The pandemic bolstered the transition to automation, particularly for industries at the cusp of the transformation. Let’s talk about four industries where the demand for automation is highest and discuss the key hurdles that prevent these industries from completely adopting automation.
The growing development in robotics, artificial intelligence (AI), and robotic process automation (RPA) has put the world on the cusp of a new automation era. But the new world of remote working and lockdowns accelerated the necessity of digital transformation. And automation has played a significant role in this rapid digitization. From AI-driven contact centers and warehouse robots to drone delivery and medical robots, automation has been the champion of business continuity in the pandemic era.Â
Deloitte’s new report Opens a new window found that 73% of organizations worldwide are now using automation technologies, up from 58% in 2019. The uptick in automation is due to a slew of benefits automation offers, including reduced operating costs, improved quality, better productivity, increased flexibility, and faster service. While business leaders are optimistic about automation’s benefits, there are several hurdles to adoption. Rachel BrennanOpens a new window , senior director of product marketing at Bizagi, shared one of the critical challenges to adoption of is process efficiency. “The most common manifestation is the fear that a low-code intelligent process automation platform, like Bizagi, will take jobs away versus ensuring employees are free to focus on value creation, customer interactions, or problem-solving,†she said.
On the other hand, Sam BabicOpens a new window , SVP and CTO at Hyland, explained the stigma around automation in many industries. He said, “When it’s about the displacement of workers, it may not always be avoidable, but the most successful organizations will recognize that there are opportunities buried within that stigma. Specifically, initiatives around training and workforce development assist workers in upskilling or taking on other, higher-value roles within the organization. Transparency in automation initiatives paired with an employee development plan helps calm fears and build an environment of trust.â€
It’s not uncommon to hear about job-stealing robots. However, that’s far from true. Automation will create higher-skilled jobs and drive better productivity, efficiency, and innovation. Let’s identify the growing hurdles around automation and the top four industries ripe for automation technology.
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1. Healthcare
Automation can play a pivotal role in the healthcare industry. Limited clinical staff and supplies increased the need for automation and AI solutions to streamline hospital workflows and reduce clinical burnout. Firstly, automation can address repetitive administrative tasks with virtual assistants and telemedicine, thereby improving healthcare operations and patient experience. It can also enhance diagnostic precision and chronic care management to improve patients’ lives.Â
However, automation in the healthcare industry is still in infancy, and medical leaders are working towards scaling the potential of AI in healthcare. Rachel Brennan, senior director of product marketing at Bizagi, thinks that the healthcare industry can maximize the potential of automation. “For organizations to reach the maximum potential of intelligent process automation, they must know and understand their own processes. Very few organizations have that level of process maturity, and many still have quite a few undocumented, manual processes that are core to their business. Understanding your end-to-end process and how the different pieces interact and impact each other is paramount to a successful transformation of any kind,†she noted.
2. Retail
Automation can transform the retail experience. From inventory management, demand forecasting, and retail auditing to customer behavior analysis and customer support, automation can bring impactful changes to the retail industry. In fact, 54% of retail businessesOpens a new window are investing more in RPA to reduce operational costs, increase employee efficiency, and streamline business operations.Â
Automation can allow retailers to enhance their customer interactions by offering personalized advice powered by AI and elevate their business in a highly competitive retail environment. However, to reap the business opportunities, retailers must overcome automation hurdles and adapt to changes.
Brennan says retailers can start smaller and working their way up to the more sophisticated processes that serves a two-fold purpose. “First, the more success you prove early on translates into more buy-in and higher adoption for later automation projects. Second, your team will be more comfortable with automating processes and finding the methods and approaches that work best in your organization. Both buy-in and experience are critical for delivering large process automation projects, fostering adoption, and overcoming internal hurdles,†she said.Â
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3. Supply Chain and Logistics
The pandemic disrupted the supply chain and logistics industry, which led to the boom of robot deliveries. Several retailers such as Amazon, Walmart, and The Kroger Co. capitalized on automation to deliver groceries and goods to consumers and solve last-mile delivery challenges.Â
There has also been a rise in drone delivery projects from major tech companies, such as Amazon, Walmart, Vodafone, and Ericsson. This move toward automation will help companies to control their supply chains efficiently. A report by ABI ResearchOpens a new window  projects that four million commercial robots will be deployed across 50,000 warehouses by 2025. This will be due to the rise in same-day delivery in the ecommerce industry.Â
4. Customer Service
In the customer service industry, automation plays an integral role in helping customer service agents complete repetitive, manual tasks, streamline business operations, and empower customers. AI-powered chatbots using machine learning and natural language processing (NLP) delivers human-level communication and prepares agents for high-impact conversations. Despite the reliability of AI, only 31.7% of companies have invested in automation for customer serviceOpens a new window .
Talking about the challenges in large-scale adoption, Gur SteifOpens a new window , president of digital business automation at BMC Software, said, “The number one challenge we tend to see is when a company’s leadership team is not aligned on business goals. Without a clear vision or strategy to achieve that end goal, organizations will likely face more hardships in their automation efforts. We see companies succeed when they have strong leadership and a very clear mandate from the CEO, which is then executed across all lines of business. This vision, along with a commitment to automation, is what allows the business to become what we call an autonomous digital enterprise.â€
However, not all automation is back-end or API-driven. “Automation includes front-end, which often requires a different set of tools to perform the job. Additionally, organizations have to consider that within the entire automation flow, there may be human intervention that is necessary but ultimately breaks up automation,†Babic added. Â
The pandemic and economic downturn accelerated the adoption of automation, making businesses across various industries review their automation strategies. The current market pressure and volatile environment have forced companies to establish a thorough contingency plan and upskill their workforce, which will keep them ahead in their market and stay resilient to any other unprecedented changes in the future years.
Where do you think automation is headed in 2021? Comment below or let us know on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to hear from you!