When calculating ROI from automation, it’s tempting to measure it by:
- Calculating the return from the hours saved.
- Subtracting the implementation cost.
The math looks good on paper.
5-minute task * done 20 times a month * 12 months * 10 employees = 12,000 minutes.
You could save 200 hours per year by automating a 5-minute task!
But, it’s not that simple.
We have to consider:
- Implementation Cost. It’s not just about the money. You’ll need to invest the time and energy of your team as well.
- Maintenance Cost. Fixes and updates can add up, especially if you’re outsourcing them.
- Cost of Potential Errors. Mistakes can happen, and humans will have to manually do the task instead.
- Reduced Flexibility. Automated systems are hard to adapt to company changes.
It’s easy to get deluded by simple calculations for measuring ROI.
But please, take off your rose-colored glasses and consider the associated costs too.
Sometimes automation is not worth it.