The biggest businesses operate with speed and efficiency, and it’s not because they have armies of workers toiling away at manual processes like updating sales ledgers and writing shipping labels. Their secret? They replace manual tasks with business process automation tools.
Thanks to dramatic advancements in artificial intelligence, machine learning, and robotic process automation, computers and robots can handle many business processes, from onboarding new employees to customer relationship management.
If you’re looking to automate business processes in your own organization, learn what types of business automation might be right for you.
What is business automation?
Business automation is the process of automating routine manual business operations with computer and robotic systems. Companies use these business automation technologies for repetitive tasks, freeing workers to focus on other responsibilities, such as strategy or client relations.
With advances in process automation software, software robots can perform many routine tasks like data entry and billing. If you run a small business, business automation tools can help you operate with a leaner staff or reallocate employees to new initiatives—especially those that require a human touch to succeed.
Benefits of business automation
- Increased efficiency
- Cost savings
- Enhanced decision-making
- Improved customer experience
- Improved employee satisfaction
- Scalability
Here are ways automated processes can lead to better business outcomes:
Increased efficiency
Workflow automation completes tasks in the correct order while meeting deadlines. Since many automation tools require minimal human intervention, they let workers focus on more important tasks and complex processes. For instance, if automation software takes on repetitive HR processes like employee onboarding, your human resources department can spend more time on things like conflict intervention.
Cost savings
When you turn your business process management over to software and machines, you can save money without sacrificing operational excellence. You can operate with a leaner workforce, which cuts down on payroll expenses.
At the same time, an automation tool often reduces data errors that can happen when humans perform repetitive tasks. For instance, automation software can help businesses comply with regulations and maintain compliance and audit trails, all while avoiding mistakes that may be expensive to correct.
Enhanced decision-making
If you study your existing processes, you can flag inefficiencies and improve your workflow orchestration. Automation tools can assist with this through process mining, which is when tools extract valuable data about your core processes, such as how many times you communicate with a customer over the course of a sale.
This data can guide your decision-making. Perhaps you’ll revamp the sales process to allow more self-service options. Or maybe you’ll leave your existing process untouched because sales keep improving. No matter what you decide, data from various automation tools can help you lead with confidence.
Improved customer experience
You can steadily communicate with your customers. For example, you can automate repetitive tasks within a customer relationship management (CRM) system, such as sending automated messages to shoppers or updating customer information.
Business automation can also boost customer satisfaction by tailoring sales and marketing efforts to individuals. By leveraging marketing automation tools, you can personalize marketing efforts and deliver relevant content to target customers.
Improved employee satisfaction
Automation can streamline employee onboarding processes, making it easier for new employees to get up to speed. Automation can also help existing employees. For instance, an internal communications system can send automated messages to relevant employees while leaving out people who don’t need to receive them. This keeps stakeholders in the loop while showing other team members that you value their time and won’t waste it with irrelevant emails.
Scalability
Automation can help businesses scale their operations more easily. When machines handle workflow management, it becomes easier to take on more clients, open new locations, and expand services.
4 types of business automation
Business automation describes several transitions from human work to automated machine-based work. You may find that one of these automations suits your needs while others are less relevant to your work. Here are the four main types of business automation:
1. Basic automation
Basic automation involves automating simple rules-based tasks, such as data entry, pre-planned emails, and appointment scheduling. Basic automation doesn’t require advanced AI software or significant human intervention.
2. Workflow automation
Workflow automation concerns the flow of work between different departments or individuals within an organization. For instance, you could use workflow automation to expedite the approval process for purchase orders, streamline the onboarding process for new employees, or generate a client distribution list.
3. Intelligent automation
This more advanced form of automation involves using AI and machine learning to automate complex tasks related to decision-making and problem-solving. Business users can leverage the vast automation capabilities of AI to achieve better business outcomes. They can use AI to analyze data, process customer service requests, or oversee vendor management.
4. Business process management automation
Business process management (BPM) automation involves automating entire business processes, from end to end. For example, you could automate your entire supply chain process, from procurement to delivery, or your entire sales process, from lead generation to closing deals. Such a dramatic digital transformation could lead to different business models within your company.
4 examples of business automation
Here are four potential scenarios in which automated processes transform business operations:
1. Marketing campaigns
A marketing team can use AI tools to automate email campaigns, social media posts, and targeted advertisements. The team sets specific business rules within the platform, such as sending welcome emails to new subscribers or promoting certain products based on customer behavior. This marketing automation not only saves time but also ensures marketing messages reach the right audience at the right time.
2. HR onboarding
An HR department can automate its employee onboarding process using a centralized HR management system to send welcome emails, schedule orientation sessions, and provide necessary training materials. This reduces manual work for HR staff and helps maintain a consistent onboarding experience.
3. Invoice processing
A finance department can turn to automation software to improve its invoice processing workflow. The system can automatically approve invoices under a certain amount, flag those that need managerial approval, and match invoices with purchase orders and delivery receipts. This automation minimizes errors and speeds up payment processing.
4. Customer support
A customer service team can implement an automated ticketing system to manage customer inquiries and support requests. The AI-powered system prioritizes tickets based on urgency and customer status, assigns them to relevant support agents, and sends acknowledgment emails to customers. By centralizing these tasks on a single platform, customer support workers can respond quicker to inquiries, improve customer satisfaction, and ensure they don’t overlook any ticket.
Business automation FAQ
What can be automated in business?
You can automate many processes in business, including marketing campaigns, customer service, HR tasks, invoice processing, and data management, to enhance efficiency and reduce manual work.
What are the challenges of business automation?
The challenges of business automation include resistance to change, data quality issues, and the need for human intervention to ensure quality control.
What are the top business automation tools?
Shopify merchants can find a large suite of high-quality business automation tools in the Shopify App Store.
