Business Transformation, Automation and Data Analytics Consultants
Process Automation
Process Automation is the use of computer tools to automate business processes and functions in the workplace.
This is a continuation of the earlier waves of factory automation that began with the Age of Industrialization in the 19th century and continued with the Age of Robotics starting in the 1960s. The earlier waves of automation focused entirely on the manufacturing process.
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The current wave of automation is focused on non-manufacturing processes. It includes a wide range of desk-bound jobs that can be performed by a computer. Some of these tasks used to be performed manually by a human operator, some other tasks were never performed before because human lacked the patience, speed or accuracy of computers.
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Process automation is a also very important partner of data analytics. Every data analytics project requires a high degree of automation to be successful.
Automation Culture
The fundamental factor neccessary for success.
Successful implementation of Process Automation requires the creation of an Automation Culture. Such a culture openly embraces automation. It sees automation as something that creates value for both management and staff, creates a win-win situation for all parties, and actively seeks out further opportunities for automation.
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Key Aspects of Automation Culture
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Actively looking for opportunities to Automate existing processes. This is an attitude which proactively seeks to expand the automation possibilities in existing processes and functions.
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Actively seeks to improve existing automated processes. This is the same as in any factory that has industrial automation - the engineers are constantly looking for opportunities to increase manufacturing yields, reduce production times and other key metrics. We just apply the same attitude and similar metrics to the desktop process automation setting.
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Recognition that Automation is a tool that helps staff become more productive, create more value and do more creative and interesting work. It is not a threat to the staffs' jobs, but a tool that helps them.
The benefits of process automation are the essentially the same as factory automation:
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Benefits to the Firm
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Greater efficiency and productivity, thereby reducing operational costs
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Reduced error, increased yields
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Greater customer satisfaction (due to fewer mistakes)
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Allows the use of Data Analytics, AI
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Allows the firm to scale up quickly and efficiently (especially important in many Asian economies today where demographic trends are leading to a diminishing pool of labor in the years ahead)
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Benefits to Employees
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Increase personal productivity, resulting in increased compensation. In efficient labor markets, wages are correlated with the productivity of labor.
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Ability to do more interesting work and to avoid repetitive monotonous work.
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Automation is a very often a win-win for both the firm and most of the existing staff.
Advantages of Automation
Automation benefits the firm and employees
What firms should not automate?
Firms that aim to remain competitive by remaining stationary do not need to bother with automation. These firms will very likely be forced to exit the industry one day.
Firms that fit the following do not have to bother with automation:
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No desire to scale significantly beyond the current size.
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No desire to use data analytics or AI in any meaningful manner.
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No desire to reduce errors, increase efficiency or reduce costs.
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Any firm that aims to remain at the status quo with the status quo will not have to bother with automation....
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However... this idea of 'remaining competitive while staying at the status quo' is an illusion because it will never happen. While you are staying at your status quo, your competitors are moving ahead to automate, gaining competitive advantages.
By not moving, the only confirmed outcome is that you will one day be forced to exit the business because you can no longer compete.
Many SMEs differ from large companies in that SMEs still often need a higher degree of flexibility in their automated processes that large companies. The challenge is to find the optimal mix between flexibility and fixed processes, so that they can run their business better.