Artificial intelligence (AI) will soon have a direct impact on your business. As larger companies begin to integrate AI-driven software into their workflows, it will put pressure on laggards to upgrade their outdated platforms.
Forward-thinking companies are already preparing for a phenomenon known as hyperautomation, a subset of digital transformation that uses intelligent automation to improve business processes. Gartner defines it as:
Hyperautomation involves the orchestrated use of multiple technologies, tools or platforms including: artificial intelligence (AI), machine learning, event-driven software architecture, robotic process automation (RPA), business process management (BPM) and intelligent business process management suites (iBPMS), integration platform as a service (iPaaS), low-code/no-code tools, off-the-shelf software and other types of decision, process and task automation tools.
This definition suggests that hyperautomation is not an isolated system, but a set of integrated processes, systems, and technologies for automating operations, interacting with customers, viewing and managing the supply chain, and more. Hyperautomation connects an integrated ecosystem of AI and automation tools that touch all of these areas.
However, the overwhelming potential for AI in B2B is also a downside that contributes to analysis paralysis. Companies get stuck at the starting line and do little to nothing with AI because they don’t know how or where to use it in their business. These companies often lack a key technology stakeholder with the vision and power to transform business processes to make the most of AI and automation.
Next steps in the transition to hyperautomation
Hyperautomation requires changes in technology, people and processes. Analysis and strategic planning are always the first step in any technology upgrade that affects human workflows.
Form an intelligent automation leadership team to strategically analyze, implement, and oversee hyperautomation initiatives. The team should bring together individuals with diverse skills, experiences, and perspectives to ensure comprehensive decision-making and successful execution.
• Identify the key stakeholders in your organization who are directly or indirectly affected by automation. Ensure representation from different departments such as operations, IT, finance, legal/risk management, human resources and customer service. Select committee members with a mix of technical and business expertise.
• Get top management approval. Executive support is critical to the success of any new technology or business process initiative. Appoint a senior executive as sponsor or chair of the intelligent automation leadership committee to demonstrate senior leadership commitment.
• Define clear roles and responsibilities for each committee member. This will ensure accountability and a focused approach. Ensure the goals of the intelligent automation committee align with broader business objectives. Assign tasks such as identifying automation opportunities, evaluating technology solutions, overseeing implementation, and monitoring performance.
• Offer training and development opportunities. Committee members must understand automation technologies and their potential impact on the business.
• Establish a risk management framework. The goal is to identify potential pitfalls related to automation. Develop strategies to mitigate risks and deal with unexpected challenges.
The next step involves a comprehensive assessment of processes. Identify key workflows, bottlenecks and areas that can benefit from automation, taking into account operational efficiency, customer experience, compliance requirements and business strategy.
Finally, encourage open communication within the team and the organization as a whole. Transparency is critical to building trust and collaboration. Regularly update everyone involved on the progress of automation initiatives, milestones achieved, and challenges overcome.
Use cases for AI and automation – how and where we use them
There are countless potential applications for intelligent automation in manufacturing, healthcare, administration, distribution and retail. McKinsey estimates that 50% of order management tasks could be automated.
Today, sales organizations can use intelligent automation for sales enablement and order management. In this area, AI can quickly and easily deliver an easily measurable ROI in lead generation, sales closing, and revenue generation.
For example, California-based Pacific Coast Supply worked with DataXstream to automate order and payment processing in 49 stores. Joe Valine, Digital Transformation Manager at Pacific Coast Supply, says, “We took what would have otherwise taken 30 to 60 minutes a day and reduced it to about 15 minutes. That affected at least 50 employees for an hour every day. Let’s say $20 an hour…that adds up quickly over a year of 255 work days.”
Crafco, the leading packaged products company for road maintenance, uses DataXstream AI and automation in counter sales to increase margins by 1.6% on total sales of its $450 million company.
Ultra Finishing Limited (now Roxor Group), the UK-based manufacturer and distributor of bathroom products, implemented DataXstream to increase sales and customer satisfaction. Intelligent automation resulted in a 15% increase in sales and a 25% improvement in customer satisfaction in 2019. The speed and accuracy of order entry and fulfillment increased by 40%, and the cost of maintaining legacy systems fell by 50%.
These examples illustrate the time savings and revenue generated with intelligent automation tools like DataXstream’s OMS+. Distribution is one industry crying out for these tools; high order volumes, complex product lines, and supply chain challenges can all be addressed with hyperautomation. While many struggle with disjointed systems that slow them down, today we have the tools to turn things around.
The ROI of AI – how and what can be measured
Tracking your return on investment (ROI) is critical. Gartner expects companies to reduce their operating costs by 30% this year by combining hyperautomation tools with redesigned operations. But without tracking, how can companies know when they’ve achieved these milestones?
To measure the ROI of AI and automation, start by evaluating the costs and benefits of implementing these technologies.
• Clearly define the goals of implementing AI and automationThese goals should be consistent with overall business objectives, such as improving efficiency, reducing costs, improving customer satisfaction, or increasing accuracy.
• Identify and track specific KPIs relevant to your goalsKPIs may include:
- Order fulfillment time
- Inventory turnover
- Accuracy of order processing
- Labor costs
- Customer satisfaction
- Order upselling/add-ons
- New business
• Determine the costs associated with implementing and maintaining AI and automation systems. Consider initial setup costs, ongoing maintenance, training, and other related expenses.
• Evaluate the impact of AI and automation on the identified KPIsBenefits may include:
- Reduced labor costs
- Higher productivity
- Improved accuracy and fewer errors
- Faster order processing
- Higher customer satisfaction
• Compare metrics before and after implementation. This allows improvements to be quantified and related to technology.
• Convert KPIs into monetary values wherever possible. For example, if AI and automation result in a reduction in order processing time, calculate the associated cost savings.
• Consider the impact on customer satisfaction and loyalty. Although these factors are difficult to quantify in monetary terms, they are critical to the long-term success of any sales organization.
• Determine the time frame for the ROI evaluation. Some benefits you will see immediately, others will take time. Consider both short-term and long-term effects.
• Assess potential risks and challenges associated with implementing AI and automation. Consider the risks of technology failure, employee resistance, or unforeseen problems that could impact expected benefits.
• Establish a system for continuous monitoring and evaluationTraders should regularly review their performance metrics and adjust their strategies accordingly.
• Compare your company’s performance with industry benchmarksThis will give you insight into your relative competitiveness and help you identify areas for improvement.
• Finally, calculate the ROI using the following formula:
DataXstream
Calculating ROI should be done on an ongoing basis. Adjustments may be necessary as the business environment and technology landscape evolve. Review and update your ROI analysis regularly to ensure your investment continues to deliver value.
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