Should You Automate Your Processes Or Not? How Not To Waste Money On Automation
To decide whether it’s worth it to invest in a fixed cost to automate a process you need to calculate if this number is lower than a variable cost multiplied by a number of occurrences (lifetime of a process).
To automate: fC must be smaller than vC * nO
where C = Cots are your resources that you need to allocate, ex.:
– Team members
– Your time
– Computers and infrastructure etc.
To be even more precise you want also to calculate the amortization of costs and factors such as inflation etc. but we leave those for the next videos.