Business process automation - improve your company's operations!

What is Business Process Automation (BPA)?

Let's start with the basics, that is, with the definition of process automation — surely many times when browsing business websites or reading industry articles on Linkedin you have come across the acronym BPA. It was created from the words Business Process Automation and is a term for all the improvements that we implement in companies in order to automate and thus speed up the execution of daily tasks — such as filling out documents or sending emails. This is possible thanks to the implementation of automation systems, which are nothing more than a program that performs digitized (that is, performed using a computer) work for us. Such systems are created by specialists in the field of process automation (who are mostly programmers).

The simplest, exemplary process automation

Automation is best explained with examples — imagine that you work in the administration and finance department of a medium-sized enterprise. Among other things, your daily tasks include archiving and describing all cost invoices. To do this, you download the documents that flow to the mailbox every day, and then place them on the company disk, giving it the appropriate name. In addition, once a month you log in to all the programs that your company uses and also download the invoices issued from them. At the end of the billing period, it may happen anyway that one of the employees forgets to send you the accounting document, so just in case, you contact everyone to avoid such a situation. Along with describing documents, the process of archiving them takes you up to 30 hours per month. The larger the company you work for, the more time you have to spend on document flow — in most companies, even more than one person takes care of it. But why? Automation systems can do it all for you! Invoices from the box can be downloaded automatically, company programs can send documents to the database without having to log in to them, and all employees can receive automatic e-mail notifications with a form with which they will send an invoice. Finally, the automation will describe and name each file accordingly based on the structure you define by taking information from the document (thanks to optical character recognition technology). Sounds simple, doesn't it? Basic automation is simple - we will write about more advanced systems for handling complex business processes later in this article.

Below you will find a graphic that visualizes the automation of financial processes described earlier:

Learn about the types of automation!

After reading the previous paragraphs, do you think you already know more or less what automation is? Well, be careful, because in the world of automation there are pitfalls waiting for us. In addition to BPA, we also have RPA and IPA... for most entrepreneurs, this first acronym is the most important, but to clarify the subject a little for you, below you will also find the definition of these two subsequent expressions.

Robotization of business processes

Is business process automation the same as business process robotization? The term Robotic Process Automation (RPA) can refer to two or even three different areas — and this is also a source of confusion. On the one hand, RPA has traditionally been associated with industry, i.e. with the robotization of production processes, where machines such as robotic arms replace humans in performing repetitive tasks on assembly lines. These physical robots operate with high precision, speed and endurance, performing tasks such as welding, packaging or assembly.

On the other hand, in the office and digital world, the robotization of processes can mean something completely different. Some specialists define business process automation as such, which uses various types of bots or web scrapers. They are not physical machines, but a type of software that performs routine, repetitive tasks for the user, simulating human actions at the computer. Such a bot performs tasks exactly as an employee would — that is, by clicking, typing and navigating the graphical interface of the application. It does not use any internal integrations or APIs, it only opens programs, fills in forms, logs in through login screens, copying data from one place to another. This is the key difference between Robotic Process Automation (RPA) and automation tools such as n8n or Zapier, which implement automation through API (Application Programming Interface) connections. They do not “click”, but transfer data between systems without the participation of the graphical interface. RPA works where the API does not exist or is too expensive to implement, such as in legacy desktop applications. However, the implementation of RPA process automation has its drawbacks — if the graphical interface of the application we automate changes, the automation may stop working in the way we intended. This is because the robot simulates human movements. This type of automation can also generate performance problems especially for processes that require thousands of operations, because the data from the graphical interface has to be interpreted and we do not have the control over it as when uploading an API.

There are also cases when a process automation specialist calls typical automation using APIs and automation tools just by the term RPA. Actually, in most articles, these names are used interchangeably as synonyms. For the sake of clarity, we will only use the name BPA in our text, so as not to introduce unnecessary confusion.

