Process automation is assuming a developing part for medium-sized organizations. With new advances, digitization sets out extra open doors to build efficiency. This article clarifies how computerization functions, how organizations benefit from it, and how interests in such ventures can be financed.
Effective Process Automation With Digital Transformation
Process automation is an aftereffect of the additional opportunities that digitization offers. What precisely does deal with mechanization mean? It’s tied in with computerizing repeating processes and consequently expanding efficiency. Techniques are demonstrated and afterward constrained by the executives’ work process to carry out this arrangement. What’s the significance here, practically speaking? In the first place, organizations depict a cycle.
The trigger of a revolution, all means, and all individuals included are efficiently recorded. Here is a contextual analysis. An organization supports different costs for its business power. The salesmen submit cost report structures to their group chief. The group chiefs can either sponsor such cost reports in full, reject them in full, or reject a part of the things recorded and endorse the excess stuff. The cycle’s trigger is in the field administration representative who emails a cost report to his group chief.
The process comprises the endorsement or dismissal and the installment of the supported sum. Assuming that the cost is dismissed, the salesperson should likewise email. This is an illustration of a clear interaction in an organization. This interaction (in the same way as other different cycles) can’t be 100% robotized because a human representative needs to look at the records and choose endorsement or dismissal.
How Do Companies Benefit From Process Automation?
The automation of processes can offer companies a multitude of advantages, such as:
- Productivity increase
- Higher process quality
- Reduce effort
- Counteract the shortage of skilled workers
- Increased security
The most significant advantage is the automation of processes and the associated increase in productivity. This is accompanied by higher process quality because there are fewer processing errors. In addition, the effort for the cycle is reduced, which has a positive effect on the cost position. Last but not least, it can also improve compliance quality. What exactly automation means differs from company to company. In general, automation refers to measures to improve processes through technology in the broadest sense.
Automation can, for example, consist of automatically accepting expense reports below a specified amount and having them paid out. This eliminates the need for work, which in turn reduces costs. Process automation can increase process quality. This means that fewer machining errors occur. This applies to all processes. A robot on the assembly line makes just as few mistakes as a commercial employee who checks and forwards documents.
The more automated a process is, the lower the error rate. Human employees can make a variety of mistakes. Incorrect data can be entered, or documents can be sent to the wrong recipient. Data can be obtained from the wrong file. A simple example is the classic incorrect transfer. A human agent approves the payment of an invoice but assigns the amount in favor of a false account.
More Productivity In The Company
Automation can reduce the effort and thereby increase productivity and efficiency. Ultimately, this is the primary goal of most automation companies. Fewer human employees are required for a process. The faster and smoother the process will run. From the company’s point of view, personnel and other costs are falling, which increases margins. Productivity increases are relevant against the background of the shortage of skilled workers.
More and more companies are suffering from a lack of qualified personnel. If the scarce staff can be deployed elsewhere through process automation, this is an answer to the shortage of skilled workers. Another advantage is the increased security in many areas. One example of this is data protection. According to the law, customer data must be encrypted. Modern software can do this reliably and with little effort.
How Can Processes Be Optimized?
Process optimization is not rocket science. However, many SMEs find it difficult to initiate such changes. How can this work? Companies with relatively little experience in process automation should start with pilot projects. These should be limited to individual departments, which ideally are not critical. Tasks in IT, human resources, or marketing/sales are particularly suitable. The pilot projects should be extensively evaluated, and experience should be used for follow-up projects.
Many digitization consultants recommend that all knowledge relating to process automation and digitization be concentrated in one place in the company. In this case, an individual employee or staff is responsible for localizing automation potential in the company, planning and monitoring process automation, and regularly reporting to the management on progress. It can be worthwhile to use this department to ask all employees in the company about possible digitization potential.
Companies should communicate as transparently and openly as possible. Digitization and process automation must enjoy acceptance among the workforce. In the worst case, a culture of technology rejection will spread, driven by concern for one’s job. Organizations should communicate that productivity gains in one place can lead to new tasks for human employees in another.
Even companies whose core business has a high level of the specification have to cope with regularly recurring sales, marketing, accounting, and human resources processes. There are already numerous software solutions on the market for such standardized tasks. It can be worthwhile to explore this market and look for suitable programs.
Process Automation: What Are The Costs For Companies?
The introduction of automation in the company is associated with costs. These should be understood as investments in higher productivity and efficiency. Nevertheless, the prices have to be borne first of all. Companies can fall back on various public funding programs. This promotes the measures themselves through discounted loans and digitization advice through grants. Regardless of this, companies can use savings potential and liquidity reserves to finance investments.
Automation: What Does The Near Future Hold?
It is already foreseeable that the Internet of Things will play an essential role in automation in the future. IoT is no longer just a topic of the end: there are already numerous IoT platforms competing for customers. The next big trend could be IoT as a Service – IoTaaS. This concept could offer companies a low-threshold solution for automation and digitization. IOTaaS enables companies to make business processes more flexible and scalable.
The role model for this development is other IT as a service business models. With the advent of the Internet, many companies relocated IT capacities to the data centers of large service providers. This can save costs. IOTaaS could do the same with the Internet of Things.
The Internet Of Things As A Ready-Made Solution For Every SME?
The Internet of Things is about machines and computers communicating with each other. The Internet of Things potentially affects all areas of a company. A simple example is a robot inserting a screw. Immediately afterward, this informs another robot that the screws have been inserted and that the next production step can occur. At the same time, he tells the accounting department that a screw has been used up and can be written off. The warehouse receives a message that a new screw is required.
The Internet of Things requires stable platforms that can also be implemented in SMEs. IOTaaS could do this. Compared to an in-house developed solution, IOTaaS offers various advantages. Companies save the development effort and acquire a ready-made solution. This includes updates, online support, extensions, etc. Since experienced service providers provide IOTaaS, the contracting company also indirectly has more expertise that would otherwise take a long to build up.
Conclusion: Process Automation Means More Productivity
Process automation offers SMEs great potential. Automated processes are less error-prone and reduce costs. Every part of a company is affected by process automation. SMEs should start with pilot projects in non-critical areas such as sales, accounting, or human resources and acquire their expertise. In many places, access to external service providers will be unavoidable.
This applies, for example, to various software solutions up to IOTaaS platforms. For most companies, automation is likely to involve more or less high investments. These can be dealt with, for example, with discounted public-sector loans. In any case, we recommend comprehensive digitization advice before starting the project. The state also funds such advice with grants.
Companies are well-advised to start early with pilot projects and digitization advice. If you wait too long, you may fall behind in the competition. Automation and digitization are still acceptable options to counteract the shortage of skilled workers. This should also be communicated in the company: Process automation is not about saving jobs but upgrading them.