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Achieving Cost Efficiencies through Service Automation
Service XRG, June 2007, Pages: 30
The pursuit of optimal cost efficiencies is a fundamental driver for process improvement and technology adoption across all industry sectors. Process improvement can optimize the use and allocation of resources, but has limits in the ability to achieve maximum cost efficiencies. Technology adoption on the other hand offers the potential to dramatically lower costs through automation of product production and service delivery therefore reducing the need for costly labour. Automation generally refers to the operation or control of a process or system without the direct involvement of a human. In the manufacturing industry automation conjures images of robots on an assembly line building cars. The banking industry has also adopted a form of automation to replace tellers through ATMs and on-line banking applications.
The success of automation in these situations is due to the fact that the functions to be performed by machines are well defined, highly structured and limited in the scope of activities performed. Not all production and service delivery activities are conducive to automation due to complexity and variability issues. Activities that are staffed by people are often complex and/or variable in nature. The potential for significant cost efficiencies exist within business processes that are labour intensive such as technical support and customer service.
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