Business Process Automation: Examples, Benefits and Types

The use of software to automate repeatable, multistep business transactions is known as business process automation (BPA). BPA solutions, in contrast to other types of automation, are typically complex, linked to multiple enterprise information technology (IT) systems, and tailored specifically to the needs of an organization.

 

Organizations frequently use BPA as part of a strategy of digital transformation to streamline workflows and operate more efficiently.

 

What is Business Process Automation?

 

The use of advanced technology to complete business processes with minimal human intervention is known as business process automation (BPA). A business process is an activity, or set of activities, used to achieve a specific organizational goal, such as manufacturing a product, integrating new employees, or attracting new customers.

 

An action is often the starting point for a business process that spans multiple business departments. For example, during employee onboarding, the HR system could initiate a series of predefined workflow steps to send out a welcome email, configure security credentials, and enter financial information into the compensation system. 

 

Typically, automating the workflow steps in a business process improves the efficiency and accuracy of each step. BPA makes use of cutting-edge technology such as automation tools, process intelligence capabilities, and cloud platforms. 

 

Furthermore, BPA capabilities are frequently hidden behind popular enterprise apps like ERP software, human capital management systems, and other tools that enforce industry best practises

 

A business process is any set of activities that assists a company in achieving a specific goal. It is typically a repeatable transaction involving a series of steps involving multiple IT systems in the context of automation.

 

Fulfilling and invoicing a customer purchase order, approving a loan application, completing data entry, onboarding a new employee, and other financial services, human resource tasks, and business operations are examples of business processes.

 

These workflows typically involve multiple email threads, documents, and handoffs when managed ad hoc. Even minor human error can set off a chain reaction of inefficiency, resulting in communication breakdowns, bottlenecks, and missed deadlines. At a larger scale, these problems multiply.

 

Automation software aims to avoid these issues. An organization can regain control of business processes, improve communication, increase customer satisfaction, and reduce confusion by implementing a reusable and extendable business automation strategy. By automating a business process, employees can focus on core tasks rather than tedious, repetitive, and often frustrating tasks.

 

Examples of Business Process Management

 

Management, operations, supply chain, HR, and marketing are all examples of business processes that can be automated. In general, high-volume, recurring, time-sensitive tasks that involve multiple people, require compliance, and require audit trails are good candidates for automation.

 

Here are a couple of use cases of business process automation to help you understand business process automation.

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Example of Business Process Automation

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1. Employee orientation

 

Although hiring employees may appear to be a simple process, it entails a number of steps. Filling out employee information forms, organizing induction sessions, scheduling training sessions, opening bank accounts, collecting relevant documents, and assigning mentors are just a few of the tasks involved.

 

Without automation, the entire process can devolve into chaos, resulting in:

 

• Interminable paperwork
• Some tasks are being skipped.
• Dissatisfaction among employees
• Productivity is low.

 

Applying business process automation to employee onboarding ensures smooth transitions from one task to the next, keeping relevant employees informed and providing visibility into the process's status.

 

2. Orders for Purchase

 

In most organizations, purchase order requests are recurring processes. The requesting team completes and sends a form to the purchasing team. The approving authority then reviews the request and rejects it if the information is insufficient or there are budgetary constraints. It is then returned to the team that requested it. If approved, a purchase order is generated, with copies sent to the supplier and the inventory team.

 

Without automation, the following problems could arise:

 

• PO approval was delayed.
• Productivity was impacted.
• Records that are incomplete
• Errors in the Purchase Order
• Errors during the delivery of supply

 

3. New Customer Onboarding

 

As part of the Know your customer rule 2090 requirements, banking, insurance, and other finance companies must conduct background checks on new customers and notify the appropriate local and federal governments when they onboard them. 

 

BPA can help to streamline these processes by automating many manual steps with artificial intelligence. Customer satisfaction improves as processes become faster and more automated.

 

4. IT service desk assistance

 

Often, the volume of incoming IT tickets exceeds the capacity of IT staff to handle them. Among other things, automation software can analyze, classify, and route incoming tickets to the appropriate support personnel, provide service updates to customers, and alert IT workers to issues requiring immediate attention for the sake of compliance. AI is used in advanced automated help desk tools to predict, manage, and resolve common user issues.

 

Also Read | What is Hyper automation and how is it used in businesses?

 

Benefits of Business Process Automation

 

Automation of routine recurring tasks can improve operational speed, accuracy, and consistency. This leads to increased business efficiency and profitability. The advantages of Business Process Automation to an organization are numerous:

 

1. Time savings and faster turnaround times

 

Manual business processes consume a significant amount of time, regardless of department or nature of work. Low-level, automatable tasks, for example, have been reported to consume 30% of the time of IT departments, 47% of the time of AP departments, and 75% of the time of HR and Payroll department staff. 

