SRM Institute of Science and Technology

NCR Campus, Modinagar

Department of Computer Applications

Unit 1: Traditional Automation

1. Intelligent automation
Intelligent automation for enterprises involves the integration of advanced technologies such as artificial
intelligence (AI), machine learning (ML), natural language processing (NLP), and robotic process
automation (RPA) to enhance business processes.

1.1. Definition of Intelligent Automation:

● Intelligent automation is the combination of AI, ML, NLP, and RPA to automate complex
business processes, decision-making, and interactions.

1.2. Key Components:

● Artificial Intelligence (AI): Utilizes algorithms and computational power to simulate human
intelligence, enabling systems to learn, reason, and solve problems.
● Machine Learning (ML): Employs algorithms that enable systems to learn and improve from
experience without being explicitly programmed.
● Natural Language Processing (NLP): Enables machines to understand, interpret, and generate
human-like language, facilitating communication between humans and machines.
● Robotic Process Automation (RPA): Involves the use of software robots or "bots" to automate
repetitive and rule-based tasks, mimicking human actions in digital systems.

1.3. Benefits of Intelligent Automation:

● Increased Efficiency: Automation of repetitive tasks leads to faster processing times, reducing
manual effort and improving overall efficiency.
● Enhanced Accuracy: Intelligent automation reduces the risk of human errors, improving the
accuracy and reliability of business processes.
● Cost Savings: Automation can lead to cost savings by reducing the need for human labor in
repetitive and time-consuming tasks.
● Improved Decision-Making: AI and ML algorithms can analyze large datasets to provide valuable
insights, aiding in better decision-making.

1.4. Applications in Enterprises:

● Customer Service: Intelligent automation is used in customer service for chatbots, virtual
assistants, and automated ticketing systems to enhance customer interactions.
● Finance and Accounting: Automation is applied in financial processes for tasks such as invoice
processing, reconciliation, and financial reporting.
 ● Human Resources: Intelligent automation is used in HR for activities like resume screening,
employee onboarding, and benefits administration.
● Supply Chain Management: Automation improves supply chain processes by optimizing
inventory management, demand forecasting, and logistics.
● Data Entry and Processing: RPA is commonly employed for automating data entry, validation,
and processing tasks.

1.5. Challenges and Considerations:

● Data Security and Privacy: Enterprises must address concerns related to the security and privacy
of sensitive data when implementing intelligent automation.
● Change Management: The adoption of automation may require cultural and organizational
changes, and employees may need to adapt to new ways of working.
● Integration with Existing Systems: Ensuring seamless integration with existing IT systems and
infrastructure is crucial for successful implementation.
● Ethical Considerations: Organizations need to consider ethical implications, such as bias in AI
algorithms and the impact on employment.

1.6. Future Trends:

● Hyper Automation: The trend towards integrating multiple technologies for end-to-end
automation of business processes.
● Explainable AI: The focus on making AI systems more transparent and understandable for users
and stakeholders.
● AI-driven Decision Support: Leveraging AI to provide real-time insights and recommendations
for decision-makers.
● Collaborative Robots (Cobots): The use of robots that can work alongside humans, enhancing
collaboration in the workplace.

2. Traditional Automation Overview

● Traditional automation refers to the use of technology and machinery to perform tasks and
processes without direct human intervention.
● This type of automation has been employed for many years across various industries to improve
efficiency, increase productivity, and enhance overall operational performance.

● Industrial Automation:
○ Manufacturing Automation:
■ involves the use of machinery and control systems to handle different processes
such as assembly, welding, packaging, and material handling.
■ This helps in mass production and ensures consistent quality.
○ Process Automation:
■ Industries like chemical, petrochemical, and pharmaceutical rely on process
automation to control and monitor production processes.
■ This includes the use of distributed control systems (DCS) and programmable
logic controllers (PLC) to manage complex tasks.

● Office Automation:
 ○ Office Processes: Automation is applied to various office tasks, such as data entry,
document management, and communication. Software tools like enterprise resource
planning (ERP) systems, customer relationship management (CRM) systems, and office
productivity suites contribute to office automation.
○ Workflow Automation: use of software to automate routine tasks, approvals, and data
routing, improving overall efficiency and reducing errors.

● Information Technology (IT) Automation:

○ Server Management: including tasks such as software updates, configuration changes,
and system monitoring.
○ Network Automation: configure and manage network devices, ensuring efficient data
flow and network security.

● Home Automation:
○ Smart Homes: control lighting, heating, security systems, and entertainment devices
remotely.

● Telecommunications Automation:
○ Network Operations: fault detection, performance monitoring, and network provisioning.

● Retail Automation:
○ Point of Sale (POS) Systems: Retailers use automation in their POS systems for
transactions, inventory management, and customer relationship management.

● Healthcare Automation:
○ Robotic Surgery: robotic surgery, where robotic systems assist surgeons.

● Transportation Automation:
○ Automated Vehicles: including self-driving cars, trucks, and drones.

● Agricultural Automation:
○ Precision Farming: use of sensors, drones, and automated machinery to optimize crop
yield and reduce resource usage.

3. History of Traditional Automation

● 1940s - Early Computing Machines: ( ENIAC - Electronic Numerical Integrator and Computer)
machines were primarily used for numerical calculations, but their potential for automating
complex tasks was evident.

● 1950s - Mainframes and Business Automation: using computers for tasks like payroll processing,
inventory management, and other routine business operations.

● 1960s - Emergence of Control Systems: Computer Numerical Control (CNC) systems were
introduced, allowing for automated control of machining tools in manufacturing.

● 1970s - Programmable Logic Controllers (PLCs): control manufacturing processes and

machinery, providing a flexible and programmable solution.
● 1980s - Robotics and Manufacturing Automation: Robots, controlled by computers, were
employed for tasks ranging from assembly to material handling, enhancing efficiency and
precision.

