Guest article by Mirko Hannig, KIVEMA CONSULTING

The shortage of skilled workers and high workloads are hitting many industries and companies particularly hard, including many IT companies. These challenges will intensify in the coming years as the baby boomer generation retires. Added to this is a high level of bureaucracy and administrative tasks that tie up valuable resources. At the same time, many companies are under intense cost pressure, not least due to fierce competition, including from lower-cost providers abroad.

In such a situation, automating tasks and processes can provide a decisive competitive advantage. With the advancing capabilities of artificial intelligence (AI), digital process automation (DPA) is reaching a new performance level.

Companies that implement intelligent automation relieve their employees, boost efficiency, and simultaneously increase staff motivation and satisfaction. This has a positive impact on employee retention, reduces process costs, and strengthens a company’s long-term competitiveness and future viability.

What is digital process automation?

Digital process automation refers to the use of technologies to automate repetitive, standardized, and error-prone tasks within a company. The goal is to handle these tasks more efficiently, faster, and with fewer errors while freeing up human resources for more demanding activities.

Examples of such tasks include:

• ·        Data transfers: Regular exchange of data between different systems or databases, for example transferring orders in an online store to the CRM system.
• ·        Data synchronization: Automated reconciliation of customer data, for example synchronizing inventory levels across different platforms.
• ··        Reporting: Generation of recurring reports without manual intervention, integrating data from various systems (e.g., web analytics, CRM, ERP, etc.).
• ·        Communication: Automated systems for more efficient processing of inquiries, for example in the form of emails.

The examples shown have one thing in common: They are frequently repeated, require no creative decisions, and carry a high risk of errors if performed manually. Digital process automation provides a solution here.

Forms of digital process automation

There are fundamentally two forms of automation: Robotic Process Automation (RPA) and API-based automation.

• ·        Robotic Process Automation (RPA): This method is often used in connection with older (legacy) systems that do not offer modern interfaces (APIs). RPA mimics human computer behavior by automating clicks, keyboard inputs, and other manual steps. It is ideal for connecting existing systems without requiring technical modifications. It is also particularly well-suited for sensitive areas where software solutions are “shielded” from external access.
•  
• ·         API-based automation: In contrast to RPA, API-based solutions directly access interfaces of modern systems, enabling seamless communication between different platforms. This form of automation offers a high degree of flexibility and scalability, as systems can exchange data seamlessly via APIs. For example, CRM tools can be connected to accounting systems to automatically update customer information as soon as an invoice is created.

Both forms have their own areas of application and can be used selectively depending on a company’s individual requirements. While RPA is quick and effective for systems without interfaces, API-based automation offers the advantage of deeper and more integrated automation in modern, networked environments.

In many cases, the combination of RPA and API-based automations represents the most effective overall solution. RPA can seamlessly integrate systems without interfaces into existing workflows, while API-based solutions connect modern, networked platforms with one another. A concrete example is the automated processing of orders: RPA takes care of extracting data from SAP, while an API-based automation transfers this information directly into a cloud-based CRM system and processes it further there. Such hybrid solutions enable companies to maximize the automation of their processes while simultaneously closing the gaps between different systems.

Artificial intelligence in process automation

Thanks to artificial intelligence (AI), completely new possibilities are opening up in process automation.

Traditional automations were based on fixed rules: they only worked if precisely defined conditions were met. A classic example is the automatic classification of emails: in the past, keywords such as “invoice” in the subject line were defined to automatically forward emails to the accounting department. However, if the keywords were missing or deviated, the process would fail and had to be continued manually.

AI eliminates such rigid rule-based systems by employing human-like recognition and decision-making behavior and opens up new application possibilities.

The following forms of AI are particularly relevant for process automation:

• Generative AI: This form of AI, which is currently the focus of public attention, is capable of generating new content. In process automation, it can be used, for example, to automatically create customer communications based on specific inputs.

• Cognitive AI: Cognitive systems can interpret and process contextual information in a way similar to how a human would. A typical application example is the processing of unstructured documents, such as PDFs or emails.

• Classifying AI: This AI is particularly specialized in categorizing incoming information based on learned patterns. A classic example is the automatic classification of incoming emails by responsibility and subsequent automated forwarding to the correct contacts.

Implementation obstacles and objections

Despite the numerous advantages of process automation, there are often widespread reservations that prevent companies from fully leveraging the potential of this technology. The most common objections include:

• ·         Costs and scalability: Many companies believe that process automation is only worthwhile for large enterprises or that implementation is too expensive. However, this is a misconception. Small and medium-sized enterprises (SMEs) can also benefit significantly from automation. The only prerequisite: there are tasks and processes that are performed regularly.
• 
  
• ·         Industry requirements: Some companies fear that process automation is not possible in their industry due to specific requirements. However, there are solutions that are even used in the public sector or banking, as they operate in a fully audit-proof and compliant manner.
•  
• ·         Data protection concerns: Another frequently cited objection relates to the handling of personal or even sensitive data. However, there are automation solutions—both in the field of RPA and API-based automation—from German providers that meet all strict EU data protection requirements. In addition, automation platforms can be operated on-premise and are therefore suitable even for highly sensitive areas.
•  
• ·         AI regulatory concerns: Many companies also have concerns regarding the new AI regulations, particularly the EU AI Act. Depending on the use case, AI may not be allowed to operate as a "black box." By responsibly combining rule-based automation with targeted AI applications, even the latest regulatory requirements can be met while simultaneously realizing the benefits of AI.

Conclusion

Digital process automation, supported by modern AI technologies, offers companies the opportunity to significantly increase efficiency and work quality. By combining RPA and API-based solutions with the targeted use of artificial intelligence, entirely new potentials can be unlocked.

With the right solutions and corresponding process expertise, such automations can be implemented in a legally and audit-proof manner, making them suitable for companies of all sizes and industries.

In a time when skilled labor shortages and rising workloads become daily challenges, automating repetitive and error-prone tasks can not only relieve employees but also reduce costs and enhance competitiveness.

If you want to have your processes reviewed for optimization and automation and unlock the full potential of process automation—while ensuring legal and technical security—feel free to contact the author of this technical article.