Beware of the side-effects of computerisation!

Since around 1985, with the popularisation of IT, many business organisations have started computerising their business operations to varying levels of complexity, with the aim of replacing most of the manual and human functions. Companies with huge budget would go for total and full computerisation while those smaller firms would settle for semi- or partial computerisation.

Firms are attracted to the idea of computerisation because it helps make work processes more efficient and productive, hence reducing the operational cost, but many firms do not realise that there are also wastages generated by the computerised and automated systems if there is not enough check and balance built into it. For example, when generating a report, there are many instances of paper wastage because it is so easy to print out the documents with just one click of the Printer icon, most people do not check the report thoroughly for mistakes before printing it out. It is only after printing when mistakes are discovered. The never-mind mentality would tell them it is alright, just go back to the file, edit it and reprint, what is the big deal? In addition, many offices still keep hard copies of documents for "just in case" while the whole idea of computerisation is towards a paperless office.

For several years, I have been receiving bills from a certain telco company even when the amount oustanding was just 15 cents. I have informed the company but no action was taken at their end. The administrative cost involved in churning out the bill and the postage would obviously cost more than 15 cents. It does not make any economic sense at all. People have left everything to the computerised system and there is not enough check and balance built in. I am not an IT expert, but why can't an extra step be built into the computer programme and if the amount is less than say, $1, DO NOT PRINT.

This is one of many operational inefficiencies that companies have to deal with seriously if they are to cut cost during this economic downturn. Review the business processes and check for redundancies and inefficiencies. Substantial cost savings could be derived from this cost reduction exercise.