● 1990s - Enterprise Resource Planning (ERP) Systems: These systems automated tasks such as
finance, human resources, and supply chain management.

● 2000s - Connectivity and Automation Integration: allowing for seamless communication between
different components of an automated system.

● 2010s - Industry 4.0 and Smart Manufacturing: This phase of automation integrated smart
sensors, the Internet of Things (IoT), cloud computing, and data analytics to create intelligent and
adaptive manufacturing processes.

● Present and Future - Intelligent Automation and AI: Today, traditional automation in the computer
world is evolving into intelligent automation, incorporating artificial intelligence (AI) and
machine learning. Advanced algorithms enable systems to analyze data, make decisions, and
adapt to changing conditions in real-time.

4. Principles and Theories of traditional automation

● Feedback Control Theory:

○ Definition: involves the use of feedback loops to maintain or regulate a system's output
within desired parameters
○ Application: implemented through sensors that monitor the system's output, feeding this
information back to controllers that adjust the system's inputs to maintain optimal
performance.

● Open-Loop and Closed-Loop Control Systems:

○ Open-Loop Control: A system that operates without feedback from the output
○ Closed-Loop Control: A system that adjusts its operation based on feedback from the
output to maintain desired performance.(Most used)

● Hierarchy of Control Systems:

○ Levels: Automation systems are often organized into a hierarchical structure with
different levels of control, such as supervisory control, process control, and field control.
This hierarchy allows for efficient management of complex processes.

● Principle of Optimization:
○ Objective: Traditional automation seeks to optimize processes, aiming to achieve the best
possible performance, efficiency, and quality.
○ Methods: Optimization involves the use of mathematical models, algorithms, and
real-time data analysis to make decisions that lead to improved outcomes.

● Reliability and Redundancy:

○ Reliability: Automation systems must be designed for reliability to ensure consistent
performance over time
 ○ Redundancy: Building redundancy into critical components or systems helps mitigate the
impact of failures, enhancing overall system reliability.

● Modularity and Scalability:

○ Modularity: Breaking down automation systems into modular components allows for
easier maintenance, troubleshooting, and upgrades
○ Scalability: Automation systems should be designed to accommodate changes in scale,
whether it's an increase in production volume or the addition of new processes.

● Time and Motion Studies:

○ Analysis: Time and motion studies are conducted to analyze and optimize the time
required to perform specific tasks in an automated process
○ Efficiency: These studies contribute to improving efficiency by identifying bottlenecks,
unnecessary steps, and opportunities for streamlining.

● Human-Machine Interaction (HMI):

○ User Interface Design: HMI principles focus on designing interfaces that enable effective
communication between humans and machines
○ Ergonomics: Consideration of human factors, such as ease of use and operator comfort, is
crucial in the design of automation interfaces.

● Standardization and Interoperability:

○ Standardization: Adhering to industry standards facilitates interoperability and
compatibility between different automation components and systems.
○ Interoperability: Ensuring that diverse automation systems can work together seamlessly
is essential for flexibility and adaptability.

● Fault Tolerance and Diagnostics:

○ Fault Tolerance: Automation systems should be designed to detect and recover from
faults to minimize downtime and disruptions
○ Diagnostics: Incorporating diagnostic capabilities enables efficient troubleshooting and
maintenance.

● Energy Efficiency:
○ Optimized Energy Use: Automation systems should be designed with a focus on
minimizing energy consumption, contributing to sustainability and cost savings.

5. Business benefits of traditional automation

● Increased Productivity
● Cost Reduction
● Improved Quality and Consistency
● Enhanced Efficiency.
● 24/7 Operations
● Reduced Cycle Times
● Improved Safety
● Scalability
 ● Data Accuracy and Analytics:
● Conservation of Resources:
● Customer Satisfaction:
● Competitive Advantage:
● Adaptability to Market Changes:
● Compliance and Traceability:

6. Business challenges of Traditional automation

● High Initial Investment

● Integration with Existing Systems
● Workforce Resistance
● Skill Gaps and Training Needs
● Downtime During Implementation: for retooling, installation, and employee training.
● Maintenance and Technical Support
● Cybersecurity Risks
● Lack of Flexibility
● Over-Reliance on Automation
● Limited Customization
● Regulatory Compliance
● Environmental Impact
● Vendor Dependency

7. Traditional Automation VS Intelligent Automation

Feature Traditional Automation Intelligent Automation

Integrates advanced technologies like AI, ML, and

Utilizes machinery and control systems to perform
Definition NLP to automate complex processes with learning
tasks without human intervention.
and decision-making capabilities.

Advanced technologies, including artificial

Basic automation technologies such as PLCs, sensors,
Technology Used intelligence (AI), machine learning (ML), natural
and mechanical systems.
language processing (NLP), and robotics.

Capable of learning from data, making decisions, and

Typically follows pre-programmed instructions for
Decision-Making adapting to changing conditions without explicit
repetitive tasks.
programming.

Limited adaptability; may require reprogramming for More flexible and adaptable to changing conditions
Flexibility
significant changes. due to learning capabilities.

May involve human-machine collaboration, with

Human
Reduced human involvement in routine tasks. humans focusing on more complex decision-making
Involvement
and problem-solving tasks.

Learning Can learn from data, adapt to new patterns, and

Limited or no learning capabilities.
Capabilities continuously improve performance over time.

Complexity of Can handle complex, cognitive tasks and

Suited for repetitive and rule-based tasks.
Tasks decision-making processes.

Implementation Typically faster implementation due to simpler May require more time for development and training
Time technology. due to the complexity of advanced technologies.
 Higher upfront costs due to advanced technologies,
Costs Generally lower upfront costs. but potential for long-term cost savings and efficiency
gains.

Chatbots, virtual assistants, AI-driven customer

Examples Manufacturing assembly lines, basic robotic systems.
support, cognitive automation.

Highly predictable; operates based on predefined Can adapt to unforeseen situations and make
Predictability
rules. decisions in less predictable environments.

