This is the final article in our series, “The Human Side of Modernization.” This article will focus on the benefits of business automation and detail the mistakes IT leaders need to avoid in order to fully realize them. Previous articles in this series have focused on the technologies that enable business automation, EDI, B2B integration, and ERP solutions; you can find links to them at the end of this article.
As they continue to adjust to ongoing supply chain issues and the enduring trend of remote work, many companies have begun to accelerate their modernization plans. Given the ground that so many had to makeup, it’s no wonder that Statista, a global business data platform, projects company investments in intelligent process automation to rise in 2022 to $26 billion, a 28.5% increase over 2021.
This is welcome news for a number of reasons. Companies who invest in business automation can become more efficient and tend to be healthier as well as more competitive. And the U.S. needs healthy, competitive companies to strengthen the economy, innovate, and serve customers well.
At the same time, business automation projects are potential quagmires that, unless managed and staffed properly, can amplify inefficiencies and create more chaos. Before we delve into the pitfalls to avoid, let’s define what we mean by “business automation.”
What is Business Automation?
In the work we do, the term ‘business automation’ encompasses two major concepts, business process automation (BPA) and robotic process automation (RPA). BPA uses technology to remove the manual labor and the inefficiency from manual business processes. RPA, a subset of BPA, uses bots capable of imitating human tasks.
For example, these bots complete rules-based tasks that enable them to log into systems, navigate the page, and input and extract data. On the other hand, BPA focuses on the entire organization and often involves integrating legacy systems and existing applications.
We’re focusing on BPA here because EDI and related B2B integration solutions facilitate the integration that enables companies to implement BPA initiatives. These projects enable organizations to automate workflows and improve their efficiency.
The Five Pitfalls of Business Automation
1. Not Understanding What to Automate
Obvious as it sounds, many organizations fail to clearly identify what processes to automate. Remedi president Brad Loetz advises businesses who are just beginning their digital transformation journey to start small with a known source of errors or waste.
“Many companies are still processing business documents by hand. Using EDI or another data exchange solution to accept, view, and approve transactions such as invoices electronically will typically start paying for itself within a few months,” Loetz states. “Starting small lets IT managers mitigate risk and lay down a foundation of successful use cases to build on.”
2. Tackling the Most Complex Tasks First
At the other end of the spectrum, IT leaders have persuaded C-suite executives it’s time to go all-in on modernization. In this scenario, it’s tempting to want to automate the most complex processes first to score a big visible win. It’s also a recipe for disappointment, cautions Loetz. “Start with simple processes that give users time to get comfortable with the automation solution and verify that it’s working. Then socialize it internally.
3. Not Communicating with Stakeholders
In our first article, Why Soft Skills Are Now Core Skills For IT, we explained why communication skills are critical to successful outcomes for IT leaders and their teams. Communicating with stakeholders about their understanding of and questions about automation before the project begins can build trust and align expectations.
4. Not Defining a Clear Goal or Good Reason
Whether it’s a small-scale proof-of-concept test such as the invoicing example above or an enterprise-impacting investment like a new ERP package, it’s critical to frame business automation initiatives in strategic terms. That means defining and communicating a clear goal for the automation and expected business impact. Be as specific as possible.
For example, say you’re a telecom provider who wants to expose APIs to trading partner clients to understand the most frequently asked questions of customer service. Stating the goal as “a means to reduce tech support escalation events by 25% with the potential to capture future labor savings” demonstrates a positive operational impact with implications for cost reductions as well as customer service.
One word of caution: Don’t overestimate the problems automation can solve. Design and run a manual process that accomplishes what the tool might do, iterate against the process, and then implement a tool for the validated process.
5. Eliminating the Human Element
As integration is one of the key tools for enabling automation, we can share the following lesson gleaned from thousands of client engagements. Regardless of the process, you’re automating, never forget that business is conducted between people. Bots can and should automate tasks and free staff for work that requires human creativity, but they can’t cultivate the long-term relationships between buyers and sellers that successful businesses are built on.
Lastly, while the right automation can improve the productivity of a company’s workforce, most business automation requires the right people to plan, implement, optimize, train, and maintain it.
Whether those people come from your organization, an outside partner, or a mix of the two, involving them at the outset will automatically increase the odds of realizing the benefits business automation is designed to deliver.
Previous articles in this series:
Why Soft Skills Are Now Core Skills For IT
Empathy: The Secret Weapon of Effective IT Leaders
Why So Many Digital Transformation Projects Fail
