Ups and downs of Data Automation

In my previous article I spoke about how data automation has brought in changes in the role of the Internal Control team. (link here)

Now I will highlight few upsides of, and the hindrances caused by data automation -

Upsides -

1) Real time data - The management has the data always handy with real time information. This benefits in taking strategic moves easily, as data can be reconciled from different branches and countries, on a real time basis, for wider outlook on the business.

2) Quick decision - when the data is available on the central network, employees can take quick decisions, helping in time management and better utilization of resources.

3) Report generation - Quick and advanced generation of reports, with the available data becomes convenient. Also, there are many reports that are generated only through AI and number crunching.

4) Risk Mitigation - due to real time availability of data and upgraded technologies, frauds are detected faster and this helps in mitigating the risk at an earlier stage.

5) Financial aid - Automation reduces the cost of processes and operations. The steps of data input reduce, which aids the better utilization of resources like time, money and also human resources.

6) Faster services - enhanced technologies will definitely aid faster and improved services to the customers, like grievance resolving, and will also help the organization give better facilities to the employees.

Hindrances in Automation -

1) Risk of Cyber-crimes - higher dependency on technology, where all your data is stored on Cyber space, leads to getting your data like finance, customer data etc vulnerable. Higher cases of hacking, money frauds and loss of data has been recorded since automation of processes.

2) Loss of data - the storage of data becomes crucial point. Even a small negligence, can lead to the major loss in data. And then, to extract that data all over again can be really time consuming, or sometimes impossible for the organisation.

3) Change in roles - continual introduction of new technologies, results in change in processes. This will obviously change the KPI and KRI of the employees. These change in roles, if not handled properly by the management, may lead to confusion and dissatisfaction in the employees. Thus, Management has to spend resources for this change management.

4) Investment – Upgrading of the technologies also calls for investment in the software and resources. This might be possible for some companies and a worry in cash flow for some.

5) Systematic errors – If there is any glitch in setting the process of data input, it might lead to a systematic data entry error. And with increase in automation, this risk of data misrepresentation intensifies.

6) Constant upgrading of skills – Company needs to track the change in software, and diligently keep upgrading the skills of the employees. This means higher cost, and higher time consumption in up-gradation.

Each company needs to weigh the personal takeaways from automation, and till what extend will automation benefit them.