Automation ROI Analysis Best Practices

To calculate Automation ROI successfully and accurately one needs to factor the savings by implementing automation and the cost of automation.

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We have highlighted a few best practices to consider when factoring input savings and cost of automation.

The difference between Input Savings and Cost of Automation will enable you to calculate Automation ROI.
ROI = Input Savings – Cost of Automation
There is no single way to perform automation analysis. It should be a continuous process and one must adapt to the business needs and collaboratively work with cross-functional teams.

Automation ROI analysis will help you provide business case to evolve and adopt automation within your organization.


Below are few best practices for automation ROI analysis:

• Define Objectives Clearly: Start by outlining specific goals. Are you aiming to reduce costs, increase productivity, improve accuracy, or all of the above?

• Comprehensive Cost Analysis: Factor in all costs associated with automation implementation, including software, hardware, training, and ongoing maintenance.

• Calculate Savings including Time: Quantify the tangible and intangible benefits of automation. This might include labor cost savings, reduced error rates, and increased throughput. Time is money. Calculate the time saved by automation and convert it into monetary value based on labor costs.

• Include Soft Benefits: Don't forget to consider non-quantifiable benefits like employee satisfaction, improved quality, and enhanced customer experience.

• Identify Key Performance Indicators (KPIs) : Determine the metrics that matter most to your objectives. It could be time saved, error reduction, or increased output.

• Baseline Measurement: Measure current performance metrics before automation implementation. This provides a baseline for comparison.

• Risk Analysis: Assess potential risks and uncertainties associated with automation. Consider factors like system failures, cybersecurity risks, and the potential need for ongoing training.

• Scalability: Evaluate how well the automation solution can scale with the growth of your business. A good ROI should be sustainable in the long run.

• Continuous Monitoring: ROI analysis isn't a one-time thing. Keep monitoring and adjusting your metrics as your business evolves.


Organizations need to look at the bigger picture and understand that the benefits of automation might not always be immediately obvious in purely financial terms. It's about long-term gains and strategic advantages.

How are you planning to approach your automation ROI analysis? We can assist in your Automation ROI analysis.

What we offer?

• Comprehensive Assessment: Evaluate your current processes and determine automation opportunities.
• ROI Projections: Forecast the potential return on investment for implementing automation solutions.
• Implementation Roadmap: Receive a step-by-step plan for integrating automation into your workflow.
• Continuous Optimization: Ensure ongoing success with regular performance reviews and updates.