Expanding into various industries, including finance,

Industry Focus Widely used in manufacturing and industrial settings.
healthcare, and customer service.

Scalable for repetitive tasks with similar More adaptable to scalable and evolving tasks due to
Scalability
requirements. learning capabilities.

Can provide advanced decision support by analyzing

Decision Support Limited decision support capabilities.
complex data patterns.

May include more sophisticated user interfaces with

User Interface Typically involves basic human-machine interfaces. natural language understanding and interactive
capabilities.

8. Traditional Automation VS Robotic Process Automation

Feature Traditional Automation Robotic Process Automation (RPA)

Utilizes machinery and control systems to Focuses on automating rule-based, repetitive tasks using
Definition
perform tasks without human intervention. software robots or "bots."

Basic automation technologies such as PLCs, Software robots that mimic human interactions with
Technology Used
sensors, and mechanical systems. applications at the user interface level.

Limited adaptability; may require reprogramming More adaptable to changes due to the ability to quickly
Flexibility
for significant changes. configure and modify automation scripts.

Learning Limited learning; primarily follows pre-programmed

Limited or no learning capabilities.
Capabilities rules.

Human Collaboration between bots and humans; humans may

Reduced human involvement in routine tasks.
Involvement handle exceptions and complex tasks.

Implementation Typically faster implementation due to simpler Faster implementation due to the ability to record and
Time technology. replicate human interactions.

Lower upfront costs, but ongoing licensing and

Costs Generally lower upfront costs.
maintenance costs for RPA software.

Manufacturing assembly lines, basic robotic Data entry, invoice processing, customer service tasks
Examples
systems. automated by software bots.

Scalable for repetitive tasks with similar Highly scalable, especially for tasks involving large
Scalability
requirements. volumes of data and transactions.

Limited decision support; primarily follows predefined

Decision Support Limited decision support capabilities.
rules.

Integration with May require significant integration efforts with Often designed to work seamlessly with existing systems
Legacy Systems existing systems. and applications.
 Cognitive Basic cognitive capabilities such as pattern recognition
Limited cognitive capabilities.
Capabilities and data extraction.

Workflow Specialized in automating end-to-end business processes

Basic workflow automation capabilities.
Automation with defined workflows.

User Interface Interfaces with physical systems or basic Interacts with applications at the user interface level,
Interaction human-machine interfaces. mimicking human actions.

Widely used in manufacturing and industrial Applied across various industries, especially in finance,
Industry Focus
settings. healthcare, and back-office operations.

Regulatory Compliance may require additional efforts for RPA platforms often include features to ensure
Compliance integration with regulatory standards. compliance with industry regulations.

9. Difference Between Business Automation and Business Management

Feature Business Automation Business Management

Use of technology to automate business

Organizing and coordinating business activities to achieve
Definition processes, tasks, and workflows for increased
defined goals and objectives.
efficiency.

Process efficiency, task automation, and Strategic planning, decision-making, leadership, and overall
Focus
optimization of repetitive workflows. organizational direction.

Increase operational efficiency, reduce manual Achieve organizational goals, ensure effective resource
Primary Objective
effort, and streamline repetitive tasks. utilization, and adapt to market dynamics.

Primarily focuses on specific tasks or processes Encompasses the entire spectrum of organizational activities,
Scope
within the organization. including planning, organizing, leading, and controlling.

Examples - Automating invoice processing. - Strategic planning for market expansion.

- Implementing a customer service chatbot. - Organizing and leading a team to achieve project milestones.

- Implementing performance management systems for

- Integrating CRM systems for sales automation.
employee appraisal.

Project management software, customer relationship

Tools and Robotic Process Automation (RPA), workflow
management (CRM) tools, enterprise resource planning (ERP)
Technologies automation tools, AI, and machine learning.
systems.

Predominantly rules-based decision-making for Involves strategic decision-making, policy formulation, and
Decision-Making
task execution. addressing complex organizational challenges.

Reduces the need for human involvement in Requires active human involvement in decision-making,
Human Involvement
repetitive tasks. leadership, and strategic planning.

Time Horizon Immediate impact on operational efficiency. Long-term impact on organizational success and sustainability.

Well-suited for automating repetitive and Requires adaptability to changing market conditions, customer
Adaptability
standardized processes. preferences, and internal dynamics.

Monitoring and Emphasizes real-time monitoring and control of Focuses on monitoring organizational performance, financial
Control automated processes. health, and strategic goals.
 Primarily focuses on mitigating risks associated Encompasses risk management at both operational and strategic
Risk Management
with automation processes. levels.

Aligns with the goal of operational efficiency and Aligns with the overarching goals and vision of the
Goal Alignment
cost reduction. organization.

10. Working of Business Automation with Example

● Business automation in the computer world involves the use of technology to streamline,
optimize, and automate various business processes, tasks, and workflows.
● The goal is to increase efficiency, reduce manual effort, minimize errors, and enhance overall
productivity.
● Identification of Processes:
○ Businesses first identify the processes and tasks that can benefit from automation.
○ These can include routine, repetitive, and rule-based activities that are time-consuming
when done manually.
○ Example 1:
■ The company identifies the need to streamline customer service interactions, such
as answering frequently asked questions and providing support for common
issues.
○ Example 2:
■ The company identifies the invoice processing workflow as a time-consuming
and repetitive task that involves receiving, reviewing, and recording invoices into
the accounting system.

● Analysis and Design:

○ The identified processes are analyzed to understand their workflow and requirements.
○ Based on this analysis, a design for automation is created, specifying the steps and logic
needed to automate the process.
○ Example 1:
■ The customer service workflow is analyzed, and a design for automation is
created, specifying the types of queries the chatbot should handle, the
information it needs to provide, and the escalation process for complex issues.
○ Example 2:
■ This design includes steps such as receiving invoices, extracting relevant
information, verifying data accuracy, and updating the accounting system.

