IT’s important role in business management
Information Technology (IT) has a very important role to play in the management of business processes. With the use of information technology in a business, it is possible to analyze specific data that can help a business to manage its operations and competitive advantage (Luftman, Lyytinen and Zvi, 2017, p4(3)). Furthermore, the use of IT in business ensures appropriate communication flow within and outside the organization, which contributes to better business management and management of the customers’ requirements.
One of the most widely used information technology solutions in the business is the use of artificial intelligence (AI). AI plays a vital role in business automation, which contributes to easier process flow and easier management of complex business operations. The use of information technology mostly fosters innovation, which in turn contributes to enhancing the business’s competitive advantage.
The following section of this research report discusses how artificial intelligence technology can help a business in its process automation, thus helping them enhance the operational output. The report will present a literature review on how the technology of AI has become a business necessity and how the use of the same can help an organization gain a competitive advantage. In the following section of the report, a detailed analysis of the use of AI in business automation is presented.
The primary aim of this research report is to analyze how the use of IT in business can actually work in favor of increasing the business advantage. Leveraging technology is important for a business as it helps the business to save a lot of time. This time-saving aspect is important, and it enables the business managers to concentrate on the more important aspects. The organizations are considering the use of IT as the method to enhance their competitive advantage as it enables the business managers to consider the use of innovative approaches in the management of their critical business processes (Mithas and Rust, (2016, p 3(2)).
This particular report is focused on discussing the leverage of AI in business and the need for AI in business process automation. AI is one of the most widely implemented IT processes that enable business managers to completely automate repetitive processes and reduce the human load. This literature review will focus on the values that AI can add to be a regular business organization.
In this section of the report, a detailed discussion on the concept of AI and its use in business process automation will be analyzed. AI is an Information Technology that has gained a lot of importance in the business world in the last decade (Ng, 2016). The wide adoption of AI in leading business organizations such as Amazon, Walmart, Tesco, Woolworths, and others indicates that this particular technology is a game-changer in this business world. In the following sub-section, a detailed literature review on how the technology of AI brings value to the business in terms of business process automation is discussed.
Artificial Intelligence can be described as an ability of a computer system to perform tasks that mostly require the involvement of a human. The concept of AI can be related to the theory and development of computer systems that can perform all critical tasks which require human intelligence. Artificial intelligence is linked with developing systems endowed with intelligence, which enable the machines to perform works like a human (Novickis, L., Mitasiunas and Ponomarenko, 2017, p2(1)). Since the development of digital computer systems in the 1940s, it has been observed that computer systems can be programmed to enable them to perform several complicated tasks such as discovering proofs for certain mathematical problems and even playing chess with great proficiency.
The use of artificial intelligence in business automation
According to Enholm et al. (2021), AI-enabled computer systems have the capability of learning from past experience. There are a number of different forms of learning that can be applied to AI-enabled systems, the primary one being learning through a trial-and-error method. AI-enabled systems learn from their past mistakes, and their usage in business process automation has increased to a large extent in the last decade. Apart from that, AI-enabled machines have the capability to problem-solve and increase work speed and reasoning ability, which is why incorporating AI-enabled machines in business processes becomes necessary (Mounika, 2020).
The primary aim of this literature review report is to discuss the use of AI in business process automation and to analyze the value that the technology of AI can bring to modern business processes. A detailed discussion on the use of AI in business is presented in the following section.
According to Klumpp (2018), AI has the capability of improving the overall business process management by automating some of the routine and repetitive work processes, which includes, but is not limited to, automation of the routine tasks, analysis of a large amount of data that are generated on a daily basis and enhancement of the user interface. AI, along with its sub-processes such as data analysis, machine learning, and predictive analysis, can critically change the way in which a business is executed and managed. According to Kerzel (2021), AI has the capability to automate almost 45% of the total work processes, thus freeing up the organizational worker in performing difficult work processes.
AI can be used for business advantage as it has the capability of automatically monitoring the regular business processes to understand where the issues might creep into the business. AI-enabled systems can record past experiences and have the ability to learn from them. Therefore, business organizations can effectively use the same in process optimization and in understanding the areas where the business needs improvements. Pallathadka et al. (2021), in this regard, indicated the fact that AI-enabled tools are capable of optimization of the workflows in such a manner that the business managers are not required to invest any additional time to perform certain critical or specific tasks. Furthermore, the AI-enabled intelligent systems have the capability of optimizing the workflows so that the staff and employees need not put any extra investment of time and energy on certain specific or repetitive tasks.
