Can Automation Improve Businesses Processes?

Automation is the technique or a way of operating a process through automatic means, usually through technology and electronics.

Automation aims to minimise human intervention in the processes. It means using machines or software to perform specific actions in businesses, so employees don’t have to do it.

Besides helping people carry out manual tasks, automation usually brings many other advantages, such as more efficiency, less time wasted and, at times, reduced costs in the long term.

The Benefits of Automating a Business

We have mentioned some benefits of automation, but these are not the only ones. We will list more and explain how it can actually benefit businesses.

Time-Saver

Studies found that administrative tasks usually take a regular employer more than 2 hours of their working day. Administrative tasks typically require repetitive duties that hardly help the company, and it drains the employee’s energy that they could use for something more productive.

We can do administrative duties a lot quicker and usually with fewer mistakes through automation. One of the reasons for this is that fatigue often makes people perform errors.

Cost Reduction

Inefficient and slow processes cost companies about 20 to 30% of their annual revenue, and labour costs also consume a big chunk of a company’s profits. If businesses change for automation, they can easily reverse these costs by reducing labour costs and minimising human errors.

Another study indicated that businesses could increase their profits by 8% and drive down their costs by 10% annually by switching to automation.

Places Standard Processes

There are many business processes, especially in large companies, and performing those manually can be pretty confusing to keep track of. Employees have different habits and tasks, and to automate processes within a business, the design has to be applied from an initial phase.

Businesses can reach standard procedures through well-thought-out steps that increase workflow by systematically applying the same methods. This is also a fast-track to reach automation faster.

It Reduces Errors

Regardless of the capability of the employees, anything that involves repetitive manual labour is prone to mistakes. By adding automation, businesses make these processes flow faster and reduce the risk of human error.

It Adds Efficiency

By reaching the best possible outcome through less effort, businesses can maximise their efficiency in the processes. Because of the introduction of systematic steps performed consistently, procedures can easily be streamlined, reaching higher quality and more efficient communication.

In fact, we can easily achieve efficient communication with the technology we have today. We can easily apply automation software and reduce the old string of emails and calls.

Increases Scalability

When businesses start getting traction, and their portfolio of clients expands, the work and all the procedures also increase. Automation is almost crucial when it comes to the scalability of a business.

For example, when a company is small, it’s not hard to send 50 invoices, but things can become quite messy and complicated when you have more than 500 employees.

Businesses can focus on more important aspects by integrating automation into their system and improving scalability.

What Business Procedures can be Automated?

We can now automate almost any systematic procedure in a business. In fact, many companies are doing just that.

Because the processes that businesses can automate varies depending on the type of company they are, we will highlight the most common systems that can be automated and give you some examples.

Audit Reports

Employees use many different documents when doing an audit report. Usually, it relies on three processes; signing, sharing and collecting.

Besides that, auditors and everyone involved with audit reports have to follow some essential requirements that usually need an ID identification. A study found that 2% of a business’s revenue is wasted annually on paper and paper filings.

Doing these processes manually is hugely time-consuming, so automation software is often put in place of manual procedures.

The software makes sure every step is done and that the audit report is streamlined, assuring compliance and security all the way through.

Document Management System

This system is usually an automated software solution that captures, digitalises, organises, secures, approves, and allows editing, such as signing business documents. Most of these systems store their data in the cloud.

Some of these systems also allow the creation of templates to create accurate documents and help in companies’ workflow.

Employee Hiring

Most of the time, employee hiring focuses more on paperwork than the employee’s competence and performance.

Often, the paperwork used is inconsistent and informal, while many HR managers think that that sort of disorganisation negatively impacts the overall performance of their tasks.

Usually, the process of hiring an employee involves searching for their information which can be time-consuming, besides the risk of data exposure.

However, you can easily integrate HR automation processes through a facilitated collection of employee data, ID identification and other sharing information.

Moreover, once the discovery phase is done, through automated processes, employees can receive the contract and digitally sign it adding more automation to the process.

Not just that but automation can also:

  • Send new guidelines or policies that need to be acknowledged and signed by employees
  • Send agreements to employees

Besides that, automation keeps track of every exchange of paperwork and saves them, making it easy to search for them.

Client Onboarding for Banks

We can apply the same methods to client onboarding for banks and other financial services. These procedures are very exhaustive and bureaucratic, although it doesn’t have to be that way. It is a lot easier to verify identities through automation processes and follow the steps.

Types of Process Automation

Different businesses have different necessities, and there are other automation processes for that. Here’s the difference between them:

  • Business Process Automation – This type of automation is used for recurring and repetitive tasks while in administration. Business process automation is specifically designed to make bureaucratic processes easier to perform by replacing manual labour. They tend to focus on all aspects of a business by automating individual tasks.
  • Intelligent Process Automation – Through AI (Artificial Intelligence), some businesses can use automation tools to copy human tasks and behaviours. The good thing about these processes is that AI automation improves with time as it absorbs knowledge from employees.
  • Robotic Process Automation – As the name indicates, robots take the place of employees in doing repetitive tasks.

It is important to understand that these are just some examples of how companies can use automation to accelerate the progress of their work and liberate some employees, allowing them to focus on more productive tasks.

Conclusion

Automation of business processes has been taking over, especially in the last few years. Companies started to understand the value of integrating automation into their operations and the time and cost savings they could achieve.

The world has been through a digital transformation that made businesses commit to these types of procedures. It was essential for companies to adopt these procedures to drive costs down and achieve more significant employee and service satisfaction.

The only disadvantage of automation processes is the initial cost that, at times, and depending on the level of integration and type of business, can be higher.

However, in the long term, these automated procedures will drive down costs permanently, especially those automation processes based on software that requires very little or no maintenance at all.

Automation is here to stay, and businesses are realising their potential. It will become standard for every industry to introduce automation to their processes in their companies and give employees more free time to do tasks that they prefer and are more productive to their companies.

References:

https://penneo.com/blog/10-benefits-business-process-automation/

Book an Info Session

Feeling inspired? Take the first step and book in an info session with one of our team.

Send us a message

Shoot us an email

hello@exodigital.com.au