve set.
- They optimize resource allocation and help reduce any type of waste or overstaffing.
- They help you eliminate redundant processes and save money consequently.
- They reduce the need for manual labor. It means that employees can dedicate their time to other profitable tasks and employers need to hire fewer workers.
- They can adapt to market changes and allow you to get new business opportunities.
Conclusion
Process orchestration is key to unlocking the full potential of AI automation and maximizing your ROI. By carefully planning, selecting the right tools, and continuously monitoring your automated workflows, you can optimize efficiency, reduce costs, and increase productivity. Orchestration not only streamlines processes but also ensures that your automation system remains adaptable to changes.
At Hermes Wings we can help you with the full process from setting up your automation goals to build the right tool. Get in touch with our team today!
