Every day, we hear promises like:
“We’ll boost your productivity by 10x!”
“We’ll completely transform your company!”
These claims are often delivered in the name of automation and digitalisation. But as an organisation, we must stay grounded—whether the advice comes from a tech vendor or a consultancy firm—because no one understands our processes and people better than we do. And yes, people matter, because automation is ultimately about change management (a topic for another post).
What comes to mind when you think of automation or digitalisation?
Is it an image of machines or futuristic dashboards?
Let’s start with some clarity through basic definitions:
Automation:
“The use or introduction of automatic equipment in a manufacturing or other process or facility.”
Digitalisation:
“The adaptation of a system, process, etc., to be operated using computers and the internet.”
Hype vs Reality:
Just being aware of buzzwords like Agentic AI, RPA, LLM, AI/ML, Industry 4.0, or IoT won’t move the needle. These sound impressive in boardroom presentations but often create more FOMO than actual impact.
First Step: Understand Your “As-Is” Process
Every automation or digitalisation journey must begin with a deep dive into your current state:
- Map out high-level and detailed process activities.
- Separate manual steps from system-driven steps.
- Apply SIPOC (Supplier, Input, Process, Output, Customer).
- Identify non–value-adding steps.
- Design your To-Be process after removing inefficiencies and then look at automation opportunities.
Example: Bank Reconciliation
Let’s take a simple and familiar process: Bank Reconciliation.
Company A’s Approach:
They developed an RPA bot to:
Automatically download bank statements from the bank portal. Pull bank books from SAP. Run Excel macros to reconcile 100+ banks automatically.
Result?
Saved 30+ man-days and lakhs of rupees. Sounds great, right?
But here’s the reality:
This is still a manual process at its core. The company simply replaced a human with a machine—without eliminating the non–value-adding steps.
A Smarter Approach:
If you’re using SAP or another robust ERP system, consider Host-to-Host (H2H) banking integrations.
- Payments are processed directly within ERP and pushed to bank portals for approval.
- Banks send MT940 statements daily, which auto-reconcile with ERP entries using unique transaction IDs.
- Results in real automation—no human involvement, better security, and faster processing.
Benefits:
- No manual downloads or uploads.
- Drastically reduced reconciliation time.
- Better access control and recordkeeping.
- Significantly reduced error risk.
Cost-Benefit Analysis is Key
Technology alone doesn’t drive business success—businesses must drive the adoption of the right technologies.
Use financial models like IRR, NPV, and payback period to evaluate automation investments. I’ve seen many operation & IT teams lead automation projects without finance involvement—and that’s a big red flag. If a project doesn’t improve ROI or the bottom line, what’s the point?
In Conclusion
Right automation and digitalisation don’t just reduce costs—they:
- Improve revenue Reduce compliance risks
- Enhance customer experience
- Accelerate product development
- Strengthen brand value
What’s your take on automation and digitalisation?
Let’s decode the buzzwords and create real impact—together.
