The Significant Financial Impact of Technical Mishaps You Might Not Be Aware Of
In today's fast-paced business environment, automation has become a common strategy in various industries, from AI-powered forecasting to workflow optimization and fraud detection. However, the misalignment between teams and technology is causing productivity, profit, and progress to be eroded, particularly in sectors like logistics, retail, finance, and tech that rely on speed and precision.
A recent example of this misalignment can be seen in the logistics industry, where automation was launched without fully mapping processes, leading to shipment delays and claim spikes. Similarly, a distributor's AI inventory forecasting pilot failed due to a lack of warehouse input, failing to account for bulk returns or SKU issues.
The question isn't whether you're automating, but whether you're aligning. The winning companies make their systems work in sync, with intention, insight, and follow-through. To achieve this, businesses need to systematically bridge the gap between their business operations and technology.
Here are key steps to ensure successful automation implementation:
- Identify and map current workflows in detail to understand how work flows through the organization, focusing on high-volume, rule-based, and multi-handoff processes that impact the business significantly. This reveals inefficiencies and sets the baseline for automation.
- Set clear, measurable goals and KPIs aligned with broader business objectives (e.g., reducing processing time, cutting costs, increasing volume capacity) to track automation success and maintain executive support.
- Engage and involve employees early, ensuring that those who use automated tools understand their benefits and receive training and support. This reduces resistance and increases adoption.
- Start with pilot projects on manageable but impactful processes before scaling automation broadly. Pilots provide valuable data and help refine technology selection and workflows.
- Implement change management practices, including communication and risk management to prepare users, monitor system performance, and proactively address issues such as workflow failures or quality lapses.
- Maintain continuous monitoring and iteration of automated processes using performance metrics and user feedback to fine-tune systems and respond to evolving business needs.
For advanced automation integrating AI, adopt a phased approach: begin by documenting current processes (“crawl”), then target quick-win automations (“walk”), and only then expand into more complex AI-driven workflows (“run”). This staged progression builds a solid foundation and maximizes value from automation technologies.
By systematically combining thorough process understanding, clear objectives, pilot testing, people-centric adoption programs, and ongoing management, businesses can effectively bridge their operations with technology delivery, minimizing risks and realizing measurable automation benefits.
When automation doesn't match how work actually happens, people stop using it, often reverting to spreadsheets or side processes. Small misalignments between teams and tools can create significant downstream issues, and if systems, teams, and workflows aren't aligned, automation won't create leverage; it'll compound operational risk.
Involving frontline users in the build process early is crucial for adoption. The companies that are getting automation right are embedding it into how people actually work. For example, a retailer failed to align fraud detection with customer service, causing orders to be flagged and customer trust to be lost.
The early 2000s saw similar patterns with massive ERP implementations that were later abandoned due to workflow breakdowns. Many companies are treating automation as a bolt-on, not a structural shift, leading to issues. To avoid these pitfalls, businesses must treat automation as a strategic initiative, aligning it with their business operations for long-term success.
Erik Greenstein, a senior sales executive with over 20 years of experience in developing strategic sales plans and building high-performing teams, emphasizes the importance of this approach. "Automation is not just about technology; it's about people, processes, and strategy," he says. "By bridging the gap between these elements, businesses can unlock their full potential and thrive in the digital age."
[1] Forbes Business Development Council, 2021. [Link to the source] [2] Harvard Business Review, 2019. [Link to the source] [3] McKinsey & Company, 2020. [Link to the source] [4] Deloitte Insights, 2020. [Link to the source] [5] Gartner, 2019. [Link to the source]
Erik Greenstein, with his extensive experience in business development, highlights the significance of aligning technology with people and strategy for successful automation. In finance and technology sectors, misaligned automation can lead to productivity and profit loss, as demonstrated by AI inventory forecasting failures or shipment delays. Therefore, businesses should follow a systematic approach to bridge the gap between operations and technology, ensuring long-term success in the digital age.
