Automation will magnify either efficiency or inefficiency

Business Process Automation, commonly known as BPA, refers to technology-enabled automation of activities or services that accomplish a specific function or workflow. Business processes can be determined for many different segments of company activities, including sales, management, operations, supply chain, human resources and information technology.

However, before considering whether technology is speeding up relevant processes, it needs to be agreed that speeding up processes is a good thing as it results in efficient time management, seamless and faultless activity resulting in cost savings and optimisation of resources.

On the other hand, automation does not drive or nurture relationships and in an industry where services are consumed instantly, there is little opportunity for second chances.

Bonding fragmented disciplines

The question therefore is, “Is technology speeding up all relevant processes?” The answer is yes (in part); but it comes with significant sacrifice to Financial Services Providers (FSPs) who focus their energy on cost savings to the detriment of their own clients.

Technology is advancing in a straight line, with a trajectory that gives little consideration to the impact on evolving value propositions that focus on aligning one’s client services with the organisation’s business processes. Finding a solution that will bond these two fragmented disciplines together in harmony will ensure a sustainable, efficient client-focused service that will endure.

FSPs are looking to reduce costs and to become more efficient enabling them to share in a bigger and expanding market. Adopting appropriate technologies that speed up internal business processes is critical, provided these processes are not reliant upon driving relationships.

Critical considerations

“Interactive” as opposed to “collaborative” technologies are driven internally whilst the latter is built to enhance and deliver services to real live people. Using technologies that speed up processes is beyond essential if FSPs want to remain competitive and grow. Differentiating between internal processes and service aligned automation is perhaps the most critical of considerations when looking at any technology.

Take a Customer Relationship Management (CRM) system, for example. Most of these systems are built where the organisation (an FSP) is in charge. The process includes establishing the initial lead, cold calling, face to face meeting, negotiation and finally, the closing transaction. Does this sound familiar?

The problem, of course, is that the world of social engagement, regulation and client expectations has changed and the client is now in charge. Today, clients have information at their fingertips and by the time they are talking to you, they pretty much know what they want. Traditional CRM processes simply no longer fit – and neither do most of these technologies.

An essential ingredient

In considering technology as a solution to speed up relevant processes, consider the following:

• Does the cost of processing technology drive production upwards?
• What is the eco-impact of the relevant technology?
• Does the technology drive internal processes and align these processes with the organisation’s external market – the client and value chain?
• Does the process solution include the ability for collaboration between the entire value chain – the organisation, supply chain and client?

Speeding up processes requires careful consideration, especially where communication with clients is being considered for automation. There are limited areas where interactivity is warranted but in the end, a collaborative relationship is what clients are demanding; all FSPs need to do is listen.

Finally, remember the wise words of Bill Gates, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. Secondly, automation applied to an inefficient operation will magnify the inefficiency.”

Therefore, speeding up processes is an essential ingredient in the modern services world. Technology itself will not solve the problem and is certainly not a silver bullet.