1.2 Evolution of automation in business

Business automation has evolved from early mechanization to today's intelligent systems. The Industrial Revolution sparked a shift from manual labor to machines, while assembly lines and computer-aided manufacturing boosted efficiency. These changes reshaped the workforce and production methods.

Enterprise software like ERP and BPM systems integrated business processes, improving operations and decision-making. Now, intelligent automation combines RPA, AI, and IoT to create smarter, more connected systems that can learn and adapt, transforming how businesses operate and compete.

Early Automation

Mechanization and Standardization

Top images from around the web for Mechanization and Standardization

• 

  File:CNC Laser Cutting Machine.jpg - Wikipedia View original

  Is this image relevant?

• 

  The 4th Industrial Revolution – A Smart Factory Implementation Guide View original

  Is this image relevant?

• 

  File:Ford assembly line - 1913.jpg - Wikipedia View original

  Is this image relevant?

• 

  File:CNC Laser Cutting Machine.jpg - Wikipedia View original

  Is this image relevant?

• 

  The 4th Industrial Revolution – A Smart Factory Implementation Guide View original

  Is this image relevant?

1 of 3

Top images from around the web for Mechanization and Standardization

• 

  File:CNC Laser Cutting Machine.jpg - Wikipedia View original

  Is this image relevant?

• 

  The 4th Industrial Revolution – A Smart Factory Implementation Guide View original

  Is this image relevant?

• 

  File:Ford assembly line - 1913.jpg - Wikipedia View original

  Is this image relevant?

• 

  File:CNC Laser Cutting Machine.jpg - Wikipedia View original

  Is this image relevant?

• 

  The 4th Industrial Revolution – A Smart Factory Implementation Guide View original

  Is this image relevant?

1 of 3

• Industrial Revolution marked a shift from manual labor to mechanized production using machines powered by steam and later electricity (spinning jenny, steam engine)
• Assembly line introduced by Henry Ford in 1913 revolutionized manufacturing by breaking down production into a series of specialized tasks performed by workers along a conveyor belt
  • Allowed for mass production of standardized parts and products
  • Increased efficiency and reduced costs compared to traditional craftsmanship
• Computer-aided manufacturing (CAM) emerged in the 1950s and 1960s, using computers to control machine tools and automate production processes
  • Numerical control (NC) machines used punched tape or cards to store instructions for controlling machine movements
  • Computer numerical control (CNC) machines introduced in the 1970s, using digital computers to control machine tools

Impact on Workforce and Production

• Mechanization and automation led to significant changes in the workforce, with many manual labor jobs replaced by machines
  • Skilled craftsmen were replaced by semi-skilled or unskilled workers performing repetitive tasks
  • Increased productivity and output, but also led to job displacement and social upheaval
• Standardization of parts and processes enabled interchangeability and reduced the need for skilled labor
  • Facilitated the rise of mass production and consumer culture
  • Allowed for economies of scale and reduced costs, making goods more affordable and accessible

Enterprise Software

Integrated Business Processes

• Enterprise Resource Planning (ERP) systems emerged in the 1990s to integrate and automate various business processes across an organization
  • Combines functions such as finance, human resources, supply chain management, and customer relationship management into a single system
  • Provides a centralized database and real-time visibility into business operations
  • Examples of ERP systems include SAP, Oracle, and Microsoft Dynamics
• Business Process Management (BPM) focuses on designing, executing, monitoring, and optimizing business processes
  • Involves mapping out processes, identifying inefficiencies, and implementing improvements
  • Uses software tools to model, automate, and monitor processes (workflow management systems)
  • Aims to streamline operations, reduce costs, and improve customer satisfaction

Benefits and Challenges

• Enterprise software enables organizations to standardize processes, reduce manual effort, and improve data accuracy and consistency
  • Facilitates collaboration and information sharing across departments
  • Provides insights and analytics for better decision-making
• Implementing enterprise software can be complex and costly, requiring significant time and resources
  • Requires change management and user training to ensure adoption and effective use
  • May require customization or integration with existing systems
  • Risks include data security and privacy concerns, vendor lock-in, and dependence on the software provider

Intelligent Automation

Robotic Process Automation and Artificial Intelligence

• Robotic Process Automation (RPA) uses software robots (bots) to automate repetitive, rule-based tasks typically performed by humans
  • Mimics human actions, such as data entry, form filling, and file transfers
  • Can be used for tasks such as invoice processing, customer onboarding, and data reconciliation
  • Examples of RPA tools include UiPath, Automation Anywhere, and Blue Prism
• Artificial Intelligence (AI) involves creating intelligent machines that can perform tasks that typically require human intelligence
  • Machine learning algorithms can learn from data and improve performance over time (neural networks, deep learning)
  • Natural language processing (NLP) enables machines to understand and generate human language
  • Computer vision allows machines to interpret and analyze visual information (image recognition, object detection)

Internet of Things and Connected Devices

• Internet of Things (IoT) refers to the network of connected devices that can collect and exchange data over the internet
  • Includes sensors, actuators, and smart devices embedded in physical objects (industrial equipment, vehicles, home appliances)
  • Enables real-time monitoring, remote control, and predictive maintenance of assets
  • Examples include smart factories, connected cars, and smart homes
• IoT enables automation and optimization of processes based on real-time data from connected devices
  • Can be used for applications such as energy management, traffic control, and inventory tracking
  • Requires secure and reliable communication protocols and data management infrastructure
  • Raises concerns around data privacy, security, and interoperability of devices