Intelligent Process Automation (IPA)

IPA is the latest type of automation that has appeared in the business world along with the development of artificial intelligence. The so-called intelligent process automation (IPA) is nothing more than the use of AI (artificial intelligence) in automation systems. Unlike traditional BPA, which only performs strictly programmed, repetitive tasks (in principle, if A happen, then execute B — e.g. you received an invoice email, so download the file), IPA can “think” and make decisions based on data. This technology allows you to combine automation with elements of machine learning, natural language processing (NLP), image recognition and predictive analytics. Thanks to this, artificial intelligence can, for example, read unstructured data from emails, interpret the content of documents, recognize user intentions or suggest next steps in the business process. Automation improvements using artificial intelligence are simply called AI business process automation. The development of intelligent process automation also allows us to create AI systems that are called AI agents. You can read about this type of automation in our article: https://www.sagiton.pl/en/blog/what-are-ai-agents

Areas where it is possible to implement process automation

As we wrote in the previous paragraphs, we implement automation in digitized processes, that is, those that are performed using a computer or phone. That's why we often recommend digitization to our customers before we start automating processes — what can that look like? As an example, let's take the administration department again. Suppose that such a team of specialists engaged in the preparation and issuance of contracts with employees, each time prints these documents in order to collect the appropriate signatures in paper form. Digitization of this activity can consist in transferring even the entire process to computer programs and the implementation of electronic document flow (even with an electronic signature). Thanks to this, we automate almost all activities and provide our customers with full optimization of the process — it is also possible to automate it partially, e.g. until the contract is printed, but then the implementation effects will obviously be less.

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So, you already know what type of processes we can automate, and below you will find a list of areas where such implementations are most popular:

Automation of administrative processes

In the area of administration, it is possible today to automate almost all activities, from the most routine to more complex and complex business processes. Sending emails and reminders to counterparties, generating contracts or annexes, electronic document flow and checking counterparty data in external systems can take place completely automatically. However, if there is no complete trust in the operation of automation in the organization, we can design a management system in which a person finally approves each step before the document or information goes further. Thanks to this, it is possible to improve business processes without losing control and information security in your company.

Automation of financial processes

In the area of finance, automation is of particular importance, as it allows you to eliminate human errors associated with rewriting a large amount of information, speed up document accounting, and better control cash flows. With the right tools, you can, for example, automatically process invoices, reconcile data from banking systems and automate processes related to budget management in real time. Automation of management processes in finance allows you to better use historical and predictive data for expense planning and risk analysis. Such automated financial dashboards are a key step towards optimizing processes and building a modern, error-proof financial environment.

“Research shows that 74% of organizations using BPA have seen significant improvements in productivity and cost savings. It's no longer just a tool for large corporations; companies of all sizes are leveraging automation to stay competitive.” source: Provalet.io

HR Workflow Automation

In the human resources department, we automate processes such as recruitment, onboarding of employees, processing of leave requests or periodic evaluations. In the case of recruitment, the so-called Intelligent Process Automation (IPA) with the use of artificial intelligence allows you to speed up tasks that at first glance seem impossible to automate - for example, analyzing resumes or conducting correspondence with candidates. This approach significantly improves the management of business processes in the personnel area, allowing the HR department to focus on strategic activities (e.g. conducting interviews with candidates), rather than repetitive ones. A well-implemented HR workflow automation optimizes even the most complex business processes.

Automation of customer service and customer relationship management (CRM) systems

In the area of customer relationship management, automation has a huge impact on the quality of service and the effectiveness of sales activities. With the help of BPA, it is possible to automatically respond to queries, personalize communication and analyze contact history without the participation of employees. There is also a lot of automation that we can implement into existing customer relationship management (CRM) systems. With these enhancements, we ensure consistency and responsiveness to our customers, while reducing operational costs for customer service and sales. Automated CRM, not only can be integrated with all other tools in the company to speed up work, but also makes it easier to identify customer needs. Artificial intelligence can tell salespeople or customer service staff what actions to take to ensure a high level of satisfaction. This is an example of process optimization, which translates directly into an increase in customer satisfaction and loyalty.

