Most companies have recently been striving to streamline their workflow processes. There are two aspects they seek to streamline. One is the workflow handled by humans.
The other is automated workflow. Businesses strive to find the right balance between human and automated workflow.
A balanced control over workflow management gives a company the upper edge in competitive business environments. Companies rely on workflow automation software to achieve a controlled workflow process.
A report submitted by Grand View Research states the workflow management software industry was worth $8.52 billion in 2021. The report forecasts that by 2028, the value will be $55.35. That amounts to a compound annual growth rate of 30.6%.
With such spectacular growth, many companies are considering implementing workflow management software. Companies want to know the ROI (Return on Investment) of implementing workflow automation software.
There are two key factors to consider before wanting to know the ROI:
Why is Workflow Management Software needed?
There are several benefits for any company that implements Workflow Management Software.
Cost of integrating Workflow Management Software?
There was a time when workflow automation solution was expensive. As a result, only a few companies could afford to implement these. However, this has changed with the advent of cloud computing.
The top providers like IBM Corporation, Newgen Software Technologies Ltd., Nintex UK Ltd., Oracle Corporation, Appian, Pegasystems Inc., Xerox Corporation, and Software AG offer Workflow Management Software on cloud platforms. With this in place, it is now much more affordable.
Moreover, these vendors offer their software in a monthly subscription format. Therefore, there is no need for a high one-time investment.
Another cost advantage is most of the vendors offer plans that start from a basic plan which is highly affordable. Then, based on the needs of the company, there is a choice of higher plans like the standard plan, professional plan, or enterprise plan. Each higher plan comes with added benefits and features.
Considering these points, the cost that an Enterprise will pay for implementing workflow automation software depends on these factors:
Calculating the Return on Investment
After looking at the necessity of workflow management software and the cost of installing it, we can look at the ROI. But, first, a company must calculate the ROI to understand whether the cost of implementing the software is measurable in context to the intended returns.
It is essential to first study the existing workflow. A detailed report documenting the time required to complete the tasks in the workflow and the relative cost for each. Calculate the annual cost for the existing workflow.
Next comes a soft run of the software before the implementation. Generate a report after the smooth run. This report must document the time and cost for each task in the workflow. Account for the annual software subscription cost. Calculate the yearly cost of the automated workflow.
Now compare the results to check the savings in time and cost. The difference in the price before and after the soft run is the ROI for implementing the Workflow Management Software. Ideally, the ROI must show approximately 20% cost savings to be viable.
The growth of the workflow management software industry is incredible. An increasing number of companies are introducing workflow automation software.
Apart from positive results concerning return on investment, the advantages and benefits far outweigh traditional workflow management.