Greater efficiency through automation

The most important reason for automation is greater efficiency - and therefore primarily an economic reason. When it comes to automation, many people first think of robots and fully automated production lines that spit out completely finished products at the end. Or logistics robots that can move goods from one place to another automatically and without human intervention. However, this is only one part of automation. In our data-driven world, many data processes are also automated in the background, which is no less important than the physical part of automation. In principle, it is about automating processes with a repetitive pattern. Whether it's welding two metal parts together, transporting parcels from A to B or processing data automatically, it doesn't matter in principle. An important component of automation in companies is the automation of data processes that take place within the data warehouse.

Amazon, for example, is a pioneer in the use of new technologies and has been using robots to move goods around its warehouses for some time. In addition, since the beginning of this year, the technology giant has been testing the accuracy of its algorithms in its almost staff-free Amazon Go supermarkets in Seattle, which have been developed through years of tracking customer behavior to predict exactly what customers want and how much they would pay for it. These are all automation projects that are largely based on data that has been processed in automated processes. It is to be expected that the Seattle-based retail giant will develop this new technology into a major competitive advantage in order to become a force not only in online commerce but also in retail.

Rob Mellor is Vice President and General Manager EMEA at Where-Scape. © WhereScape

There is no real debate among experts as to whether automation will continue to increase. And since automation can increase efficiency fivefold in some areas, there is no question that companies need to automate in order not to fall behind their competitors. This applies equally to the manufacturing industry and the service sector.

Effects of automation on the labor market

There is no doubt that automation also has an impact on the labor market. However, Amazon claims that it creates jobs, not destroys them. Where repetitive work tasks are associated with excessive time and therefore inefficiency, these tasks become perfect candidates for automation. In fact, a recent survey conducted in India by Willis Towers Watson found that 60 percent of employers believe that the use of automation would lead to more human skills and the creation of new jobs, rather than the development of pure labor substitution.

Companies must rely on automation

In addition to greater efficiency, automation has many other advantages. By automating repetitive patterns, companies become more agile and can deliver their products faster. At the same time, automation also increases the quality of many results and leads to a higher degree of consistency. Finally, frequent changes in business requirements can be taken into account more easily. Also, by automating repetitive tasks, developers can focus on the design of a process in more detail to get more out of existing resources.

Automation is here to stay and companies are de facto forced to address the issue. A core task for every company will be the automation of their data processes. Companies dealing with this topic should start by automating their data warehouse, as almost all other processes in modern companies are based on data.