Automation Valuation System Using Multi-Dimensional Cost Analysis
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Solution Overview
Problem
Existing enterprise systems face challenges in valuating automation steps across complex processes, as the importance of automation extends beyond effort saved and requires a comprehensive assessment of time, cost, and qualitative parameters.
Innovation Solution
A method and system that compute dynamic time and cost-related parameters, normalize the actual cost saved, and categorize automation value into 'automate,' 'neutral,' or 'non-automate' categories based on qualitative parameters and automation maintenance costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If multiple automation steps are implemented for complex tasks, then productivity and effort savings improve, but the complexity of implementing and managing automation increases
Solution Approach 1:
The patent segments the automation evaluation into distinct components: time-related parameters (execution time, completion time), cost-related parameters (implementation cost, maintenance cost), and qualitative parameters (process stability, error reduction). This segmentation allows complex automation systems to be evaluated systematically through multiple independent dimensions, making the overall complexity manageable and measurable.
Solution Approach 2:
The patent introduces dynamic evaluation mechanisms that continuously monitor and update automation performance parameters. The system dynamically computes time savings, cost reductions, and qualitative improvements in real-time, allowing the evaluation to adapt to changing process conditions and automation effectiveness over time.
2Ease of operation
If automation is evaluated based only on effort saved, then the evaluation is simple, but the evaluation does not capture the full importance and applicability of automation steps
Solution Approach 1:
The patent expands the evaluation framework from a single dimension (effort savings) to multiple dimensions including time-related parameters (execution time, completion time), cost-related parameters (implementation cost, maintenance cost), and qualitative parameters (process stability, error reduction). This multi-dimensional approach provides comprehensive automation valuation while maintaining systematic evaluation through structured parameter categories.
Solution Approach 2:
The patent changes the evaluation parameters from simple effort metrics to a comprehensive set of measurable parameters including time, cost, and quality indicators. By transforming the evaluation into parameter-based measurement, the system achieves both simplicity in structure and precision in valuation through standardized parameter computation and normalization.
3Measurement precision
If comprehensive parameters are computed for automation valuation, then the valuation accuracy improves, but the computation complexity and time required increases
Solution Approach 1:
The patent performs preliminary computations of time-related and cost-related parameters during the automation implementation phase, storing these values for later evaluation. By pre-computing and storing performance data, the system reduces the time required for subsequent automation valuation, as the comprehensive parameter data is already available rather than requiring real-time computation during evaluation.
Solution Approach 2:
The patent implements feedback mechanisms that continuously collect and update automation performance parameters from actual process execution. This feedback loop provides ongoing data on time savings, cost reductions, and quality improvements, enabling accurate valuation without requiring extensive manual measurement or computation, as the data is automatically captured and updated.
Data Source
AI summary
Systems and methods for valuating automation are described. The system computes plurality of parameters associated with process. The plurality of parameters comprises time related parameters and cost related parameters. Further, the system determines a total actual cost saved when an automation is applied on the process based on the time related parameters and the cost related parameters. The system further normalizes the total actual cost saved based on the cost related parameters and a cost of automation maintenance. Further, the system determines a value of the automation based on the total actual cost saved after normalization, qualitative parameters associated with the process and the cost of automation maintenance. The value is categorized into at least one of an automate category, a neutral category and a non-automate category. Based on the categorization, the system selects only relevant automations in order to reduce overload of running unnecessary automations, thereby improving system's performance.