Where do we find most automation use cases, what are the impact ?
Automation is now adapted more or less at the same rate among all type of industries. Even if historically industrial manufacturing was a early adopter, and has now a 84% adoption rate for ruled-based automation process, automotive, utilities, retail and consumer goods are reaching 70%.
The main gap is visible when we are diving into different kind of functions.
According to a recent study , overall automation implementation by functions reveals that IT are the functions where automation has been the most experienced whereas HR is the one that levarged the less this new technology.
Overall implementation of automation by function :
- Information Technology : 56%
- Customer Service : 37%
- Procurement and Supply chain : 35%
- Research and Development : 34%
- Finance and Accounting : 31%
- Sales and Marketing : 29%
- Human Resources : 23%
It seems that decision to leverage on automation is not necessary based on expected results such as saving costs but more on the capacity to each function to adopt the arrival of this new technology and the new process behind.
As an example, if we have a look at the results in term of cost savings for the same functions that the one listed above we will see that savings done in HR are similar to the one an IT department can expect.
Average cost savings by function implementing automation at scale :
- Finance and Accounting : 13%
- Procurement and Supply chain : 12%
- Customer Service : 12%
- Human Resources : 11%
- Information Technology : 11%
- Research and Development : 8%
- Sales and Marketing : 7%
Uses cases, quick wins by functions
Finance and Accounting :
- Accounts receivable and cash management
- Fixed asset accounting
- Order entry
- Pricing calculations
- Expenses management
Procurement and Supply Chain :
- Updating vendor records
- Invoice processing
- PO processing
- Responding to customer/ supplier requests
- Advance shipping notices
Human resources :
- Exit and clearance
- Payroll management/ validation
- Applicant sourcing/recruitment
- Absence management
- Time and attendance management
- HR compliance and reporting
- Performance management
- Education and training
- Employee service management
Sales and Marketing :
- Leads generation
- Leads qualification
- Sales funnel automation
- Task management
- Proposal validations
- Contracts validation
Across functions :
- Project management
- Internal communication
For HR and communication purpose, I strongly recommend you give a look to the &shift Saas solution. This is a very intuitive solution that allows automation of internal communication campaigns.
Uses cases, example by industries
Many organizations are missing benefits of Automation as only 32% of them have implemented quick-win use cases.
This examples are low complexity and high benefits use case. If you’re not yet an automation adopter, you may consider one of this cases and evaluate if it could help you meet your the strategic goals you set for the next semester.
- Chatbot/conversational agent for sales : H&M’s chatbot helps mobile customers navigate their search, guiding them to outfit possibilities and helping them find the store “area” that aligns with their purchase needs.
- Warehousing : AS Watson, the largest international health and beauty retailer in Asia and Europe, is exploring machine learning possibilities for accurate demand management and sales forecasting.
- Recruitment : Tesco’s pre-hiring automation includes quizzes, psychometric tests, games, and chatbots that can reject applicants before a human ever glances at their resume
Consumer goods :
- Logistics : CPG companies, such as PepsiCo, Dannon, and Anheuser-Busch, use AI-powered inventory software to maximize supply chain efficiency and provide business insights to sales representatives.
- Chatbots : L’Oreal has entered the Facebook messenger chatbot trend with an AI-driven gifting service in Canada. The Messenger bot asks users questions about their friends and then suggests the right beauty gifts.
Industrial manufacturing :
- Accounts receivable and accounts payable : GE Global Operations have deployed RPA bots in processes such as matching order numbers in incoming invoices to those recorded in GE’s system, monitoring payment deadlines, recording receivables, managing warranties, and checking the payment exchange rates of international financial transactions.
- Customer data processing : Duke Energy, one of the largest electric power holding companies in the US, uses RPA solutions to process customer requests around the clock, immediately sending confirmations to customers who are assured their requests are received and their services scheduled.
I hope this article was not to long and that it helps you gather interesting insights.
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If you want to know more about our technology and experience in automation at Codixis, please contact us. We will answer you quickly and propose you solution to unlock untapped value of your business.
Capgemini Research Institute, Automation Use Case Survey; July 2018
Harvard Business Review, “How Harley-Davidson used artificial intelligence to increase New York sales leads by 2,930%,” May 2017.
AS Watson, “A.S. Watson Group partners with Rubikloud to build big data capabilities,” February 2017.
The Guardian, “How to persuade a robot that you should get the job,” March 2018.
Venture beat, “Tasting tomorrow: How food and beverage companies use AI,” April 2018.
Mobile Marketer, “L’Oreal empowers new Facebook Messenger chatbot to recommend gifts,” April 2017.
GE, “GE Global Operations helps its administrative staff with robots,” November 2017.
Duke Energy, “How robotic automation is improving customer service,” December 2017.