The technology of AI proves to be a boon for business process automation as it can improve the customers’ support. Customers’ satisfaction is an important consideration for a business process, and it directly impacts the business profitability and its competitive advantage (Kitsios and Kamariotou, (2021, p 4(2)). With the use of AI, the customer support process can be automated, which can provide the customers with 24*7 support. Thus, it can be concluded that AI can improve business functionality by automating the majority of repetitive and time-consuming work processes.
The preliminary literature review presented in the previous section outlines the factors that necessitate the adoption of AI in business. Leveraging the technology of AI is found to be critical for business process automation, and this automation generally offers great value to a business process. Business process automation can improve the efficiency, accuracy, and productivity of the regular work process associated with a business. Although the use of AI offers a significant advantage to a business process, there is a requirement to understand what specific aspects of a business can actually be automated with the use of AI (Davenport, 2018, p2(3)). This requires a business to thoroughly examine its existing business process to understand the areas in which the automation is required to be implemented. Along with that, the top management should encourage its subordinates to adopt AI-enabled enterprise systems so that the repetitive work processes can be easily automated. The implementation of AI can significantly help in addressing the internal gaps in the business process.
AI as a game-changer in the business world
The adoption of cognitive technologies is increasing across the globe, as it provides an easier option to solve the majority of the business problems that are being faced. It is useful for companies to look at how AI can contribute to enhancing business capabilities. AI-enabled systems are capable of supporting three important business needs, which include automation of the business processes, gaining insight through data analysis and engaging with customers and employees associated with a business. Some of the most common applications of Artificial Intelligence in business, which is directly related to business process automation, are listed as follows-
- Improvement of customers’ services through the use of virtual assistants.
- Automation of the workloads through the use of machine learning algorithms.
- Optimization of the logistics operations (Davenport, 2018).
- Increase of the manufacturing output and efficiency.
- Predictive analysis related to performance measure and need of improvement Soniet al. 2019, p3(4))
- Improvement in marketing and advertising process related to business through the use of data analytics.
The above-listed points outline the primary ways in which a business can benefit from AI. This is the reason why AI is leveraged into a business to enhance its process flow and business capability. The technology of AI has the capability of solving major business problems, and hence, it is necessary for every business to remain prepared for the implementation of AI in their daily operations (Raisch and Krakowski, 2021, p2(3)). The adoption of AI in a business can enhance the business process flow.
As established in the previous section, the use of AI is advantageous for a business. One of the major advantages of using AI in business is an increase in efficiency and productivity gains related to a business. Furthermore, the use of AI in business has the capability of enhancing the overall speed of the business. This is because of the fact that AI-enabled systems have the capability to automate time-consuming work processes. The use of AI further has the capability to manage the business model expansion, which is necessary to expand the business. The use of AI in business contributes to improving the customers’ services, which is another critical advantage offered by the use of AI in business (Bawack et al., 2019 p6(2)). Furthermore, this technology offers an improved business monitoring process, which works in favor of increasing the visibility of the changes required in a business.
Thus, it can be commented that the use of AI mostly has a positive impact on the business. However, the implementation of AI in a business indicates a major change in the overall business processes. Hence, resistance from the employees is likely to be faced while a major change in terms of AI is implemented. The success of leveraging AI in the daily business process of an organization is subjected to management of the resistance from the employees (Soni et al. p5(2)). It is necessary to understand the areas in a business where automation is needed. This will contribute to improving the overall business process and enhance business profitability.
5.0. Conclusion and Recommendations
The research report presents a detailed discussion on how leveraging the technology of AI can actually be beneficial for a business process. A detailed literature review is presented, which provides an idea of the need for AI in a business. AI offers several business advantages, which are outlined in this research report. The ability of this technology to properly manage routine tasks and improve the overall business processes makes it a technology necessary to be leveraged in business. The report presents a detailed analysis of how AI can help a business organization achieve a competitive advantage. Based on the findings from the report, certain recommendations related to the adoption of AI in business is made, which are discussed as follows-
- The success of the implementation of AI in business should be subjected to complete support from the employees.
- A business is required to identify the areas in which automation or implementation of AI is actually needed.
- The use of advanced technical support in a business is capable of enhancing the business profit, and hence the systems implemented in a business should be kept up to date.
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