FI Group weighs the benefits and challenges of business automation

Automation driven by technological advances such as artificial intelligence, robotics and machine learning is rapidly changing the landscape of work. Repetitive and manual tasks previously performed by humans are being automated, freeing up time and resources for more creative, strategic, and complex activities.

Automation is guaranteed to boost the productivity, efficiency and safety, along with reducing costs and human error. It is essential to recognise, however, that this new reality also entails some adversities including rising unemployment, social inequality, and a need to retrain the workforce. To reflect on this need to adapt and develop new skills is essential if a business is to thrive in an increasingly automated world.

What is Business Automation?

Business automation is the current use of computerised systems, software applications, devices and other technological tools to perform processes automatically or semi-automatically, entirely without or with minimal human intervention. It can de facto be applied to various levels and areas of the company, from operational to managerial processes.

As the technological advances and automation tools themselves are increasingly becoming accessible to people unable to program them, business automation is found ever more frequently in all company routines. Especially so in the routines of companies aiming for continued competitiveness by banking on innovation.

Benefits and Challenges of Business Automation: The Benefits

By the strategic implementation of innovative technologies, business automation can offer a range of benefits that optimise the performance and open up a range of growth potentials.

Greater Productivity, Efficiency and Quality

Automation saves time, reduces effort, and the incidence of manual errors. Automated processes guarantee consistent results and a high quality, with tasks carried out identically and without human error. And if there should be errors nonetheless, they can all be corrected by changing the underlying process.

Reducing Costs and Optimising Resources

By eliminating redundant tasks, automation can optimise the use of resources, significantly reducing the company’s operating costs, along with the waste of materials, time and energy.

More Employee and Customer Satisfaction

Wherever manual tasks are «tedious» or very demanding, automation enables staff to turn to more pleasurable and creative activities, boosting their satisfaction. And by dedicating themselves to activities that please them more, they end up having more time to focus on better customer service.

Greater Competitiveness and Strategic Advantages

In an increasingly competitive market, automation puts a company at the forefront of innovation, providing a crucial strategic advantage for success. By automating specific processes, you will be able to respond to market changes and customer needs with the flexibility that entails. Freeing up resources will meanwhile also help you make the most of new market opportunities.

Key Business Automation Processes

When weighing up the benefits and challenges of business automation, it is imperative that business automation not be viewed in an exclusive manner, as there are various automation technologies that organisations can apply.

Business process automation (BPA) is a strategy pursued to optimise a company’s processes by implementing software and technologies. As a rule, BPA involves creating automatically sequenced activities that respond to process flows and not just individual tasks. Various software programs are available to automate the management and provision of financial reports, HR processes, marketing activities, the commercial management, and even workflows, to name but a few.

Robotic process automation (RPA) uses software «bots» to imitate human responses at the user interface, automating recurring and rule-based tasks. This in turn permits problems to be solved without interrupting human workflows or the need for human monitoring and supervision, unlike other automation methods.

RPA supports companies in activities such as processing requests, sending notifications, updating profiles, making complex calculations, monitoring already automated tasks, and many others. Call centres, data migration, help desks and credit applications are only four examples where RPA can be useful.

Finally, intelligent process automation (IPA) is a technology resulting from the convergence of robotic process automation (RPA) and various AI technologies in the automation of business processes. IPA aims to take automation to a higher level of complexity, increasing agility across the board. Some examples of IPA include new, intelligent CRM systems that eliminate manual tasks, inventory control with the ability to automate an organisation’s entire value chain, or quality management.

Benefits and Challenges of Business Automation: The Challenges

According to a report by the McKinsey Global Institute, automation could eliminate 15 % of all global working hours by 2030, leaving around 400 million people unemployed.

Among the countries this report takes a closer look at, it is estimated that workers in Japan will be the most affected by this development. But the story is similar in the United States, where 23 % of all working hours could be lost to services and automation processes, taking millions of jobs along with them. [Jobs threatened by automation | source: Statista]

Medium-term automation could lead to the loss of 39 million jobs in the US by 2030, while rapid automation could make 73 million people lose theirs. But to offset the potential job losses, around 20 million of these newly unemployed could transfer to similar jobs where they perform slightly different tasks.

Even so, a significant proportion would need to be fully retrained in the US and many other developed countries. According to McKinsey, a third of the US workforce may have to be retrained by 2030, as well as almost half the Japanese workforce.

Rapid automation could also cost China and India 236 and 120 million jobs, respectively. The worst-case scenario in Japan would lose 30 million jobs. Mexico could have 18 million workers made redundant by then, and Germany 17 million.

The jobs most at risk from automation tend to be physical and predictable, such as fast food workers or machine operators. The safest jobs are generally the less predictable ones, including managers, engineers, scientists, teachers, and plumbers. [Automation could eliminate 73 million jobs in the US by 2030 | source: Statista]

Benefits and Challenges of Business Automation

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