Increasingly, automation is everywhere. From Google AI generated search results to social media content, chat robots on websites and smart appliances, there is no escaping the rise of automation facilitating both our work and our personal lives. Designed to help streamline the tasks we carry out, when automation works well it saves time, money and resources. However, it is becoming apparent that not all automatic technology guarantees efficacy and when it doesn’t, the consequences can be dire.
Businesses can harness the power of automation technology to tackle many mundane tasks, and some of the more complex ones too, allowing people to utilise their time on more intricate tasks. Yet there are challenges to giving automation free rein. Understanding where to create efficiencies and where to prioritise human input is integral to streamlining business operations that facilitate growth and scaling.
Let’s take a closer look at the role of automation in business and how to find the right balance between technology and human oversight.
What is process automation?
Process automation is the adoption of automation technologies to carry out business processes. Primarily, software is used to carry out repetitive tasks that follow predefined steps. Implementing automation in targeted areas of a business can reduce workloads, improve operational efficiency and decrease human errors.
Basic examples of process automation include using software to send emails to clients triggered by predefined actions or at set times, generating reports from data sets or data entry from one programme to another.
More complex tasks can also be automated such as creating workflows that include multiple steps, users, systems and integrations. An example of this might be setting up a process automation workflow for online purchases. A product or service is bought, payment taken and a confirmation email is sent to the customer while the payment is processed into your account. The integration between the website, CRM, email system, and payment gateway streamlines the flow of information and actions, minimising the need for manual order processing and allowing more efficient use of time and resources.
Types of process automation
Process automations can be categorised into different types depending on how they function. The term business process automation, or BPA, is the collective name for using technology to automate processes within a business. It can be split further into the categories outlined below depending on the complexity of the process being automated.
Robotic process automation (RPA)
Robotic process automation refers to software that carries out specific, repetitive, rule-based tasks that mimic human actions. Robots or ‘bots’ automate mundane tasks such as filling in forms, copying and pasting data from one system to another, data entry or processing website orders, as mentioned above. Within RPA there are further classifications of automations which include attended RPA, unattended RPA and hybrid RPA, depending on the level of input users have.
As the name suggests, attended robotic process automation is triggered by human actions, where robots work alongside people, whereas unattended robotic process automation requires no human intervention. A hybrid RPA integrates both attended and unattended automation.
RPA can be used for scraping data from websites, lead generation, competitor analysis, invoicing, scheduling and data verification. A strong example is the use of software like Calendly to schedule appointments: while users manually input their availability, the platform automates meeting bookings, confirmation messages, and the distribution of meeting links.
Digital process automation (DPA)
Digital process automation takes a broader approach to automate whole end-to-end workflows. It is a more advanced form of automation than RPA leveraging a variety of different technologies to optimise processes that involve multiple stakeholders, systems and decision points within a business.
An example of how DPA can revolutionise business is by automating supply chain management, from order fulfilment to inventory control and delivery tracking. Another example might be using digital process automation to onboard new staff, where inductions, account creation, training, data entry and communications are managed automatically.
Intelligent process automation (IPA)
Intelligent automation, or IA, refers to the integration of artificial intelligence (AI) into automation. When this specifically relates to automating business processes, it is generally known as intelligent process automation, or IPA.
Focused primarily on streamlining businesses, intelligent process automation can be applied to processing invoices, claims management, onboarding and HR workflows, customer service automations and finance approvals.
An example of where an IPA can be a great asset is in manufacturing, where the continual receipt of material invoices can be efficiently managed through automated processing. Implementing intelligent process automation can streamline workflows by scanning incoming emails for invoices, extracting text from PDFs, and importing data into accounting software where it is matched with corresponding purchase order numbers. Matches can be automatically approved for payment and issues can be flagged for review.
The benefits of automation
- Time
- Costs
- Efficiency
- Consistency
There are four main benefits of process automation for businesses. Automation tools can process data and complete actions much faster than humans can. Even at the most basic level workflow automations that employ robotic automations will save employees time, freeing them up for tasks where human insight is necessary.
The efficiencies created by automating systems will not only save time but also money. Streamlining workflows by leveraging technology to carry out specific processes will reduce the workload of your team, potentially lowering staffing needs, cutting costs but also minimising the risk of human error, the impact of which should not to be overlooked.
Adopting workflow systems to support your business increases consistency across tasking which is ultimately beneficial for both sustaining and scaling your business.
Industries that specifically benefit from automating processes include manufacturing, IT, finance, logistics, transportation and retail, but there are many more besides.
Generally, the cost of implementing automation software will be offset by the savings made from reducing manual labour.
Automation failure
Where automation becomes problematic is when it is blindly trusted. Afterall, it is humans who create the workflows, identify parameters and actions, and define desired outcomes. Human error can lead to a breakdown in process automation if not checked and monitored rigorously.
Over-reliance on automation also leads to automation bias which assumes outcomes are correct even where there are mistakes. The potential consequences of automation bias can be serious and range from financial loss and lack of compliance through to ethical and legal issues. Poor decision-making might have catastrophic consequences for businesses.
Streamlining for efficiency can be beneficial for businesses but choosing automation over human oversight may lead to significant job losses and eventually, a wider loss of skills.
The critical role of human oversight
Whilst the benefits of adopting adaptive technologies such as process automation are potentially huge, it is important to remember that these systems are only as intelligent as the humans who create them and they are not at a stage where they can fully replace the need for human oversight.
The areas where automative software tends to fall short is where human judgement is required. The questions of whether something can be done and whether something should be done are hard for an algorithm to distinguish, necessitating human input to make decisions of this nature. Automated processing cannot debate the ethics of an action or give empathy where required.
To work optimally, automation needs to be carefully considered, guided by clear goals and continually monitored. If an automated workflow is instigated that is ineffective, overcomplicated or doesn’t have clear metrics it will create more inefficiencies than efficiencies. Business owners should not underestimate the impact human error can have on automation – even though ironically, minimising such errors is one of its primary goals.
If your systems are not set up correctly, don’t account for the quality of the data they are using or haven’t been tested rigorously, they are unlikely to deliver the expected outcomes. Automation requires ongoing human governance to function optimally where it can be adapted, improved and built upon, rather than implemented and left to stagnate.
Most importantly, where automation is used in critical systems, human oversight is essential for monitoring outcomes where consequences might be catastrophic. Technology has not yet reached a point where it can adapt its actions in response to errors or apply critical thinking.
Symbiosis
The middle ground for automation in the workplace is human-in-the-loop systems, when automation intentionally includes human judgement as part of the decision-making process. This both alleviates potential risks associated with automation inaccuracies and also brings an ethical and contextual element to the workflow. The human-in-the-loop approach, or HITL, prevents automation bias, reduces errors and leads to better outcomes for businesses.
For this reason, a symbiotic relationship between technology and human oversight is the optimal approach to automation for businesses. The ability to make efficiencies, save money, time and resources, balanced with the need to maintain safe and ethical practices, is why HITL systems are ultimately the most beneficial for businesses of all shapes and sizes.
To talk more about how technology can be adopted to drive your business to success, get in touch with our insightful consultants at CBASS.