Writing a Business Case for Process Automation.

If you’re looking at investing in a process automation platform to drive strategic value through digital transformation, we understand it’s not going to be done on a whim.

At LakeTree we collaborate with customers throughout the purchasing cycle, helping them clearly articulate the benefits of their proposed project. ?In this article we’ll look at the best approach to get your business case over the line so that you can move your process automation project from your wish list and onto your to-do list.

There are two key considerations when building your Business Case: Timing and Return on Investment.

Elements to consider for your timing:

·??Where are you in the Financial Year?

·? When do budgets for the Financial Year need to be submitted?

·??Would a project like this fall into CapEx or OpEx?

·??When are your busy periods throughout the year and will the team have capacity for projects during this time?

·??Who is going to sign off on your business case & when is the best time to approach them?

We find that once the above have been considered there is generally a specific point in the FY where your chances of a successful business case sign off are much better. So, time your business case carefully.

Once you’ve identified the best time to submit your business case, we can work with you on defining the 2nd critical element; Return on Investment.

When it comes to ROI, we recommend you start by understanding the current costs associated with the capability – this gives you a baseline of your current situation and allows you to test the fanciful ROI numbers solution vendors will throw at you.

The following costs typically feature in a business case:

Direct costs

Human cost – Reducing Human costs can seem a scary conversation, but it doesn’t always mean reducing staff numbers. By automating manual repetitive tasks, you empower your staff to be more productive and in turn add more value to the organization. More productive staff means your organization is more efficient and therefore can achieve greater profitability.

Current Licensing – How many separate applications and solutions are your users currently using? Investing in a process automation platform allows you to consolidate multiple systems into one easy to use interface. Fewer point solutions mean less back-end integration and better data quality, it also enables you to reduce the amount of software licenses you are currently paying for.

Waste, Rework & Errors – Can you quantify the cost of quality? If your organization is using humans to perform repetitive manual tasks you are unnecessarily exposing yourself to risk of human error. Human error leads to inefficiencies as tasks may need to be reworked or corrected further down the line. Should mistakes not get picked it may lead to more serious implications that could impact your brand.

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Indirect Costs

Opportunity cost – Automating processes allows them to be running once the humans have clocked off for the day. How much more profitable would your business be if your processes are running 24/7? When calculating ROI it’s important to factor in that process automation not only allows tasks to be completed more accurately and efficiently, but can continue to do so outside of office hours.

Regulatory risk – How much time and money are you investing to meet current regulations? What costs could you face if auditors deem you non-compliant? Digitising processes helps to create a thorough audit trail, as well as removing the risk human error exposes you to. In addition, the increased efficiency process automation provides means that your humans will have to invest far less time maintaining regulatory compliance, freeing them up to add value elsewhere in the organization.

If you can articulate these clearly, then you are giving your business case the best chance of success. If you’d like to discuss how LakeTree can support your business case, we’d love to have a chat.?