Problem Statement
The main barrier preventing executives at small and medium-sized enterprises (SMEs) from embracing process automation is the false perception that it is prohibitively expensive and solely dependent on robotics, creating a significant competitive risk. The core problem is the absence of clear, actionable practical strategies for SMEs to successfully initiate their automation journey with lean budgets. This research directly addresses that need by identifying specific, affordable approaches and developing a framework that assesses the five main factors influencing automation costs, empowering managers to make informed, budget-conscious decisions about integrating digital solutions.
Research Question
What strategic factors and low-cost approaches can small and medium-sized enterprises (SMEs) utilize to effectively implement and scale process automation in their operations without prohibitive capital investment?
Research Methodology
The methodology is based on applied research involving:
- Case studies: We conducted research in collaboration with multiple SMEs across various industry sectors. The cases examined include manufacturing and logistics operations, ensuring practical relevance for operations managers and reinforcing the proposed strategies and framework.
- Multi-method: The research combines insights from the literature, industry workshops, and field engagement with analytical modeling and machine learning approaches.
- Framework Development: Based on the research findings, a framework is developed to help managers evaluate the five key automation factors that influence the cost of an automation project, allowing for more informed decision-making.
Key Results
The research provides a cost-effective automation strategy for SMEs based on two approaches and a framework:
- Prioritize automating peripheral activities (e.g., monitoring with low-cost sensors and cloud tech) over expensive core processes, as these solutions are more affordable and less customized.
- Leverage standalone automation for scalable deployment.
- Cost Framework: It evaluates five key automation factors (Reliability, Customization, Integration, Compatibility and Modularity) to guide leaders in selecting the most cost-effective path (peripheral or stand-alone).
References