10 Effects of Automation on Small Medium Enterprises

Small and Medium Enterprises (SMEs) play an important role in the inclusive growth of a country. Such institutions strengthen the industrial and economic development of an economy. But this sector of businesses face innumerable challenges, for instance

  • unskilled workforce
  • low-scale operation
  • use of outdated machines
  • complex supply chain
  • inefficient working capital
  • inappropriate strategies and planning
  • lack of focused decision-making

The matter of the fact is, be it small or medium enterprise, it is tough for any business to grow beyond a certain level, especially if they continue to operate their business’ functions manually. And, in such an event, automation can be a savior.

Workflow

SMEs in different economies of the world are now resorting to the power of automation that can help them in streamlining and regulating everyday business processes. There are innumerable automation solutions available these days and one of the leading among them is Value Creation Automation (VCA). It is designed to give an advanced technological power through a holistic approach, this is what gives VCA an edge over other various automation solutions available in the market.

VCA is a complete solution, which automates processes and helps small and medium sized enterprises perform efficiently to produce optimum results. Mentioned below are 10 of the most important effects automation has on SMEs and how it can help in growth:

1. Streamline Business Processes

The foremost benefit of VCA is no more dependency on manual tasks. To know more, business processes are sequences of activities or tasks that help in achieving organizational goals. Automation of such activities enables streamlining of processes, that further result in efficient regulation and management.In addition, VCA also ensures equal distribution of work among the organizational workforce and can facilitate managers and owners of the SMEs in improved decision-making.

2. Efficient Communication Channel

VCA eliminates any gap in the enterprises’ communication channel. With automation, small and medium enterprises can have a well-structured and transparent communication channel. Value Creation Automation (VCA) consists of a visual dashboard that facilitates all stakeholders according to their designated roles.

Efficient Communication Channel

3. Reduces Cost of Operation

One of the major problems faced by the small and medium enterprises are the high-costs of operation. VCA can play a key role in defining the complete operation process along with fixed and variable costs. The system automates operations and eliminates non-value adding tasks involved in the process. VCA not only helps in reducing the unnecessary operational costs, but also saves wastage of time significantly. All resources are dedicated towards achieving business goals within budget.

4. Automates Supply Management

Managing supply chain in Small and Medium Enterprises (SMEs) can always be a complex task to do. VCA automates the supply management and makes it simple. It keeps a check on the customer’s demand-drive and can automate the product/service supply accordingly. VCA eliminates delay in the process and makes the supply chain efficient.

5. Offer Better Solutions to Complexities

One of the key challenges in the Small and Medium Enterprises is managing human resources. The processes are when automated with VCA, it not only helps SMEs in the implementation of effective decisions but also gives them the ability to solve complex HR problems with ease. VCA guides you through automated processes and takes care of almost entire business functioning such as Cost, budget, HR, operations, supply and delivery and many more.

6. Eliminates Bottleneck and Saves Time

Time is money in any business. Small and medium enterprises uses obsolete technologies that can perhaps help them grow but not in the long run. For the SMEs to grow, it is paramount that the tasks are completed on time and the product or service delivery is done without any delay. It eliminates all sorts of the bottlenecks from all processes and set the platform for smooth workflow.

7. Increased Customer Satisfaction

Automating business processes with VCA can create value to the SMEs. In other words, when the production is completed within the allocated time and cost, it further leads to the timely delivery of product and services to the customers. Having delivered consistent performance over a period of time, the enterprises create market value which results in optimum customer satisfaction.

8. Tackle Competition

With the increasing competition in the market worldwide, possibilities are there that small and medium enterprises using conventional style of functioning drop out of the corporate race. In the current scenario, businesses of all sizes are embracing automation that simplifies the processes and smoothens the workflow. With the advanced technological solution through VCA, the development possibilities are also automated. In other words, VCA is designed with an in-built mechanism that upgrades business module according to the development needs without causing any downtime.

9. Automates Measurement & Analysis

The automated business processes through VCA helps in improved understanding of the organization’s functioning. VCA automates the measurement and analysis of performance at every different stages involved. It keeps record of proposals, drafts, time, people involved that can prove helpful for future references. With this, the enterprises will be able to know what time is being taken by a process or stage to complete the task. The VCA’s automated measurement and analysis can therefore be helpful in critical decision making.

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