May 10, 2021

American Companies are Saving $10m+ Annually, Just by Automating these Processes

The argument for digital transformation is rooted in a number of growth-driven objectives, but at the center of all these, is the quest for more efficiency. And that’s where there is more profitability and cost savings.

In a 2017 report by McKinsey, at least one-third of the activities that make up 60% of jobs could be automated. That’s the trend across industries, with the skills required to function effectively on roles evolving by the day.

Workers are catching up. Many of them are keen to quit the mundane responsibilities that puts them in the box, and take more impactful roles instead. But what about companies that aren’t moving as fast with the innovations? It all falls back on them.

Think of this. Data entry would earn anyone a lifetime of pension in two, three decades back, but that stopped being a job a few years ago. If a PC software had replaced that role in any company, it could only have cost a few thousands to buy, and that’s saving the company tens of thousands annually, on what should have gone to wages.

WorkMarket’s 2020 In(Sight) Report claims 54% of employees believe they could save 240 hours annually through automation. It’s 360 hours for industry leaders, based on data from the 41% of leaders already using automation tech.

For a mid-size organization, the economic implications of that could be to the tune of $10m annually.

Companies are saving costs with the right automation, such as the following, and you should start doing the same.

HR (Employee Management)

For most companies, managing employees has long remained a manual task, which gives both HR managers and employees some daily and weekly headaches

Think of onboarding and tracking timesheets manually. How efficient and seamless would you say that has actually been, within your team, whether they’re working on-site or remotely?

Organizations with a standardized onboarding process experience 62% greater new hire productivity, along with 50% greater new hire retention, according to MarketWired.

And what about leave request processing, performance evaluation, or exit interviews? Maybe your HR manager still sorts piles of documents to review each request, so you can know what to do about who. That’s some long hours going down the drain every day.

You can automate this process, and let technology manage virtually everything about your employees. Your staff create a lot of data, right from their first time at work, to every other day.

There’s enough information to help you make critical decisions about each employee, only if you could assemble and process all relevant data at a central point.

Whether you’re opting for a custom software, which lets you create functionalities completely tailored for your organization, or buying an existing tool, the results are similar – more efficiency, costing savings, and more.

Customer Management (+ Profiling)

It’s one thing to have a handful of customers you attend to every day. And , you’ll be fine to manually manage them, as long as you keep servicing only that small number of people. But when they’re coming in hundreds, thousands, millions, the need for automation becomes crucial.

Let’s say you need one support staff to manage 50 customers, that’s 1000 staff to 50,000 customers – a gap only one software and maybe five employees could fill. Imagine what that implies in annual overhead costs for your company.

Companies who adopt technology for customer management tend to be more efficient, while saving a lot at the same time.

What used to be entirely one-on-one phone and email conversations can now be amplified by AI-powered virtual agents (chatbots), enabling you to support users at scale. That goes without particularly abandoning live conversations with your team.

Now, with a much smaller team, you can have call centers dedicated to solving complex issues, while technology takes care of the rest.

A research by customer service tool, Verloop, suggests that global companies could save up to $8bn in annual costs, just by automating their customer management practices. That would be some hundreds of thousands to millions in cost savings for individual companies

Also, only with automation technologies can you have an efficient customer profiling. That implies using data collected from customers to analyze their preferences, optimize marketing campaigns for more effective targeting, and continuously improve the customer experience.

How are you currently capturing, and processing customer data? That could only be easy when automation technology plays a key role in your customer engagement process.

Process & Workflow

Jeff Boss, a Forbes contributor, explained that, “if there’s one thing that kills morale, kills passion and kills productivity within a company, it’s process. Layer upon layer of sticky, red tape “must do’” that feels more akin to sledging your way through a muddy swamp than getting any real work done.”

Ever walked into a company, and realized that almost everyone has an administrative assistant? There are just so many files to move around, and a lot more approvals to get for virtually everything.

Business processes are simple on the surface, which is probably why many companies hardly understand the need to automate. But they are just very as time-consuming, and they glorify activities in place of progress.

Take a deeper look at your operations, and you’d realize how much these ‘mundane duties’ eat into the working hours of your team.

File sharing, report generation, event logging, and others like them could be automated with the right technology. But you know these minor processes also happen within departments, and there’s another need to integrate all of these processes across the organization.

Think of how robotic process automation (RPA) is helping to drive digital transformation in the business world. In healthcare, for example, the RPA software functions like a virtual nurse or patient care advocate, and performs activities and tasks that are repetitive, like patient scheduling, insurance claims, and some level of care delivery.

It achieves multiple things in a sweep – reduces staffing, improves efficiency, reduces costs, saves time, and ensures accurate back-office process.

Companies are taking steps to put their processes on autopilot, to save cost and enhance productivity, and you should too.

Data Management

Big data wasn’t a thing until about a decade ago. Just as technologies for business management are evolving, with IoT expanding data sources by the day, there’s a lot of information available to anyone who needs it.

In customer management, businesses rely on data for product improvement, by analyzing and predicting customer behavior.

Some of the popular data sources include online activities, smart devices, proprietary software, and a lot more sources – enhanced by machine learning.

The same could be said about B2B companies. It all boils down to getting the right information that would inform continuous improvement. But despite the values, gathering and processing data is never a walk in the park.

Automation solutions, such as RPAs, and others like it, could help improve the quality and amount of data through automated data entry, external source integration, unlimited processing volume, speedy data processing, and comprehensive scanning abilities.

This could be a software solution specifically developed to help your business centralize its data, and process them at scale.

According to ElectroNeek, insurance companies save 900 billable hours every year by employing technology to manage and process data.

For an insurance company that processes more than 600 claims during the week, each page of the documents is verified manually by ID, which takes from 7 to 10 hours per week. A bot programmed to automate the ID verification process automatically takes out that long hours, saving cost, and allowing employees to focus on more important tasks.

That corroborates a report by Veritas that employees lose 2 hours daily searching for data, which could translate to $2m loss to organizations annually.

Conclusion

If you’ve been looking at digital transformation for your business, automation is the place to start. And if you’re already adopting technology, but still manage some of your processes manually, you might be leaving a lot of money on the table.

Vertex Software helps ambitious brands take the high leaps of digital transformation. If you’d like to discuss how your company can adopt technology for operational efficiency, and cost-savings, we’d love to help guide the way.

Talk to us about your project here.