● Selection of Automation Tools:

○ Businesses choose appropriate automation tools and technologies based on the nature of
the processes.
○ This may include Robotic Process Automation (RPA) tools, workflow automation
platforms, business process management (BPM) systems, and other software solutions.
○ Example1:
■ The company selects a chatbot platform with natural language processing
capabilities, enabling the chatbot to understand and respond to user queries in a
conversational manner.
○ Example 2:
■ The company selects an RPA (Robotic Process Automation) tool suitable for
automating the invoice processing workflow. RPA tools are designed to mimic
human interactions with software applications.

● Integration with Existing Systems:

○ Automation systems need to integrate seamlessly with existing computer systems,
databases, and software applications.
 ○ This integration ensures a smooth flow of data and information between different
components of the business ecosystem.
○ Example 1:
■ The chatbot platform is integrated with the company's customer support software,
knowledge base, and other relevant systems to access up-to-date information and
provide accurate responses.
○ Example 2:
■ The chosen RPA tool is integrated with the company's existing accounting
software, databases, and other relevant systems to ensure seamless data
exchange.

● Programming and Configuration:

○ Depending on the chosen automation tools, programming and configuration are carried
out to set up the automation rules, logic, and parameters.
○ This step may involve writing scripts, configuring workflows, or using visual
programming interfaces.
○ Example 1:
■ Using the chatbot platform, the company programs and configures the chatbot's
responses based on predefined rules and information gathered during the analysis
phase.
○ Example 2:
■ Using the RPA tool, the automation rules are programmed and configured. This
may involve creating scripts or configuring the RPA tool to navigate through the
invoice processing steps.

● Testing and Quality Assurance:

○ Before deployment, thorough testing is conducted to ensure that the automation processes
work as intended.
○ This includes checking for errors, validating data accuracy, and verifying that the
automation meets the specified requirements.
○ Example 1:
■ The chatbot undergoes extensive testing to ensure it accurately understands user
queries, provides relevant information, and seamlessly integrates with the
existing customer support infrastructure.
○ Example 2:
■ The automated invoice processing workflow is thoroughly tested to ensure that
invoices are accurately processed, data is correctly entered, and the system
performs as expected.

● Deployment:
○ Once testing is successful, the automation solution is deployed into the live environment.
○ This involves activating the automated processes to start performing the designated tasks.
○ Example 1:
■ Once testing is successful, the chatbot is deployed on the company's website,
mobile app, or other customer-facing platforms to engage with users.
○ Example 2:
■ Once testing is successful, the automated invoice processing system is deployed
into the live environment. The RPA tool is activated to start processing incoming
invoices.

● Monitoring and Management:

○ Automated processes are continuously monitored to ensure they operate correctly.
○ Monitoring tools may provide real-time insights, detect anomalies, and generate alerts for
any issues that require attention.
○ Example 1:
 ■ The chatbot's interactions are monitored in real-time, and any issues or areas for
improvement are addressed. The system is actively managed to maintain a
positive user experience.
○ Example 2:
■ The automated process is monitored in real-time using RPA monitoring tools.
Any issues or exceptions are flagged for review, and the system is managed to
ensure continuous and error-free operation.

● Data Analysis and Reporting:

○ Automation systems often generate valuable data during their operation.
○ Businesses leverage data analytics tools to analyze this information, extract insights, and
generate reports for decision-making and performance evaluation.
○ Example 1:
■ Data on user interactions with the chatbot is analyzed to understand user
behavior, identify common queries, and assess the overall effectiveness of the
automated customer service solution.
○ Example 2:
■ Data generated during the automated invoice processing, such as processing
times and error rates, is analyzed. Reports are generated to provide insights into
the efficiency of the automated process.

● Optimization and Continuous Improvement:

○ Businesses regularly review the performance of automated processes and seek
opportunities for optimization.
○ This may involve tweaking automation rules, incorporating feedback, and making
improvements to enhance efficiency further.
○ Example 1:
■ Based on data analysis, the company optimizes the chatbot's responses, adds new
capabilities, and continuously improves the automation to better meet user needs
and expectations.
○ Example 2:
■ Based on the data analysis, the company identifies areas for optimization. The
automation rules may be adjusted, and improvements are made to enhance the
overall efficiency of the invoice processing workflow.

● Scalability:
○ Business automation solutions are designed to be scalable, allowing organizations to
expand automation to additional processes or handle increased workloads without
significant disruptions.
○ Example 1:
■ The chatbot is designed to handle a growing volume of user interactions,
ensuring scalability as the company's customer base expands.
○ Example 2:
■ As the company's invoice volume increases, the automated system is easily
scalable to handle higher workloads without requiring significant manual
intervention.

● Security Measures:
○ Implementing robust security measures is crucial to safeguard automated processes and
the data they handle.
○ This includes encryption, access controls, and regular security audits.
○ Example 1:
■ Security measures are implemented to protect user data and ensure that sensitive
information is handled securely within the automated customer service system.
○ Example 2:
 ■ Security measures, such as encryption of sensitive data and access controls, are
implemented to protect the automated invoice processing system from
unauthorized access and potential security threats.

Other Examples of business automation in the computer world include automating data entry tasks,
invoice processing, customer relationship management (CRM), supply chain management, and various
back-office operations.

As technology continues to advance, businesses explore new possibilities for automation, including the
integration of artificial intelligence, machine learning, and advanced analytics into their automated
workflows.

11. How Business Automation improves business processes

● Business automation involves using technology to streamline and optimize various business
processes, reducing manual intervention and improving overall efficiency.
● This can result in cost savings, faster processes, reduced errors, and enhanced productivity.

