Automation Vs Efficiency - 2

 As we discussed in the last notes that not all automation will bring efficiency in the process. To analyse that we defined three categories which will clarify the process readiness for automation. To Recap these three categories are 

1. Strategic activities
2. Operational Activities
3. Administrative Activities

Strategic Activities - These are the activities which are very subjective in nature and outcome differs based on the person involved. These activities require high level of human involvement with the right skills.

The example for these activities are as - Acquisition of subsidiary company for future growth, Sales approach to the big clients, Supplier negotiations for procurement, interviewing candidates for a specific job and Decisions for Vacations with family and friends. These are some example for strategic activities.

As a process owner, we can help the user with right Input data and systems for doing the strategic activities but automation of these activity will bring down the efficiency. In many cases it is not possible to bring efficiency in the process.

 Operational Activities - These are the activities where subjectivity reduces and uniformity increase in the outcome. There are still a chance that human involvement can bring the difference in outcome of operational activity. These activity require medium level of human involvement with right skills.

The example of these kind of activities are as - Deciding the correct account to post the cost, Selecting suppliers for a specific procurement, Creating purchase orders and approval of orders, Inviting candidates for right skills for job interview, Booking tickets for Vacations,

In these activities we can define Input and preconditions to a certain level and this becomes and interesting case for automation. If we automate these activities we can get better efficiency and satisfaction of the work. But still 100 % of automation is tricky in some situations.

 Administrative Activities - these activities which are the best case for fully automation with right input from strategic and operational activities. For example if we have invited the right candidate for job interview (operational activity) and interviewed for the right skills (strategic activities) the outcome of these activity will be the person selected or rejected for the specific post. Now sending the communication like offer letter for selected candidate or feedback to the rejected candidate is operational activity. As a process owner we should look for 100 % automation of these activities.

Some more examples for administrative activities are as - sending the reminder for deliveries of goods or services, sending reminder for payment to the customers, Attending the front desk activities, Registering supplier for future contracts,

These are the cases which should be prioritized for the automation as these will bring the maximum gain in efficiency in process.

There are a thin line difference in all three activities, you may think some activity are strategic but it may end up as operational activity after proper analysis and vice versa. Similarly many of strategic and operational activity end up as administrative activities. It needs to be properly analysed for specific purpose.

As a decision maker for automation one should first think of analyzing all activities upfront and categorize as strategic, operational and administrative activities and then decide for automation of processes.

• First priority for automation in digital world should be for administrative activities .
• Segregate administrative work from operational and strategic activities for automation.
• Move the activity towards operational or administrative to make it fully automatic.
• Keep the scope for automation with proper process design with clear objective of the activity.
• Maturity in the process brings automation possibilities.

Then this will be the case of successful automation project and bring efficiency in the whole value chain.