Why automation and technology are essential for business growth?
Technology and automation have become so attached to our lives that often we do not think about their impact of them. From mobiles to our cars, technology is everywhere. Words like automation, machine learning, and artificial intelligence have become common in the field of business most businesses know about them they also know that it is necessary to adopt technology and automation.
Then the question arises what can be the effect of technology on the growth of business and is it wise to adopt it? Suppose we upload a photo taken with friends on your Facebook profile. If your friends are already on Facebook, then the social networking site uses machine learning to tell you the names of your friends so that you can tag them with photos. This makes the uploading process easy, fast and simple. Technology and automation play a similar role in business as well.
Revenue and Profit
According to the report of Google and KPMG, with the help of digital technology, Indian MMBs can significantly increase their revenue. The report said that digital technologies such as websites, social media, and eCommerce can help SMBs increase market penetration. It can also increase their ability to reach out to customers. SMBs that have digitized operations have doubled their revenue as compared to other SMBs.
Saving of Time
One of the major advantages of using technology is that it reduces the time taken to do any work. The machine can do more work in a limited time without much effort. After increasing computing power, complex and biggest tasks are handled within a few minutes. It is said that the pyramid was built by 4000 workers in 20 years. But, with the help of technology, such a building can be built in about a few years.
Since more work can be completed in less or limited time, so the adoption of technology increases productivity significantly. Thanks to technology, a person becomes free to do other important work. This makes better use of the person’s skills. This increases the overall productivity. For business, this means that fewer people will be needed to complete the work.
Thanks to technology, machines can perform tasks that require high skill and precision. Technology and automation can help a business increase its capability. They can be used in manufacturing to marketing. Using them reduces the chances of making a mistake. This increases the growth of the business.
Technology reveals many subtle things about business. Information and data can be used to draw conclusions that can be used to make decisions. Technology like Big Data can play a big role in the decision-making process. This also accelerates the growth of the business.
Technology in Business has many other advantages as well, but the next important question is which aspect of a business does technology and automation effect. The answer is that today every aspect of business can be made automated. We can take the example of working in a financial company. There is an article by McKinsey & Company ‘To the Future of Finance Functions’. It has been told that financial companies carry out many types of activities. It ranges from basic data gathering to complex decisions. In such a situation, performance can be improved through automation in many small tasks.
According to Author Ishan Seth Automation Research at the McKinsey Global Institute has found that 42 percent of financial activities can be fully automated using technology. Most financial companies do automation up to 19 percent or more.
Businesses that want to use technology and automation must first identify the tasks that need to be automated. They also have to see what kind of change can happen due to this. Once these three things are known, the business should not delay in adopting technology and automation.
References– R.Whiteman, McKinsey & Company, March 2017 https://www.mckinsey.com/our-people/rob-whiteman
1966-2022, McKinsey & Company https://www.mckinsey.com/business-functions/operations/our-insights/finance-2030-four-imperatives-for-the-next-decade