❖ Time Efficiency:
➢ Manual Process: Tasks that require manual intervention often consume significant time.
➢ Automation Impact: Automation streamlines workflows, reducing processing times and
allowing tasks to be completed more efficiently. This enables employees to focus on more
strategic and value-added activities.
❖ Error Reduction:
➢ Manual Process: Human errors are inherent in manual data entry and repetitive tasks.
➢ Automation Impact: Automation minimizes the risk of errors by enforcing consistency,
accuracy, and adherence to predefined rules. This leads to improved data quality and
reduces the likelihood of costly mistakes.
❖ Consistency and Standardization:
➢ Manual Process: Processes can vary depending on individual interpretations and methods.
➢ Automation Impact: Automation enforces standardized processes, ensuring consistency
across operations. This leads to a more predictable and reliable outcome in every
instance.
❖ Improved Compliance:
➢ Manual Process: Ensuring compliance with regulations and policies can be challenging
manually.
➢ Automation Impact: Automation helps in enforcing compliance by embedding rules and
validation checks within processes. This ensures that regulatory requirements are
consistently met.
❖ Enhanced Visibility and Tracking:
➢ Manual Process: Tracking progress and monitoring tasks manually can be
time-consuming.
➢ Automation Impact: Automation provides real-time visibility into the status of tasks,
allowing for better tracking, monitoring, and reporting. This transparency facilitates
timely decision-making.
❖ Cost Savings:
➢ Manual Process: Labor-intensive tasks can result in higher operational costs.
➢ Automation Impact: Automation reduces labor costs associated with repetitive tasks,
leading to overall cost savings. It also minimizes the need for manual intervention, which
can be a source of operational expenses.
 ❖ Increased Scalability:
➢ Manual Process: Scaling operations can be challenging due to resource limitations.
➢ Automation Impact: Automated processes are easily scalable as they don't rely on manual
effort alone. This allows businesses to handle increased workloads without proportionate
increases in labor.
❖ Enhanced Customer Experience:
➢ Manual Process: Manual handling of customer interactions may lead to delays and errors.
➢ Automation Impact: Automation improves customer experiences by reducing response
times, providing instant information, and ensuring that customer requests and orders are
processed efficiently.
❖ Strategic Decision-Making:
➢ Manual Process: Decision-making may be hindered by limited access to real-time data.
➢ Automation Impact: Automation provides access to timely and accurate data,
empowering decision-makers with the information needed for strategic planning and
decision-making.
❖ Agility and Adaptability:
➢ Manual Process: Adapting to changes in the business environment may be slow.
➢ Automation Impact: Automated processes are more adaptable to changes, allowing
businesses to respond quickly to evolving market conditions, customer demands, and
regulatory requirements.
❖ Task Prioritization:
➢ Manual Process: Prioritizing tasks manually may lead to inefficiencies.
➢ Automation Impact: Automation systems can prioritize tasks based on predefined criteria,
ensuring that critical activities receive appropriate attention.

Example: Order Processing in an E-commerce Business

● Manual Process:
○ when a customer places an order, several manual steps are involved.
○ This may include manually entering order details, checking inventory, processing
payments, and updating the customer about the order status.
○ This process can be time-consuming and prone to errors.

● Business Automation Solution:

○ Implementing business automation in the order processing system can significantly
improve efficiency.

❖ Order Placement:
➢ Manual Process: Customer service representatives manually enter order details into the
system.
➢ Automation: Integrate an e-commerce platform with an order management system where
orders are automatically captured when customers place them online.

❖ Inventory Management:
➢ Manual Process: Staff manually checks the inventory to ensure product availability.
➢ Automation: Implement an inventory management system that updates in real-time as
orders are placed, ensuring accurate stock levels are maintained.

❖ Payment Processing:
➢ Manual Process: Staff manually processes payments and updates the payment status.
 ➢ Automation: Implement an automated payment gateway that securely processes payments
in real-time and updates the order status automatically.

❖ Order Fulfillment:
➢ Manual Process: Employees manually pick and pack items for shipment.
➢ Automation: Integrate with a warehouse management system that automates the order
fulfillment process, including picking, packing, and generating shipping labels.

❖ Shipping and Tracking:

➢ Manual Process: Staff manually updates customers about the shipping status.
➢ Automation: Use a shipping management system that automates the shipping process and
provides customers with real-time tracking information.

❖ Customer Communication:
➢ Manual Process: Customer service representatives manually handle customer inquiries.
➢ Automation: Implement a customer relationship management (CRM) system that
automates communication, sending order confirmations, shipping notifications, and
tracking updates.

❖ Benefits of Business Automation:

● Efficiency: Automation streamlines the entire order processing workflow, reducing the time
required to fulfill orders.
● Accuracy: Automation minimizes the risk of errors associated with manual data entry and
processing.
● Cost Savings: By reducing manual labor and improving efficiency, businesses can achieve cost
savings in terms of labor and operational costs.
● Customer Satisfaction: Automated communication keeps customers informed, leading to
improved satisfaction and loyalty.
● Scalability: As the business grows, automation systems can handle increased order volumes
without proportionate increases in staffing.

Another example: Manual Customer Support Ticket Management:

➔ Traditional Approach: Customer support teams manually receive and categorize support tickets
through email or a ticketing system. Agents manually assign tickets, respond to customer queries,
and update ticket statuses.
➔ Challenges: Time-consuming, potential for delays in response, manual errors, and difficulty in
prioritizing urgent issues.

● Business Automation Impact:

a. Ticket Categorization and Routing:
● Manual Process: Agents manually categorize and assign tickets based on their
assessment.
● Automation Impact: Implement Natural Language Processing (NLP) algorithms to
automatically categorize and route tickets to the most relevant support agents based on
the content and urgency.

b. Automated Responses for FAQs:

 ● Manual Process: Agents manually respond to frequently asked questions (FAQs) in
support tickets.
● Automation Impact: Set up a chatbot or automated response system to handle common
queries, providing instant responses and freeing up agents for more complex issues.

c. SLA (Service Level Agreement) Monitoring:

● Manual Process: Agents manually track and monitor SLAs for responding to and
resolving tickets.
● Automation Impact: Implement an automated system that monitors SLAs, sends alerts for
approaching deadlines, and escalates overdue tickets to ensure timely resolution.
d. Knowledge Base Updates:
● Manual Process: Manual updates to the knowledge base with new solutions and
frequently encountered issues.
● Automation Impact: Integrate a system that automatically updates the knowledge base
based on resolved tickets, ensuring a continuously evolving and accurate knowledge base
for agents and customers.

e. Customer Feedback Automation:

● Manual Process: Agents manually collect and analyze customer feedback.
● Automation Impact: Implement automated surveys or feedback forms after ticket
resolution, with analytics tools to aggregate and analyze customer feedback for
continuous service improvement.

