In today’s fast-paced business environment, automation is no longer a luxury. Rather, it has become an absolute necessity. However, before driving into it, CFOs and senior financial leaders must critically assess the potential impact of automation on their organisations.
We have tried answering the most obvious questions to consider, backed by real-world examples for you to understand them better.
1. What are some of the financial and operational challenges that our firm is trying to solve by implementing automation?
Prior to investing in automation, it's critical to determine the precise operational and financial difficulties your business is facing. Automation can increase productivity in a variety of areas, decrease manual errors, and streamline repetitive operations.
For example, UiPath and Omega Healthcare, a revenue cycle management company, collaborated to automate the processing of insurance claims and medical billing. This program resulted in a 30% return on investment for clients, a 40% reduction in paperwork time, and monthly savings of approximately 15,000 labour hours.
Source: BusinessInsider.com
2. Can we really determine the ROI and the time to achieve it?
CFOs must evaluate the expected ROI and comprehend when it will be realised. Determining when the business may anticipate financial benefits from automation is essential. According to a Forrester analysis, a composite organisation that used Microsoft Power Automate saw a payback period of less than six months and a 248% return on investment over three years.
3. How is automation going to seamlessly integrate with our current systems? Will there be any issues?
Every business has its own systems that operate according to its procedures. To make sure that automation improves operations rather than interferes with them, a smooth integration with those current systems is crucial. To preserve data continuity and operational flow, CFOs should think about how easily the new system will integrate with their existing systems, particularly the accounting software. As an illustration of successful system integration, AccentCare, a healthcare provider, saved $100,000 for each 10,000 patient records that were moved using robotic process automation (RPA).
Source: vertexcs.com
4. Are there any risks? If yes, how can they be mitigated?
Risks associated with automation, such as system malfunctions, data security breaches, or a lack of flexibility, should be evaluated. CFOs ought to be aware of the possible hazards and have plans in place to avoid them. As evidenced by the numerous businesses that have adopted RPA to optimise customer service, implementing AI-powered automation can lower labour costs by automating repetitive tasks, increase productivity by optimising business processes, and improve customer satisfaction by offering round-the-clock support.
Source: metaphorltd.com
5. How is our workforce going to be affected by the implementation of automation?
Employees may be concerned about automation, particularly if it means losing their jobs. But it can also open up new avenues for employees to concentrate on strategic, higher-value work. CFOs ought to take into account the workforce's overall impact, including job roles and training requirements. Automated bug assignment at Ericsson improved job satisfaction by saving engineers a great deal of time so they could concentrate on more difficult tasks.
Source: arxiv.org
6. Are there any ongoing maintenance and support requirements?
Understanding the long-term maintenance and support needs of an automation system is crucial for proper budgeting. CFOs should evaluate both the direct and indirect costs associated with system upkeep. A manufacturing company that implemented automation in its quality control process reduced inspection costs from $100,000 to $50,000 annually and increased defect detection rates from 85% to 98%, showcasing the importance of ongoing support for automated systems.
Source: flowwright.com
7. What is the automation provider’s track record, and what level of support do they offer?
Choosing the right vendor is essential for the success of any automation initiative. CFOs should carefully assess the vendor’s track record, customer service, and support options. UiPath’s extensive customer achievement gallery showcases numerous case studies where companies have successfully implemented automation solutions, indicating strong vendor support and commitment to customer success.
Source: uipath.com
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