Why AI Based Platform metrics must be visible within the company
Every business wants to make their operations more efficient.
We want to be able to do away with all the redundant, monotonous tasks that pull skilled employees away from more important work. After all, a business that operates efficiently, drives more predictable revenue and increases future scalability.
It’s this efficiency that’s fundamental to building and running a profitable business that lasts.
Of course, this is the driving reason behind the massive uptake of AI based platforms such as Intelligent Automation, Document Management Systems (DMS) and Digital Twin-based Process Mining to reduce costs and improve overall operational performance within organisations. At CiGen, we’ve worked with many businesses to build customised AI based platforms and systems, that dramatically improve speed, efficiency and scalability.
However, here’s the unexpected twist
You might think that the hardest part of this service is building AI based platforms and getting them to work and demonstrate ROI. But the truth is, that is the easier part!
The REAL challenge lies in measuring adequate AI performance metrics and making these ROI results visible to key stakeholders.
In other words, AI based platforms always shave thousands of dollars and hours by removing mundane, repeatable and tedious tasks. BUT if management doesn’t see those results (which is often the case), the business risks removing it – and going back to square one.
The automation metrics trap
A failure to promote the visibility of AI based platforms results internally can seriously undermine or even undo all of the improvements brought about by the AI based platforms.
In this article, we’re going to discuss the importance of having these AI based platform metrics in place and why the key decision-makers need to comprehensively understand the full value that intelligent automation creates for the business.
A typical Intelligent Automation case study in an Australian business
Picture a business that has several mundane tasks which need to be done but are currently being handled by three valuable employees. Their combined salaries total just shy of the $300,000 mark.
- The management engages with CiGen who come in and build an intelligent Automation solution.
- Suddenly, these mundane tasks are completely automated and the three employees, previously handling those are reassigned to more important tasks, where their expertise is better directed.
Savings: over $300,000k + hours of work + improved staff satisfaction.
- The company is now running more efficiently than ever and is no longer wasting valuable resources on daily menial tasks.
But the case study continues here – stay with us.
So, everything is running smoothly and the senior management is happy.
- The problem, lying in wait, is that nobody has put in place, any means of tracking and presenting the performance metrics of the Automation.
Without these measurements of ROI, the Intelligent
Automation ends up out of sight and out of mind, quietly
keeping the business running $300,000+ more efficiently.
- After some time, senior management decide it’s time to cut some costs.
- They see the costs associated with the AI based platforms but have no idea the level of value or efficiency they provide.
- And so, thinking these AI based platforms are just a relic of the AI hype train, they decide to cut the AI based platform services.
Suddenly, like a house of cards, everything that was being enabled by Intelligent Automation turns off.
See the problem?
- Those mundane tasks, once again, need to be handed back to a human.
- This pulls skilled staff from where they’re most needed, meaning the customer-facing side of the business suffers.
- So they hire new people to handle those tasks.
- Now the business is paying new staff to handle the once-automated tasks and forking out the costs to train them.
While this case study is a simplified, hypothetical scenario, it perfectly illustrates the common type of problems we’ve seen arise often.
In response to this, CiGen is doing something about it, so that the time and financial investment from the businesses are not overlooked and wasted in the future.
The importance of internal visibility over AI based platform results
The truth is, no matter how good an AI based platform is and no matter the value it provides, if senior management can’t see the results, it’s at risk of being undervalued and removed.
The problem is: so much can be achieved when Intelligent Automation is implemented correctly, but businesses overlook the success
of the program or take it for granted simply because the
performance metrics aren’t being demonstrated.
The solution to the looming problem is visibility, to ensure that key decision-makers see AI based platform as a high priority.
Unfortunately, C-Level Managers aren’t consistently seeing the improvements at eye level and aren’t being shown what AI based platforms are doing, which means they’re not seeing the inherent value to the company albeit cost savings, or after time, cost avoidance.
So when the business talks about cost cutting, AI based platforms are quite often first on the cutting block early – which is completely counter-productive!
The consequences of the C-Suite not seeing AI based platform results
The business investment into successful intelligent platforms provides a massive long-term saving on costs and time.
