What is automation?
Since the Industrialisation Revolution, humans have increasingly relied on machines to automate labour-intensive processes. In the 1970s, with the advent of IT, automated solutions simplified operations even further. Since then, automation and digital transformation have come along leaps and bounds. IT systems are now mainly used to network process flows and process steps, run complex processes and handle repetitive tasks without human intervention – avoiding human errors in the workplace. The move towards digital automation is also referred to as the “Fourth Industrial Revolution” or “Industry 4.0”.
The term automation can be used to describe both the process of automating tasks or processes and the output or result of that automation.
How does automation work?
Business processes are becoming increasingly reliant on computers. Digital solutions can help streamline these processes and avoid media disruptions. If all processes are running seamlessly, then the company’s central IT system can collect all this data and use it to monitor process flows (i.e., compare the actual process performance to the target process), segment these flows, and manage them. Automated process management can include triggering the downstream step, temporarily stopping a sub-process, or initiating corrective measures.
As a result, multi-step, interconnected process sequences can be automated without human intervention. Humans only need to get involved if an abnormal situation occurs, i.e., the defined target process deviates to such an extent that the issue cannot be resolved automatically – constituting an exception. Automation then refers back to humans to determine the best solution to address the issue (management by exception).
Pain Points in Companies without Automation.
Wasting valuable human resources
Not only is the IT sector experiencing a shortage of skilled workers, but other industries are also experiencing staff shortages and skills gaps. Organisations that don’t automate their processes are wasting high-value capabilities. IT departments that perform patches manually or businesses that lack workflow automation on the shop floor either take longer to get the work done or need more employees to perform these routine tasks.
Limited data analysis
Some companies collect vast volumes of data without being able to process it properly. An employee tasked with analysing the data without automation may need help identifying all sources of error and all dependencies within complex process chains. As a result, valuable insights are lost, previously unknown correlations remain hidden, and data cannot be harnessed to grow the company.
Slow processes as a competitive disadvantage
Processes have to be handled rapidly and reliably to keep up with competitors. Manual input can slow down order processes and lead to errors in delivery notes, customs documents, and shipping documents, creating a perfect storm of inefficiencies and errors that could cause business partners and customers to lose faith in your business. Poorly automated processes with manual workarounds also lengthen business cycles and delay or even reduce revenue.
The economic benefits of automation.
Monitoring business operations can be a time-consuming process. However, when it is automated and managed by machines, operational teams have more capacity to focus on their core tasks and can limit their involvement to resolving a small number of exceptional cases. Automation, therefore, frees up resources to optimise business processes, deploy additional software solutions, use artificial intelligence, or foster customer loyalty, for example.
Improved output
Whether in manufacturing or management, automated sequences always follow the same process. Digitalised processes are faster and more robust, deliver consistent results, and improve transparency. As the degree of automation and digitalisation increases, fluctuations in productivity, technical accuracy and scheduling deviations decrease significantly. The quality of the products manufactured or the services rendered improves, which boosts customer loyalty and adds value. Reliable processes generate direct savings or help unlock and better utilise savings potential.
Savings potential through automated error detection and analysis
As the controlling IT system keeps a chronological log of the automated processes and any detected deviations, IT teams can easily detect, analyse and eliminate systematic errors. Real-time information and long-term monitoring reports also reveal new ways of increasing efficiency. Automation becomes a key component of the continuous improvement process (CIP), aided by machine learning, workflow automation solutions, and digital management tools.
Synergies through solid process knowledge
IT systems are better at evaluating highly complex correlations. In a digitalisation and automation context, they can recognise networking potential to help bundle conventionally separate process flows. This unlocks data-based decision-making that could help companies switch manufacturing methods or introduce robotics in the warehouse. Process automation unlocks insights that help companies optimise their business processes and leverage process synergies.
Where does Lobster come in?
By digitalising your processes, Lobster_pro and Lobster_data help you limit manual intervention through automated evaluations and resolutions. Digitalisation and automation, therefore, go hand in hand. This creates a seamless E2E process controlled by one centralised system. Other operational systems are integrated directly. Automated processes free up IT capacity, reduce errors, and facilitate a rapid process flow without disruptions.
