Technology has changed everything and this change is not limited to our day to day life but it has changed the way companies do their business and accounting work. Business process automation refers to that process through which the company is able to carry out different business activities with the help of technology. Hence for example previously companies used to make journal entries and ledger entries manually but nowadays this work is done with the help of computers same is the case with other things like production system, human resource system and so on, in order to understand more about this concept one should look at advantages and disadvantages of business process automation –
Advantages of Business Process Automation
Quality Work and Consistency
The first and foremost benefit of business process automation is that it results in improvement in the quality of work because when technology is involved than work is performed in an identical way without any error. Hence for example if company has implemented automation in accounting system than all similar entries will be entered in a predetermined way without any error, besides when it comes to human beings there is limitation beyond which quality of human work will decline but when it comes with technology there is no such problem leading to it procuring quality work consistently.
Saving of Money and Time
Another benefit of this process is that it saves lot of time because computers can complete the work in very quick time leading to completion of the work quickly besides for some work where company had to employ 4 or 5 people there with the help of automation company can complete the work with only 1 person thus saving company money which would have to be paid if company had employed 4 or 5 people for a given task.
Updated with Current Times
It keeps company updated with current technology as well as current trends and thus company does not lag behind its competitors and in some cases, it can give competitive advantages over those companies which are not using business process automation in their manufacturing and operation departments.
Disadvantages of Business Process Automation
Higher Initial Investment
The biggest disadvantage of business process automation is that it requires substantial initial capital investment for implementing the whole process in the company which not every company can afford and that is the reason why small companies still depend on humans instead of computers for completion of works in various departments of the company. In simple words in order to take benefits of automation company should be willing to spend considerable capital initially.
Insecurity among Employees
Another limitation of business process automation is that it can create insecurity in the minds of employees working in the company as automation in any industry results in the company reducing its workforce. Hence all employees began to feel insecure about their jobs in the company and an insecure employee is similar to a fearful soldier just like a fearful soldier cannot help you win the war in the same way an insecure worker cannot help the company in securing its goals and objectives.
Less Flexible
Technology brings speed and precision but at the same time, it’s rigid implying that the company cannot have that much flexibility which hampers its effectiveness. Hence for if there are 10 workers working in the company in the production department and one of the workers gets ill than other 9 workers can do the work and hence production will not be impacted but when machines are used and all machines are interlinked than any problem in one machine will lead to stoppage of the whole production.
As one can see from the above that business process automation has advantages as well as disadvantages and that is the reason why any company thinking of adopting automation process in the company should carefully read above points and then take the decision whether to go for this process or not.