What is Automation? Definition, Types, Example & Future

The term "Automation" was first used in 1946 by General Motors to describe the automatic handling of parts in manufacturing. However, today, it has expanded far beyond manufacturing and is used across various fields, including finance, healthcare, and software development, to streamline processes and reduce human involvement.

Here, we’ll explore what automation is, the different types of automation technology, and more.

What is Tech Automation?

Tech Automation refers to the use of technology to carry out tasks automatically without requiring human intervention. Understanding automation is important today because it helps make tasks easier, saves time, and lowers expenses.

A significant aspect of this is Tech Automation, which refers to the automation of IT processes like software testing, system monitoring, and cloud management using advanced tools and technologies such as AI, machine learning, and robotic process automation (RPA).

Types of Automation

1. Fixed Automation

Often used in manufacturing, this involves using machinery to perform repetitive tasks. It is widely used in high-volume production environments where the processes are predictable and do not change frequently. However, the major drawback is its inflexibility, as making changes to the process or product requires significant retooling.

Example: Examples include automotive assembly lines, where each machine is dedicated to a particular task, such as welding or painting, leading to high efficiency and low per-unit costs.

2. Programmable Automation

Programmable automation is employed when production needs vary, requiring machinery to be reprogrammed or adjusted for different tasks. This type is ideal for batch production processes where the volume of each product is moderate and customization is needed.

Example: Examples include CNC (Computer Numerical Control) machines, which can be programmed to cut, shape, or engrave different materials based on the specific instructions given.

3. Flexible Automation

Flexible automation allows equipment to switch between different tasks with minimal reprogramming or setup changes, making it suitable for environments where product variability is high. This type of automation enhances productivity by reducing downtime and enabling quick adaptation to new product designs or changes in production requirements.

Example: It's commonly used in industries like automotive manufacturing, where robotic arms can be programmed to perform multiple tasks such as assembling, welding, and painting.

4. Software Automation

Software automation involves using software applications to automate tasks that would otherwise be performed manually on a computer. Tools like macros, scripts, and specialized software such as Zapier or Microsoft Power Automate can significantly reduce human errors, save time, and improve efficiency in business processes.

Example: This can include automating workflows, data entry, document generation, or managing emails.

5. Robotic Process Automation (RPA)

Uses software robots to mimic human actions on computers, useful in back-office tasks such as logging into applications, entering data, processing transactions, or generating reports.

Example: Beneficial for repetitive, rule-based tasks that do not require human judgment, such as invoice processing, payroll management, or customer service interactions.

6. Artificial Intelligence (AI) Automation

Uses AI technologies like machine learning and natural language processing to perform complex tasks that typically require human intelligence. This type of automation can handle complex decision-making, analyze large datasets or interact with customers through AI-powered chatbots.

Example: Include predictive maintenance in manufacturing, where AI predicts equipment failures before they occur, and personalized recommendations in e-commerce.

Real-Life Examples of Automation

Here are some usecases of automation across different industries:

1. Automation in Manufacturing

Manufacturing is one of the most automated sectors, where robots and machines handle repetitive tasks such as assembling, painting, and packaging products. Automation has drastically improved production rates and reduced errors. According to a study by the International Federation of Robotics (IFR), the global market for industrial robots is projected to reach $209 billion by 2025, with over 3 million robots in use across factories worldwide.

One real-life example is Tesla’s Gigafactory, where automation is heavily integrated into the production of electric vehicles. Robots assemble the cars, apply paint, and even transport parts across the factory floor. This has led to increased efficiency and reduced production costs.

2. Automation in Production

In industries like food production, automation is used to improve efficiency and maintain consistency. Automated systems control mixing, cooking, packaging, and labeling processes. A report by McKinsey suggests that automation in food production can increase productivity by 25-30%.

For instance, in Nestlé’s factories, automated systems are used to handle everything from processing ingredients to packaging final products, ensuring minimal human error and maximum output. This level of automation allows them to produce over 1 billion food products annually across their global facilities.

3. Automation in Healthcare

Automation is transforming healthcare by improving diagnostics, streamlining patient care, and enhancing data management. Robotic surgery is one of the most advanced examples of automation in healthcare, enabling surgeons to perform complex procedures with precision. According to Fortune Business Insights, the global market for surgical robots is projected to grow to $17.88 billion by 2028, growing at a CAGR of 17.6% from 2021.