We know the investment is worth it because we do it every day and see the results first-hand. But getting it to work is only half the battle. The hardest part is often showing the C-Suite the actual financial value of the AI based platforms program.
They get Intelligent Automation to work, and the savings and efficiencies are there, but the systems soon become invisible. This puts the program at risk when a company is looking to cut costs.
With no means for the decision-makers to discern the overall value associated with the spend, so they write it off as an unnecessary cost.
Have this challenge? Here’s the important question to ask leadership
If you decide to cut our AI based platforms program, are you prepared to bring more people back in and pay them to perform mundane tasks again?
The answer should be a firm: “no”.
The thing is, when you accurately analyse the costs that AI based platforms have helped to remove:
- You begin to be able to paint a picture of what operations might look like without it.
- You will be able to link the costs of the program, with the cost of stopping it and bringing in people to do the job.
The prospect of cutting off AI based platforms then presents new questions:
- How many people would you need to hire to handle the automated tasks?
- What are the costs associated with each hire, like salaries and, and the cost of training?
- What are the impacts on customer service now that some things aren’t working seamlessly behind the scenes?
- How long will it take to get up to speed with where the automation had the business?
Fortunately, your performance analysis document holds all the answers to these questions.
Key metrics to track AI based platform performance ROI
At CiGen we have an outline of 10 key AI based platforms performance metrics to measure, to demonstrate the improvements and ROI:
- Improved accuracy
- Need for intermissions
- Digitisation of audit trails
- Evaluation of compliance deficiencies due to data entry errors
- Engagement in new projects
- Workforce Impact
- Tool utilisation
- Cycle time
- Employee retention rate
- Employee satisfaction
These AI based platforms performance metrics are necessary to make a convincing case for automating business processes.
Measuring AI based platforms is crucial when it comes to measuring and demonstrating the financial return on investment (ROI), and operational impact of intelligent automation in your company.
Tracking the ROI of Automation, and performance metrics also allows more realistic planning of the future use of AI based platforms enterprise-wide.
How to measure and present your AI based platform metrics
The best way to present AI based platforms performance metrics is with a “before” and “after” for automated processes.
In the case of automated tasks:
- “before” refers to a way to measure the manual effort multiplied by the work cost (i.e., the salary of the employees performing the tasks)
- “after” is the sum between the cost of the AI based platforms tool and that of the people who handle AI based platforms maintenance.
Strategies to keep AI based platforms top of mind for management
There are two useful strategies we think organisations should use together to keep AI based platforms top of mind for senior decision-makers.
- Regular reporting and updates on the performance metrics will help position Intelligent Automation as an important aspect of the business. Regular measurement also comes with the additional benefit of providing more detailed and accurate data over time.
This flows into the second strategy, which is:
- Integrating the performance data into strategic decision-making. Key stakeholders must recognise Intelligent Automation as foundational to key business decisions, ensuring it is taken seriously and seen for the value it provides.
Strategies that link the performance of AI based platforms to key business decisions will maintain interest and ensure long-term implementation and improvement.
Long-term benefits of maintaining visibility of AI based platforms results
Implemented correctly, AI based platforms are almost guaranteed to provide significant positive improvements and ROI to operations.
With this being the case, it is so important that AI based platforms are invested in, to remain up-to-date and as effective as possible. The visibility of Intelligent Automation within your business is key to ensuring that the appropriate levels of attention and investment are paid to the program. By keeping AI based platforms visible and adequately maintained, your business will remain highly efficient and, therefore more competitive, in the long term.
Your senior decision-makers must see the value in your AI based platforms
The results and performance of AI based platforms need to be visible within your company so that all key stakeholders see it as an integral part of keeping operations highly efficient.
Without a compelling demonstration of the improvements in operational efficiency and the financial benefits that AI based platforms provide, all the time and money invested into the system are at risk of being wasted.
The team at CiGen are experts at creating customised AI based platform solutions to improve efficiency in your business. We will also help you to set, measure and present performance metrics to the C-suite so they see its value and keep it working for your business.
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