Business process automation is the use of AI technologies to automate tasks within a business. By the end of 2025, we will see 80% of firms adopting intelligent automation. This means that automating workflows is the need of the hour for CIO’s who are looking to embrace digital transformation with future-proof strategies in place.
Streamlining processes and improving enterprise efficiency is one of the specialties of business process automation. However, 30% to 50% automation projects may fail as well. The reason being lack of measurable results, high implementation costs, technical issues, and resistance to change.
What is business process automation?
The use of technology in automating repetitive tasks and processes is known as business process automation.
Here, the goal is to improve the speed and accuracy of a business in streamlining workflows, leveraging data, and managing data flows across varied parts of an organization. The benefit would be to convert manual processes into automated ones throughout an entity, enhancing productivity and cost reduction.
Differences between Business Process Automation, Robotic Process Automation, and Business Process Management
| Factor | Business process automation | Robotic Process Automation | Business Process Management |
| Meaning | Automates complex business processes by using software solutions | Automates routine and repetitive tasks that mimic human interactions | Involves continuous collaboration between IT and business teams |
| Scope | Focuses on automating end-to-end workflows and processes across departments | Focuses on automating specific tasks within a process | Involves managing and improving all aspects of business processes, whether automated or manual |
| Technology used | Advanced tools like process intelligence, cloud platforms, and enterprise applications | Software bots powered by scripts and AI technologies like OCR and NLP for task automation | Methods and tools for process modeling, monitoring, and optimization; may include BPM suites |
| Objective | Streamline operations by automating workflows to reduce errors, save time, and improve transparency | Reduce manual effort and improve efficiency by automating repetitive tasks | Improve overall business performance by aligning processes with strategic objectives |
| Examples | Employee onboarding, accounts payable automation, and contract management. | Data entry automation, invoice processing, and customer service chatbots. | Process discovery, workflow optimization, and compliance management across departments |
What are the business process automation benefits?
Although BPA provides varied benefits, brands can have problems scaling these solutions. Let’s look at some of the key pros of business process automation.
1. Improved efficiency and standardisation
BPA is known for its ability to reduce dependency on manual processes, including the use of spreadsheets. Removing repetitive and manual work helps in reducing employee time and improving overall efficiency.
2. Cost savings
By automating business processes seamlessly, you can minimize costs and improve overall productivity. As machines are experts in performing repetitive tasks, there’s lower error rates and better output quality. The implementation of cloud-based business process automation tools will improve productivity, helping strengthen centralized data storage. This creates transparent processes for enhanced accountability.
3. Improved accuracy and stability
Automated processes help in delivering consistent and error-free results as compared to manual operations. For example, Carlsberg Danmark had reduced 90% of order processing time with error-reduction via BPA solutions.
4. Superior compliance management
Automated systems ensure adherence to regulations by maintaining consistent data trails and monitoring compliance requirements. This reduces the burden of audits and enhances legal compliance across operations.
5. Better customer service
Faster processes and fewer errors convert to superior service quality and quicker response times for customers. Automation also enables personalized communication triggered by predefined workflows, improving customer experiences.
Types of business process automation
Business Process Automation (BPA) encompasses various types of automation, each addressing different levels of complexity in business operations.
1. Task automation
Task automation is the simplest form of BPA, focusing on automating individual manual tasks. It helps save time and reduce errors by eliminating repetitive activities. Common examples include sending automated emails, generating documents, capturing digital signatures, updating system statuses, and other administrative tasks.
2. Workflow automation
Workflow automation goes beyond individual tasks by automating a sequence of activities within a defined workflow. It ensures tasks are completed in the correct order and efficiently transitions work between stages.
Some workflows can be fully automated, while others may require human intervention for tasks needing judgment or decision-making.
For instance, an online customer order can trigger several automated actions, such as sending email confirmations, checking inventory levels, processing payments securely, and generating shipping labels.
3. Process automation
Process automation involves automating entire processes end-to-end rather than focusing on isolated tasks or workflows. It identifies and automates as many components of a process as possible to optimize operations and reduce bottlenecks.
This approach ensures consistency across the organization by connecting discrete tasks and overarching workflows into a seamless automated process.
4. Digital process automation
Digital process automation extends traditional BPA by integrating automation into broader digital transformation efforts. DPA focuses on optimizing end-to-end processes to enhance efficiency while improving customer experiences.
It bridges the gap between individual automation initiatives and overarching digital goals, making it a critical component of modern business strategies.
5. Intelligent automation
Intelligent automation represents the most advanced form of BPA, combining task and process automation with cutting-edge technologies like artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and data analytics.
This type of automation can handle complex tasks requiring cognitive abilities, such as interpreting text, making predictions based on data analysis, or learning from past decisions to optimize future actions.
For example, AI-powered chatbots can manage routine customer inquiries while allowing human agents to focus on more complex issues.
