What Is the First Step in Process Automation?By Nathan Schorr | Mon, 08/22/2022 - 15:00
For companies in multiple sectors, technology has represented one of the main engines of growth. Applied in its different processes, digitization allows companies to be more competitive and able to face the challenges that arise with greater efficiency and projection.
Although the use of digital tools is driving the transformation of the business model, the evolution is different depending on the business sector that is being discussed. This occurs because many organizations have not yet started the imminent path toward digital transformation, which will be vital to their survival in the near future.
The Importance of Tech
The biggest technological change of the last decade was the incorporation of artificial intelligence (IA) solutions in the form of robotic process automation. But digital transformation is not only about technological innovations and their integration in the business but also about how these technological innovations are adopted and used in companies.
In recent years, it has already been discussed and proven that business success, although it is multifactorial, lies largely in the ability of each company to adapt to a world that is changing as quickly as it is currently and a market that demands constant investment in technology.
But, unfortunately, change management is a pending issue for many companies in Mexico and other countries in the region. An IoT Snapshot study shows that between 2018 and 2021, only 47 percent of Los Angeles companies used the Internet of Things in their internal processes.
The proportion is similar if the implementation of artificial intelligence is reviewed, where according to a global study by the IBM Institute for Business Value, only 40 percent of Mexican companies invested in this area after the start of the COVID-19 pandemic.
The use of technology to complement or improve the processes and services offered by a company also depends on the genuine desire of the person or persons running it. A CEO acquires a large part of the responsibility for innovating and to the extent that he knows how to invest in this area, digital developments will be able to modernize processes and reduce errors.
The Necessary Step
Although each industry has a different adaptation process, technological investment must be understood as a process that needs to be tested and must be susceptible to constant improvement. Technological changes must be accompanied by transformations in the design of workflows, supports, communication, and in each and every business area.
With widespread use and more frequent familiarity by an increasing number of users, these tools help with the most tedious aspects of a job, such as processing, human error, duplicate tasks, and more complicated operational procedures.
In the case of applications for financial control, accounting departments improve their delivery times for the collection of accounting and financial information, enhance their ability to generate reports and analyze operations and obtain, for managers and other managers, a clearer picture and transparency of the current status of a company's operations.
Instead, the lack of technology and the propensity for human error can lead to poor cash flow management, which is the No. 1 reason businesses run into trouble. Many companies lose account visibility, which triggers many administrative errors that can even lead to bankruptcy.
The financial management of companies must focus on ensuring that money reaches suppliers, supplies, purchases, salaries and other priority destinations in a timely manner. Having visibility and control over money flow becomes a priority to delegate functions and optimize processes.
The disarticulation of the processes is happening in combination with the execution of manual activities and others through platforms in which many people are affected. There are many points of information that are not linked, which makes it difficult to have clarity regarding where the money is, the actions executed in the follow-up process and when the payments will arrive.
Business leaders must be constantly vigilant within their organizations to ensure productivity improvements and gain significant competitive advantages. The adoption of automated processes in areas such as finance may well represent the first step for any business leader who is already looking to innovate in a new technological paradigm.