Primary goal of Hyper Automating a Process is to derive value. Selection of a process happens mostly in an intuitive way.
Patterns is proposing a very simple quantitative framework to evaluate possible automation value for a process. The framework proposes a methodology to get an Automation Value Number (AVN) for each process. Processes are then listed in descending order of AVN, providing us an automation priority list. Processes with an AVN number below a threshold value may never be automated.
Patterns proposes the following factors to compute the AVN:
1. MHN: Maker Hours Number: No of Man Hours spent by Maker Level people per month (using the FTEs).
2. CHN: Checker Hours Number: No of Man Hours spent by Checker Level people per month.
3. BVN: Business Value Number: Increased business value due to automation in terms of thousands of dollars increase per month. Increased business due to increased capacity or due to new services enabled or increased business due to better customer experience are included in the BVN. For example, if an organization expects 100,000 dollars of increased business per month due to automation, then BVN = (100,000 / 1000) = 100.
4. PVN: Profits Value Number: Increased Profits due to Automation. If the automation process plugs leakage of income, or income being lost on a consistent basis or income lost due to under charging, etc. The PVN is the increased dollars per month in profits due to automation.
5. ORN: Operational Risk Number: If organization loses x amount of dollars per month due to operational risk errors on an average, then the ORN = x. Typically monthly average computed using the last 12 months data can be used. This number includes amounts lost due to manual errors, amounts lost due to internal / external frauds, etc.
6. KVN: Knowledge Value Number: Automation generates knowledge of customer behavioral patterns. These patterns can be used to find, out of pattern behavior. This is the number of customers affected (processed) in a month, on an average. Monthly average computed using the last 12 months data can be used.
7. AUVN: Audit Value Number: AUVN is the number of hours spent in a year to support process and income leakage audit for the process. If the number of hours spent by maker level persons is m and the number of hours spent by the checker / senior level persons is c, then AUVN is computed as: AUVN = m + (2 * c)
Patterns finds this simplistic approach to process ranking quite useful to document the decision process to select process candidates to automate. It also helps, sometimes to take the decision of not to automate a process. The framework can be tuned to suit the context of each organization.
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