I have previously written on process automation in The Rise of the Robots in the Back Office and the merits of automation but some high profile articles recently painted a picture of potentially awful consequences on the job market so I thought it worthwhile to express a few more opinions on the topic.
Intelligent businesses know that one of the easiest ways to reduce operating costs is by eliminating manpower. One of the simplest ways to achieve the same productivity with fewer people, is to automate. Business process automation (BPA) is no different. BPA works on the principle that technology can perform the same tasks as a human being based on a defined set of rules and scenarios.
Business Process Automation takes many forms but in most instances it seeks to eliminate the monotonous and assist employees in freeing up time to perform higher value tasks. Automation is sought to eliminate the routine. BPA leads nicely into the concepts of ‘lean’ and ‘continuous improvement’ where you reduce waste and rework and streamline activities.
From an operations perspective, adopting BPA is a smart technology choice and one that can elevate things like data quality, process consistency and effectiveness. BPA does this by reducing the likelihood of errors through transcription, task execution inconsistency and fatigue.
Examples of automation are everywhere
Many of us who use electronic banking know for example, that our bank or credit card company make use of fraud detection systems to monitor our behaviour in online shopping and maintaining personal data. In fact, just recently my wife changed the billing address on her credit card and within 5 minutes she received a call from her bank’s fraud detection department. When I travel abroad, my credit card company may put a hold on a transaction if it thinks it is not me trying to perform the transaction based on past patterns. These are automated approaches to detecting fraud that most of us understand and have come to accept but which we don’t necessarily pigeon hole as BPA.
Retail vending machines in malls reduce not only the footprint of the retailer but also enable that retailer to run a 24×7 operation without the need to staff the unit.
In an automated warehouse where machines extract inventory based on picking demand instructions, warehouses can be operated in ambient conditions with fewer shipping staff and a higher precision in the picking and reduced risk of inventory loss. Although this is a classic case of automation in its purest form, the reality is that automating the picking and packing process is still process automation.
Interactive Voice Recognition (IVR) systems reduce the dependence on phone operators and the frustrating ‘your call is valued – please hold for the next available operator’ messages. IVR can be used for all manner of BPA from balance checking at financial institutions through assisting with emergency response.
Even the sophisticated yet now ubiquitous GPS recalculating routes when you miss a turn or discover roadworks assists in automating the painful process of working out navigation.
Systems like these have proven that they can deliver cost savings and business benefits. Of course along with the benefits comes the dark side which forces one to ask, “at what point have we overdone business process automation?”
Replacing people with programs and machines is really only an effective approach if you remain conscious and aware of the risks that are associated with that automation.
The number one risk of automation is the failure to recognize and acknowledge that ‘systems’ do fail and having a backup or failsafe plan.
This means, that redundant approaches may need to be implemented. Having an electronic keypad or biometric detection system on a door is great, but if the power is out, a conventional key may be more than adequate – but only works if you have a keyhole on the door to unlock it.
Unfortunately, considering backup strategies are often not incorporated into the overall plan and that’s the flaw in design and adoption of BPA in some cases.
The issue then is not ‘overdoing’ BPA, it is not considering all the variables that influence the effectiveness of executing business processes.
People will always follow a path that represents the least burden and has the fewest obstructions. This means that they will rely on automation if it is available and at hand and may not learn or be aware that there are other more laborious, painful or complex ways to do the same job.
When things fall apart
While the expectation of high availability in BPA is a reasonable one, it should be remembered that things do fail, and they fail for a variety of reasons stemming from design flaws, technical limitations or abuse.
The intelligent business not only adopts BPA with enthusiasm but also with caution. Risk of failure needs to be assessed and a mitigation strategy to deal with unexpected eventualities built in. Free up your valuable people to perform higher value work but make sure that they know how to still do their job when automation tools and systems go awry.
An employee who has been educated in, and understands the mechanics of the end to end business process is far more valuable than just a pair of hands on a keyboard and cannot be easily replaced simply by a program or a machine.
The original posting of this article was on LinkedIn
Photo from Design Indaba By Bo Bushwinkel Design Thinking
