All that a CEO or CFO (and why not everybody in your organization?) should know about BPM, RPA & BPaaS by proceedit, explained in less than 1,000 words.
Each employee of your organization carries out, on average, 3,000 unitary tasks per month (for instance: making a call, sending an email, filling out a form, recording a transaction …) ie, about 20 tasks per-hour worked, in other words, this represents an average unitary personal effort of around 3 minutes per executed task.
If the total direct cost of employees involved in your business processes is US $ 20 per hour on average, ie US $ 0.33 per minute; each unitary task of your staff has a direct average unitary cost for your organization of , roughly speaking: US $ 1 / task.
A BPM-RPA process is a computer application of a procedural nature, that is, who manages a previously established working procedure or “workflow”, launching personal tasks to people (employees or third parties people) to be executed at the time when it is up to them to do so, and by also performing other tasks on its own automatically without any human intervention.
These are called automated or system tasks.
A typical BPM-RPA process includes around 50 BPM-RPA nominal tasks, from which the process automates about 50 % and the rest become “assisted” or semi-automated personal tasks.
Tasks that the BPM-RPA process automates do not represent a personal effort at all, which implies savings of around 3 minutes per automated task.
The rest of tasks that the BPM-RPA process serves as “assisted” or semi-automated personal tasks reduce the amount of human effort needed to execute them in a third of the time compared with their manual execution, or when they perform whilst supported by the existing register and transactional applications, saving 1 minute per assisted task.
According to the above, the average reduction of operating effort by the implementation of a BPM-RPA process is therefore: (50 % automated tasks x 3 minutes saved per automated task) + (50 % assisted tasks x 1 minute saved per assisted task) = average of 2 minutes saved per BPM-RPA process task executed.
Therefore, with the implementation of a BPM-RPA process, the human effort per task is reduced by 2/3 as an average (from 3 to 1 minute per executed process task).
Furthermore, the productivity (tasks performed by person) increases more than 3 times and, consequently, the direct cost per unitary task is reduced from US $ 1 per task to US $ 0.33 per task, thereby generating a potential gross average tangible saving of US $ 0.67 per executed process task.
In the operating modality BPaaS (Business Process as a Service), the procedural automation solutions which we have called BPM-RPA processes are served from the Cloud, without customers having to install anything on their systems.
Despite this, of course, hybrid solutions can be designed. For example, data and documents handled by the process can reside on the client systems under their complete control to avoid any security or regulation issue.
Client pays the cost of said BPaaS services by a monthly flexible service fee, just for the services consumed. This fee may include the personal service of those process tasks that are outsourced as a microBPO task-by-task service (micro Business Process Outsourcing).
When you implement BPM-RPA processes in the BPaaS by proceedit modality, no investment (No CAPEX) is required.
Each process task served has an average system cost (OPEX) of around US $ 0.12 per task as total operating cost per executed process task; a fee that covers absolutely everything needed for the service of the solution. This includes:
Analysis of the solution
It’s development and customization
It’s integration with client corporate systems
The support of users
The servers and other required equipment
The licenses of the necessary software tools and platforms
The safety and continuity of service
The corrective and evolutive maintenance
The service from the Cloud itself and real time 24/7 monitoring of the complete installation and last but not least
Recommendations for optimising the process.
Of the two amounts calculated in the above paragraphs, the gross potential tangible savings and the total operating cost, we can deduce the net potential tangible savings generated by the implementation of a BPM-RPA process under the BPaaS by proceedit operating mode, which we can express in three different manners:
Net potential tangible saving per executed process task: ($ 0.67 as gross potential tangible savings per executed process task) – (US $ 0.12 as total BPaaS operating costs per executed process task) = US $ 0.55 per process task.
Net potential tangible saving per month and per full time equivalent employee involved in the BPM-RPA process: (US $ 0.55 per executed process task) x (3,000 tasks per month per employee) = US $ 1,650 per employee.
Net potential tangible saving per typical BPM-RPA process execution: ($ o.55 per executed process task) x (50 nominal tasks per process instance) x (50 % of task execution ratio) = US $ 14 per process execution.
