Automation allows for a product to be created rapidly and accelerate innovation. As such, automation has become a crucial component for any business that wants to remain competitive. Learn about how businesses can benefit from automation using the following information.

There are many ways businesses can take advantage of automation. For one, automation allows companies to rapidly generate products. This is especially useful for companies that produce multiple goods or services. For example, if a company deals with both the manufacturing of automobiles and the sale of software, they can automate both processes in order to speed up the production of both products. Again, this will allow for quicker innovation and the creation of new products.

In addition to helping speed up innovation for businesses, automation can also help bring down costs. In many cases, businesses create a product using off-the-shelf parts. This would greatly benefit from automation as it allows for more constant parts to be used in the production process rather than relying on expensive components that may not be fit for use at all times. This will help reduce the cost of each product and ultimately lower the cost of each product.

Automation also has a role in helping businesses maintain their competitive edge by keeping up with other companies. This is especially true for large enterprises as simply maintaining a competitive edge on your industry can take a lot of time and money. For example, Nike can use automation to automatically send high-quality footwear to its retailers while many other retailers would have to order through human hands which could incur more costs and more delays than automation would require.

In addition to these benefits, automation can also help businesses with their legal matters. This is because many contracts involve legal documents that may be subject to certain limits and requirements. Legal documents and contracts are often written by humans but can require a great deal of life-saving work to be completed. In such cases, automation can help humans complete certain tasks which will allow them time to save money while still staying on top of the game.

Automation has been around for decades yet many people do not know about the many benefits that it can bring to a business. A basic understanding of how it will benefit a business is all that is necessary in order for it to be used in a productive manner.

The following example shows how automation can help businesses develop new products quickly and at a low cost.
A company produces widgets and creates an automated system that uses robotic arms to assemble these widgets. The machine can create the widgets in about 5 minutes. The cost of creating the machine was $1 million.
In a year, the company produces 10,000 widgets and sells 8,000 of them for $10 each. The total revenue is $80,000.
The company pays a salary of $70,000 to its employees and pays for all other expenses including depreciation on machines etc.
The net profit is $10,000 (–$1 million + $80,000 –$70,000).

Now assume the same company has no automation system in place for the production of widgets but it hires an engineer to design an automated system.
Engineer An spends 10 hours designing the machine.
The engineer can earn $40,000 for this effort.
Assume that Engineer An is an expert in automation who has spent time working on similar projects in the past.
The company uses Engineer A to design the automated system. Engineer A uses the information that he has gathered to create an automated system for producing widgets (cost $1 million + $40,000 – 10 hours). The machine can now produce widgets in about 5 minutes and sells 8,000 widgets for $10 each (revenue of $80,000).
The company pays a salary of $70,000 to its employees and pays for all other expenses including depreciation on machines etc.
The net profit is $10,000 (–$1 million + $80,000 –$70,000).

The total cost of automating the production of widgets is $90,000. Although this sets the company back an extra $10,000 in comparison to a human-driven system for widget production, it can produce 10,000 widgets in a year.

By automating the production of widgets, the company is able to save money by not requiring any human employees to work on the production process. The benefits of automation are clear.
The time that employees would have spent producing widgets can be used for other tasks such as R&D or customer service because humans do not need to be involved in the production process anymore. This allows for increased profits since revenue is more than expenses (total revenue > total expenses).

Interested in learning more implementations that could benefit your business? IT Structure – Why Your Business Needs It discusses IT structure and showcases why it is beneficial for any business.

AutomationIf you would like TSVMap to assist your business with assessing your essential systems and applying the TSVMap methodology to ERP SystemsMRP SystemsCyber SecurityIT StructureWeb ApplicationsBusiness Operations, and Automation, please contact us at 864-991-5656 or info@tsvmap.com.