Automation through digitalization – in medium-sized companies

Digitalization and artificial intelligence are offering medium-sized companies more and more opportunities to automate processes and workflows. Automation is a central element in organizing companies efficiently and, therefore, sustainably.

Through automation, tasks are transferred from employees to machines or systems. These systems execute processes automatically to achieve task objectives without the need for human intervention.

The advantages of automation are obvious: significant efficiency gains, extensive error reduction, compliance with regulatory requirements, and scalability are all effective responses to constantly increasing competitive pressure and the shortage of skilled workers. Automation steps in medium-sized companies are implemented in administration, manufacturing, production, and logistics, as these areas offer diverse opportunities to achieve the desired objectives.

Challenges in automation

Achieving potential results brings several implementation challenges. Optimal process automation requires consideration of all relevant processing steps and, consequently, the inclusion of the inherent complexity. Therefore, active business process management is linked to the automation of these processes in order to design them intelligently. The scope can be broad. There will be processes that can be automated without changes, while others must be developed from scratch, and still others must undergo a redesign.

Two core elements are anchored within the processes. The first core element contains the knowledge of the company and its employees regarding how individual work steps must be performed. The second core element supplements this execution knowledge with regulatory requirements and the determination of corporate compliance. Combined, the process description and automation documentation are a central component of the company's knowledge management. Ideally, automation and digitalization steps should be integrated with a company's knowledge management.

The business area, as well as the type and scope of automation, also determine the methods, machines, and systems used. In certain business areas, a software application can handle an automated process, while in production, extensive automation technology involving hardware and software, as well as machinery, is deployed. The same applies to logistics.

To make individual automation steps or projects a success, a clear definition of goals is required, which is then translated into a project budget. The costs of development and implementation for individual project steps vary greatly. Ultimately, the measures should provide a positive economic effect for the company, the assessment of which should be carried out on an individual basis.

Examples of automation in medium-sized companies

Automation for executing processes has a wide range of applications:

• Logistics: The focus here is on sorting, distributing, and picking. Automated transport and storage systems allow for efficient goods receipt, storage, and delivery.
• Accounting: Automated document recognition via OCR leads to automated document processing, including assignment to business transactions from upstream systems, such as an ERP system.
• Administration: A document management system digitizes company documents for subsequent processing, review, and approval via workflow management. Outgoing documents are created in an upstream system—e.g., an ERP system—and then automatically sent to the recipient and archived in the document management system.

Practical approach

In our consulting practice, the following points have proven successful when implementing automation steps and projects:

• Answering the question of where manual work is performed in the company and how frequently it occurs provides a good basis for assessing which steps should be automated. Frequently recurring work steps are usually the most effective to automate.
• An overview of IT systems is helpful. The information of interest here is what is available in individual systems and what may be needed in downstream systems. Are these already provided digitally and automatically, or is manual intervention required? Data availability is the foundation of automation.
• Developing clear target visions is the foundation for successful automation. The target vision not only contains the objectives of the automation measure but also highlights the relevant factors and the environment in which the automation is to be embedded. Furthermore, it identifies all relevant stakeholders who should be involved in this change process.
• Clarity in processes and workflows is the key factor. Can an existing process be automated, or does it need to be revised? Only clear workflows ensure that employee knowledge is integrated into the process and that compliance can be guaranteed.
• Active project management with defined resources ensures the successful implementation of automation measures.

Automating business processes involves numerous aspects to consider and various challenges to overcome. THE MAK'ED TEAM develops independent, highly expert, and customized solutions for its clients, implemented pragmatically and aligned with corporate goals. The right choice of technology, a strategic approach, and seamless integration into the existing process landscape ensure successful process automation results that meet requirements and are prepared for future developments.

Find out more about process management and digitalization here.

You can also find our podcast episode on process automation through digitalization here. Martin Auer, Managing Director at THE MAK'ED TEAM, and Eugen Feth, Senior Consultant in Digitalization and Transformation, discuss the topic of process automation through digitalization and share their insights.

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