The Role of Technology and Automation in Streamlining Business Processes and Productivity for SMEs

Abstract

Purpose: This research investigates the vital role of automation in enhancing business process efficiency and overall productivity within SMEs. It also discusses how technology can help overcome bottlenecks arising from human operation, resource limitation, and operational inefficiency, which have commonly been experienced by SMEs.

Materials and Methods: The study combines an extensive review of existing literature with case studies from various industries to evaluate the effects of automation tools on SME operations. These tools range from cloud-based solutions to AI-powered systems, providing insights into their impact across different business processes.

Findings: Research has shown that automation improves productivity in SMEs by up to 30%, reduces manual errors by 25%, and enhances data accuracy by improving employee focus on strategic tasks. In addition, the standardization of processes through automation ensures less variability in output. Automation also impacts customer experience positively by ensuring speed in service delivery and quality improvement in products. High upfront costs, however, combined with a shortage in skilled personnel and integrating new technologies with existing systems, remain barriers to wider adoption by SMEs.

Implications to Theory, Practice and Policy: Accordingly, the study recommends that the following measures be taken to counteract the problems posed: phase in automation, cooperate with technology providers who will devise cost-effective solutions, and invest in comprehensive training programs to fill the skills gap. Government incentives, such as tax breaks and subsidies, could also push SMEs toward broader automation. Thereafter, successful integration of automation will enhance the competitiveness of SMEs and create a sustainable growth path in the digital economy.