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The market for business process automation is growing rapidly. According to the Knowledge-Based Value research firm, the global market for BPA was worth $9.8 billion in 2016 and is expected to grow to $19.6 billion by 2026 at a compound annual growth rate (CAGR) of 13.2%. This growth is being driven by a number of factors, including the increasing adoption of cloud-based technologies, the need to improve efficiency and reduce costs, and the growth of digital transformation initiatives.

The post covid19 era has seen an increase in the demand for process automation solutions. due to the need to improve business efficiency and keep up with the fast pace of the current times. Many big companies have released applications and tools to help with this process.

But, what is business process automation (BPA)? And why should your company be interested in it?

If you’re considering investing in business process automation, this guide will give a comprehensive understanding of what BPA is, how to choose the right solution for your business, and the benefits and challenges of implementing BPA.

business process automation market size , by enterprise size , 2020- 2026

What is Business Process Automation?

In order to understand what Business Process Automation is, you have to know about business processes. A process is a sequence of actions that need to be followed in a specific order. They are important because they make sure the right people do the right things in the right order.

A business process is a term used to describe the series of activities that a company uses to create, deliver and invoice for a product or service. It encompasses all the steps from when a customer first becomes aware of your company to when they receive the product or service.

Ad hoc management of these processes can sometimes lead to inconsistency and errors. This results in lost time and money, and can even damage customer relationships. Automation is the solution to this problem.

By implementing a business automation strategy, you can improve the efficiency and consistency of your processes, while freeing up time for your employees to focus on more important tasks instead of getting frustrated with menial process tasks. 

Business Process Automation (BPA) is the application of technology to automate business processes, enabling you to define, manage and execute processes with minimal or no human intervention. It’s an umbrella term that covers a variety of different technologies, including robotic process automation (RPA), Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP).

How does Business Process Automation work?

There are a number of different ways to automate your business processes. The most common way is to use software that can be programmed to do specific tasks. This software can be run on your own computer, or you can subscribe to a service that will host it for you.

There are also a number of different tools that you can use to automate your processes. These include:

– Process mapping tools: These tools allow you to diagram your business processes and automatically generate the code needed to automate them.

– Workflow engines: These engines allow you to create rules that will automatically direct the flow of documents or tasks through your business processes.

– Data capture tools: These tools allow you to automatically extract data from documents or web pages, and then insert it into your business processes.

– Reporting and analytics tools: These tools allow you to track the performance of your business processes and make changes where necessary.

When choosing a tool to automate your business processes, it is important to make sure that it will be compatible with the other systems that you are using. It is equally important to make sure that the tool has the features that you need, and that it is easy to use.

What’s the difference between Business Process Automation and Robotic Process Automation?

Business process automation (BPA) is the technology-enabled automation of complex, end-to-end business processes. Unlike Robotic Process Automation (RPA), which focuses on automating individual tasks within a process, BPA involves the orchestration of multiple tasks and processes to achieve the desired outcome. 

BPA software is designed to handle more complex processes than RPA software and typically requires development skills to deploy. An RPA bot can usually be trained and deployed by an end-user without the need for software development skills.

Many RPA tools are readily available prebuilt software solutions that run on top of existing infrastructure without interacting with databases or using application programming interfaces (APIs). BPA solutions, which are customized for a specific business, are often linked to data systems and APIs. 

It’s conceivable that a BPA solution will include some RPA tools. This means that a business can automate tasks with low-code or no-code RPA tools, and then use BPA software to manage the orchestration of those tasks.

How is BPA related to Business Process Management (BPM)?

There is a lot of overlap between BPA and BPM. Business process management (BPM) is the practice of managing and optimizing business processes using technology and best practices. BPA is one way to achieve this goal, by automating complex processes using software tools.

BPM software can help you model, visualize, optimize, and automate your business processes. Additionally, many BPM solutions include features for managing case flow, notifications, approvals, and other aspects of process execution.

The goal of BPA is to enable organizations to improve the efficiency and effectiveness of their business processes. The goal of BPM is to improve the efficiency and effectiveness of business processes using technology.

