Introduction
With the current trend of development around the world, it has become integral for businesses to be automated. The pandemic, COVID-19 has taught the world a lot of lessons on the future of business. Many businesses have been forced to shut down, while other business owners, who have their market stores online, are still running well, even amidst the pandemic. A lot of business owners are running at loss as they can no longer generate income to maintain their businesses. These circumstances necessitated the call for rethink on how a business can be properly managed.
Should business owners stick to the traditional method of running their businesses? Why should they embrace the automated business system? Are there any challenges that might face the smooth operation of automated businesses? How does one create an automated business? This article answers all these questions.
What is Automated Business System?
The Automated Business System, which is also known as the ‘Business Process Automation’ or ‘BPA’ refers to the process of applying modern technological tools to boost business efficiency and minimize costs. Considering the rapidly increasing changing market, it is necessary for businesses to undergo a paradigm shift in their mode of operations.
Automating businesses is a way of simplifying the difficult and tiring processes involved in the execution of businesses. Over the years, the traditional style of operating businesses has struggled to meet with the recurring changes in the market. Hence, a tweak in the processes of workflow becomes a necessity. Software applications are used to automate businesses from start to the completion stage.
While automation business system provides an alternative to manual labor, it also helps in the elimination of processes that obstructs the free flow of business operations. However, the different processes involved in business do not have to be automated with a particular kind of software; as different software can be used.
Types of Automation
There are basically three types of automation and they include:
Fixed automation
Another name for ‘fixed automation’ is the hard automation. It refers to an automated facility whose configuration cannot be easily changed. The initial investment for this type of business is relatively high. It mostly suits productions that are done in large volumes.
Programmable automation
This type of automation is used in producing batches of products. The automated machine is re-programmed following every batch of production made. The rates of production are much lower than that of fixed automated businesses. Although, this is time consuming as it takes a whole lot of time for the reprogramming of machines.
Flexible automation
This type of automation links several machine tools to a central computer. Production can be altered into different styles due to the nature of the automation, that is, wide variety of product parts can be produced. Though the products produced are always in limited quantity. This is done to cater for the changeover of facilities which can be done automatically.
Examples of Automated Business Systems
Below are examples of some automated business systems:
Automated Teller Machine (ATM)
An automated teller machine (ATM) is a type of automated model of business that allows customers to make cash withdrawals. Just as used in different banks and strategic locations, it minimizes the need for bank visitation by customers. The process is well automated as customers only need their debit cards to make cash withdrawals. In some other cases, some ATMs are programmed for card less operations. This means you might not even have a debit card before a customer make any transaction using the ATM. A particular code, issued to the customer, will be used for this kind of transaction. The machine is to be filled with cash always.
Employee onboarding
Hiring people is a herculean task that could be simplified if automated. From the filling of workers’ information, facilitating induction sessions to the creation of bank accounts for them, a whole lot of energy would have been expended. However, this can be addressed if the onboarding process is automated so as to ensure efficiency and effectiveness of the organization. Automating employee onboarding will also reduce never ending paper work. It will also ensure the proper capture of every detail.
Website
Having a website is another way of creating an automated business model. Many business owners use their websites to make sales to their website visitors. While most of the purchases made via their websites could just be for digital products, the sales of physical products and delivery details could also be automated using a website. For example, there are marketers who sell digital products on affiliate platforms using their websites. These digital products are mainly informational and packaged in e-books or videos format. With the automated business model in place, it becomes easy to make sales even when the business owner is not online.
Publishing
Nowadays, publishing a book can be automated. Most writers now prefer to write their books in electronic formats which can be uploaded to platforms such as Amazon Kindle for sales. With the demands of the changing market and the rapid increasing penchant of readers’ preference for soft copies, many writers now prefer to have their books codified electronically for automated sales online. After uploading the e-books on the sales platform, potential readers can get the books by purchasing online with the document being made available to them immediately after payment.
Drop ship retailing
Drop-shipping is another type of business that can be automated. This model of business allows a business owner to sell products online and then allow a drop-shipper handle the delivery of their orders. If you have a good website, the processes of making your orders can be automated and you get the chance to earn profitably from the business. Platforms such as Amazon delivers customer’s orders. Product owners do not interfere in the delivery processes but they still make sales. This is because Amazon takes care of everything. You can earn extra dollars drop-shipping.
Creating an Automated Online Business
Starting an automated online business takes some conscious planning. First, there are three main factors that must be put into consideration. They are; the target audience, the problem faced by the targeted audience and then, the solution to the problem.
When you have an idea of these three things, it becomes easier to create an automated online business around it. For instance, if you have noticed that people in your area find it difficult to get foodstuffs from the market. You can create an automated business that would seek to provide solutions to the challenges faced by the people.
Again, you have to create a sales platform that would help in advertizing your products. The platform would help people make purchases without having to send mails or make phone calls. You could also offer your customers bonuses. This will boost your sales and improve productivity.
After setting up your sales platform, it is possible that business might not be going as planned. At this point, you do not have to fret but take coordinated steps to ensure that you tweak the business model to meet the needs of the people. In making sales, understanding your customers is integral at this stage.
Track everyone who visits your sales platform and send mails to them. Dish out more value to them without necessarily talking about your products. Ensure you personalize the mails so your customers can resonate with your information well. Promote your products on social media platforms such as Facebook, Instagram or Twitter, depending on which platform suits your products best.
