Business Automation Is About More Than Just Efficiency

Automation is talked about in many different ways within complex companies. Look at banking and finance for some good examples. When business analysts start talking about the automation of processes, most business executives think immediately about efficiency and cost savings.

This is an automatic response. Reducing the complexity of internal business processes by automation can result in a reduction in operating costs, but there are many additional benefits that should be highlighted – and in many ways these are the key benefits that are even more important than any immediate savings.

This case study makes the point definitively. It describes the automation of a balance sheet optimization process inside a European bank. This solution used SAP, but the software itself is secondary to an understanding of what can be achieved with a project like this.

Some of the most immediate benefits are:

Quality

An immediate increase in the quality of the budgeting process. Manual mistakes are eliminated from the calculations and therefore the numbers can be more confidently used within the compliance process. When budgeting and balance sheet calculations are operating within a more robust environment (rather than a finance manager just using Excel), the figures can be more trusted.

Speed

The calculations can be performed instantly. Each change to the balance sheet can be immediately reflected in real-time reports and status updates. This also results in related services becoming much faster. For example, in this case study a manager with an idea for a new business scenario used to need around a month to get budget approval – now it is one day.

This ability to plan faster allows for more innovation and experimentation because managers know immediately if their proposals will be funded or not. Time-to-market can be critical in many companies.

Business Understanding

A continuous monitoring process of the budget and balance sheet allows for a deeper understanding into budget and cash requirements. This can also create a more transparent budget culture where employees take more interest in how much their team costs to run and what they are contributing to the bank.

Not only do individual team members gain more insight into their own role inside the business, but the finance managers have a much deeper understanding of where funds are available and when. This can also ensure that funds are not wasted by sitting in accounts that are not paying interest.

This is a good example of how the automation of business processes using an ERP system offers much more than just business efficiency. Processes can be improved. Quality can be raised. New opportunities can be created by transforming business processes that previously took one month into processes that now only require a day.

This case study is a great example from the finance and banking industry, but this type of insight is equally valid across all industries. Process improvement and automation creates enormous business opportunities that are likely to ensure that the project rapidly pays for itself.

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