Weekly AI Digest: Improving ROI with Intelligent Automation
How can you achieve a cost savings of up to 75%?
With automation, according to an article from KPMG this week. There’s also reports on how automation can help enhance capacity up to 35% as well as improve the overall quality of work. More and more evidence is pointing to the benefits of automating specific tasks or business processes. However, many companies find that it’s difficult to capture these benefits. So, what is the best way to ensure a positive ROI when investing in automation technology?
The Model T and Ford’s Assembly Line
What’s interesting to think about is automation techniques are nothing new. This has always been a concern for businesses. Take for example the auto industry. In 1912, it took about 12 hours to make a Model T car from start to finish. At the cost of about $800, cars were only limited to the wealthy. Then, Henry Ford implemented the first mechanical assembly line in 1913. Manufacturing times decreased drastically (to 90 minutes per car) and were sold at around $300 – more than a 50% decrease in price. This opened up the market to more buyers and by 1927, Ford was selling a Model T every 24 seconds.
Image Credit: Ford Motor Company
What made Ford and the assembly line successful is they were able to recreate the same product, cheaper, and better quality. Soon the whole industry adopted assembly line techniques, allowing the automation industry to do more with less.
The 3 Types of Intelligent Automation
Today, we’re into a new era of Intelligent Automation. Going beyond just repeating the same steps over and over, Intelligent Automation is augmented with AI technology allowing it to reason and analyze. By incorporating an AI engine, automation can extend into new areas and do more complex tasks. The level of sophistication and reasoning can vary, as pointed out by KPMG Managing Director David Kirk. To account for this, he separates Intelligent Automation into three main types: Basic, Enhanced, and Cognitive.
Source: The Layman’s guide to the Spectrum of Robotics and Automation, David B. Kirk, June 2016.
Introducing Automation Incrementally
At Yseop, cost savings is a priority for many of our customers. Other priorities are customer relationship enhancement, scalability, as well as optimizing and improving business processes. What we’ve learned over the years is that for many, it’s best to introduce automation incrementally. Start with those simple, repetitive tasks consuming your day-to-day work and then build towards more complex business processes. This not only helps the company adapt but also allows you to incorporate Intelligent Automation tech immediately. This is where Yseop can help. Download our white paper with tips on how to choose your first Natural Language Generation (NLG) use case to get you started with finding some ideas of where to begin automating.
Some other reads from last week that might be of interest:
- Five Management Strategies for Getting the Most from AI
After surveying 3,000 C-level executives from a wide variety of industries and locations, McKinsey identified 5 fundamental strategies for how to make the most of Artificial Intelligence. (Source: McKinsey)
- Apple, Fitbit to Join FDA Program to Speed Health Tech
The FDA announced last week a new “Pre-Cert for Software Pilot” that fast-tracks the approval process for digital health technology. This could mean big changes for the IoT market. (Source: Bloomberg)
- IDC Spending Guide Forecasts Worldwide Spending on Cognitive and Artificial Intelligence Systems to Reach $57.6 Billion in 2021
Some interesting stats on the AI industry, here are some highlights: biggest spenders in 2017 are the retail and banking industries. The most popular use case? Automated customer service agents. (Source: International Data Corporation)