We speak here only about tangible savings and, more specifically, saving of human effort, because other contrasted benefits that the implementation of BPM-RPA processes produce, such as:
Reducing other operating costs
Reduction and homogenization of process cycle (SLA)
Reducing of penalties and possible fines for lack of service or defaults
Involvement of third parties (customers, suppliers, consultants, citizens, students …) in the execution of certain tasks of the process
Supporting and making teleworking easier
Allowing the controlled optional outsourcing of part of the process tasks to third parties when they can not be done internally or it is more expensive or critical in terms of SLA to do internally than outside
Allowing an increased level of service without incurring in additional personnel costs
Providing real-time monitoring of the process and management of alerts and alarms when incidents appear or could appear in the near future
Allowing monitoring of the process by exception
Facilitating full process traceability
Providing a continuous audit
Enabling the corporate governance
These are more intangible and therefore their quantification is more debatable, but of course can be discussed. Their impact will be reflected in the bottom line or your income statement in the short, medium or long term, depending this on the type of benefit.
We talk about potential tangible savings because, for them to become tangible so that we can monetize them and notice it’s effects appearing on the income statement, we should be capable to make the potential of saving human effort provided real by the implementation of BPM-RPA processes.
This either by:
Dedicating freed staff time to do other adding value tasks
Failing to cover natural staff attrition or retirement
Reducing the use of performing overtime hours or hiring outside reinforcement staff
Proposing reduced working schedules to employees who may be interested
Readjusting the staff amount, just when this is the only solution.
In short, the implementation of a BPM-RPA process on the BPaaS by proceedit modality generates for the organization:
A net potential tangible saving of around US $ 0.55 per executed process task or US $ 1,650 per month per full time equivalent employee, dedicated to the process or US $ 14 per a typical process execution.
Up to 12+1 very significant intangible valuable benefits with a clear effect on the profit and loss statement of your organization.
Moreover, it is very important that our No CAPEX 100 % BPaaS business model requires no investment at all and, therefore, no cost or financial risk are associated not subjected to entry or exit barriers.
Therefore, applying for it’s service is only a monthly flexible-variable fee depending on the requests for resources that each process in operation is demanding and, being that monthly fee much less than the tangible savings obtained (always less than 25 %), we could then say than BPaaS by proceedit is a No CAPEX but also a No net OPEX deal!
Nonetheless, we have very good news: in every organization, whatever its sector or industry and whatever its their size or region, there are tens (in small business), hundreds (in medium-sized enterprises) and even thousands (in large companies and corporations) of working procedures that can be easily automated as BPM-RPA processes, without any investment, with the BPaaS by proceedit model.
Therefore, being capable to generate huge potential tangible savings and the intangible benefits mentioned in above paragraphs.
Oh, by the way, if your LOB or IT people tell you that “as we have an ERP, a CRM, a DMS, a “legacy” or a whatever “XXX” system … our processes are already automated”, don’t believe them in the slightest.
We are talking about something else, precisely, about to install a top automation layer of a procedural nature, different and complementary to the currently automation tools deployed in your organization, which goes far beyond the pure manual registration and transactional tasks supported by the applications beforehand.
Those that also integrate automatically into your working procedures with said existing registration and transactional applications, to further reduce the human effort required in managing your organization.
Are you interested in the subject? Do you have some doubts? Let’s talk … with either you, your LOB or with your IT people.
Test us with the implementation of a first BPM-RPA process which is not going to cost you anything until you see your business process automation solution, which will be 100 % customized for your needs and 100 % integrated with the rest of your corporate applications.
As per, our try & lease business model, only if and when you would be 100 % satisfied with the implemented solution, you could start consuming the BPM-RPA process and, at the end of the month, you pay the corresponding monthly fee just for the services consumed (users involved, number of processes deployed, executed process tasks …)
This is all done without being obliged to respect minimum permanency periods, nor minimum monthly fees, nor any other entry or exit barrier.
If you trust us, it will be a pleasure to help you to improve the efficiency of your organization with our try & lease, No CAPEX, No net OPEX, full barrier-free BPaaS by proceedit model.
PS: By this point, you have read much more than 1,000 words. Sorry for the length but I guess it was interesting for you, was it not? At least that was my intention, thank you for your time.