BPM and BPA can work together or separately to improve business efficiency. BPM is a big-picture overview of all the business processes, while BPA targets specific processes to improve. When used together, they can be really powerful. But they can also work separately if needed.

Related Article:[Understanding the difference between BPM and BPA]

Why do you need BPA for your business?

BPA is not a one-time fix but rather a long-term solution that can help your organization become more agile and responsive to change. It can improve communication and collaboration among teams, reduce costs and errors, and improve customer satisfaction.

A well-run business is always looking for ways to improve efficiency and productivity. BPA is one way to do this by automating tasks that are routine, time-consuming, or error-prone. The goal of BPA is not to replace employees but to free them up to do more valuable work. With BPA in place, businesses can be more nimble and adaptable in a constantly changing marketplace.

What are the benefits & challenges of BPA?

Whether you are automating simple or complex business processes, the benefits of business process automation are numerous but it also has some challenges.

8 Benefits of Business Process Automation

1. Control over business processes: 

With BPA, businesses can automate tasks and processes that are routine, time-consuming, or error-prone. This can improve communication and collaboration among teams, reduce costs and errors, and improve customer satisfaction.

2. Improved decision-making: 

By automating tasks that are repetitive or time-consuming, businesses can free up employees to focus on more important tasks. This improved focus can lead to better decisions and faster response times to change.

3. Increased competitiveness: 

In a competitive market, businesses need to be agile and responsive to change. BPA can help businesses become more nimble and adaptable, giving them a competitive edge.

4. Cost savings: 

By automating tasks that are routine, time-consuming, or error-prone, businesses can save money on labor costs. This improved efficiency can lead to significant cost savings over time.

5. Enhanced customer experience: 

By automating tasks that are routine, time-consuming, or error-prone, businesses can improve the customer experience by delivering faster, more accurate, and more reliable products and services. This improved customer experience can lead to increased sales and long-term customer loyalty.

6. Enhanced security: 

By automating tasks that are routine, time-consuming, or error-prone, businesses can reduce the chances of human error leading to data breaches or other security issues. This improved security can lead to greater peace of mind for employees and customers alike.

7. Compliance with regulations: 

In a regulated environment, businesses need to be in compliance with government regulations. BPA can help businesses automate tasks and processes that are required by law, ensuring compliance and reducing the risk of fines or other penalties.

5 Challenges of Business Process Automation

1. Employee resistance: 

One of the challenges of BPA is employee resistance to change. Employees who are used to doing things a certain way may not be happy with changes to their workflow or job duties.

2. Training and support: 

Implementing BPA can be a complex process, and businesses need to invest in adequate training and support for employees. This training and support is essential to ensure that employees are able to use the new system effectively and efficiently.

3. Maintenance and updates: 

In order for BPA to be effective, businesses need to invest in regular maintenance and updates. These updates ensure that the system is running effectively and meeting the needs of the business.

4. Costs: 

The initial investment in BPA can be costly, and businesses need to weigh the benefits against the costs to determine if BPA is right for them.

Business Process Automation Use Cases

1. Automating data entry: 

One of the most common uses of business process automation is automating data entry. This can be done by automating the collection of data from various sources, such as websites, PDFs, or scanned documents. The data can then be cleansed and formatted for use in business processes.

The data is cleansed and formatted by automatically identifying the relevant fields and entering the data into those fields. This can save businesses time and effort in manually entering the data.

2. Automating customer service: 

Automated customer service can help businesses manage large volumes of customer inquiries more efficiently. By automating tasks such as ticket routing, case management, and escalation, businesses can reduce the time it takes to resolve customer issues.

For instance, case management can be automated using a chatbot. A chatbot can be used to answer customer questions and resolve customer issues. By automating this process, businesses can reduce the time it takes to resolve customer issues.

3. Automating marketing tasks: 

Automated marketing tasks can help businesses more efficiently execute marketing campaigns. Tasks that can be automated include email marketing, lead generation, and social media marketing.

