Many people believe that automation and optimization are one and the same, but that's not true.
OptimizationOptimization is the process of improving an existing workflow to enhance its efficiency. During optimization, each stage of the process is analyzed, redundant steps are identified, and eliminated. The focus of optimization is on increasing productivity and eliminating waste.
The goal of optimization is to improve efficiency, save resources (time, money, materials), and boost productivity. Optimization strives to make the best use of available resources.
Example:Company "X" conducted an analysis of its operations and found that the time spent processing client orders was too great due to excessive approval stages. They concluded that they needed to completely restructure the order processing procedure to reduce costs and improve the customer experience.
The main objective of automation is to make processes more efficient and less dependent on human intervention, which can help increase task execution speed and lower error risk.Same example, but with automation:After analyzing the client order processing, Company "X" decided to cut down on the time wasted during purchase approvals and opted to implement specialized software for order management.
Now, when a customer places an order through the company's website, the system automatically:
- Registers the order and creates an electronic notification for the relevant department.
- Checks the availability of goods in stock.
- Places an order for supply if there aren't enough items in stock.
- Sends a notification to the customer about the order status and estimated delivery date.
This allows Company "X" to significantly reduce the time previously spent on manual order management, decrease the likelihood of errors, and improve order accuracy. Additionally, the company can easily monitor and analyze order data, helping in making strategic decisions and enhancing customer service.