Opinions expressed by entrepreneurs’ colleagues are their very own.
Automation is to extend company efficiency. Instead, it does the opposite for many firms.
Companies are in a hurry to automate tasks without fully understanding the impact. They invest in automation tools without a solution to inefficient. They replace people making decisions with software that is not fully tested or optimized. Instead of facilitating the situation, automation often adds complexity, slows down operations and creates expensive recent problems – the exact opposite of what it is to do.
Most firms do not disappoint in automation, because technology is not adequate. They fall because they implement it incorrectly.
I saw the firms introduce automation projects that look great on paper, but in fact they break down. The processes turn into more stiff, employees bypass automation to do work, and IT teams spend more time maintaining automation than manual operation of tasks.
The purpose of automation is not to switch work. The goal is to eliminate waste. And that is where most firms understand this badly.
Why firms are fighting automation
Many automation failures result from one fundamental mistake: firms are attempting to automate broken processes as an alternative of fixing them.
Here’s the way it looks in practice: a company struggling with slow response to customer support installs Chatbot AI, but does not fix the basic bottlenecks in the support system. Now, as an alternative of improving service, chatbot frustrates customers who still need human help.
The company automates the entering data between departments, but does not standardize the data themselves. The errors are copied and pasted on a scale, creating larger, tougher to set problems in the line. The logistics company implements the automation of the warehouse, but without integration with existing supply chain systems. Result? More ineffectiveness, no less.
When firms treat automation as an abbreviation, not a strategic investment, they eventually strengthen the inefficiency that they tried to eliminate.
High cost of bad automation
Automation went fallacious, not only frustrating – it is expensive.
A recent BAIN & Company study found that 88% of business transformations, including automation initiative, does not meet its goals. Similarly, Gartner informs that 85% of AI and automation projects do not provide the expected value.
The consequences of unsuccessful automation activities are huge. Poorly implemented automation results in higher operating costs, lost performance and dissatisfaction of customers. Instead of saving money, firms often have to keep up, adapt and even scrape their automation systems. According to Boston Consulting Group, Only 30% Large technological projects achieve their goals, and 35% completely fail.
Despite these risks, the firms make the same mistakes. They accept automation because it is fashionable or because competitors do it, without considering whether or not they actually solve their specific business problems.
How to enhance automation
Automation works when eliminating waste without creating a recent inefficiency. This signifies that firms must first fix their processes – and then automate.
Companies that are successful due to automation follow three key rules.
First, start with the strategy, not technology. Before accepting any automation tool, firms must determine what problem they are solving. This means the query: what actually slows us down? Do we automate the task or repair the process? What does success appear like and how do we measure it?
The most successful automation projects begin with clear business goals, and not only for “using AI” or “adding automation”.
Secondly, first repair the process and then automate. Companies often attempt to automate the inefficient system as an alternative of redesigning the system itself. It’s like placing a turbocharger on a broken engine – it won’t fix problems. Before automating, firms should eliminate unnecessary steps, standardize data and test before scaling.
Third, make automation with a tool for people, not alternative. The best automation works with people, not against them. When firms are in a hurry to switch employees with software, they often discover that the software does not have flexibility, the ability to resolve problems and context that folks provide.
Successful firms design automation to service repetitive tasks with a large volume, while people manage complex decision making. Instead of dictating their work. Employees should feel that automation is a tool, not a barrier. Automation should allow human intervention if obligatory, as an alternative of forcing every little thing through rigid rules.
Automation should simplify the activity, no more complicated
Companies do not only need more automation. They need smarter automation – automation, which removes complexity and does not add to it.
The goal is to not automate as much as possible. This is to automate the right things. This is the difference between automation, which causes performance and automation, which causes more work.
Too many firms fall into the automation projects with the mentality of “Set and forget”. But automation is not a magical switch – it is a business decision that requires planning, testing and improvement.
Companies that get proper automation focus on simplicity, performance and adaptation to real goals. Those who sink this badly? In the end, they automate waste, scaling inefficientness and create greater problems than they began.
Companies that devote time to proper automation will see advantages – lower costs, faster processes and greater scalability. Those who is not going to have the same problems they’d before – only now, on a large scale.
It is not about whether to automate. The query is whether you automate the right way.