Short-term metrics are easy to define and can be measured as soon as the project’s been kicked-off. These could include the reduced process costs resulting from automation, for example.
Long-term metrics on the other hand, are more difficult to quantify than their short-term counterparts. Nevertheless, they are the ones that provide a deeper insight into the full potential of process automation. Examples of such metrics would be the employee and customer satisfaction, or the rate of innovation.
Since the traditional approach to ROI calculation often does not sufficiently address the long-term and qualitative benefits, the true value of process automation is thus not fully reflected. Therefore, in order to get a more accurate picture of the return on investment for your process automation efforts, the range of considered factors needs to be expanded. This requires an understanding of the four basic concepts that enable a richer analysis of the process automation results. And these are the following:
- ROI (Return on Investment)
- TBO (Total Benefits of Ownership)
- TRG (Total Resources Gained)
- TVO (Total Value of Ownership)