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Brent, what's the next question?
The question was, is how do you calculate
the true ROI of Robotics?
So most people when they think about ROI they
just mentioned efficiency.
Now efficiency understand is the number of
man hours worth of work, removed from the
workforce, times its geographic the geographic
hourly rate.
Now.
I say it that way on purpose because the economics
of doing Robotics in Bangalore is very different
than the economics of doing robots, robotics
in Southern California.
So that being said when we look at efficiency,
it's the number of man hours times the geographic
hourly rate, but that's only about 20% of
the value.
The next twenty percent comes from cost avoidance.
Where is it that your company had to add staff,
bring in contractors?
IT had to augment some system or build an
application for you to work through whatever
this process is.
The next twenty percent comes from Risk Avoidance.
Where is it that you pay your fine?
And if you don't believe that you paid a fine
go talk to Treasury, go talk to Tax, go talk
to Procurement where we didn't pay an invoice
Net10 and get net net 2% back on the cost
of that invoice.
The next is Audit and SOX.
I love this one the most because the Auditors
and the Compliance people really come against
you in the beginning thinking that they've
lost control as we automate when in fact the
very opposite is true.
The more that you automate a process you can
now print out for them step-by-step how this
bot does what it does.
Oh and by the way, here are the log files
that for any particular records you want to
run, prove out that this bot took these steps.
Now, I'm going to give that to you in the
form of a report that you can run on your
own.
Okay.
So once we give you a report that will let
you pull the audit records for any particular
record you want to see, you can now run this
report whenever you want.
So you've gone from being able to audit me.
To continuously audit me and now you've gone
since its automated to be able to check every
record instead of having to do a selection.
And the final 20% in understanding the ROI
of a robotic is Accuracy.
Where did somebody fat fingers something?
And if you don't believe that the key strokes
of mistakes have been made I can assure you
that the there we’re all human and we are
fallible.
But those five things Efficiency, Cost Avoidance,
Risk Avoidance, SOX and Compliance, and Accuracy,
those five things make up the dollar value
or the actual cash value of doing Robotics
and every bot that you build should affect
your P&L.
If it doesn't then something's wrong.
Thanks for watching.
And remember.
These questions are yours from the field,
please send your questions to #ChetChatsRPA
and thanks for watching.
