The nuances of cost-saving in automation

Businesses embarking on digital transformation journeys are always left with the question "Are we going to save all we can?". Despite the numerous use cases that different automation vendors may produce, every single journey for every single business will vary - and understanding the nuances that affect this journey can help you make important cost-saving decisions when implementing automation tools.

"How can organizations best position themselves to capitalize on the savings achievable through digital labor implementations?" - KPMG, Capitalizing on Robotics

Firstly, let us differentiate the classes of digital labour. Basic Robotic Process Automation automates rudimentary and repetitive processes, with little to no cognitive assessment and well structured/consistent data. Enhanced process automation steps a level up from RPA, with some form of natural language processing to understand and leverage unstructured data. Cognitive automation surpasses process automation in its ability to combine advanced tools that can mimic human activity- gathering evidence, being able to reason, infer, and perceive.

Of course, every journey must start somewhere- and it is extremely beneficial to address questions on the foundational savings drivers:

1. Does your organization have clear executive sponsorship for this?
2. Are you prepared for substantial impact to your organization's structure? Does this require change managers, training etc?
3. Have you developed a well-defined plan and strategy for automation in both the long term and the short term?
4. Have you defined an approach in the governance of the resulting automation capabilities, other automation initiatives moving forward, and the changes in your business and technologies?
5. What is the basic consensus regarding security and risk mitigation?

As your organization's automation journey kicks off, the considerations become more tactical and detailed:

1. Have you restricted your automation opportunities to a single class of digital labour? Does this align with both the opportunities for automation and the appetite for technology?
2. How many classes of digital labour are you going to leverage, and do you understand the key savings drivers of each?
3. What is your organization's approach to ensuring the right candidates are chosen for automation?
4. What steps have you identified that will increase savings, or accelerate the path to these savings?
5. How do you define a successful implementation, and when do you move on to your next automation initiative?

Nonetheless, having a clear plan for your automation journey is not the only cost-savings factor to consider. Just as important as it is in choosing the right processes to be automated, choosing the right software is instrumental in your automation journey.

Different vendors offer various plans based on the automation need, the number of bots required, whether these bots are attended or unattended, the licensing structure, etc. It is important to not only consider the pricing but also the support services offered, the knowledge required to understand or use the software, the level of coding knowledge required, and the ease of scalability.

Furthermore, having a disciplined leader who can guide your business in this venture can create a sense of ease and direction. Ensuring employees understand and are aligned with your goals is as important as ensuring that you automate the right processes.

To secure more success in your automation journey, start with small pilot programs before jumping into a large investment. Begin with some basic automation tools for some easy wins - and use this as a springboard to learn about any mistakes, critical steps, and success factors.

Automating has, and always will be, a key factor in how well businesses perform against their competitors - but implementing these technologies must be approached with structure, planning and discipline to maximise ROI and minimize project abandonment/failure.