What Does It Cost Your Reputation to Overlook Automation?

While the opportunity cost of not automating is often cited, C suite leadership also needs to consider the reputational risks of lagging behind. Customers and employees alike now expect seamless digital experiences and efficient operations, and by failing to meet those expectations, businesses stand the risk of being considered obsolete. Clinging to manual processes can damage a company's brand and competitiveness.  

• For banks and financial services, failing to automate can suggest an inability to keep pace with fintech disruptors.  
• Customers accustomed to real-time transactions and mobile banking options may see banks as stuck in the past without automation.  
• In hospitality, brands that fail to offer self-service options like mobile check-in/check-out, smart room controls, and automated concierge risk appearing outdated. With travelers now expecting tech-enabled convenience, hotels that don't invest in automation may be seen as behind the times 

The same applies to shared services organizations that don't take advantage of RPA and IPA. Delivering cost-efficient services requires automation to stay competitive in an environment fraught with skilled labor shortage, inflationary impact and ambitious competitors.  

The bottom line is that standing still on automation carries real reputational risks across sectors. 

Adopting automation isn't just about capturing operational efficiencies. Equally important is maintaining a reputation for innovation, exceptional customer experiences, and competitive agility in a rapidly evolving digital business landscape. Companies failing to make automation investments risk tarnishing their brand, falling behind rivals, and losing customers. The reputational costs can be just as real as the opportunity costs. 

The reputational risks of not automating also extend to critical business relationships like vendors and partners. Technology vendors want to work with innovative companies at the forefront of emerging solutions. Not investing in automation can signal to tech partners that a company is stuck in the past and isn't an ideal partner for piloting new solutions. Even non-tech vendors and supply chain partners expect businesses to automate operational processes for greater efficiency and speed.  

Companies that rely solely on manual efforts and legacy systems may be viewed as lagging and difficult to work with by partners who see automation as table stakes. Adopting automation isn't just good for a company's own reputation; it's critical for maintaining strong relationships with vendors and partners who expect technology innovation.  

The message sent by clinging to manual processes can undermine these crucial relationships and sour critical stakeholders on doing business with organizations that don't make automation a priority. 

Document intensive enterprises like Law firms, Real Estate management companies, or Mortgage firms that rely heavily on manual effort face reputational risks as competitors adopt AI tools for document review and drafting. They may be perceived as antiquated, slow on delivery and expensive compared to early AI adopters. 

Let us consider the example of a hospitality enterprise and understand how the reputational costs of not automating can hurt its future prospects: 

1. Lost bookings and revenue - Without mobile/automated options, tech-savvy guests may choose competitor hotels perceived as more modern, costing direct bookings and revenue. 

1. Negative brand perception - Brand image can suffer as customers see the hotel as outdated versus innovative competitors, impacting future loyalty and recommendations. 

1. Lost tech-driven efficiencies - Lacking automation prevents hotels from realizing labor savings and efficiency gains, impacting future profit margins.  

1. Lagging guest experiences - Poor mobile/automated options can degrade the guest experience versus competitors, causing long term reputational damage. 

1. Failing to attract talent - Young hospitality workers expect the latest technology at work and may avoid non-automated hotels seen as behind-the-times and lacking career growth potential. 

1. Difficulty securing funding - Investors and lenders favor innovation and may shy away from financing expansion for hotels without automation, constraining future growth. 

1. Vendor reluctance - Critical vendors may be wary of working with hotels perceived as slow, depriving the brand of valuable partnerships. 

In sum, the reputational fallout of lagging on automation can profoundly hamper a brand's ability to attract customers, talent, partners and vendors. This limits growth potential and leaves brands vulnerable to competitors who actively embrace automation.  

The reputational costs are just too high to ignore.