Are you wondering if you should automate your routine day-to-day approvals? You’d be amazed at the Return on Investment. Let’s do a quick analysis. Approval workflows are usually at least 3 steps long and, often quite a bit longer. For now, let’s consider a 3-step workflow:
I came across this article yesterday and was amazed by the numbers. JP Morgan Chase uses software to perform a routine task in seconds instead of 360,000 hours. Imagine the ROI on this automation?
“The push to automate mundane tasks and create new tools for bankers and clients — a growing part of the firm’s $9.6 billion technology budget — is a core theme as the company hosts its annual investor day on Tuesday.”
Not everyone is as big as JP Morgan Chase. Automating your routine day-to-day tasks isn’t likely to save you that much but investing in technology, especially to automate routine tasks is an absolute must in today’s world. It’s amazing how much this waste actually costs you. Automation brings huge benefits and return on investment.
If your people are wasting their time on routine stuff like moving information from Point A to Point B, your company should be investing in automation. As we’ve said many times: is it better for your employees to focus on customers or chasing down an approval for that purchase order? Should teachers and faculty focus on students or on getting signatures for that conference travel authorization?
“People always talk about this stuff as displacement. I talk about it as freeing people to work on higher-value things, which is why it’s such a terrific opportunity for the firm.”
Like JP Morgan, which spends 9% of revenue on technology (double the industry average), you can’t sit around and wait to know what the endgame looks like. The environment is simply moving too fast.
We’ve seen that many customers use frevvo to automate Purchase Orders. It’s the most frequent one. One of our partners asked me if I could quantify what’s it really worth. So, I tried to measure it for a 3-step approval workflow and the result was surprising at least to me. Here are the assumptions:
- An Employee costing $80,000/year (including benefits/taxes/vacation etc.) saves 10 min using an e-form.
- A Manager costing $100,000/year saves 3 min for each approval.
- An Accounting Manager costing $60,000/year saves 3 min for each invoice.
- There are 400 approvals/month (for all kinds of workflows PO, Leave Approval, Travel Authorization, Time Sheet etc.).
You’ll save ~$50K every single year or 57% of your costs. It’s amazing how much the paper/email process actually costs you – close to $85K per year. You’ll see positive ROI in just a bit over 2 months. And that doesn’t even take into account the time spent trying to track down emails, chasing down managers for signatures or, perhaps of greater importance, the Opportunity Cost of delayed approvals.
Try this ROI Calculator for your own organization. It’s often hard to see how much those paper/email workflows are really costing you. Visit our website to view customer success stories and signup for a free trial.
Another interesting lesson from a customer. All Island Gastroenterology & Liver Associates (AIG) uses frevvo for a variety of forms. Patients often spend 15-20 minutes in the office filling out paper forms such as Medical History. The resulting delays and back-ups imply that doctors can see fewer patients because they’re waiting on paperwork.
If just 50% of patients fill out the Medical History form online, AIG’s doctors will gain 3-4 extra hours of billable time each week, a value of almost $100,000 annually. And, that doesn’t even take into account the fact that AIG staff spends less time on paperwork, the quality of the patient visit goes up or any of the other paper forms/processes that they are automating.
It’s cool – a single e-form can be so valuable.