Ashar Samdani: CEO of Code District, a Washington-based software development firm that focuses on helping businesses incorporate modern tech
There’s always that one friend who swears by their stick-shift car, claiming it’s “more efficient” or that it gives them “better control.” I get it—driving a manual has its charm, and sure, it’s fun on a winding road. But if you come to me and say it’s the best option for your morning commute through rush-hour traffic, I might question if you’re secretly a masochist. Automatics have not only caught up but, in many cases, can outperform their manual counterparts. Nostalgia isn’t the same as practicality.
The same holds true for businesses and manual processes. Most CEOs and business leaders know automation is often better for productivity, efficiency and scaling, but they still hold onto those manual workflows like a prized vintage car—out of habit, skepticism, or because they believe their unique needs justify it.
In this article, I’ll dive into six real-world reasons why companies stick with manual processes and make a case for when automation might be the better way forward.
1. Handling Complex, Non-Standard Processes
Some businesses stick with manual processes because their workflows are unpredictable or too variable to fit neatly into automation. They feel that automation wouldn’t fit their specific business or use case.
As an example, let’s take a construction company handling custom project bids. Each project differs in scope, materials, timelines and client-specific requirements. Automating such a process might seem impractical—how do you account for endless variables in a fixed system?
But automation doesn’t eliminate human input entirely—as a matter of fact, it can amplify it. A hybrid approach can allow you to streamline repetitive parts, like pulling standard costs or generating initial templates, while leaving room for customization. For instance, you can use software to generate a baseline bid based on past data, freeing project managers to focus on refining client-specific details. In my experience, this can help ensure speed and consistency without losing the personal touch that complex bids require.
2. Balancing Compliance And Efficiency In Highly Regulated Industries
In highly regulated industries, manual oversight is often seen as essential for ensuring accuracy and meeting compliance. Consider a pharmaceutical company handling FDA batch production records: Every manufacturing step demands detailed documentation, with human verification ensuring transparency.
But humans aren’t perfect—manual oversight carries risks. Errors can slip through, leading to costly inconsistencies, penalties or recalls. Relying solely on manual processes may not be as secure as it appears.
With a hybrid approach, you can standardize data collection, track variables and flag inconsistencies while using human oversight to validate key checkpoints—not to repeat tasks but to confirm accuracy. I have found that automating error-prone processes and reinforcing them with human review can help businesses reduce compliance risks, improve accuracy and save time more effectively than manual methods alone.
3. Maintaining Flexibility In Processes
Flexibility is crucial for managing workflows that require frequent adjustments. A common belief is that manual methods, like Excel, are better for adaptability because they can be customized quickly. Consider a recruiting firm hiring for diverse roles. If they’re recruiting drivers, they’ll need to track fields like license numbers—details irrelevant for marketing hires. It’s often assumed that automation can’t handle such variability.
What’s often overlooked is that modern software options do offer this kind of flexibility efficiently. A bespoke platform can allow your authorized personnel to add custom fields seamlessly. (Full disclosure: My company offers this type of service, as do others.) This type of solution can help you maintain accuracy and provide insights without sacrificing adaptability.
4. Easy To Start, Hard To Scale
Starting a business often means cutting costs and keeping things simple. Manual processes fit perfectly—spreadsheets are easy and manual tracking is cheap.
This typically works at first, but as businesses grow, manual processes can begin to show their limits. A wholesale distributor might track inventory with spreadsheets early on, but as operations scale, managing stock, orders and deliveries manually can become chaotic, leading to errors, missed orders and other inefficiencies.
Modern tools can simplify automation. Start small, automating tasks like inventory tracking, and expand gradually. For example, if you’re a distributor, you might begin by flagging low stock and auto-generating purchase orders, then automate orders and deliveries. Automation isn’t about sudden shifts; it’s about easing manual work step by step. If you start sooner rather than later, growth should feel less like disruption and more like progress.
5. Sensitive Data Management
Handling sensitive data manually may feel safer. A logistics company managing high-value shipments, for example, might avoid automation to maintain control, fearing risks of unauthorized access.
However, modern cloud-based automation offers many security benefits that may be challenging or cost-prohibitive to support with on-premise systems. Cloud platforms use encryption, multi-factor authentication and regular updates to eliminate vulnerabilities that manual processes or outdated servers may not be able to fully address.
For instance, that logistics company could use cloud-based automation for secure data storage, real-time tracking and instant error detection, while leaving critical decisions to humans. I have found that this hybrid approach can enhance security, reduce risks and improve efficiency.
6. Cost Of Implementation vs. Immediate ROI
Automation often demands upfront investments in technology, training and integration, which can deter businesses from adopting it for low-impact processes. For instance, a small-scale manufacturer manually tracking orders for seasonal speciality items may resist automation, viewing it as a high CapEx commitment with a long-term ROI.
While ROI does stretch over time, certain dividends typically start paying off immediately. Increased productivity, streamlined workflows and time savings can reduce labor costs and improve service quality. For example, automated order tracking can help ensure fewer errors, faster processing and better customer satisfaction, which I’ve found can, in turn, lead to repeat business. When implementing this method, I recommend using a phased automation strategy to spread costs, provide incremental ROI and deliver measurable benefits early on; this can help make the investment more practical and impactful.
Conclusion
Each of these scenarios highlight a genuine hesitation many businesses face. However, technology has advanced to the point where solutions can be tailored to address these concerns without compromising flexibility, personalization or security. By strategically implementing automation—even for seemingly low-priority tasks—I’ve found that organizations can reduce inefficiencies, minimize risks and unlock growth potential. The goal isn’t to replace human ingenuity but to empower it, allowing businesses to thrive in an increasingly competitive and fast-paced landscape.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here