A report by McKinsey & Company states that about 60% of all jobs have at least 30% of tasks that can be automated using currently available technologies. It’s no wonder that the topic of automation and digitization in modern business is so hot and widely discussed by analysts and experts. So, how does automation impact the modern world?
The basics of automation and digitization
In a Deloitte study, 73% of companies said that automated systems improved their operational efficiency, and 61% of respondents reported a reduction in operational costs. Automation doesn’t just mean AI-based tools but also includes robotics, ERP, cloud computing, and IoT. Blockchain technology—distributed ledger technology that ensures secure and transparent data storage and exchange—also made the list.
Automation focuses on performing specific tasks using technology, while digitization involves the overall transformation of processes and data into digital forms. Automation can be a component of digitization, helping to carry out tasks within the new digital ecosystem.
Impact of automation on the market
Automation and digitization have transformed many industries, introducing innovative solutions that increase efficiency and improve service quality. An example of a revolutionized market is:
1. Manufacturing
- Increased productivity: Robots can work 24/7 without breaks, significantly increasing production efficiency.
- Precision and quality: Automated systems can perform tasks with greater accuracy, reducing the number of errors and product defects.
- Operational costs: Although initial investments are high, in the long run, automation leads to lower operational costs by reducing the need for human labor and minimizing production waste.
2. Financial services
- Accessibility: Clients can access banking services 24/7 from anywhere, increasing the convenience and accessibility of services.
- Efficiency: Algorithms and artificial intelligence can process large amounts of data in a short time, speeding up decision-making processes and increasing asset management efficiency.
- Personalization: Customer data analysis enables the creation of personalized offers and services, increasing customer satisfaction.
3. Retail
- Shopping convenience: E-commerce allows customers to shop online from anywhere and at any time, day or night.
- Operational efficiency: Automation of warehouses, including warehouse robots and inventory management systems, allows for fast and precise order processing, reducing delivery times and operational costs.
- Personalization: Purchase data analysis allows for the creation of personalized offers and recommendations, increasing customer satisfaction and loyalty to the brand.
Automation and the job market
There is currently a growing demand for employees with skills in information technology, programming, data analysis, and system automation management. Workers need to be familiar with operating advanced technological tools to efficiently analyze and interpret large data sets. With the automation of processes, the importance of analytical skills is also increasing, which are key to managing and optimizing automated systems. Employees need to be able to draw conclusions from data and make decisions based on it. This is also confirmed by specific data—according to WEF forecasts, by 2025, automation may replace 85 million jobs but at the same time create 97 million new jobs, suggesting that automation contributes both to job loss and job creation.
It is important to note that despite the growing role of technology, interpersonal skills such as communication, negotiation, and customer relationship management remain highly valuable and are considered in the recruitment process.
What does the future hold?
The McKinsey report indicates that by 2030, automation may increase global productivity by 0.8% to 1.4% annually. Meanwhile, an IDC report predicts that global spending on technologies related to business process automation will reach $232 billion by 2025. This shows that companies recognize the value of automation and are ready to make significant investments in this technology, and the future will likely be driven by digitization and automation.
It is important for organizations to thoughtfully plan their strategies for implementing new technologies, considering both the benefits and potential risks. Investments in employee training and retraining, ensuring data security, and adapting infrastructure to new technologies can help maximize the benefits of automation and digitization while minimizing the negative impacts of these changes.
