4 Perks of Business Automation According to McKinsey & Company Report

Business automation is a huge trend nowadays, which allows companies to increase efficiency and optimize profits. We tried to look into the roots of it and investigated Business Automation report created by McKinsey and Company. Check the main takeaways from it.

Why Business Automation?

First and foremost, let’s figure out why all business leaders are so much interested in Business Automation nowadays. The main reason, probably, is that finally technology is cheap enough and powerful enough to use it not only for extremely huge, but also for medium and even small businesses.

This means that finally the technology is affordable to the public, which creates perfect circumstances for the next big jump in process management. We took fresh report by McKinsey and Company and looked into main advantages it can bring to your business and peculiarities of modern Business Automation.

So let’s have a look at the main insights from it.

1. Business Automation will add profits to you

The main reason why so many business are ready to invest in Business Automation is quite obvious – it helps to manage the resources better, which means that you will spend less.

According to the report, even basic optimization of medium-sized businesses in the US could have saved the country more than 2 trillion dollars per year. Sounds quite impressive, right?

Now that we have your attention, have a look at the scheme below. It quite persuasively shows that even if we don’t get into detail and take into consideration hourly wage only, a great sum of money can be saved. Especially in perspective of five or ten years.

As you see, this scheme shows that even high-paid jobs can be automated (we will get back to this). This ways Business Automation can save some funds for a company with almost any business structure. And with right approach the funds invested in software development will pay back to you pretty soon (the bigger you company is, the sooner this time will come).

2. It will make your processes better

But the best thing about Business Automation is that it is not only about money. It is about changing your business processes and creating good conditions for evolving to the next level.

Automating part of your business means that you will have to reconsider the way you operate as well as double check the key points of your management scheme.

By decreasing human factor especially in simple frequent job cases, you will have ability to focus on level 2 weaknesses of your company. As a result, no matter whether you are B2C or B2B company, you will be able to increase your services level and see more opportunities for growth.

3. Business Automation lets you focus on creative part

Another great thing about business automation is that it creates great room for developing the best skills in your employees. Instead of bombarding them with menial and dull tasks, you and they will be able to focus on meaningful and well-thought business management.

The only Business Automation (yet 🙂 ) can’t do is performing creative tasks. So having parts of you business automized, you will be able to concentrate better on the strategic questions.

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So this means that your company on all levels will feel less stress and will be able to focus on more interesting tasks.

4. Business Automation can be applicable to any job

And finally, the report efficiently busts a quite common misconception that Business Automation is for low-qualified jobs only. In fact it is quite the opposite. Though it works great for simply menial jobs, it same way (or even more) efficient for high-paid jobs that require analysis and forecasting.

The clue to success lies in optimizing not jobs, but activities. The statistics says, that:

This way, no matter what size or structure your company is, you can still do some optimization there. The following scheme is quite persuasive about why any job has room for optimization.

So when you are thinking about software to optimize your business, it is much more fruitful to think about what activities you can reduce instead of what occupation you can cut off. This approach will let you create a unified solution that will make the benefit from automation scale to gather with your company growth. Besides, it will let your team to be more versatile, which decreases various business risks.

As you see, Business Automation is a great trend to keep an eye on. We, Rubyroid Labs Team, will be glad to discuss with you the ways to optimize your business and develop software for it.