In business there are many different complex terms and phrases that might seem like gibberish to the uninitiated. Things like 'breakeven', 'turnover' and 'margins' are all things that people smile and nod at but that few actually understand.

The concept of 'automation' though of course is one that's a bit more straightforward to understand and that does what it says on the tin - put simply automation means taking a job or a task that you would normally complete manually and handing it over to machines to take care of so that it can be done more effectively and quickly. Using automation means using a conveyor belt system, packing systems or digital manufacturing tools in order to create products or perform simple tasks automatically en-masse without the need for human interaction.

One of the most interesting and exciting and recent forms of automation is 'POD' publishing or 'Print on Demand'. This is a concept that has been introduced in the last ten years and it serves as a perfect example of how automation can help an industry or a business. In this case, full books and brochures are printed out based on a digital file, and this then means that anyone can start publishing their own books. There's no risk, because the writer/distributor doesn't need to buy in bulk but can instead simply get new copies printed off as they sell, and the writer has the unprecedented ability to tweak their books on the fly whenever they like to correct errors they find etc. without having to bring out whole new editions. Of course all publishing uses a form of automation and this is what allows the industry to exist at all - back when books were hand written publishers would be able to sell only a few a year meaning they'd have to charge much more to make anywhere near the profit, and meaning that each one would have errors and mistakes in it.

POD is automation at its finest, but there are many other examples of automation, and there are probably some that could apply to your business - even if you don't sell a product. For instance if you perform a service that involves a spread sheet, then the right software could enable you to have that spread sheet update itself automatically.

Scaling

Automation of course is highly useful because it allows you to easily scale up your business. By automating one part of it you can work faster and more efficiently and this allows you to serve more customers or to produce more products and thus increase your profits.

What also makes automation great though is that you can tightly set a budget. Because the exact same process is carried out each time, that then means that you can guarantee how much each item will cost you. Once you've calculated your profits then, you can decide precisely how much you need to invest to go bigger.

Note however that the one downside of automation is that it can amplify any results. Just as it can produce more quality products, it can also then produce more items if you don't monitor it. This is why it's so important to either monitor your automation, or to outsource it, so that any errors are caught early. There's still a place for human input yet!

Charlie Fonda is a very popular blogger. He likes talking about things related to technology, gadgets, politics and business. You can go and read about his latest article on Bagging Machines in his blog.