The list of benefits that IA or Intelligent Automation offers to businesses and organizations is a long one. It is an automation that is based on software and allows enterprises to direct their focus on quality improvement and compliance, enhanced resilience of processes, optimization of outcomes of decisions, enhancement of the speed of processes, and reduction in costs. It does so by allowing automation of repetitive and tedious tasks, operations, work, and activities, such as generating invoices, etc. In this article, we will discuss how Intelligent Automation (IA) improves efficiency within an organization.
There are a number of different studies and researches that indicate what the top three priorities of CEOs and business owners are. If there is something that has the potential of playing a crucial role in all three of them, it is Intelligent Automation. The priorities are:
- Increasing the digital skills of all employees and executives, including those of the CEOs.
- Identification of technologies that reduce operational costs of businesses as well as improve their productivity.
- Spotting disruptive technologies, new business models, new locations, and other such opportunities for growth and expansion of the organization.
Intelligent Automation (IA): A Better Way to Improve Business Efficiency
If we look at the better part of the last two decades, the implementations of the systems that CEOs and owners of businesses often opted for to improve the productivity and efficiency of their businesses include enterprise resource planning (ERP), lean programs, and shared service centers (SSCs). One of the most major problems, along with several other challenges and issues, was that the initiatives and systems often took years for effective implementation. What is more, is that they usually demanded extensive changes to the organization and its people and processes, and the periods of payback ranged from two to five years.
On the other hand, Intelligent Automation requires only months for deployment, and the IA initiative offers unlimited scalability as well. Furthermore, the periods of payback are usually not longer than a year. According to a study conducted by the McKinsey Global Institute, the companies that went ahead with the adoption of Artificial Intelligence (AI) early enough benefited from 10% to 15% (on average) higher profit margins than businesses that lagged behind. Furthermore, the expected free cash flows of those companies are also set to accelerate much quicker. This proves that automation proves to be a significant differentiator between competitors. 84% of businesses start leveraging AI due to its provision of a competitive edge, according to a report by Statista.
Intelligent Automation for Creation of New Business Strategies
On the basis of IA, two business concepts with a powerful impact have been recently built:
- Building New Digital Businesses
- Ecosystems of Data
Both of these concepts uncover ways of creating new and efficient business strategies.
Building New Digital Businesses
Businesses operating in industries, such as banks, insurance, telecommunications, energy, etc., need to digitize in order to compete with companies that are entering the market lately and are solely digital-native. There are instances when focusing on creating a new, highly automated offshoot for a digital business from scratch is a better way to perform digitization rather than going for digitizing the existing company systems and structure.
Creating a digital business from scratch comprises developing a business and its ways of delivering services and products that are encircled by technology. What this business strategy does is that it allows the customers to encounter more seamless, faster, cheaper, and easier services, consequently elevating their experience. This happens because a digital business that is designed digitally offers higher accessibility and is more user-friendly than a business that is digitized after its creation. Oftentimes, a business may end up experiencing its new digital business becoming a new core. LEGO is a great example from the toy industry in this regard
As soon as the toy industry began to shrink, LEGO was quick to begin the process of venturing into epic movies, a LEGO design platform for crowdsourcing, video games, and a social community network. This creation of a new digital business took the net profit of the company to new, unprecedented heights. In the year 2009, LEGO had recorded a profit of €300 million. In 2019, the company recorded a profit of €1.1 billion.
Ecosystems of Data
Users can access a number of related services, through gateways in the form of ecosystems of data, in a single interface. Ecosystems of data provide sets of services that are interconnected by working as a group of actors that work together, hand in hand, in shared information and resources. What this does is that it mitigates the need of users to make switches between related services. Users are spared the headache as they can access each and every service in a single, unified interface.
What is more is that the strategy, at the same time, reduces the costs related to the acquisition of clients for partners within the ecosystem of the data. The ecosystem playbook: Winning in a world of ecosystems suggests that banks can save up to 10% to 20% on CAC (customer acquisition cost) through ecosystems of data.
The Manifestation of Ecosystems of Data
An is an insurance company based in Asia and, as an early mover, demonstrated the true strength of ecosystems of data. It established a reference ecosystem, resulting in an expansion that grew the business beyond the insurance industry. This company is now a group that deals in several ecosystems, including smart cities, banking, housing, and healthcare. It resulted in the creation of 11 new digital platforms for the company as well as its online users increased to 500 million. Furthermore, the business swiftly added to the number of its insurance agents and equipped them with all the tools and digital apps they required.
Conclusion for Improve Efficiency With Intelligent Automation
Regardless of the industry your business operates in as well as its size, Intelligent Automation (AI) can enhance the efficiency as well as the productivity of your business. Contact us for additional strategies to improve efficiency with Intelligent Automation.
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