Automation of bidding

The bidding process, often extensive and multi-stage, can also be effectively automated. An automated bid management system reduces waiting times and eliminates the risk of errors due to manual data copying. What might that look like? After the customer contacts the sales department, the CRM will automatically create a lead with the data needed for the quote. The relationship management system will assign an available trader, and data from forms, emails or phone calls will be automatically processed and saved. After that, the quote generator will check the completeness of the information, make calculations and, if necessary, forward them to the technical department for verification. After approval, a ready-made offer will be created, which the trader will review and automatically, with one button, send to the client. Such automation not only promotes better organization of the work of sales teams and faster response to customer inquiries, but also supports the improvement of business processes by collecting data and analyzing the effectiveness of offers.

How much is the cost of implementing process automation and what does it depend on?

Business process automation (BPA) is a very popular topic lately, so it is not surprising that more and more automation companies or individual process automation specialists appear on the market. Note, however, that only some entrepreneurs share the price of automation services on their websites. Is this some kind of conspiracy in this industry? Nothing more wrong — dedicated automation simply cannot be priced (or at least it is very difficult and often inaccurate) without receiving even basic information from a potential customer. At one time, as Sagiton Automation, we had an illustrative price list on our website, but it quickly turned out that it often misled users. We also tested the so-called automation profitability calculator, thanks to which our potential customers could calculate the cost and ROI of implementing process automation — we also gave up this idea. Why? And it is precisely because when valuing automation it is necessary to know a series of factors, and these factors are:

1. Status of processes to be automated

At the beginning, it must be determined whether the processes are already well mapped, described and digitized. If not, it will be necessary to organize them, which may entail additional costs for analysis, documentation and preparation for automation. If you choose the service of implementing process automation in a so-called automation agency, the mapping of processes should be presented as part of the offer.

Business process mapping is an essential part of any automation implementation, as automating inappropriate processes instead of benefiting you can only generate high costs:

“The first rule of any technology used in business is that automation applied to an efficient operation will increase efficiency. The second is that automation applied to an inefficient operation will increase inefficiency.” Bill Gates, “Business the Speed of Thought”

2. The type of business tools used by the company

Which systems the automation should work with (e.g. CRM, ERP, spreadsheets, financial systems) influences the choice of technology and the extent of integrations needed to be performed. Some tools have an open API and are easy to integrate, others require more complex solutions, such as the South Africa we mentioned earlier. Sometimes it may turn out that the tool you use, for example, for billing purposes, is practically impossible to automate or integrate with other programs. In such cases, it is most often recommended to change the system to one that is more compatible with others.

3. Level of complexity of processes

The more steps, conditions and exceptions in the process, the more advanced the solution must be. This, in turn, affects both the lead time and the cost of automation tools that will be able to handle complex business processes. Therefore, it is best that the company that will be engaged in the automation of processes in your firm, before starting work, has the opportunity to thoroughly know all the internal procedures that it will optimize. You can read more about how the preparation and implementation of automation is carried out in the next part of the article.

4. Number of people involved in the process

Automating processes involving multiple people or departments requires precise information flow management and accountability. The more participants, the greater the need to create a well-thought-out system for monitoring business processes and their automation. Additionally, you should take into account that some automation tools charge based on the number of actions performed (e.g. Zapier) or the number of users (e.g. Airtable). Therefore, even if you do not pay more for the implementation of automation if you have many employees, the price for managing and maintaining automated processes can increase directly in proportion to the size of your company.

Now you know that if the automation agency does not give you the price after the first meeting, it is not because the seller is not interested in cooperation or is hiding something from you. The automation pricing process is quite complicated and it is not always possible to complete it after a dozen minutes of talking with the client. If a process automation specialist immediately gives you the price of implementation, then he probably wants to sell you an already finished system or did not perform a thorough analysis, which can result in the implementation of process automation that will actually be unprofitable.

To make it easier for customers to make decisions about implementing process automation, companies often use the price ranges we mentioned earlier. At Sagiton, we establish them and update them on a regular basis based on historical implementations with our customers. That is, if the automation of the financial process for one client cost 3 thousand eruos, and for the other 9, it is possible that the first quote you will receive from us will start from 3 thousand. However, this does not mean that this will be the final cost of automation — a deeper analysis is needed for such a valuation. Below you will find our price list of sample automation:

What is the process of implementing automation, or at least what should it look like?

