Measuring ROI for RPA


How can you measure the Return on Investment (ROI) for a project? This is a question that many people ask themselves when they are thinking about implementing process automation. There are several ways to go about measuring ROI, but there is one measurement that should be at the forefront of your mind: return on investment (ROI).

RPA is not a new technology. It’s been around for decades, but it’s only now that the benefits are being fully realized. The ROI of RPA can be difficult to measure at first, but there are some simple calculations you can do to determine how much return your investment will yield and what the best course of action should be next.

Robotic Process Automation (RPA) is utilizing software technologies to perform routine tasks. RPA is rule-based technology that produces repetitive work. It uses artificial intelligence (AI) technologies such as machine learning (ML) and natural language processing (NLP) to behave with human-like judgment during its tasks.

RPA is a related technology to Artificial Intelligence (AI) but not the same. RPA is a robotic tool that mimics human interaction by doing common work. It performs workflow operations that do not require decision-making and judgments

There are many reasons to use Robotic Process Automation (RPA) in your company. The first is that RPA can help you cut costs by reducing the number of employees needed for certain tasks. The second reason is that it can improve productivity, which means you will need fewer workers to accomplish the same workload. The third reason is that it allows businesses to expand into new markets by streamlining processes and removing barriers. But how do you measure ROI?

Here are some key measuring principles:

Full-Time Equivalent

One way would be using Full Time Equivalents (FTEs). The definition of FTE is the number of working hours that represent one full-time employee during a fixed time period such as one month or one year. FTE is an important measure for your RPA return on investment. If you are thinking about implementing RPA, it is important to start by measuring ROI. The first step in the process of measuring ROI for RPA is to figure out what an FTE means for your company during a fixed time period –such as one month or one year. The next step is to determine how many hours an employee would have spent on tasks that can be automated through automation software like RPA. The third and final step in the process of measuring ROI for RPA is determining what percentage of manual work has been eliminated due to the implementation of automation software like RPA.


One might think that automation will result in human personnel being unnecessary in the workforce. That is not the case. The true ROI is how employees are freed up to concentrate on higher-value work instead of the mundane tasks that consume their time unproductively. Measurement of ROI for RPA is the hours gained to be put back into higher-value functions. When people are freed from routine processes, they can focus on more productive efforts.

Process Optimization & Lead Time

The start of a work process to the end is the process lead time. This typically requires wait time, which is not productive. RPA can eliminate wasted waiting and preparation time from the process. Some preparation can be done automatically around the clock or overnight to optimize lead time and workflow productivity.

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