One of the focus areas of CXOs today is speedy adoption of new technologies (RPA, AI, Machine Learning, intelligent automation etc.). On one side, they have to Invest in these technologies, and at the same time, they have to focus upon cost-reduction. Adding to the challenge is that few software vendors can truly promise that AI will give them X% benefits within the first quarter of deployment. In many cases, they do not have either the processes or the systems in place to quickly demand (ROI)returns from their investments in these fields. Hence, comes the element of RISK appetite for the people in the leadership.
Why is Automation Necessary?
Creating Competitive Workforce
There is a lot of mundane, repetitive work in enterprises, which is currently carried out by humans. For e.g. cleaning of disks space, eye-ball monitoring of screens for issues, installing common software in desktops/laptops etc. These activities do not require any intelligence & personally, I feel that doing this work is a very restricted use of the education, which these people have received. In addition, I find that, after interaction with some of my friends in such situation, they mostly talk about switching company because of no career progression.
Therefore, in this case, automating such processes, which are typically L0/L1, is only going to benefit every stakeholder. For e.g. now my “correctly” complaining friends can use their time in learning new skills and controlling their career progression.
With the acquisition of new skills-set, now, they can at least think of rising quickly in the hierarchy (than their earlier case). So now, we have a workforce, which is skilled, solves challenging problems and mentally satisfied (finally they are utilizing their time). Many people will not be able to align themselves with this idea and will find themselves redundant and irrelevant. These people form the basis for my third point.
Improving Efficiency of Processes
I think we all agree on this point. Intelligent software do not sleep, do not question-follow rules, do not take break, give consistent resolution, are faster etc. If we have to compare the performance of machines and humans for the same process, ceteris paribus, the efficiency of intelligent software is better. The soft benefits are of using intelligent software is immense.
Cost Optimization
In my opinion, employees should be given freedom to experiment with ideas & concepts & encouraged to suggest & design new ways to solve problems in order for the enterprises to grow in today’s VUCA world. This necessitates providing continuous learning opportunities to employees by the enterprises. The more the employees are able to up-skills themselves, the better it is for the whole enterprise.
However, the sad truth is that, many organizations are still conservative in their approach towards adopting new things. Employees are skeptical on taking risks and bringing change in their day-to-day approach to tackle problems. They still find the one way, which worked once, to be the golden rule to make that thing work repeatedly. Hence, enterprise stubbornness becomes norm & professional growth starts to stagnate.
This brings me back to my first point. In my opinion, it is better to let go of people who are not adding value to the enterprise, than to bleed by taking care of them.
Additional benefits, from a vendor or a service provider stand point, of letting go of these people is that the operating margins starts increasing. The logic for this is simple. Vendors are still getting paid for the outsourced activities they were carrying (with human employees), but now, instead of humans, they have intelligent software doing it. So, all the salary which was to be paid, gets added to the bottom line of the vendor.
Answering the Ethical question
This is where automation becomes a Necessary Evil. Given the pros, any CXOs, who fall in the innovators group, will be willing to adopt automation (thereby downsizing) to cut costs. However, the cos is that the very people who worked hard for the enterprise to grow, who stood with the enterprise during recession and during other market uncertain situations, may be shown the pink slips. Hence, it is important to give the employees chance to either up-skill or cross-skill so that they continue to add value to the enterprise.
Employees should remember that there are No Free Lunches, but, at the same time, enterprises should remember that, the employees who helped it to reach today’s heights are its Biggest Assets.
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