 

This naturally leads to time delays and associated penalties, which have a knock-on effect on the team's and company's productivity. Automated business processes can assist in avoiding such delays and bottlenecks in the company's daily operations.

 

2. Productivity has increased

 

When complex or time-consuming manual processes are transferred to digital solutions, multiple tasks can be managed at the same time. For example, instead of a manual records request and retrieval process that could take weeks, digital forms with an automated records request and retrieval process are lightning-fast and can happen concurrently. When you automate your most difficult and time-consuming tasks, you get work done faster and with fewer errors.

 

3. Stronger Security

 

If your agency is still using physical paper for recordkeeping, you may be unaware of the security risk this poses. Paper documents are far more vulnerable to being stolen or corrupted, as well as being destroyed in the event of a flood, fire, or other unforeseen event. 

 

Having said that, automating processes enables additional security measures that protect your most sensitive information. Digital Process Automation technology allows you to digitally store content and protect data by utilizing multiple layers of security such as password-specific logins and verified user access.

 

4. Improved Collaboration

 

The most productive offices these days are those that have intentionally shifted toward automation, simplifying daily tasks and fostering better collaboration among participating departments. 

 

Another advantage of automating business processes is that you can send reminders and update the team on relevant to-dos, making employee collaboration much easier and more organized. Furthermore, automations relieve common frustrations while freeing up time for interpersonal interactions and idea generation.

 

5. Significant Financial Savings

 

Every agency would likely jump at the chance to reduce their overhead costs — and fortunately, there are a number of financial benefits to be gained by switching to DPA. Because there is a much greater chance of resource waste when business processes are controlled manually. 

 

However, with the efficiency of digital process automation, operating expenses are noticeably reduced (which then positively impacts your profit margins, as well). In other words, automation makes the best and most cost-effective use of your core resources.

 

6. Reduced Errors

 

Regardless of how skilled or experienced your employees are, mistakes are unavoidable. Isn't it natural to make mistakes? Slip-ups, delays, and inefficiencies are all too common with manual record keeping, but their impact should not be underestimated. 

 

That is why it is critical to reduce the risk of errors as much as possible, which is best accomplished with process automation tools. Incorporating automation into your workflows can significantly reduce the likelihood of errors while also avoiding redundancies.

 

7. Reliable information

 

Managers can make changes and achieve better results when they can actively monitor the completion of a business process (and understand the required steps within that process). 

 

Agency leaders can delve deeper into these processes by leveraging automation to gain more reliable insights and analyze data at a deeper level. It is entirely up to you how these insights evolve, but they present an opportunity to pivot within your current policies or procedures in order to hopefully improve your office environment as a whole.

 

8. Transparency has been gained

 

Through customizable dashboards, automation software excels at providing visibility into your processes. You can easily track a variety of key performance indicators (KPIs) for your current or ongoing processes, for example, giving you a better sense of office performance and revealing which areas need improvement. 

 

When your team has access to this level of transparency, it will undoubtedly have a positive impact; employees will be able to stay informed on their individual (or collective) assignments, as well as hold themselves more accountable for their personal progress.

 

 

Types of Business Process Automation

 

Depending on the needs of the company, four types of Business Process Automation may be used:

 

1. Basic Automation is the digitization and automation of simple jobs in an organization, as well as the organization of all data related to these simple jobs for easy access. An example of basic automation is a messaging tool or a work group composed of employees working on a specific project.

 

2. Tasks, processes, and projects are all managed by Process Automation. It also includes built-in checkpoints, approvals, and updates to ensure that the process/project runs smoothly from beginning to end. This also ensures complete transparency for all business process participants.

 

3. Integration automation is more advanced in that it largely replaces human employees in certain repetitive tasks; human involvement is limited to rule setting and monitoring, and the BPA handles the work as defined by clear workflows. 

 

Customer support platforms frequently use integration automation, in which customer comments/feedback are automatically processed and classified/annotated for further action.

 

4. The most advanced form of BPA is AI automation, in which computer software applications make human-like decisions. AI BPA systems process data and information in ways that have been trained to closely resemble human action.

 

Also Read | What is Intelligent Automation?

 

Business Process Automation is quickly becoming an important tool for assisting businesses in managing their operations and growing. The benefits of automated processes, such as increased transparency, lower costs, increased employee productivity, and improved customer satisfaction, make them ideal for adoption by businesses looking to expand their business arena and bottom line. 

 

BPA is no longer viewed as a threat to human employment, but rather as a synergistic tool that frees up human employees to focus on less mundane, higher-value tasks such as business development and other activities that add to enterprise value.