● Benefits of Business Automation:

● Faster Response Times: Automated ticket routing and responses lead to quicker
acknowledgment and resolution of customer issues.
● Consistent Responses: Automated responses ensure consistency in addressing common
queries, maintaining a standardized level of service.
● Proactive Issue Resolution: SLA monitoring allows for proactive identification and
resolution of issues before they escalate.
● Knowledge Base Efficiency: Automated knowledge base updates ensure that agents have
access to the latest information, improving first-contact resolution rates.
● Customer Satisfaction Improvement: Automated feedback analysis enables the
identification of trends and areas for improvement, enhancing overall customer
satisfaction.

12. Digital Transformation of Traditional Automation:

Digital Transformation:
● Definition:

■ Digital transformation is the integration of digital technologies into all aspects of

a business, fundamentally changing how it operates and delivers value to
customers.
■ It involves leveraging technology to optimize processes, enhance customer
experiences, and drive innovation.
 ● Key Elements:
○ Technology Integration: Adopting and integrating digital technologies such as
cloud computing, artificial intelligence, machine learning, and data analytics.
○ Process Optimization: Reimagining and optimizing business processes to
leverage the capabilities of digital tools.
○ Customer-Centric Approach: Focusing on improving customer experiences
through digital channels and personalized interactions.
○ Data-Driven Decision-Making: Utilizing data analytics to gain insights and
inform strategic decision-making.
○ Cultural Shift: Encouraging a culture of innovation, collaboration, and
adaptability within the organization.

Examples of Digital Transformation:

● Implementing cloud-based solutions for scalable and flexible infrastructure.
● Developing mobile applications to enhance customer interactions.
● Adopting data analytics for predictive insights into market trends.

Automation:
● Definition:
○ Automation involves the use of technology to perform tasks with minimal human
intervention.
○ It aims to streamline processes, reduce manual effort, and increase efficiency. Automation
can be applied to various business functions, from manufacturing to customer service.
● Key Elements:
○ Task Automation: Automating repetitive and rule-based tasks to improve efficiency.
○ Workflow Automation: Integrating technologies to automate entire workflows and
processes.
○ Reduction of Manual Intervention: Minimizing human involvement in routine and
time-consuming tasks.
○ Increased Accuracy: Eliminating errors associated with manual processes.
○ Cost Savings: Improving operational efficiency and reducing labor costs.

Examples of Automation:
● Robotic Process Automation (RPA) for automating rule-based tasks.
● Workflow automation tools for streamlining business processes.
● Automated email responses and chatbots for customer support.

Digital Transformation of Traditional Automation:

➔ When we talk about the digital transformation of traditional automation, it means infusing digital
technologies into existing automated processes to enhance their capabilities.
➔ It involves leveraging advanced digital tools to make automation more intelligent, adaptive, and
aligned with overall digital transformation goals.

● Key Aspects:
○ Integration of Advanced Technologies: Incorporating digital technologies like AI,
machine learning, and IoT into existing automation solutions.
○ Enhanced Data Utilization: Leveraging data analytics for more informed decision-making
within automated processes.
 ○ Scalability and Flexibility: Ensuring that automated processes are scalable and adaptable
to changing business needs.
○ Improved Customer Experiences: Integrating digital elements into automated customer
interactions for a more personalized and seamless experience.

Example:
● Consider a manufacturing facility that has traditionally used automated robotic systems for
assembly.
● Through digital transformation, IoT sensors are integrated into the manufacturing equipment to
gather real-time data.
● AI algorithms analyze this data to optimize production schedules, predict equipment maintenance
needs, and improve overall efficiency.

In summary, digital transformation of traditional automation involves evolving automated processes by

integrating advanced digital technologies, optimizing workflows, and aligning with the broader digital
transformation goals of the organization.

Example: Digital Transformation of a Bookstore

● Traditional Approach:
○ Physical Bookstore: A traditional bookstore with a physical location, relying on foot
traffic and in-store sales.
○ Manual Processes: Inventory management, sales tracking, and customer interactions are
primarily manual.

● Digital Transformation Steps:

○ E-commerce Platform:
■ Traditional Approach: Limited sales channels, relying on in-store purchases.
■ Digital Transformation: Launch an e-commerce platform to sell books online,
expanding the customer base beyond the physical location.
○ Inventory Management System:
■ Traditional Approach: Manual tracking of inventory levels, leading to stockouts
or overstock situations
■ Digital Transformation: Implement an inventory management system that
integrates with the e-commerce platform, providing real-time visibility into stock
levels, automated reordering, and preventing stockouts.
○ Customer Relationship Management (CRM):
■ Traditional Approach: Limited customer data and interactions tracked manually
■ Digital Transformation: Adopt a CRM system to collect and analyze customer
data, enabling personalized marketing, targeted promotions, and improved
customer relationships.
○ Online Marketing and Social Media:
■ Traditional Approach: Limited marketing to local audiences through traditional
methods
■ Digital Transformation: Utilize online marketing strategies, including social
media platforms, to reach a wider audience, promote book releases, and engage
with customers.
○ Mobile App:
■ Traditional Approach: No mobile presence.
 ■ Digital Transformation: Develop a mobile app that allows customers to browse,
purchase, and track orders easily. Implement features such as personalized
recommendations based on customer preferences.
○ Data Analytics for Business Insights:
■ Traditional Approach: Limited insights into customer behavior and sales trends
■ Digital Transformation: Use data analytics tools to analyze customer preferences,
track sales patterns, and make informed decisions about inventory, marketing
strategies, and promotions.
○ Online Customer Reviews and Feedback:
■ Traditional Approach: Limited customer feedback collected manually
■ Digital Transformation: Encourage and leverage online customer reviews and
feedback on the e-commerce platform, social media, and other review sites to
build trust and improve services.
○ Digital Loyalty Programs:
■ Traditional Approach: Paper-based loyalty cards.
■ Digital Transformation: Implement a digital loyalty program through the mobile
app or e-commerce platform, providing customers with personalized offers,
discounts, and incentives.

