Business process automation (BPA) involves the use of IT tools to automate repetitive tasks, optimize organization workflow, maximize efficiency, and reduce human errors. For example, automating tasks such as data entry and inventory management can save businesses time and money so you can strategically spend your time.
Why Automate in Business?
Increased Efficiency
Automation allows tasks to be carried out much more rapidly than typical manual, time-consuming tasks. For example, automated tasks such as invoicing or customer onboarding let businesses get things done quicker, improving productivity, so employees can spend more time on important tasks.
Reduced Costs
Since automation reduces dependence on people, it can result in lower variable costs (i.e. overhead) because it is based on fixed and predictable costs and can generate savings over the longer term. Furthermore, since automation reduces human errors/overhead, it allows you to better manage your resources and reduce costs significantly.
Improved Accuracy and Consistency
Because automated systems follow the same procedures every time through pre-determined rules, it can produce more reliable and consistent outcomes than if it were based upon human reasoning and oversight as it relates to highlights like financial reporting and compliance reporting/tracking, etc.
IT Tools for Automation
Robotic Process Automation (RPA)
RPA is the use of software bots to mimic human actions to automate repetitive tasks such as data extraction, and email response tasks. RPA software is best suited to rule-based processes across a range of industries, including finance and healthcare.
Workflow Management Systems (WfMS)
Workflow management systems can handle complex processes and include automation and implemented rules for sequencing tasks, assigning owners to tasks, tracking tasks, and determining dependencies. They enhance collaboration and ensure accountability throughout complex, multi-stage workflows.
Enterprise Resource Planning (ERP) Systems
Enterprise Resource Planning (ERP) Systems combine and automate key business services such as inventory, human resources, and accounting. ERP systems offer a unified platform to manage and synchronize real-time data and business operations.
Best Practices for Automation
Identify Appropriate Processes
For automation consider processes that are repetitive, rule-based, and high-volume. Evaluate workflows to identify processes that are inefficient (i.e. spreadsheets and manual data entry), as they may be optimized to benefit most from automation.
Align with Business Objectives
Ensure your intended automation is aligned with your organization’s business goals, such as customer service improvement, or sourcing. What’s driving your organization; desired improvements will guide selection of tools and implementation decisions.
Train and Engage Staff
By training staff on automation tools to ensure an understanding of the intention and to avoid employee resistance. Communicating benefits of automation (e.g. reduced workload) encourages buy-in from people who ultimately participate in the process.
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Challenges and Considerations
Integrating IT
Automation tools will need to integrate with existing IT tools or ERP systems. If they do not integrate with the current systems, there will be difficulties with workflow and it is critical to test/mitigate beforehand.
Out-of-Pocket and Maintaining Costs
Although automation can provide great opportunities, it might require immediate staff costs for purchases (licensing of a software package) and staff costs for training. Every piece of technology will require maintenance and/or updates to operate effectively. Most standard business software expects the organization to be responsible for maintaining support for the software.
Conclusion
Implementing automation in the business process through IT tools, such as RPA, workflow systems, and ERP, allows for effective use of resources through efficiency, consistency, accuracy, and cost savings. By defining processes to implement, alignment with the organization’s goals, and building a culture towards the challenges of automation, organizations can find business automation projects that will offer productivity and ultimately move towards sustainable growth.
