What Is the ROI of Workflow Automation Services in Business?

Today’s business world has requirements for efficiency, speed and accuracy that directly impact their profits; therefore, organizations of all sizes focus on finding ways to improve their operations while minimizing costs and maximizing the scalability of their business operations without adding too much unnecessary complexity. Workflow automation services provide an opportunity for organizations to transition from manual, repetitive processes to intelligent, technology-based workflows.

As organizations in the U.S. and globally examine the value of workflow automation services, they must consider not only what workflow automation is, but also what kind of return on investment (ROI) can be expected from it. This article will review the financial, operational, and strategic ROI of workflow automation in a straightforward, data-driven manner.

Understanding ROI in Workflow Automation

The Significance of ROI in Today’s Business World

ROI or the “return on investment” is a measure of the value achieved by a company as a result of a given project versus the amount of money spent on implementing it. When it comes to workflows automated by technology, the ROI encompasses far more than just the reduced cost of doing business. The ROI derived from using automated technologies can be measured and not measured in different ways, including:

• Lower operational costs for the business
• More productive employees
• More business done in a shorter amount of time
• Better experiences for customers
• Increased levels of compliance and better accuracy
• Increased levels of scalability, with far less cost added per unit of output as you expand your business.

The way in which companies measure the ROI of their automation investments differs from traditional investments; the returns from automation are often compounded over time creating a long term strategic advantage for the company rather than simply an advantage over a short period of time.

Return on Investment in Workflows: 4 Primary Areas of Workflow Automation

1. Workforce Efficiency & Cost Reduction

A key advantage to implementing automation is that labor-intensive jobs are frequently no longer performed by employees. Business processes like approval, data entry, reports generation & task routing take up a lot of time for employees without directly providing additional revenue or growth for the business.

Automation creates the opportunity for businesses to:

• Cut out repetitive (low value) tasks
• Have employees perform higher value tasks that are more strategic and generate revenue for the business
• Reduce overtime and minimize operational burnout (fatigue)

Studies have proven that by utilizing automation, companies will be able to save between 20 – 40% of their employee’s working hours (and therefore labor costs) within the first year.

2. Quality Improvement and Error Reduction 

Human error is one of the most expensive hidden costs of running a business. The mistakes that occur in finance, compliance, customer service, or data handling can result in rework, delays, penalties, and a loss of reputation.

Automated workflows improve accuracy for:

• Consistent application of rules
• Eliminating manual hand-offs
• Built-in validation checks
• Documentation that is audit-ready

A small reduction in the number of errors produced can result in a substantial financial return on investment, particularly within highly regulated or high-volume businesses.

3. Reduced Time and Improved Speed of Workflow Execution

Manual workflows can become delayed with respect to approval, email notification, and ownership of the task. Automation eliminates bottlenecks by executing actions in real-time and processing the task to appropriate parties.

As a result of faster workflows, the following will occur:

• Reduced time to close sales and onboarding a customer
• Faster time to process and pay on invoices
• Faster resolution of customer issues

Time saved translates directly into increased revenue, cash flow, and overall customer satisfaction—all three business performance metrics.

Workflow Automation: Short-Run vs Long-Run Return on Investment

Short-Run ROI (3-6 months)

Organizations often realize a ROI in the short run (3-6 months) from:

• Increased productivity after the first implementation
• Decreased time to complete processes in their business
• Decreased manual coordination of processes in their business

Most companies see ROI on their investments within a few months of deploying automation technology and/or automating high-volume processes.

Long-Run ROI (6-24+ months)

Over time, automated processes create significant/large increases in business value through:

• The ability to grow their business by providing more scalable operations without adding people to their organization.
• Creating standardized business processes across multiple departments.
• Providing more visibility into data and quicker decisions.
• Continually optimizing processes for improved business results.

Long-term ROI is where automation becomes a critical pillar of business resilience and competitiveness.

Strategic Alignment is the Key to Maximizing Your ROI

Why is Process Strategy Important?

Simply having automation will not deliver results. Automating outdated, inefficient, and poorly designed processes may limit your return on investment, or could create additional issues.

As a result, a lot of companies partner with a workflow automation company to ensure their technology and business objectives align.

Through a strategic approach, you ensure that:

• You are working on the most effective process first
• You establish performance measures (KPIs) before the process is implemented
• You have a seamless interface between automation and existing technologies.