● Benefits of Digital Transformation:

○ Expanded Reach: The e-commerce platform and mobile app enable the bookstore to
reach a global audience, not limited by the physical location.
○ Improved Customer Engagement: Digital tools allow for personalized communication,
targeted promotions, and a better understanding of customer preferences.
○ Efficient Operations: Automation of inventory management, sales tracking, and other
processes leads to increased efficiency and reduced errors.
○ Data-Driven Decision-Making: Data analytics provides actionable insights, allowing the
bookstore to make informed decisions about inventory, marketing, and business strategy.
○ Enhanced Customer Experience: The mobile app, e-commerce platform, and digital
loyalty programs contribute to an improved and seamless customer experience.

Another Example:
Example: Employee Onboarding Automation

1. Manual Onboarding Process:

● Traditional Approach: HR teams manually handle paperwork, orientation sessions, and
communication with multiple departments.
● Challenges: Time-consuming, potential for errors, delays in getting new employees fully
operational.

2. Digital Transformation Steps:

a. Automated Onboarding Workflow:
● Manual Process: HR staff manually prepare and distribute onboarding documents.
● Transformation: Implement an automated onboarding workflow that includes electronic
document submission, digital forms, and automated task assignments for various
departments.

b. Electronic Document Management:

● Manual Process: Paper-based documentation requiring physical signatures.
 ● Transformation: Utilize a document management system for electronic storage, retrieval,
and signing of onboarding documents, reducing paperwork and improving document
tracking.

c. Automated Training Modules:

● Manual Process: Traditional training sessions conducted in person.
● Transformation: Develop e-learning modules accessible through a Learning Management
System (LMS) for self-paced, online training on company policies, procedures, and
compliance.

d. Task Automation for IT Setup:

● Manual Process: IT department manually sets up email accounts, access permissions, and
software installations.
● Transformation: Automate the IT setup process with predefined configurations triggered
by HR inputs, ensuring new employees have the necessary tools and access on day one.

e. Automated HR Notifications:
● Manual Process: HR manually communicates with various departments to notify them of new
hires.
● Transformation: Implement automated notifications to relevant departments about new hires,
ensuring a coordinated effort in preparing for the arrival of the new employee.

3. Benefits of Digital Transformation:

● Faster Onboarding: Automation reduces the time needed to complete onboarding processes,
allowing new employees to become productive more quickly.
● Reduced Errors: Electronic document management and automated workflows minimize the risk
of errors associated with manual data entry and documentation.
● Consistent Training: E-learning modules ensure consistent and standardized training for all
employees, regardless of location or time zone.
● Improved Employee Experience: Streamlined onboarding processes contribute to a positive
employee experience, enhancing retention and satisfaction.
● Efficient Resource Allocation: Automation allows HR teams to focus on strategic aspects of
onboarding, rather than repetitive administrative tasks.

In this example, the digital transformation of employee onboarding illustrates how automation enhances
the efficiency of HR processes, reduces manual effort, and contributes to a smoother and more engaging
experience for new employees. This approach can be applied across various industries, not just limited to
e-commerce businesses.

13. Overview of Traditional Business Automation:

● Identifying Manual Processes:

○ Manual Processes: Traditional businesses often have numerous manual processes, such as
data entry, document approvals, inventory tracking, and communication, that can be
time-consuming and prone to errors.
 ○ Automation Opportunity: Identify key areas where automation can replace or augment
manual tasks.

● Selecting Automation Tools:

○ Automation Tools: Choose appropriate automation tools and technologies that align with
the specific needs of the business. This may include workflow automation platforms,
document management systems, and communication tools.
○ Integration: Ensure that the selected tools can integrate seamlessly with existing systems
and processes.

● Workflow Automation:
○ Manual Process Example: Approving and processing purchase orders through a manual
workflow involving multiple approvals and handoffs.
○ Automation Solution: Implement a workflow automation system that allows for
electronic approval processes, notifications, and document tracking. This reduces
processing time and minimizes the risk of errors.

● Document Management:
○ Manual Process Example: Handling and storing physical documents, which can lead to
inefficiencies in retrieval and storage.
○ Automation Solution: Implement a digital document management system that enables
electronic document creation, storage, retrieval, and sharing. This improves accessibility
and reduces paperwork.

● Communication Automation:
○ Manual Process Example: Manual communication through emails or phone calls, leading
to delays and potential miscommunication.
○ Automation Solution: Use collaboration and communication tools to facilitate real-time
communication, document sharing, and project collaboration. This ensures quick and
efficient information exchange.

● Inventory Management:
○ Manual Process Example: Manual tracking of inventory levels, which may result in stock
outs or excess inventory.
○ Automation Solution: Implement an inventory management system that automates stock
tracking, reordering processes, and provides real-time visibility into inventory levels.
This minimizes stock-related issues and improves supply chain efficiency.

● Customer Relationship Management (CRM):

○ Manual Process Example: Managing customer interactions and data manually, leading to
limited insights into customer preferences.
○ Automation Solution: Adopt a CRM system that automates customer data management,
tracks interactions, and provides insights for personalized marketing and improved
customer relationships.

