How Automation Improves Business Performance and Overall Society

From the cotton gin and assembly line to electronic gas pumps, ATM machines, self-checkout lines, and tax software, automation has changed the economy. Automation has replaced jobs and spawned self-service. For example, you’re likely used to pumping your own gas. Electronic gas pumps made this possible. As a result, you won’t encounter too many full-service gas station attendants unless you live in a state such as Oregon or New Jersey which prohibit self-service gas stations.

 The Impact of Automation

 Though the electronic gas pump, ATM machine, and self-service checkouts have been in existence for decades, automation continues to shape modern businesses. Since 2000, automation has replaced a number of tasks formerly done by humans including:

• Secretarial tasks (i.e., calendar updates, contact logs, and report generation)
• Telephone operations
• Bookkeeping tasks
• Travel agent tasks

For example, you’ve likely booked a few flights, hotel rooms, or rental cars online. In the past, you may have had an assistant or travel agent handle this for you. The same is true of basic tax filing thanks to tax software.

Benefits of Automation on Business and Society as a Whole

While we could lament the loss of jobs, business automation does have its benefits both to the business itself and society as a whole.

In some cases, automation allows employees to focus on more meaningful work; their jobs aren’t replaced by automation but enhanced by it. In addition, business automation helps US companies compete with countries such as India and China where labor costs are much lower but on the rise. At one point, outsourcing to these countries made sense, but rising labor costs are prompting many US-based manufacturers to pullback. As a result of returning to the US and partially automating, more US jobs are being created – a huge benefit to society.

Businesses today use automation in a variety of ways. SAP accounts payable automation, for example, has been shown to increase productivity by more than 30 percent while reducing the cost per invoice by up to 60 percent. The total rate of return industries received when investing in automation averaged 13.5 percent.

Automation can save time, reduce or eliminate human error, reduce overtime, and more. Not only can it help companies compete and stay in business, it can bring jobs back to America.

About the author:
James Hadley is a professional business consultant specializing in information technology. Sources collected for this article can be found athttp://www.dolphin-corp.com/2013/09/automation-in-business-infographic/.