The Risk of Over Automation in Business Systems

Technology in business is nothing new but with the increase in publicity around the advancements of artificial intelligence (AI) and machine learning (ML), the allure of automation is stronger than ever. From chatbots handling customer inquiries to algorithms optimizing supply chains, the promise of technology doing more with less is certainly captivating. Combine these advancements with the need to find talent to fill positions at all levels and we have our current state of today’s business landscape. But here’s the problem: While automation can certainly be a game-changer, like all technology implementations, it’s not a one-size-fits-all solution.

Technology Will Not Solve All Our Problems

When a problem arises in business, the temptation to throw technology at it is strong. It’s the reason software demos continue to be the primary driver of technology purchasing decisions. We often look to the features and benefits of software to solve our problem without regard for what all technology is developed to do: execute processes and eliminate errors.

So, before we dive into any type of technology selection and implementation project, it’s crucial to ask: Is this a short-term or long-term issue we’re solving for? If it’s the former, automation or another piece of software might be overkill. Additionally, rapidly implemented technology can often introduce new challenges, such as system incompatibilities or employee resistance, detracting from the original problem it was meant to solve.

The Pitfalls of Premature Automation

Consider a business that automated its entire customer service without first refining its customer engagement process. The result? Increased customer dissatisfaction due to robotic responses that lack a human touch.

Think about the automated answering services that companies were adopting in the 1990’s and 2000’s. You can still find many of these in place today… a seemingly endless list of menu options, none of which get you to an actual person to solve your actual problem quickly.

The lesson here is clear: Just because we can automate doesn’t mean we should.

The Hidden Costs of over Automation

Automating our processes isn’t just a matter of initial set-up; there are ongoing costs to consider. Obviously, the more complex our system or automation, the greater likelihood of ongoing maintenance costs that tend to erode much of the once identified savings. Software needs to be updated, glitches must be fixed, and systems need regular oversight. These expenses can add up quickly, especially if what you’ve automated doesn’t actually need to be.

What Should We Do Instead?

This is where a structured approach like using our interactive IDEAL Process Improvement Guidebook can come in handy:

1. Identify – We have to identify all of the symptoms that we are able to spot in a given process flow.

2. Determine – We need to take a deep dive to determine what’s actually happening.

3. Enact – We must identify, prioritize, and implement improvements to test their effectiveness in increasing process efficiency.

4. Assess – We need to measure and evaluate through our KPIs to determine success.

5. Learn – Let’s apply what we’ve learned in another cycle of improvement.

Rather than diving headfirst into automation, the framework will help you identify which processes need technology and which might benefit from a more hands-on approach. By focusing on incremental process improvements, we can ensure that we’re not just automating for the sake of automating but are making choices that genuinely improve efficiency and ultimately profitability.

Final Thoughts

Once we have a clear picture of our business’s current and potential future state, we can be more strategic in our approach to automation. Remember, the fundamental reason technology exists is to streamline processes and eliminate errors.

The journey to automation is not a sprint but a marathon. It requires careful consideration and a solid strategy to avoid the pitfalls of over-automation. Before jumping into the deep end, take a step back to assess whether automation is truly the best course of action. Your bottom line will thank you.

That’s it for today.

See you all again next week!

Dave