In this article, you will learn:
- The relationship between automation and competitiveness
- How automation increases company agility
- How automation helps shape corporate values
- Why employee education is so important in automation
As more and more companies automate, maintaining competitiveness becomes increasingly difficult. This does not mean it is impossible – however, you need to know what to automate to gain an advantage. Competitiveness in the era of automation
The automation of the economy is a fact, and the development of tools and methods such as
robotic process automation or machine learning techniques makes it not only a way to ensure a competitive advantage but also – in a world where virtually all companies are automating their work environments – a necessity. The question remains, however – how does it affect the competitiveness of companies and the economy? The relationships between automation and market competitiveness are multifaceted and can be considered from both a technological perspective and from the point of view of company management and organizational culture. Automating production, logistics, and other operations increases a company’s overall operational efficiency, and enterprises that can produce more and faster, while also doing so more cheaply, take the lead in the race for the title of the most competitive organization. This does not change the fact that competition is fierce. Perhaps the most important aspect of automating work environments is changing internal company cultures. Modern technological solutions may prove ineffective if their implementation is not accompanied by a change in the way of thinking about business operations. In other words, in a world where the entire economy is being automated, people and their behaviors remain the most important piece of the puzzle – without them, and without considering their needs and expectations (both employees and customers), the entire process can be just a waste of money.
Automation as a factor increasing agility and responsiveness
Business analysts and managers repeat like a mantra that maintaining agility is the most important thing in the modern market. The problem is that market conditions can change like a kaleidoscope. For this reason, it is worth asking – which
technologies related to process automation will have the greatest impact on the entire process? A strategy for adapting a company to market conditions is a good starting point for considering what an organization can gain through automation, as well as what tools it should use. It must be remembered that this is a complex process, and
the transition from simple robotization to intelligent automation may require large amounts of both time and resources. This can be explained by the example of a glass manufacturing company. The housing market in Poland is characterized by constant growth, so developers need windows. To handle their orders, a glass manufacturer can automate both the ordering process and production or distribution – this is possible, for example, using ERP systems. How does this affect business agility in both boom and recession? When new investments appear on the market, the manufacturer can order the production of a larger number of window panes with a few actions on one platform. When they come to an end or – worse – when a crisis occurs, thanks to the automation of business processes, they can limit the scope of operations, e.g., to handling individual orders, or change the business profile and focus on producing car windows. How does automation make this possible? It is feasible thanks to analytical tools that provide constant access to data in real time. This means that the manufacturer can increase or decrease production capacity in a short time. Also, “closing” the entire company’s operations into one platform makes the whole process faster and more efficient.
Competitiveness analysis – how does automation affect market position?
Another aspect of automation through which a company’s competitiveness can be increased is the ability to improve its market position. How is this possible? The assumption is very simple – faster and more efficient organizations win against slower and less efficient ones, just like in sports. This can be analyzed from the perspective of production. In companies where the most tedious tasks are performed by people, overall efficiency drops because employees get tired and bored with monotonous activities. Entrusting this process to robots and delegating employees to operate them and control the output speeds up the entire process. Robots work faster and more efficiently, do not get tired, and at the same time do not make human errors, which means that production costs fall while the company maintains the quality of its products. Automating the work environment also contributes to a greater number of innovations. Firstly, it shows that the company takes its business seriously and wants to constantly develop; secondly, shortening the time of production, testing, and delivery of products allows the organization to focus more on conceiving and developing new solutions. Competitiveness is also built through the optimization of resource consumption – this refers to time, financial resources, or materials necessary for production. A company that is able to produce more in less time can not only react faster to market changes but can also improve its overall efficiency. Often, the implementation of automation solutions shows that previously used methods were ineffective and led to resource waste, which did not improve the enterprise’s market position.
Automation and innovation – creating unique value propositions
Nowadays, to maintain a competitive position in the market, it is not enough to produce the best product in its class – you also need to offer customers a unique value proposition. This means that the product should not only solve a specific problem but also provide additional value, e.g., in the form of prestige. An example could be the iPhone from Apple – it is not only a decent smartphone but also allows its owners to emphasize their social status. Although at first glance the connection between a value proposition and business process automation is not visible, a closer look shows that it can shape values in many different ways. The most obvious is improving the efficiency of processes in the company – in this way, automation ensures that the organization can deliver high-quality products, but it also positions the company in the minds of customers as an expert in its field. Automation can also be used to improve the organization’s marketing activities. Access to a huge amount of data on customer behavior and preferences means that a company can, for example, create advertisements that will reach groups with specific tastes or financial capabilities. Data can also be used in organic activities – they can be used, for example, to determine topics that the company can cover on its blog. In this way, along with the product, it can offer unique value in the form of proven knowledge or interesting materials.
Risk and compliance control in an automated business environment
One of the
greatest challenges associated with automation is maintaining an appropriate level of risk control, compliance, and, more broadly, organizational security. The development of automation technologies also translates into new threats to the company’s operations. For example, integrating all processes into an ERP system significantly improves efficiency, but problems with the platform can lead to the paralysis of the enterprise. To ensure the highest possible level of security in an automated business environment, while simultaneously managing risk skillfully, not only are appropriate technological solutions necessary – equally important, if not more so, is the education of employees, managers, and customers. Cybersecurity is built using safeguards, but their use is regulated by specific procedures. These, in turn, need properly trained people to function, so in addition to implementing appropriate technologies, one must primarily focus on training for employees and promote a culture of continuous development and care for the work environment. Without this, even the most effective organization may not be able to cope with problems. In risk management and security control, change management is also important. In this process, the role of employees is also significant – people aware of the changes introduced as a result of automation will be better able to cope with new challenges. It is also important that changes take place gradually, because a revolution in operations can cause staff resistance and lead to a decline in the efficiency of the entire organization.
