Create an Automation Strategy for Your Business

In the not-so-distant past, business automation was a luxury available mainly to big companies with deep pockets. However, technological advancements such as artificial intelligence (AI), machine learning, and cloud computing have made automated solutions more affordable and accessible to small- and middle-sized businesses (SMBs). In a 2024 survey, for example, 61% of SMBs said they are using AI to automate daily tasks.

SMBs adopt an automation strategy to streamline and improve processes across their operations and supply chains, from human resources and finance to e-commerce and production lines. Moreover, the benefits are not limited to specific sectors. SMBs in manufacturing, healthcare, logistics, and many other sectors are increasingly tapping into automation solutions.

So how can your company leverage automation to improve productivity, enhance profitability, and spur growth? The key is to develop an automation strategy and road map that enables your business to implement solutions that best fit your culture and resources while meeting your overall financial goals.

Automation Advantages

In a survey by technology firm Kaseya, 40% of SMBs said that they want to invest in automation more than any other technology in 2024. The reason: Automation has been shown to provide SMBs with several advantages that can positively impact operations, workforce, and financial performance.

Automated solutions can:

• Reduce manual processes. This is true at every point of your operations, whether in the back office or factory floor. Manual processes—those that require human intervention—are often a drag on businesses, requiring significant amounts of employee time and effort. They are also more prone to errors, impacting product quality, industry compliance, and productivity. Automated solutions eliminate these concerns, enabling SMBs to streamline repetitive tasks and employees to focus on higher-value activities.
• Increase cost savings. Automation is an up-front investment, but the savings are tangible and come from across the company. The investment can improve productivity (by reducing manual processes) and operational efficiency, both of which can help your organization control operating expenses and improve margins.
• Streamline financial operations. While many think of automation as streamlining production or robotics on a factory floor, automated software solutions can be especially useful for your back office. Automated payment solutions give SMBs a significant opportunity to improve payment accuracy, reduce fraud, and increase their working capital visibility. In fact, 44% of SMBs report that they have automated at least one of their AR/AP processes, and another 20% have automated three or more processes.
• Upskill employees. By automating manual processes, you can upskill employees for tasks and positions that may be hard to hire. Automation gives your organization the opportunity to fill in skills gaps. This is especially important in industries that struggle to find employees. For example, manufacturers have had 622,000 job openings this year alone, according to the U.S. Chamber of Commerce. By tapping into automation, businesses in this and other sectors can do more with their current workforce, reduce manual labor associated with repetitive activities, and train employees in higher-level work. An article in the Harvard Business Review recommends creating a work culture in which employees can share ideas about automation, "encouraging team members to think about and share ideas on ways to remove inefficiencies and eliminate repetitive and manual processes can build an environment in which employees feel they are part of the automation strategy."

7 Steps to Building an Automation Strategy

Creating an automation strategy is essential if you want to maximize the technology available across a timeline and budget that makes sense for your organization. Consider the following steps:

1. Create an automation roadmap.

Most businesses will methodically transition their processes, automating aspects of the company over several months or years. It is critical to build a roadmap that aligns your automation initiatives with your business goals and provides a plan for achieving them. Include milestones within the roadmap to ensure that you’re continually making progress.

2. Prioritize your processes.

Evaluate which parts of your operations are prime for automation and prioritize the areas you want to automate first. For example, you may first want to tackle processes that are highly manual or repetitive and require a significant amount of employee time. Or you may focus your initial automation efforts on high-value processes that represent a notable expense (payments processing, for example) or provide an opportunity for growth or revenue generation.

3. Set clear objectives.

With each automation initiative, consider what you want to achieve and how to measure your progress. For instance, you might track hours saved or errors reduced by the automated solution. Driving toward a clear goal ensures your efforts do not get sidetracked and provides evidence of return on investment (ROI).

4. Choose the right technology.

Evaluate the available solutions and compare vendors based on a matrix of considerations, including expertise, ease of implementation, support, cost, and more. Focus on essential investments—solutions that align with your business objectives and solve core challenges.

5. Plan for the investment.

One of the concerns that often prevents SMBs from taking advantage of automation solutions is the belief that manual processes are cheaper than an investment in automation technology due to the up-front costs. However, the benefits of automation often provide a ROI that makes the expenditure well worth it.

Savings come in the form of straight cost savings from reduced manual labor, improved productivity, decreased errors, and automated vendor management, among others. One study shows that 36% of businesses using payment automation reported saving their finance teams more than 500 hours yearly. What’s more, the advent of subscription-based software enables SMBs to access automation solutions for a reasonable monthly or annual fee.

The steps to help estimate ROI may include:

1. Identify the specific processes you plan to automate.
2. Determine the current costs associated with these processes.
3. Calculate how much time employees currently spend on these tasks.
4. Estimate the expected initial investment for the automation tools and implementation.

Your automation roadmap should include a plan for financing each initiative. A commercial loan can help fund capital improvements.

6. Train and support employees.

Develop an implementation plan that addresses the impact of the automation and how employees will work with the new systems.

For SMBs, automation presents a significant opportunity to accelerate growth and create a more competitive company. Focus on internal communication that alleviates employee concerns about possible job cuts and highlights the opportunities that automation provides for upskilling and increased productivity.

7. Monitor and optimize.

Automation is not a one-and-done exercise. Instead, you should monitor the outcomes and performance of your new system and make adjustments as needed. Refer to your roadmap milestones and commit to reviewing your strategy on an annual basis or more often if needed.

Fifth Third Bank offers multiple resources to help your company on its automation journey, including financial automation tools like automated payables. Fifth Third has joined with business payments company Bottomline to provide a comprehensive suite of digital payment options for companies seeking streamlined payment processes, improved cash flow management, and enhanced overall operational efficiency. In addition to saving your finance team time, decreasing fraud, and accelerating payment speed, automated payment solutions can make it easier for vendors to make payments online and offer various preferred payment methods.

Fifth Third experts can also help you identify the best way to finance automation improvements to ensure your strategy is on track for success. Contact a Fifth Third relationship manager today.