What is automation in business and how it works

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Automation is the use of a computer, internet applications, machines and communication tools in the business that enables product/service to run smoothly without constant monitoring, efforts of business owners and team.

Everything that we’re using as a consumer is the part of the business process. Almost everything that we see, touch, use, and feel has the process. But having a process, don’t mean it’s automatic. So that’s why we use information technologies, software, robots to automate that process that required fewer human inputs.

But to create, measure, monitor its consistency and updates, we need human power. Technically, automation in business doesn’t replace humans from work instead it creates new opportunities to makes humans more powerful.

In simple words, business automation is nothing but advanced and deepest use of computer and internet applications and technologies in business processes such as artificial intelligence.

Can we automate a business without information technology?

I don’t think so. But you can say a person can automate the business through humans. In which people are working and growing the profit for business owners and self. In this case business owners created the process to generate profit and income in the market, and he/she hired the people on each point of production, sells and finance. It means he/she used the money to automate the business.

Practically, if you have the money you can subscribe to marketing automation tools, you can hire people to manage and grow your income. Without money, you can’t automate the business.

In conclusion, you can say that the use of robotic technologies in the traditional business process help to automate the business. When a traditional seller starts selling online that’s called digital transformation. Digital transformation is another part of business automation.

I hope I have explained my points effectively in the above paragraphs, but in case you want to understand more about business automation then let’s start learning about business automation in the following examples:

Business process automation Examples:

There are hundreds and thousands of examples of business process automation and digital transformation. But let’s try to learn in following examples about business automation:

1. Employees training and development process:

Training and development are important for your employees to grow your business and to become competent in the market to get new opportunities. But it’s an additional cost and burden on you as a small or big business owner. And it impacts the pricing of your product. You can sell at less price if your cost is low that will increase the demand for your product and services.

So now you want to automate the training and development and you can do the following things:

Now you have subscribed for online courses for teams as per your industry. And added each team member to update and get skilled.

You have created online courses, guidelines and processes or documentation that is easy to follow for all team members.

Every new member follows the same guidelines and processes and starts production immediately.

This is called business process automation. In this case, online courses, online guidelines, documentation, online training, and development worked as automation tools. It cost you less and your team members can learn, update their skills anytime on any device.

Related: How to be innovative in business: Business and Innovation

2. Use machines and information technology in mining:

The target of any business is to make a profit. To make a profit they always need to have consistent production, distribution, and sales. Not only that they also have to monitor and manage the sources of production.  I mean their target is to reduce the cost as much as possible so that they can sell at less price by maintaining the quality.

Now let’s take an example of Cement Company, how they are trying to automate the mine in the hills for limestone:

The cement company has a 10000-ton demand for cement from customers around the country per day.

But they are behind the target and they are only able to produce 1000 tons. If they don’t improve the supply then within 1 to 3 months then they will lose the market share or customers.

For example, currently, it takes 8 hours or 1 day to mine 1-ton limestone through 50 people manually without any electronic machine, chemical and information technology.

The cost of labor and management of 50 people is 25000 rupees per day.

So, if they want to mine 500-ton limestone in one day, then approx. they need 25000 people. And it will cost them 12500000 rupees per day.

Not only that they have to manage the life and work of 25000 people that are not that easy. The mining work is full of hazards especially on hills or under the surface.

 Will they do it? No.

So now what they will do?

Obviously, they will try less costly, faster, less manageable methods to achieve the same business goal.

Now this problem will become the reason behind innovation, new technologies and machines, new business, new processes, new jobs, new courses, new economic activities, new political debate and new election campaign and employment and new problems for humans and environment as well. Now the problem of one business will impact everyone and many will take the advantages.

For example, a company can introduce the following things in the process:

  • Excavator, dragline, rock dusters and various other industrial mining equipment that is less costly in the long run. For example, by using an excavator they now able to mine 100-ton raw material or limestone in one day and one excavator is operated by a minimum 1 person.

Now what they did?

They brought 1 skilled excavator engineer in the mining. It can cost them 30000 per day, but now they are able to produce 100 tons of raw material per day and with 5 excavators the productivity will be higher.

So now the use of machines and technologies in mining improve the efficiency and effectiveness and speed up the production at less cost.

RelatedTop 12 Examples, How Technology Has Changed Our Lives

3. Use of robots in production:

Humans were assembling cars for years. But now with artificial intelligence in assembly line or robots transformed the auto industry. Why?

The reason is the same:

Companies want less cost, high-speed production and more profit with less management of people. The target can be like 10 people produce 5000 cars per month. Will it possible?

It’s on the way with the help of artificial intelligence and robots. They are programmed by humans. The design of their body, activities are based on the way to produce the car. The code is written in a loop and have various logical conditions for quality, speed, gesture, fault, and notifications. These types of industrial robots follow 1-2 or less than 10 patterns. While humans have, I think more than 100000+ patterns for various activities.

But anyway, even with 10 patterns they have the power to 100x the production quality, quantity with higher speed. And 1 pattern or function or program is equal to 1000 people’s activities on assembling. And that’s why business process automation is becoming the part of new businesses from the beginning and these days it’s transforming almost all the industry.

Related: Benefits of artificial intelligence in business

I hope the above example helped you to understand business automation in detail.

But for quick and short points following are the example:

  • The use of drones in supply pizza is part of business automation.
  • The use of online advertising and marketing to promote the business is an example of marketing automation.
  • Use of websites to sell products any time and to anyone is the part selling process.
  • The use of chatbots in customer support is an example of automation in business communication.
  • The use of team management and collaboration software is an example of automation in collaboration.
  • The use of data analytics tools in business decisions is an example of automation in decision making.
  • The use of robots as a home automation product is an example of an automatic living style where coffee is made by machines just when you enter into the room. Your garden, cleaning, cooking, schedule, diets, and shopping are controlled and operated by computer (remote, mobile phone, software).

While there are many benefits of business automation but still it impacts everyone positively and negatively. It’s important to be clear about your business goals so that you can use business automation tools effectively to grow your business and profit.

If you want to know more and want to automate your business then please let me know!

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