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What are the Advantages of an Automated Management System?

By Jess Rhodes
Updated May 16, 2024
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Automated management systems help competitive companies streamline their business systems. Automated software can eradicate many tedious and time-consuming business tasks, making business management more effective. Advantages of an appropriately selected and correctly used automated management system include control over processes, clearer visibility of operations, supply chain streamlining, and more efficient information storage and recall. Such systems also can help a business increase efficiency, keep staff accountable, increase customer service, and bring greater value to the business.

The dashboard viewing capabilities of most automated systems can help management quickly obtain a clear picture of operations by allowing instant access to quality management information, personnel updates and informational statistics. Superior business results often come from a complex understanding of performance and business strengths, and increased visibility can lead to better control over processes. Visibility software can also stream actual video feed over plant management or manufacturing floors at all times, making it accessible from any location.

Often in competitive industries knowledge is power, and access to information databases and libraries can help provide this power. Management information systems provide immediate access to historical and real-time data to help increase effective management. Programs are composed of hardware and automated software and have the capacity to compare data from all necessary departments. They usually are designed to archive, backup, and manage all files and documents as well.

Internal processes such as inventory management, product planning and customer service can often be more easily managed by Automated Enterprise Resource Planning (ERP) software. Through radio frequency identification (RFID) and other tracking and identification technologies, ERP programs handle supply chain interactions, such as invoicing, order tracking, and interacting with suppliers. For example, when inventory reaches a predetermined level, ERP systems send reorder forms to suppliers. Internet purchasing and delivery sites often use an ERP system, as response time must be rapid and orders often are individualized.

Automated management systems can help reduce redundancy by quickly and accurately completing tasks that would take a human much longer and likely result in more errors. An example of this is the outsourcing of human resource departments. Human resources management software automates payroll calculation and issuance, logs employee updates and benefits status as well as sends out notices. Automated management systems cut time, employees and human error out of processes that once took more people and time to complete.

Staff accountability also can be increased by automated management systems that are programmed to assign and track the completion of worker responsibilities. This can be done in the form of quotas, communication logs, and task reviews. Information logs require employees to document their leads, creating evaluation opportunities based on qualitative data. These programs can help encourage employee growth and keep employees aware of their tasks, accomplishments and productivity.

Customer satisfaction can be enhanced by automated relationship management systems as well. All client communication and information is stored digitally, becoming available from multiple locations. This helps to ensure speedy dispute resolutions and creates opportunities to capitalize on additional sales. Letters, fax, e-mail, SMS and other forms of communication distribute automatically through automated software. Customized mass communication through automated resource management systems can be designed to reflect information tailored to a customer’s historical purchasing trends or interests.

Benefits of automated management systems can lead to increased business value, which often leads to increased profitability. To enhance the likelihood of this, the automated system and business software must be used efficiently. The use of the system must provide more value than the high costs of purchasing, implementing and training employees.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By Acriverati — On Mar 30, 2014

While automated management systems offer multiple benefits to a company, many aspects of customer service can't be automated. It takes a live person to effectively respond to customer complaints and to handle problems with orders or billing. The personal touch of a client services representative or a friendly receptionist or salesperson fosters good will and customer loyalty and can't be duplicated by a computer or software.

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