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7 Benefits of Business Process Automation

April 1, 2019

Lecture #3




The following are the important 7 benefits of business process automation


1. QUALITY & CONSISTENCY:  By continuously using the Information System which has automated various business processes, stake holders like managers, and other employees will have to get a feel on how the overall system operates. This can be achieved only if the system is consistent and produces high quality results which are reliable.


2. TIME SAVING: As you are already aware, automation reduces the time taken to complete any business process. Employees in turn can use the time to perform other tasks. As a result, one single employee end up completing more work in a day when compared to doing them manually.


3. VISIBILITY: The visibility we are talking about here, is the visibility of the status of a process. An employee will be easily able to identify, what stage the process is in, by looking at the information system. If we take the same example of Order to Cash Cycle, employees working on it will be able to ascertain the stage in which  a particular customer's order is in. He will get to know if the goods have reached the customer's place and delivery note sent and an invoice is pending to be sent to the customer.


4. IMPROVED OPERATIONAL EFFICIENCY: An overall efficiency is achieved in completing a process by making the process complete on time and in the most efficient manner, without errors or mistakes.


5. GOVERNANCE AND RELIABILITY: Automating business processes makes overall Governance of the Organization easier. This is because all outputs produced by the processes are higher in quality and reliability that managers and other employees end up trusting the data more, if done by these automated systems, when compared to the manual processing. This makes the entire process more reliable.


6. REDUCED TURNAROUND TIMES: When a customer orders 500 units of items of furnitures from a furniture manufacturing company, normally if the same takes around 15 days to deliver the items to the customer's place with an invoice, if done manually; by using the automated business processes the time taken can be considerably reduced to 5 days at the maximum to deliver the goods with an invoice. This is reduction in turnaround time i.e. reducing 15 days to 5 days. This is possible only when the business process is automated.


7. REDUCED COSTS: As discussed earlier, by automating business processes using an information system, an employee who is given a salary can be utilized to perform more work than he would be doing with the system which is not automated. A company would be ideally employing more number of staffs to do the extra work, thereby spending more on salaries. Even if this asks for investment of money in information system, it reduces the overall cost to the company. This calls for yet another analysis and discussion which we will discuss in another subject like Cost Management and is not relevant for EIS & SM.

Business process automation has ennumerable benefits like this


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