For example, Da Vinci Surgical Systems is widely used for minimally invasive surgeries, allowing doctors to perform delicate procedures with robotic assistance. This technology reduces recovery time for patients and minimizes the risk of complications.

4. Automation in Banking and Finance

Automation in the banking sector includes the use of robotic process automation (RPA) to manage tasks like data entry, account management, and transaction processing. According to Deloitte, banks that adopt automation can reduce operational costs by 20-25%.

One well-known example is the use of chatbots by banks like Bank of America, which uses Erica, an AI-powered virtual assistant that helps customers with tasks like checking balances, scheduling payments, and receiving financial advice. RPA is also used to streamline back-office processes, reducing manual labor and minimizing errors in data processing.

5. Automation in Retail Business

Retailers are embracing automation to enhance the shopping experience and streamline inventory management. From self-checkout kiosks to automated warehouses, automation helps reduce operational costs and improve customer satisfaction. According to ResearchAndMarkets, the global retail automation market is expected to reach $23.58 billion by 2026.

A prime example is Amazon’s automated warehouses, where Kiva robots autonomously move and sort inventory. This automation enables Amazon to process and ship orders faster, reducing delivery times and improving efficiency.

6. Automation in Computers

Automation in computers focuses on automating tasks like software testing, data processing, and system maintenance. Software testing automation, for example, can significantly reduce the time needed for manual testing. According to Gartner, by 2024, 75% of large enterprises will have implemented at least four automation tools.

One example is the use of CI/CD pipelines in software development, where automated tools like Jenkins or GitLab test and deploy code automatically. This has reduced development cycles, improved software quality, and decreased the time-to-market for new products.

7. Automation in Agriculture

Agriculture is increasingly relying on automation to boost productivity, optimize resource usage, and improve crop yields. Automated systems are used for planting, watering, fertilizing, and harvesting crops. According to MarketsandMarkets, the global agricultural robots market is expected to grow from $5.4 billion in 2020 to $20.3 billion by 2025, at a CAGR of 29.5%.

An example is John Deere’s autonomous tractors, which are equipped with sensors, GPS, and AI to perform tasks like plowing and seeding without human intervention. This helps farmers save time and labor while ensuring precision in crop management.

8. Automation in PLC (Programmable Logic Controllers)

PLC automation is widely used in industries such as oil and gas, manufacturing, and power plants to control machinery and processes. PLCs are essential for monitoring inputs and outputs to ensure smooth operation. According to Allied Market Research, the global market for PLCs is expected to reach $15.23 billion by 2027, growing at a 5.3% CAGR from 2020 to 2027.

A notable example is in the oil refining industry, where PLCs control the flow of oil, regulate pressure, and monitor temperatures to optimize the refining process. This helps to ensure both safety and efficiency in environments where human intervention is minimal.

Also Read:

• IoT Home Automation
• IT Automation

Automation Case Studies 2024

1. Amazon’s Fulfillment Centers: Amazon uses robots in its warehouses to pick, pack, and sort items. This automation has significantly reduced the time needed to fulfill orders and has allowed Amazon to offer faster delivery options.

2. Tesla’s Gigafactory: Tesla's factories are highly automated, with robots handling a large portion of the car manufacturing process. This approach helps Tesla produce vehicles at a high rate while maintaining quality standards.

3. UiPath in Banking: UiPath, a leader in RPA, helped a large bank automate its loan processing system. This automation reduced the processing time from days to hours, improving customer satisfaction and reducing operational costs.

4. Coca-Cola’s Automated Bottling: Coca-Cola uses automation in its bottling plants to manage everything from filling bottles to packaging and quality control, increasing productivity and ensuring consistency across all products.

5. Walmart’s Automated Inventory Management: Walmart uses automation in its stores to manage inventory levels. Robots scan shelves to check stock levels and alert staff when items need restocking, ensuring products are always available to customers.

Future of Automation

The future of automation is poised to transform industries and daily life with advancements in AI, machine learning, and robotics. Autonomous vehicles, smart cities, and fully automated factories are on the rise, enhancing efficiency and reducing costs. Smart cities will use automation for traffic management, energy efficiency, and public safety, while factories will operate with minimal human intervention through lights-out manufacturing.

Hyperautomation, combining AI and RPA, will streamline complex business processes. However, automation also poses challenges like job displacement, making upskilling crucial. As automation expands, it will drive sustainability and create new opportunities, shaping the future of work and living.