Examples of business process automation
Automating various business processes can significantly enhance efficiency and reduce the workload on teams. Here’s how automation can transform specific areas:
1. Onboarding new employees
Automating the onboarding process can alleviate the administrative burden on HR departments. With Business Process Automation (BPA), tasks such as sending welcome emails, setting up software access, scheduling orientation sessions, and processing paperwork can be handled seamlessly. This not only saves time but also ensures a smoother transition for new hires.
2. Managing purchase orders and accounts payable
In finance and procurement, BPA simplifies the management of purchase orders and accounts payable. It automates the routing of time-sensitive invoices for approval, matches purchase orders with invoices, and processes payments efficiently. This automation accelerates credit approvals and standardizes procedures, enhancing security and compliance.
3. Contract management
Automating contract management can streamline the entire lifecycle—from creation and signing to renewal and auditing. BPA helps ensure timely compliance and minimizes the risks associated with manual contract handling, making the process more reliable and efficient.
4. Marketing automation
BPA software can take over various marketing tasks, allowing teams to concentrate on strategy, creativity, and building relationships with potential customers. Automation can assist in identifying leads, crafting effective messaging, generating new leads, and integrating with customer relationship management (CRM) systems to keep information current. This helps nurture sales leads and convert prospects into customers.
5. Sales automation
Integrating BPA with CRM systems helps organizations bridge process gaps and eliminate data silos. This includes automating customer onboarding, managing the sales pipeline, and creating low-code CRM alternatives when a full enterprise CRM isn’t available.
Low-code development platforms enable users to create automation solutions with minimal coding expertise, directly accessing APIs for better performance compared to traditional robotic process automation (RPA), which often mimics human interaction through the user interface.
Guide to implement business process automation
Implementing Business Process Automation (BPA) successfully requires a deep understanding of your organization’s specific needs, processes, and objectives. Let’s look at how you can implement business process automation.
1. Assessing readiness for automation
Start by evaluating your organization’s readiness for automation. It’s essential to communicate how these changes will impact employees. Focus on automating tasks that are time-consuming or prone to errors.
Since BPA will fundamentally change daily workflows, gauging the willingness of both leadership and staff to embrace these changes is vital. Employees who will be affected need proper education and training to appreciate the value that the new workflows will bring.
2. Identifying automation candidates
Next, analyze your organizational processes to pinpoint which ones are suitable for automation. Look for tasks that are repetitive, high-volume, time-sensitive, and require collaboration among multiple people. Common examples include automating email notifications, helpdesk support, data migration, payroll, and invoicing.
3. Defining project scope
The scope of your automation project should align with your organization’s level of automation maturity. If your organization is just starting out, it’s wise to begin with smaller projects that can generate momentum. This approach helps manage resources effectively and sets realistic expectations.
4. Engaging key stakeholders
Involve key stakeholders early in the process. Their insights will help clarify the organization’s needs and prioritize which processes should be optimized, eliminated, or automated. Engaging business leaders from the outset will ensure that the automation goals address the most pressing pain points.
5. Documenting process steps
For every process selected for automation, ensure there is clear documentation outlining the tasks involved, the responsible parties, and the timelines for execution.
A thorough understanding of the current processes is crucial for identifying automation opportunities and designing effective automated workflows.
6. Setting clear goals
Establish specific, measurable goals for each process you aim to automate. These goals might include reducing processing times, lowering error rates, and enhancing customer support and satisfaction. Having clear objectives will help focus your efforts and measure the outcomes effectively.
7. Measuring and adapting
Adopt a phased approach to measure the results of your automation efforts. This allows for adjustments as needed. Remember that success may take time to build, and initial results might not meet expectations. Regularly reviewing performance against your goals will help refine your automation strategy.
8. Training and supporting employees
Allocate sufficient time for training and provide employees with an adjustment period. It’s essential that staff feel comfortable using the BPA software and understand the benefits it brings to their work.
9. Utilizing readymade solutions
Whenever possible, opt for readymade automation solutions. These can expedite implementation and reduce costs. Many common processes have established automation platforms that can be tailored to meet your organization’s unique needs.
10. Embracing a long-term perspective
Finally, approach BPA with a long-term mindset. While the initial investment of time and resources may be significant, the potential return on investment (ROI) from improved efficiency, reduced errors, and enhanced compliance can be substantial over time.
By automating repetitive tasks and streamlining processes, BPA not only boosts productivity but also enables businesses to scale operations, improve customer experiences, and adapt to changing market demands.
As companies embrace digital transformation, BPA serves as a cornerstone for achieving operational excellence and driving innovation.
AI automation companies are also leveraging intuitive BPA solutions. They help brands in streamlining workflow automation and improve business processes.
Ready to revolutionize your business? Start automating today and unlock your organization’s full potential!
