Intelligent Automation - A solution to the UK's productivity crisis?

Author: Tim Bittleston, Chairman

The Labour party has recently announced its plans to reduce the average working week to just 32 hours within the next 10 years which will move the country outside the EU’s working time directive (WTD). Meanwhile the Conservatives are also planning to increase minimum wages. These controversial plans will introduce further challenges to a country where productivity is already under scrutiny and currently falling behind many parts of the world. As a comparison, average working hours across Asia are in excess of 50 hours with the USA running with a basic 40-hour week and a much lower holiday allowance nudging the country to a real 42-hour equivalent.  

Since the financial market crash of 2008, the UK has lagged behind other countries in its productivity levels with the Office for National Statistics reporting a growth of only 0.5% in 2018 compared to an average 2% growth in previous years. Perversely Labour’s plans to reduce the hours worked within the UK might go some way to improving this, as the workforce would need to be more efficient with the remaining time and in theory this would boost the countries productivity. France may certainly argue this has been demonstrated, their aggressive approach to the WTD has introduced a strong appetite to automation and the country is well ahead in the deployment of such technologies, consequently France is 30% more productive per hour worked than the UK. This could, however, be a double-edged sword because by increasing employee workloads through the reduction of the number of hours in the working week, could lead to higher levels of stress, poor staff morale and higher staff attrition. In order to mitigate the potential negative impact of reducing the working week from 5 days to 4, organisations could turn to automation technologies such as Machine Learning and RPA.

How can automation support productivity?

The UK is a service economy, therefore automation in the traditional sense of physical robots will not provide the same level of productivity gains as they have in countries such as China and Japan which have a high dependence on manufacturing industries. Instead, organisations within the UK should look to software robots. Most UK businesses are dependent upon repetitive and manually intensive back-office processes to drive daily operations, including administrative tasks and processing business-critical documents such as invoices, sales orders, customer correspondence and claims. These processes are costly to businesses, prone to errors and most significantly have a negative impact on staff morale and productivity. The repetitive nature of these tasks and the often-high volumes of documents make them an ideal candidate for automation technologies.

Intelligent Process Automation (IPA) software is able to perform the repetitive and mundane tasks within processes such as data entry, extraction, validation and verification through applying technologies such as Artificial Intelligence (AI), Machine Learning (ML), Robotic Process Automation (RPA), Natural Language Processing (NLP), Optical Character Recognition (OCR) and Cognitive Automation. Through deploying Intelligent Document Processing (IDP) software such as Celaton’s inSTREAM™, organisations are able to achieve significant efficiency gains; on average 75% reduction in manual effort was achieved in processing invoices alone, enabling businesses to be prepared for any changes to working time legislation without negatively impacting service or growth. In addition and most importantly the deployment of IPA technologies frees up employees to complete more rewarding and valuable tasks such as problem-solving and customer and supplier relationship building, improving job satisfaction, employee wellbeing and productivity.

In conclusion, whilst automation technologies will not solve all of the UK’s productivity problems, it will certainly go a long way to enabling it to compete on the global stage and will certainly ensure that any plans for a shorter working week will not impact this. Through embracing Business Process Automation and more broadly digital transformation, organisations can not only secure their own future success but that of the country.

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