How do i calculate the automation cost savings per incident?

[lkirby]

How do i calculate the automation cost savings per incident?  What is the best way to configure and represent this in a dashboard?  Single Report?  Thx!

[twooton · Accepted solution]

This is a pretty vague question without much more information, but here is the path I would suggest you start down. This is a top level look, not a detailed outline as you will need to determine the parameters and numbers needed for proper breakdown and comparison.

Basically if you don't have several other items in place, you are going to be left with a simple formula to compare total numbers of incidents to an average labor rate. This is not a very good result but it's a start. You will need an average time of resolution for your incidents. You will also need to know what subset of those could be resolved with automation. If you don't have SLA's in place, this will be much more difficult to determine. You will need an average labor cost, broken down by hour would be fine for calculations. You will need to restrict your report to operating hours, and remember to divide by number of employees. Also there will need to be other breakdowns such as category, or departments so that you can get real data to show where automation could be beneficial. If nothing else, basically you could take how much time is spend working one incident you could automate and multiply that by your labor rate. From there filter incidents that could be resolved by automation and multiply by the number of incidents from that filter over the time breakdown.