Back office automation and why you should invest in a highly efficient system to save costs, time, and your highly paid employees from becoming redundant.
Automation is easily one of the most underplayed heroes of today’s gamut of IT solutions. Automating processes and systems help companies achieve rapid, large-scale data processing, almost instantly.
Manual processing of data is time-consuming, expensive, and creates a zombie workforce that thrives on doing mundane work day after day, thereby reducing the need and ability to think and process information, intelligently.
Back office automation helps companies lower and eventually eliminate manual processing of data which is not just expensive and slow on the long run, but in addition has inconsistent results and a high error rate.
Automation offers solutions that can rescue these back-office processes from time, costs, and errors, and most of all, it helps them use human intelligence in other areas of business where quick thinking and judgement are crucial.
One of the key areas Process / IT automation can be a game-changer is in the back offices of the banking industry. As a report from McKinsey says, ”
Banks have enhanced many of their customer-facing, front-end operations with digital solutions. Online banking, for example, offers consumers enormous convenience, and the rise of mobile payments is slowly eliminating the need for cash. But too many processes at banks still rely on people and paper. Often, back offices have thousands of people processing customer requests.
This high degree of manual processing is costly and slow, and it can lead to inconsistent results and a high error rate. IT offers solutions that can rescue these back-office procedures from needless expense and errors.
Our research indicates that a significant opportunity exists to increase the levels of automation in back offices. By reworking their IT architecture, banks can have much smaller operational units run value-adding tasks, including complex processes, such as deal origination, and activities that require human intervention, such as financial reviews.”
What can back office automation do for my business and why should I do it?
Automation engines provide enterprises with the ideal platform to:
- Automate business processes
- Extend application features
- Monitor activities
- Process back office data using APIs, Files, Screens, and Images
Here’s a list to get you thinking on the benefits of back office automation.
- Back office Automation can help your business save a potential 40% on money you burn every year keeping on-board employees that are essentially just copy-pasting information.
- Integrate different systems and platforms (legacy and modern) without expensive re-engineering
- Low cost of ownership
- Reduce resolution time – time taken to process data
- Significantly lower error rates
- Lower audit costs
- Handle secure migrations
- Reduces employee attrition
If you were happy with more than one benefit listed above, you need automation.
Remember Hancock? The movie that had Will Smith play an intoxicated superhero who caused millions of dollars in damage just to save one life. Poor Automation can be just that! Automation can make or break your business. Improper automation will cost your business huge losses not just by money, but also in time! Also, it may make the business wary of automation in the future too.
Our advice? Study your processes from a third eye perspective to see what needs human intervention and what doesn’t, chart out an automation map for your processes and approach software companies that specialise in automation. Why? Because these companies think and breathe automation.
Take your time to do this activity, it’s vital. Do not go with the first company that quotes lesser time and costs, invariably, these companies build drunk Hancocks. Investigate your proposed IT vendor well, look at their track record in building and deploying automation engines, ensure that they are able to understand your business processes before even diving into the software side of things, find out what their support plan is – support is key!
Hancock needed the right kind of support to be sober, thoughtful, and turn into a really good, efficient superhero too.
An interesting case study we have in hand is from a small company in Chennai that specialises in building and deploying automation engines. ZeroOne Technologies is a 12-year-old (or young depending on perspective) software company that has been working with a couple of banking giants helping them save millions every year by automating their key back office processes. Here’s an example below;
To summarise our thoughts on Automation,
- Automation is necessary for businesses that rely on huge volumes of data processing
- It helps your business save – time, costs, and employees
- It helps you integrate cross-platform applications and systems – seamlessly
- Automation lowers risk and error rates
- Costs less to maintain than a redundant workforce
- Pays for itself by the second year
Gartner, one of the leading research organisations keeps releasing countless studies on how and why automation is necessary for businesses dependent on large volumes data processing. If you have read this article by Gartner, at least 4 predictions out of 10 speak of automation! That is the power of automation.
Here’s another example;
Gartner says that a password reset costs approximately $42-50 USD per reset!! Using automated user management, a large US beverage producer reduced its IT service desk costs by more than $600,000 USD in only one year!
“The bottom line is, Automation isn’t just the future, it is the way to the future”
– ZeroOne Technologies