Email marketing can be automated by using a tool that sends out targeted emails based on subscriber interests or demographics. Lead generation can be automated by using a tool that collects leads from various sources, such as website visits or social media interactions. Social media marketing can be automated by using a tool that schedules and publishes social media posts according to a predetermined schedule.

4. Automating finance and accounting: 

Automating finance and accounting tasks can save businesses time and money. Automated systems can handle routine tasks such as invoicing, payments, and budgeting, freeing up employees to focus on more complex tasks.

Invoicing can be automated by using a tool that creates invoices based on customer orders. Payments can be automated by using a tool that automates the payment process. Budgeting can be automated by using a tool that tracks expenses and creates budget reports.

5. Automating human resources tasks: 

Automating human resources tasks can help businesses manage their workforce more efficiently. Tasks that can be automated include onboarding new employees, tracking employee time and attendance, and managing payroll.

Onboarding new employees can be automated by using a tool that collects employee information from various sources, such as online applications or social media profiles. Time and attendance tracking can be automated by using a tool that monitors employee work hours. Payroll management can be automated by using a tool that calculates employee pay and prints paychecks.

6. Automating supply chain tasks: 

Automating supply chain tasks can help businesses manage their inventory more efficiently. Tasks that can be automated include order processing, production planning, and shipping.

Order processing can be automated by using a tool that collects orders from various sources, such as online stores or customer service representatives. Production planning can be automated by using a tool that creates production schedules based on customer orders. Shipping can be automated by using a tool that automatically generates shipping labels and updates the order status in the inventory system.

⇒ The bottom line is that business process automation can save time and money by automating routine tasks. By carefully planning and executing process automation initiatives, businesses can improve their efficiency and competitiveness.

What processes not to automate?

There are some business processes that should not be automated.

For instance, processes that require critical thinking, complex decision-making, or creativity should not be automated. In This case, humans are better suited to handle these tasks as machines are not able to replicate these skills. Automation can be used in this process to generate the data that is needed for critical thinking, but the actual decision-making should be left to humans.

In addition, processes that mandate Human Touch should not be automated. For example, customer service or healthcare tasks that require a personal interaction should not be automated. Also, tasks that encompass emotions like giving feedback, handling difficult complaints, or certain onboarding tasks should not be automated.

Finally, a process that fluctuates continuously without a clear pattern or structure can be difficult to automate. In these cases, it is best to manually monitor the process and make small changes as needed or make sure that you can identify explicit and distinct rules that the process can follow.

BPA deployment Types:

There are two main types of BPA deployments:

On-premises:

On-premises BPA deployments are installed on the customer’s own servers. This gives businesses more control over the data and applications, but also requires more technical expertise to manage and maintain.

An example of on-premises BPA deployment is Microsoft Office 365. Microsoft Office 365 is a subscription-based service that gives businesses access to the latest version of Office applications, as well as other productivity tools like Exchange Online and SharePoint Online.

Cloud:

Cloud-based BPA deployments are hosted by the vendor and managed by the vendor’s IT staff. This type of deployment is less expensive and easier to manage than on-premises deployments, but businesses may not have as much control over the data and applications.

An example of a cloud-based BPA deployment is Salesforce Automation. Salesforce Automation is a software as a service (SaaS) application that allows businesses to automate their sales processes. Salesforce Automation is hosted by the vendor and managed by the vendor’s IT staff.

How to Tailor Automation to Your Business industry

Retail 

In retail, process automation can help streamline the ordering process, inventory management, and customer service. For example, instead of manually entering orders into a system, a retailer could use an automated system that automatically retrieves order information from supplier databases. This would reduce the chances of human error and improve the efficiency of the ordering process.

Manufacturing

In manufacturing, process automation can help improve quality control and reduce wastage. For example, automated systems can be used to test products for defects and to ensure that products meet the required specifications. Besides, automation can be implemented to manage production processes, ensuring that resources are used efficiently and that products are produced on time

HR

Process automation can also be used in HR to streamline the recruitment process. For example, automated systems can be used to track job applications and identify the most qualified candidates. Just as, automated systems can also be used to manage payroll and employee records. This can help businesses reduce their administrative costs and improve their efficiency.

