Connect with us

Business

How Can a Business Reduce Costs By Applying Automation?

How can the company reduce its costs by installing such uneconomic automation of their business process? The cost of automation is divided among the number of years that the said technology is used in the company.

Published

on

colorful toothed wheels

Reduce Costs By Applying Automation, The human race has successfully used technology over the years to automate the lengthy and energy-consuming processes. With the invention of the wheel and axle in 5000 B.C (approximately 7000 years ago), technology’s evolution to assist us human beings and make our work easier has been forward-facing.

It didn’t take us long to incorporate technological automation into business practices after developing our commercial senses. Besides simplifying the business processes, the most significant advantage of modern-day automation is cost reduction. Forbes’ article titled “How Much Is Intelligent Automation Saving You?” the author estimates that automation can reduce up to 40 to 75 percent of the company’s cost.

Ways to reduce costs through business automation

The most common myth among businesses is that technology is always high- priced. The price of the devices, systems, networks, and charges of installing an automated process or software can add up to crush the mountains.

Advertisement

How can the company reduce its costs by installing such uneconomic automation of their business process? The cost of automation is divided among the number of years that the said technology is used in the company.

Therefore, although it may seem like a large amount, once distributed throughout the usage period, the cost is not that massive. Apart from that, automation helps cost reduction in the following ways.

1. Quick Processing

Many routine processes are quite time-consuming. Functions like payroll, attendance, and leave management for each employee of the company, invoice management or accounting and bookkeeping, interviewing and onboarding recruits, etc. take hours of hard work from the respective department managers. Even a small mistake in any of these can demand days of struggle to identify the error and correct it. 

Advertisement

The time taken for these lengthy processes changes from hours to seconds with the help of automation. The managers can get standard invoices, pass journal entries, make financial statements, calculate payroll, and perform any other time-consuming processes in just seconds. This saves a copious amount of time for the organization.

With this much time saved because of automation, the managers of different departments can focus on more business-oriented tasks. Solutions like hr management system, accounting, and warehouse inventory management. Here, the cost is reserved as the managers can complete double the number of functions for the same amount of salary. The company receives more service from the employee after automation for the exact cost incurred before automation.

2. Increased efficiency

When an organization carries out its normal yet extensive business processes manually, the management and the employees do not have enough time to focus on the more business-oriented tasks. Thus, the employees’ efficiency reduces as their drive is used to do those energy-consuming tasks.

Advertisement

With automation, the time spent on such lengthy tasks is saved, and as mentioned above, the employee can contribute more to the organization. The employees are free from monotonous and repetitive work due to automation, and it is due to this reason that the company receives the benefit of increased efficiency when they install automation.

When the employees are more efficient, their productivity and contribution towards the organization increase. The company can give more output with the prominent workers compared to the exhausted, unproductive workers when there was no automation in the organization.

Especially in a pandemic, when almost every employee works remotely, automating the business process and communication system would allow better monitoring and increased output from the employees.

Advertisement

3. Process accuracy

No human is perfect. They are bound to make mistakes. When these mistakes are made in the payroll calculation, accounting valuation, or sale or purchase of the product you’re dealing in, may cost the company a fortune depending on their severity. Bad data or erroneous data is the cause of 20-30% of the operating costs of the business.

Image Source

Opening gates to automation allows the organization to have accuracy in the process. The costs incurred on extra labor or professional help to correct the mistakes made in these processes become zero. This reduction is possible because, in automation, the programming does most of the work with minimum human intervention required. Reduce Costs By Applying Automation, Thus, it becomes easy to track mistakes as they are likely to be made only at the initial stage.

Advertisement

4. Information security

The organization has to regularly incur a considerable amount on installing and maintaining cameras and security systems to safeguard the confidential files containing the employees’ data, the organization’s financial information, or the details about the organization’s customers.

Image Source

Automation converts the physical storage system into a virtual one and overthrows all the former system’s disadvantages. The organization receives the benefit of going green and having the data organized, with restricted access to enable security. When the company uploads the data on the cloud platforms, it can encrypt the information with encryption tools to protect it from data theft.

Advertisement

To ensure the quality of our software test automation as a service, you can request a free trial to test your project at Deviqa.

The Takeaway

In the modern world, automation in business is necessary not only to reduce costs but also to keep up with the market trends. When the entire industry works with automated business processes, and your organization maintains a manual system of handling those processes, they would likely lag and fail to catch up with the market trend. Reduce Costs By Applying Automation.

In the era where almost every company is facing a liquidity crunch, it is advisable to save on costs with automation and survive through this time while preparing for the grand comeback when the world returns to regular days.

Advertisement
x