Auto-translation used

6 business problems that every entrepreneur faces when automating

Today, it is impossible to imagine a modern business without automation. It allows you to increase efficiency and allows entrepreneurs to focus on more strategic tasks.

However, despite the many advantages, entrepreneurs often face a number of problems and difficulties when trying to automate their business. According to Forrester, 58% of projects do not meet the invested expectations for efficiency improvement.

In this article, we will look at six such problems, as well as suggest ways to solve them.

Situation:

Logistics company "A" is growing and scaling, and they decide to automate their business, but they make the mistake of trying to cover all aspects of their company.

Problem:

Trying to automate all business processes at the same time can become an extremely costly and difficult task. This can lead to the fact that processes may not be fully optimized, and staff will have difficulty adapting to changes.

Solution:

For successful automation, the following plan should be followed.

  • Prioritization of processes:

Identify the processes that have the greatest contribution to the company's profit and efficiency. These can be, for example, processes related to order processing, inventory management or customer service.

  • Gradual implementation:

Start by automating the selected priority processes. Provide full understanding and support from employees who have replaced manual work with automated solutions.

  • Evaluation of the results:

After implementing automation, analyze the results. Measure efficiency improvements, cost reductions, and job quality improvements.

  • Additional stages:

As processes become more stable and bring more benefits, you can move on to automating other processes. Evaluate each step and adjust the plan if necessary.

Effective automation begins with planning and consistent implementation, focusing on key aspects of the business.

Situation:

Company “B" has recently automated its business and was disappointed that in 3 months of the automated process, the implementation does not pay off its costs.

Problem:

Expectations of a rapid reduction in costs can lead to disappointment and rejection of the project.

Solution:

Be realistic. Plan for the long-term benefits of automation, considering both the initial investment and the cost of support. Gradual improvement of processes is usually more effective than a drastic change of the entire system.

Situation:

The company “C” has high costs for manual warehouse accounting and problems with the reporting of goods. There is no clear understanding of how the goods are put on sale and what regulations are used. Business processes are not structured, which leads to an increase in the time for the delivery of goods to customers.

Problem:

Automating such processes can be a difficult task, and the results may be unsatisfactory.

Solution:

Before automating complex processes, conduct a thorough analysis. It may be necessary to pre-optimize and streamline processes to make them more suitable for automation.

Situation:

Company "D" has successfully completed the process of automation and implementation of a new system for order management, but it has not provided for the integration of this system with existing ones. As a result, employees face regular problems at work, there is no consistency of business processes, and management is forced to spend additional resources on solving integration tasks.

Problem:

After the automation process is completed, new technologies cannot effectively interact with old systems.

The company implements an order management system and does not integrate it with an inventory management system. All orders and product information entered into the order management system are not reflected in other systems.

Employees are forced to manually enter data about new products into the inventory management system, which requires additional time and resource costs. Automation plans are being reviewed, and the company is launching some stages of the implementation of the new system anew.

Solution:

Plan integration already at the stage of forming the technical specifications for the automation project. Take into account all the features of both new and old systems, develop a detailed plan for their interaction and estimate the possible costs.

Situation:

Sometimes entrepreneurs decide to automate business processes that rarely occur.

Problem:

The costs of automation may be unjustified if the processes are rarely repeated.

Solution:

We decided to provide you with a formula that will help determine whether it makes sense to automate business processes:

To understand whether process optimization is needed, you can use a simple formula:

The need for optimization =(Time costs×Resource costs)/Output result

If the value of this formula is high, it means that the process is inefficient and it should be optimized.

Example:

Time spent: 10 hours (per task)

Resource costs: 3 employees

Output result: 5 completed tasks

The need for optimization=(10×3)/5=6

Here the value of 6 is high enough, which indicates the need to optimize the process.

In the experience of our studio, this approach helps to quickly assess where the "bottlenecks" are and which processes should be automated in the first place. This saves not only time, but also financial resources.

The gradation of the need for automation can be presented in the form of 3 levels:

  • High necessity: Formula value > 10. Automation is urgently needed to eliminate bottlenecks.
  • Average need: The value of the formula is from 5 to 10. Automation will be useful, but not critical.
  • Low need: Formula value < 5. Automation is possible, but it will not have a significant effect in the near future.

These levels allow you to quickly determine which processes require attention right now. This will not only speed up decision-making, but also optimize the allocation of resources.

Situation:

Many entrepreneurs do not fully understand their own business processes.

Problem:

Insufficient understanding of the business processes of your own company is a serious barrier to successful automation. This problem may manifest itself in the form of fuzzy ideas about which processes need to be optimized, as well as which tasks should be automated. Uncertainty in this matter can lead to incorrect decisions and loss of resources.

Solution:

  • Detailed study of the processes:

Before starting automation, it is necessary to thoroughly study and document all the current business processes of the company. This will allow you to get a clear idea of what steps and tasks are included in each process.

  • Identifying weaknesses:

Identify bottlenecks and problems in current processes. This may include slowdowns, redundant stages, errors, or non-compliance with standards.

  • Consultation with experts:

If possible, contact experienced specialists or consultants on business process automation. Our company provides free consultations, during which we will give you useful recommendations on optimizing and automating your tasks.

  • Gradual introduction of automation:

Take your time with automation. After a deeper understanding of business processes, start implementing automation gradually. This will help to avoid mistakes and unforeseen problems, as well as make sure that automated solutions meet the real needs of the company.

Misunderstanding of your own business processes can become a critical obstacle to successful automation. Thorough research, consultations with experts and gradual implementation will help entrepreneurs to optimize and automate their business more effectively.

The introduction of automation of business processes becomes necessary at different stages of the company's development.Below are the key points when automation can be most profitable and effective:

  • The volume of operations is growing:

When your company starts to scale and the volume of operations increases, automation allows you to manage big data and processes more efficiently.

  • Optimization of work processes:

If you have processes that can be standardized and optimized, automation allows you to eliminate human errors and speed up the execution of tasks.

  • Increasing competitiveness:

Automation can increase your company's competitiveness by providing a faster response to changes in the market and improving customer service.

  • Cost reduction:

Automation can help reduce transaction costs, as it reduces the need for a large number of workers.

  • Compliance with regulatory requirements:

If your industry is subject to strict regulatory requirements, automation helps to ensure compliance with norms and standards.

  • Data analysis:

Automation allows you to collect and analyze large amounts of data, which can be valuable for making strategic decisions.

No matter what stage your company is at, our team will suggest a solution and develop a web or mobile system to increase the efficiency and competitiveness of your business. Contact us to discuss your specific needs and develop an automation plan that is right for you.

Automation is a powerful tool for business development, but its implementation requires careful planning and analysis. A reasonable approach to automation will help to avoid many problems and ensure the successful development of the company. It is important to remember that automation is an investment in the future of a business, which can significantly increase its efficiency and competitiveness.

Comments 0

Login to leave a comment