Automating Back Office Processes
Service or Back Office Operations face similar productivity challenges to the manufacturing or engineering functions of a company. Where do the costs lie? If your business uses rare earth metals to develop and produce high value aerospace components then, perhaps, the costs are obvious. The labour cost of production being a comparatively small component of the total cost. In service operations the opposite is true, the cost to produce an invoice or management report is within the labour element, not the materials; the invoice or report itself being a relatively inexpensive product.
Thus, service operations need to increase their efficiency and productivity just as much as their manufacturing counterparts. Given the advances in technology, it is now far easier to automate manual processes than ever before, thus productivity within the back office can often increase without expensive capital cost.