Role of technology in organizations. Looking for Efficiencies.
Automation, according to Technopedia, is the utilization of technologies to produce and deliver goods and services with minimal human intervention.
Put simply, it involves performing tasks faster and with less human labor compared to traditional methods. While task automation increases productivity and efficiency, it alone is insufficient to create a digital-first culture. To achieve this, it is important to streamline processes by grouping tasks into activities and activities into processes. This entails establishing a structured way of working, identifying and removing bottlenecks, and determining the most efficient routes from one process to another. It is worth noting that process streamlining is not limited to core processes like production logistics or research and development.
There are significant cost-saving opportunities in automating administrative or business support functions as well. In the past, the trend of focusing on core competencies led companies to outsource non-core activities. This trend continues in the 21st century, allowing companies to increase control over outsourced functions while transforming fixed costs into variable costs, providing greater flexibility and adaptability to growth.
The concept of an ecosystem is now conceivable due to pervasive technology availability. Before the 1980s, coordinating deliveries and orders with suppliers and clients was challenging without widespread connectivity. However, advancements in digital technologies and software enable organizations to synchronize operations, facilitate just-in-time coordination with suppliers and customers, and reduce stock levels.
This improves the speed of investment returns, cash flow, and profitability. In summary, digitizing operations, optimizing processes, and leveraging ecosystems offer significant opportunities to improve efficiency and reduce operational costs, making the digital enterprise an improvement over the manual enterprise.