● Data Entry and Reporting:

○ Manual Process Example: Manually entering data into spreadsheets and generating
reports, which is time-consuming and error-prone.
 ○ Automation Solution: Utilize tools for data entry automation and reporting that can
integrate with various data sources, automate data collection, and generate real-time
reports.

● Employee Onboarding:
○ Manual Process Example: Manual onboarding processes involving paperwork, manual
data entry, and coordination between departments.
○ Automation Solution: Implement an automated onboarding system that streamlines the
process, including electronic document submission, task assignments, and training
module access.

❖ Benefits of Traditional Business Automation:

➢ Time and Cost Savings: Automation reduces the time spent on manual tasks, leading to
cost savings and increased productivity.
➢ Error Reduction: Automated processes minimize the risk of human errors associated with
manual tasks.
➢ Improved Accuracy: Automation ensures consistency and accuracy in data entry and
processing.
➢ Enhanced Efficiency: Automated workflows and systems streamline operations, resulting
in faster and more efficient processes.
➢ Better Decision-Making: Access to real-time data and analytics supports informed
decision-making.
➢ Employee Satisfaction: Automation of repetitive tasks allows employees to focus on
more strategic and fulfilling aspects of their roles.

Example: Invoice Processing Automation

● Manual Process:
○ Traditional Approach: Manual entry of invoice details, validation, and approval through
physical paperwork.
○ Challenges: Time-consuming, prone to errors, delays in approval, and difficulties in
tracking invoice status.
● Automation Solution:
○ Implementation: Adopt an invoice processing automation system.
○ Benefits: Automated data extraction, validation against predefined rules, electronic
approvals, and real-time tracking of invoice status. Reduces processing time, minimizes
errors, and accelerates payment cycles.

In this example, automation streamlines the invoice processing workflow, reducing the need for manual
intervention, improving accuracy, and speeding up the overall process.

Note: The specific tools and technologies used for automation will depend on the nature of the business
and its processes. Businesses should carefully evaluate their requirements and choose solutions that best
fit their needs.

14. Managing Business processes for Digital Transformation

Managing business processes for digital transformation involves rethinking and optimizing workflows to
leverage digital technologies for improved efficiency, agility, and competitiveness.
 ❖ Overview:
➢ Process Mapping:
■ Traditional Approach: Manual or outdated processes that may not be
well-documented.
■ Digital Transformation: Begin by mapping out existing processes to identify
bottlenecks, redundancies, and areas for improvement.
➢ Identifying Key Processes for Transformation:
■ Traditional Approach: All processes may not need immediate transformation
■ Digital Transformation: Prioritize processes that are critical to the business,
customer-centric, or have high impact when improved.
➢ Defining Clear Objectives:
■ Traditional Approach: Lack of clear goals for process improvement.
■ Digital Transformation: Clearly define objectives such as reducing processing
time, improving customer satisfaction, or increasing operational efficiency.
➢ Leveraging Technology:
■ Traditional Approach: Reliance on manual methods or outdated systems.
■ Digital Transformation: Integrate advanced technologies such as AI, machine
learning, IoT, or cloud computing to automate and enhance processes.
➢ Customer-Centric Approach:
■ Traditional Approach: Processes may not be optimized for a seamless customer
experience.
■ Digital Transformation: Prioritize customer-centric processes to improve
engagement, personalization, and overall satisfaction.
➢ Agile and Iterative Improvement:
■ Traditional Approach: Long cycles for process improvement.
■ Digital Transformation: Adopt an agile approach, allowing for continuous
improvement through iterative cycles, quick feedback, and adjustments.
➢ Employee Training and Collaboration:
■ Traditional Approach: Limited training or collaboration on process
improvements.
■ Digital Transformation: Provide training on new technologies and foster
collaboration among teams to adapt to digital changes.
➢ Data-Driven Decision-Making:
■ Traditional Approach: Limited access to real-time data for decision-making.
■ Digital Transformation: Implement analytics tools to gather and analyze data,
supporting data-driven decision-making for process optimization.

Example: Digital Transformation of Supply Chain Management

1. Traditional Supply Chain Process:

● Manual Processes: Order processing, inventory management, and logistics coordination are
manual and time-consuming.
● Challenges: Delays, inaccuracies, and lack of real-time visibility into the supply chain.
2. Digital Transformation Steps:
a. Automated Order Processing:
● Traditional Approach: Manual order entry and processing.
 ● Transformation: Implement an automated order processing system that integrates with
sales channels, automates order fulfillment, and provides real-time order tracking.

b. IoT-enabled Inventory Management:

● Traditional Approach: Periodic manual checks for inventory levels.
● Transformation: Use IoT devices to track inventory in real-time, automate reordering
processes, and optimize stock levels based on demand.

c. Predictive Analytics for Demand Forecasting:

● Traditional Approach: Limited visibility into future demand.
● Transformation: Utilize predictive analytics to analyze historical data, market trends, and
external factors for accurate demand forecasting, optimizing inventory planning.

d. Blockchain for Transparent Transactions:

● Traditional Approach: Manual paperwork for transactions and record-keeping.
● Transformation: Implement blockchain for secure and transparent transactions across the
supply chain, reducing errors, fraud, and improving traceability.

e. AI-Driven Logistics Optimization:

● Traditional Approach: Manual coordination of logistics and transportation.
● Transformation: Use AI algorithms to optimize logistics routes, reduce shipping costs,
and enhance overall supply chain efficiency.

3. Benefits of Digital Transformation:

● Efficient Order Fulfillment: Automated order processing leads to faster and more accurate order
fulfillment.
● Real-Time Visibility: IoT and analytics provide real-time visibility into inventory levels and
demand, enabling proactive decision-making.
● Transparent Transactions: Blockchain ensures transparency and security in transactions, reducing
the risk of errors or fraud.
● Optimized Logistics: AI-driven logistics optimization leads to cost savings and improved delivery
times.

In this example, the digital transformation of supply chain management involves leveraging technologies
to streamline processes, improve efficiency, and provide a more responsive and customer-centric supply
chain.