Healthcare

In healthcare, process automation can be used to manage patient records and to improve the accuracy of medical billing. In addition, it can be used to schedule appointments and manage hospital resources. By automating these processes, healthcare providers can improve the quality of their services and reduce their operating costs.

Financial services

In financial services, process automation can be used to manage customer accounts and to improve the accuracy of financial reporting. Moreover, automated systems can be used to detect fraudulent behavior and prevent money laundering. By automating these processes, financial service providers can improve the security of their systems and reduce the chances of financial fraud.

How to map up your BPA?

Process automation can be a complex and daunting task, but with careful planning and execution, it can be done successfully.

The first step is to build the foundation of the system. This includes creating the necessary data structures, developing the core business logic, and creating the user interface.

Once this is in place, you can start testing it – and this is where things can start to get tricky. Automated systems are often reliant on data from other systems, which may not be available during testing. In addition, testing can be time-consuming and expensive.

It’s important to test as much as possible and catch any errors early on. The longer they go undetected, the more difficult and expensive they will be to fix.

In order to ensure a successful process automation initiative, you should: deploy the system, integrate it with other systems, train users, monitor and maintain the system, ensure data quality, and create performance metrics.

By following these steps, you can improve efficiency, reduce costs, and increase profits for your organization.

[Related Article: 5 crucial Steps to Map up your BPA]

Process automation Tips 2022

Now that you know the basics of business process automation, it’s time to get started! Here are a few tips to keep in mind:

  1. Process automation can help improve efficiency and quality while reducing costs.
  2. Automation is not a silver bullet and should only be used for processes that will actually benefit from it.
  3. When planning an automation project, it’s important to consider the cost, benefits, and risks of automating.
  4. Even automated processes need to be monitored and updated over time. Automation is not a set-it-and-forget-it solution.
  5. Be prepared to adjust the process as needed over time. The needs of the business can change, and no process is perfect.

[Related Article: Top 9 Business Automation best Practices in 2022 ] 

Top 4 BPA Trends in 2022 

No Code Low Code Process Automation difference and development
  • Business Strategy Composability  

Composability is the ability to combine multiple business process automation solutions into a larger system. This can be done in a number of ways, such as integrating different tools into a single platform or using APIs to connect different systems.

By 2022, composability will become an essential requirement for any successful BPA implementation. As businesses grow and evolve, they will need to be able to quickly and easily integrate new processes and technologies into their existing automation infrastructure. And by using and implementing a composable business model, you can future-proof your business process automation strategy.

According to Gartner’s prediction, 

70% of medium to large businesses will hierarchize Composability in their business strategy by 2022.

  • Hyper Automation

Hyper Automation is the application of advanced technology solutions like Artificial Intelligence and Computer Vision to automate processes. These technologies can help reduce risk and increase accuracy and satisfaction among employees. If you’re already working with images and videos, implementing Computer Vision can be a great way to get started with hyper-automation.

  • No Code Low Code Process Automation

In the next few years, we’ll see an increased demand for low-code process automation solutions. These solutions allow businesses to automate their processes without having to write any code. This is a great option for businesses that don’t have the resources or expertise to write code themselves.

  • Centers of Excellence (CoEs) Automation

As AI models are becoming increasingly more complex, the need for deployment automation is becoming more apparent. Centers of Excellence (CoEs) provide the necessary tools and infrastructure to automate the deployment process, making it faster and more efficient. CoEs are predicted to be able to fully cover AI deployment. This will allow for real-time implementation and improvement of AI models.

Make your business work smarter, not harder – with Kiimkern

From process analysis and design to implementation and support, Kiimkern is your one-stop-shop for business process automation. We have the experience and expertise to help you get the most out of your BPA initiative.

Whether you are looking to improve efficiency, reduce costs or increase customer satisfaction – Kiimkern can help. Contact us today to see how we can help you get started on your business process automation journey!

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