The improvement of business processes should not be accidental or too hasty - well-planned stages of automation implementation allow you to minimize the risk of automating inappropriate processes, optimize the budget spent to the maximum, and achieve real operational savings. An automation company should approach this task strategically, based on an in-depth analysis of your processes and close cooperation with your team. An essential element is to understand the specifics of automated business processes, their goals, and technological and organizational limitations.

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The whole process should be transparent, based on clear stages. Below we present how the process of implementing automation step by step should look like:

1. Initial consultation — identification of needs and problems

This is the first stage of business conversations that allows the automation agency to initially understand your needs. At this stage, the business analyst should ask you key questions about the problems in the processes and assess whether their automation is possible at all and, if so, whether it can bring you real benefits. During such a consultation, you can also receive general information about the methodology of process automation, automation costs or sample price lists from your industry - the so-called price ranges.

2. Technical consultation — preliminary analysis of processes

A deeper analysis, in which not only a business analyst, but also a technical expert is already involved. The goal is to understand the details of the processes that will potentially be automated. If the process you want to automate is not very complicated, the automation agency can give you the final price of the implementation already at this stage of the talks.

3. Design workshop or process audit

Design workshops, usually lasting one day (remotely or on site), are a key preparatory stage, without which a decision on the implementation of automation should not be made. Their main goal is to create a coherent automation strategy — a document that allows the client to understand what business problem we are solving, whether automation pays off, how quickly we will see the effect and what specific business processes are worth automating.

During the workshop, experts, together with your team, will carry out a mapping of business processes — a thorough analysis of how key operational activities are going today, who is responsible for them and where the so-called “bottlenecks” occur. For selected processes, it is necessary to estimate the costs of their manual execution, which makes it possible to realistically assess the potential return on investment (ROI).

In the next step, the automation agency should choose the most adequate technologies. Simultaneously analyzing the potential risks of implementation and organizational factors, such as the level of acceptance of the team for changes or interdepartmental relationships. Finally, it is best to define the so-called MVP (minimum viable product) — that is, the smallest part of the process that is worth automating in the first step, so that your company can see the effects of automation as quickly as possible and test the solution in practice. A well-conducted workshop will not only organize your knowledge of the processes, but will also allow you to make a decision based on data — not intuition.

4. Decision to undertake further cooperation and start implementing Business Process Automation (BPA)

At the end of the design workshop, your company should receive a detailed automation strategy — a document that includes a mapping of business processes, an assessment of profitability, identification of risks and a proposal of specific technologies. Based on this, you will make an informed decision whether you want to proceed to the implementation stage and, if so, to what extent.

If you decide to take the next step, the project will usually begin with the implementation of the simplest version of automation, which will allow you to quickly test the solution in practice and see the first results. With process automation in just a few weeks, you can see real time savings, reduce errors and relieve your team of repetitive tasks.

During the implementation of the project, the automation agency should also take care of adequate monitoring of business processes and respond to potential errors on an ongoing basis. You may also already receive a portion of access to tools that will help you manage automated processes.

What to look for when implementing business process automation with an automation agency?

When choosing an automation agency, it is worth paying attention not only to its offer, but above all to real activities and experience. Check if the agency has documented case studies, has worked with clients of a similar profile and whether it uses the solutions it offers. It is crucial that the partner has experience in business process mapping — this is the foundation for implementations that improve business processes. Ask a potential supplier if automation can be implemented gradually, good agencies propose an iterative approach that allows you to get results quickly and reduce risks. Verify customer feedback, such as on Clutch, and whether the agency engages in educational activities, wins industry awards or develops its own products.

In conclusion, how can business process automation (BPA) help your business?

Business process automation is one of the most effective tools for increasing operational efficiency in a company. With it, you will reduce the number of errors, speed up the execution of tasks and relieve your team of time-consuming, repetitive tasks. BPA will allow you to not only reduce costs, but also make better use of company resources and focus on activities that actually generate market value. Automation also means greater predictability and the ability to easily scale processes as your business grows. In addition, well-implemented automation improves the quality of customer service, streamlines the flow of information and increases control over key areas of business. Importantly, you don't have to automate everything at once, remember that you can start with one process and develop the implementation gradually, exactly where it makes the most sense. BPA is not just a technology, but a strategic approach to running a modern business.