What is the ROI (Return on Investment) of implementing FacilityBot?

 

Although it is by now well known that automation and digitization are generally good investments, it is always prudent to try to quantify the ROI of any specific software service that you would like to implement.

Research

Various research have been conducted to assess the average ROI of implementing a CMMS system like FacilityBot. In particular,

·         Jones Lang LaSalle concluded in a 2017 research piece that “At a 545% ROI and with cost reductions totaling $0.33 a square foot, preventive maintenance savings are worth the investment.” (http://www.sitemason.com/files/b2tJra/Preventive%20Maintenance.pdf)

• Research published in the Journal of Structural and Infrastructure Engineering[1] showed that “The Cost-Benefit Analysis shows the benefit of Preventive Maintenance is positive with a benefit–cost ratio at 3.3.” (https://www.tandfonline.com/doi/abs/10.1080/15732479.2015.1032983)

Formula

The formula to derive ROI is below.

It is a simple formula. However, figuring out the correct numbers to insert in the formula is the tricky part.

 

Savings from implementing FacilityBot

Hopefully, you have already used our ROI calculator to derive the savings that your facility may benefit from by implementing FacilityBot. Savings can accrue from multiple sources, which we list below. Some savings such as productivity gains are more easily quantified, whereas benefits such as increase in user satisfaction are less easily quantified.

Increase in Technician productivity

FacilityBot increases technician productivity in a number of ways. Moving from paper checklists to mobile checklists can result in about 20% productivity savings, due to the reduced need to print, sign and the transport time required to deliver hardcopies. Moving from desktop checklists to mobile checklists can similarly result in about 10% productivity savings.

Increase in Fault Report Centre productivity

FacilityBot automates workflows including technician auto-assignment and direct communications between technicians and fault reporters. With FacilityBot, much of the manual workload traditionally undertaken by Fault Report Centres are automated. Answering phone calls may be reduce by up to 80%. Co-ordination work may be reduced by up to 60%. Administrative work such as printing records and maintaining files may be reduced by up to 50%. With FacilityBot, the role of Fault Report Centres is moved towards oversight and exception handling.

Equipment maintenance

Moving from corrective to an appropriate and well-structured preventive maintenance regime can increase the expected life of assets, reduce the cost of corrective maintenance, the cost of replacement and downtime costs. FacilityBot helps to schedule and structure preventive maintenance for building owners and facility managers.

Reduction in Management oversight effort

A manual, paper-based facility management process makes it very difficult to exercise proper management oversight. Without real-time knowledge of facilities management activities, managers traditionally rely on periodic (weekly or monthly) reports which must be manually compiled, lack detail and cannot be easily verified. With FacilityBot, managers can see real time reports, including response and rectification times, the status of all preventive maintenance checks and adherence to KPIs. With FacilityBot, Managers can save up to 50% in oversight effort.

Audit Requirements

Since all data is retained digitally in FacilityBot and easily retrieved, effort to prepare for audits is greatly reduced. For example, photo evidence of fault rectification are already linked to the fault report or preventive maintenance checklist in question.

Convenience and Satisfaction of Building Users

This is probably the most important but least easily quantified benefit from using FacilityBot. FacilityBot’s omni-channel chatbot approach allows building users to report faults using the messaging platform that they are most familiar with, without downloading new apps. Building users also report quicker response to their fault reports since technicians can communicate directly with them, response times are tracked and the status of their reports are automatically fed-back to close the loop.

Ultimately, for building owners, the satisfaction of the building users should be topmost on their priority list and for contracted facilities managers and managing agents, such satisfaction often translates into contract renewals!

Cost of Implementing FacilityBot

FacilityBot has several plans for facilities of different sizes. Check out the available plans here. Even without quantifying and including the intangible benefits in the ROI calculations, we believe that implementing FacilityBot will result in a highly positive ROI for your facility. As we continue to improve FacilityBot to provide more value and convenience to you, we aim to make the decision to implement FacilityBot truly a no-brainer!

 

[1] Christer Stenström, Per Norrbin, Aditya Parida & Uday Kumar (2016) Preventive and corrective maintenance – cost comparison and cost–benefit analysis, Structure and Infrastructure Engineering, 12:5, 603-617, DOI: 10.1080/15732479.2015.1032983