Create ads and ensure you engage in retargeting ads for leads that do not convert to sales. Your customers have to know that you are serious about business. As soon as you are able to get your customers to make purchases, it is integral that you also get feedback and testimonials from them. These testimonials should preferably be in video formats so you can upload on your website for other potential customers to see. This will definitely broker your way to wealth.
Benefits of Automating a Business
Automating a business has its benefits and they include the following:
Efficiency in service delivery
When a business is automated, there is a very high chance of improved service delivery as lapses from humans are well catered for, by the machine. It gives room for business owners to also focus on other sides of their businesses in a bid to boost sales. Automated businesses generally have higher tendencies of delivering ‘timely’ effective service. Also, there are little chances of error compared to what is obtainable in traditional businesses.
Effective Record-Keeping
Many business owners have lost huge amount of money due to poor record-keeping. There are several reports of sales not being recorded by sales attendants. They do this to embezzle funds. With the automation of businesses, it has now become difficult for records to be altered as all details are well inputted in the machine. For instance, many pharmaceutical stores now have their records on their devices; it is easier to track sales made and income generated with this new business model. Also, audit of organizations’ accounts is more effective if automated. It is also easy to detect discrepancies.
Keeping pace with digital trends
The pandemic, COVID-19 has shown the importance of businesses going digital. During this period, many business owners are running at a loss because their stores have been closed down. And it has become practically impossible for them to run businesses. However, those who run their businesses online are making constant sales. Businesses can leverage automation to boost their sales even in the midst of pandemic. A lot of platforms have continued selling with the owners making huge sales. The world is already going digital. Serious business owners ought to keep pace with the trends.
Reduction in expenses
Automated businesses spend less on their operations. For instance, a writer who publishes books will have to spend more on printing and also go through rigorous stress. However, automated platforms like Amazon have made publishing easy for such writers as they take care of getting your books across to potential buyers, at no extra cost to you. They would as well even make printed copies for customers without directly involving you. Even at this, you will still get your profits on sales; as there is a reduction in the cost of running an automated business. This will lead to a reduction in the number of workforce, which implies that business owners would have less people to pay.
Transparency and flexibility
One of the major benefits automated businesses enjoy is the transparency in transactions. Automating business makes accountability easy. You can control sales wherever you are. It does not demand your physical presence. The control of an automated business does not have to limited to a particular location. This gives room for flexibility and the business owner has opportunity to engage in other activities without being worried.
Disadvantages of Automating Businesses
While automation is integral to the future of sales, it still has its demerits and they include:
Loss of Jobs
Automation of businesses would definitely lead to loss of jobs for several workers. Machines or software handle most of the tasks. While automation of businesses would boost efficiency, it would also cost many their source of livelihood. Many employees of large organizations will lose their jobs; considering the ever increasing embrace of technology. With the emergence of artificial intelligence and robotics, there is every tendency that many more people would lose their jobs in the coming years.
Investment Cost
Creating an automated business is not cheap. It is costly to set it up. Although, the benefits of automating businesses is more productive than the expenses on its creation. Raising capital for automation is a huge burden for many start-up entrepreneurs. Also, the expenses needed for the maintenance and repair of the machine or software will also be a source of concern to business owners. Furthermore, a whole lot of money will be spent on the training and supervision of staff. that are to make use of the machine/software.
Challenges with customization
The machine will carry out just a specific task. There is limitation of creativity in productivity; as the machine is programmed. This is different from humans that can perform a wide variety of tasks. Machines do not have this creativity. Automation also runs through the same process repeatedly for every task. It therefore becomes a challenge to continually alter its programming to suit different customers who want different things. This would call for multiplicity of templates/software, which would definitely not be cheap.
Reduction in purchasing power
As machines take the role of humans in businesses, there would be a corresponding increase in the high level of unemployment. The implication of this is that many workers lose their jobs. This would indirectly affect their purchasing power as they can only afford products within their limits. On the other hand, businesses, with the help of machines and software, would continue to produce more products. This would lead to a high supply of products to the markets but there would be low demand for the products by customers as only a few would be interested due to their purchasing power. With this occurrence, there is every tendency for companies to stop production. And this will lead to a further increase in unemployment and economic meltdown.
Subjugation of humans
Since the duties of humans have been handed over to machines to perform, the need for skilled labor is reduced. Most times, companies prefer to recruit low-skilled laborers to take up the job of handling these machines. They prefer to train them on the needed skills to handle these menial tasks. This clearly shows a major demerit of automation.
Conclusion
It is clearly noticeable that there has to be a paradigm shift from the traditional model of running a business to the automated business model. Keeping pace with the realities we now face in our world is a testament that we cannot keep running businesses, like we have always done.
Many businesses would find it very difficult to bounce back after the pandemic due to lack of preparation for the realities encountered during this turbulent period. However, businesses designed to function online will benefit greatly; especially ones that deal in the sales of information. As most of the transactions are done via the internet with no physical delivery involved.
A lot of lessons have been learnt during this COVID-19 period and it is only rational to draw out projections on business sustainability in the years ahead. For businesses to survive post-COVID, automation remains a sure bet. While we cannot do anything about the past, the future has no right to catch us by surprise!