What Is Business Process Automation?

What Is Business Process Automation?

Business Process Automation (BPA) – To understand what business process automation means, we have to first understand what is meant by “business processes”. Business processes refer to all the complex day-to-day activities and tasks carried out within a business that helps the business achieve their objective (aim or goals). Some examples of business processes are employee onboarding, attendance, and payroll of employees, contract management, etc.

Business Process Automation is the automation or mechanization of these complex business processes using technology. Business Process Automation is usually required for repeatable business activities. For example, employee attendance is a business activity that is repeated every day. Business Process Automation makes this business activity (employee attendance) more streamlined and efficient. Thus, Business Process Automation can simplify complex business processes by ditching manual work with automation and technology.

Business processes such as employee attendance, employee payroll, contract management, and employee onboarding require consistency and accuracy. Business Process Automation can make the process error-free, accurate and consistent. As a result, businesses apply the “business process automation” strategy to get these complex activities done as it helps not only accelerate the entire process but also helps get things done without any error.

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Some of the advantages of using “business process automation” software are listed below:

  • It is cost-efficient.
  • It makes the entire business process simple, streamlined, and error-proof.
  • It is time-saving.
  • It improves the service quality of the business.
  • BPA can also help achieve data transparency.
  • It improves the overall operational efficiency of the business.

Let us understand Business Process Automation through an example. Suppose the attendance of employees of a particular company or business is taken manually. In other words, the attendance of employees is reported in an attendance register by a person at the entrance gate. Many problems would arise if the attendance of the employees is taken manually. Some of the problems are listed below:

  • There would be disputes about “Time-in” and “Time-Out” between the employee and the person responsible for reporting the attendance of the employees in the attendance register.
  • Heated arguments can take place over this. As a result, a negative work atmosphere will be created.
  • Employees could cheat by overwriting in the attendance register.
  • This would result in more arguments and as a result, there would be a delay in payroll processing.
  • If there is a delay in payroll processing, there would be a delay in salary payment.
  • If there is a delay in salary payment, the employees can file a “non-compliance of statutes” case against their employers in labor court.
  • The employers would then have to pay the penalty.

As we can see, using a manual attendance report can be a slippery slope as so many things can go wrong and the business will ultimately fail to operate efficiently.

Business Process Automation minimizes these problems in the following ways

  • Instead of using a person to report employee attendance in the attendance register, install machines at the entrance gate
  • Provide a smart card to all the employees.
  • The employees would be allowed to enter the factory only through a smart card.
  • When the employee punches the smart card in the machine at the gate, the machine will capture the accurate time. There would be no heated arguments and there would be no overwriting.
  • The machine will send the information to the official server where the accurate data will be recorded and saved for future reference.
  • Attendance reports of employees will be generated automatically through the software.
  • No delay in payroll processing and salary payment.
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