For many companies, the second engagement with the workflow automation company includes optimising, scaling, and refining their processes using data from the previous engagement.

Workflow Consulting as an Integral Part of ROI Optimization

Organizations will frequently consult with a consultant prior to any automation of their processes to evaluate process flows and find inefficiencies within those processes. This is the first step in helping an organization maximize their ROI because if automation doesn’t focus on the correct opportunities, they will waste money implementing the wrong solutions.

A successful workflow consultant can help an organization:

• Have a clear picture of their current processes from beginning to end.
• Locate bottlenecks and redundant steps within a process.
• Estimate both the monetary and time savings of automating.
• Develop a strong internal business case.

The clarity gained during this upfront evaluation will greatly increase the chances of a successful implementation and will decrease the time to realize a return on investment.

Examples of ROI for Different Industries

Finance/Accounting

Automation greatly improves ROI through

• Quicker Invoice processing
• Automated approval/reconciliation process
• Improve Audit Preparedness and Compliance

These three areas of improvement affect your cash flow and accuracy of records.

Sales /Marketing

Your Rent-producing (revenue vs production) Sales & Marketing team can use automation to achieve a higher ROI using:

• Automating lead distribution and follow-up
• Ensuring accurate data in your CRM’s
• Reducing turn-around time in sales

A quick response usually results in the ability to convert Higher volume.

Human Resources/Team Members

Automated Processes make it easier for HR departments to provide the following:

• Streamlined Onboarding Process (The process by which your new employees begin working for your company!)
• Automated Payroll & Benefits through technology
• Improved Level of Employee Experience

Resulting in a decrease in Administrative burden and an increase in your ability to hold onto good employees.

Operations/Supply Chain

Companies in the Operations/Supply Chain Industry use Automation to accomplish the following:

• Better Visibility of Inventory
• Reduced Order Fulfillment Time
• Better Coordination with Vendors/Team

These efficiencies will help reduce your cost of doing business and provide you with a higher level of service to your customers.

Hidden ROI Benefits Many Businesses Overlook

As businesses look to save money, they should also explore the other, less obvious, benefits of automation. Automatic solutions offer some less obvious benefits in addition to cost reductions. For example:

• Employee satisfaction: Employees become more engaged when less time is spent performing repetitive tasks.
• Loyalty: Providing faster and more consistent delivery of services will produce a greater degree of customer trust.
• Agility: Processes can be modified quickly in order to respond to any changes in the business environment.
• Accurate Data: Better business decisions can be made based on reliable data.

There are also long-term benefits of each of these areas, including increased profitability and increased brand value. However, they may not be quantifiable at the outset of developing automated solutions.

Amounts Of Money Saved Through Work Flow Automation

An easy way to calculate ROI is to use the following formula:

A simplified ROI calculation looks like this:

(Total Savings/Total Cost)/Total Cost) * 100

Savings can come from things like:

• Reduced number of labor hours multiplied by the hourly wage of the employee who saved those hours
• Less money spent on correcting errors
• Increased sales revenue due to quicker processing time vs. traditional processes

Costs will typically consist of:

• Costs to implement and integrate the system
• Training and managing your employees during the transition
• Ongoing maintenance costs to keep up with changes in technology

In most cases organizations that have measured their ROI correctly within 12 months should find that they are making a positive return on investment.

Is Investing in Workflow Automation Worth It?

For most companies, the response is in the affirmative, provided the automation is carried out in a well thought-out manner. Automation has evolved into more than simply being a means of increasing operational efficiency. Automation has become an enabler of business growth through enhanced scalability, resilience, and business differentiation.

Companies that apply automation strategically and with expert assistance generally create:

• Enhanced Operational Efficiency
• Enhanced Financial Performance
• Sustained, Long-Term Rate of Return

Concluding Remarks: Making Automated Growth Measurable

Automation of workflows is not meant to take over individuals’ jobs; instead, it is intended to help people concentrate on what truly produces value for an organization. When used as part of an overall business strategy, automated workflows can be measured through return on investment (ROI) related to saving costs, increasing productivity of employees, improving customer experiences and creating scalable solutions.

Would you like to unlock actual ROI through your automated workflows?
If you are ready, now is the time to review your current workflow processes; define and evaluate how much value those processes presently produce; evaluate which processes can produce efficiency gains, determine the best method to implement your chosen process efficiencies, and make your plans public. Contact our professionals today to learn how automation technology can become an important part of your sustainable growth engine and long-term business success.