How to calculate the ROI of an automation
Automation projects become easier to evaluate when you stop counting features and start counting repeated work.
Count repetitions
Record how many times the task happens in a typical month. One manual task per quarter is rarely worth elaborate automation.
Measure the manual time
Time the complete process, including opening systems, copying information, checking results and fixing common mistakes.
Estimate the saved value
Monthly value equals repetitions multiplied by minutes saved, converted into hours, multiplied by a conservative value for that time.
Subtract operating costs
Include software subscriptions, automation-run charges, maintenance and occasional troubleshooting.
Account for failure
A workflow that saves an hour but creates a serious error every few weeks may have negative value. Estimate the cost of failures and review steps.
Start small
Automate one stable step first. Once it works reliably, expand the workflow instead of building a giant automation on day one.
The rule
A boring automation with predictable savings is usually better than a clever automation with unpredictable maintenance.