Data Automation Platform: Ultimate Guide

Data enters your business on a daily basis, and with every passing minute. Rather than having it sit in a silo and remain unusable, leveraging a data automation platform can transform how you make decisions, operate with effectiveness, and better service your customers. 

We’re going to take a look at what the data automation process entails, as well as what data automation software can provide for your business.

Coming Up

What Is Data Automation?

What are Data Automation Examples?

How Does Data Automation Work?

What are the Types of Data Automation?

What are Benefits of Data Automation?

What are Challenges of Data Automation?

What are Best Practice Strategies for Data Automation?

How to Choose Data Automation Tools?

Wrap Up

What Is Data Automation?

Put simply, data automation is the application of software to make data usable by running it through a complete process. Data automation tools execute all the key steps necessary from discovery to designing, all the way through to deploying and scaling. 

The software is responsible for creating data entities and data objects, thereby organizing data for use. Data is prepared and modeled so it can be analyzed and explored for insights.

Without data automation software, you’re stuck relying on a person to collect, combine, and transform data by hand, which is time-consuming, error-prone, and inefficient. 

What are Data Automation Examples?

Data automation tools can be set up to execute data automation in a variety of ways. These include:

1. Scheduled

As the heading implies, scheduled data processes run at a predetermined time or cadence. To exemplify, a business can set up a data automation schedule to run every day or weekly. 

2. Streamed

A streaming pipeline happens on-the-spot, instantly. Think of it as you do streaming for media- it’s loading and displaying as you watch it. A streaming pipeline processes data as it is generated. 

3. Triggered

It’s also possible to define conditions by which data automation should take place. This means that when a specific event takes place in the system, data is then processed automatically. 

Businesses prefer this method when they wish to only process data when it’s called for, rather than wasting data processing resources randomly. 

How Does Data Automation Work?

A data automation platform will move data through the necessary steps to transform it from its raw source form to an understandable format to derive insights. 

Here are the key steps:

1. Data collection

Data exists across systems within your organization. The collection process tends to be one of the most tedious aspects, but with the right data automation platform, data is automatically collected and centralized. 

For example, a data automation platform like SolveXia combines all your softwares data, including legacy systems for real time reporting, analysis and dashboards. 

2. Data cleansing 

Next up, data requires cleansing, so it can be formatted and structured before being applied. Data cleansing also removes duplicate data and fills in gaps. 

3. Data analysis 

Once data is structured, it can be analyzed through data mining and statistical analysis. This piece is critical as it is what provides stakeholders and business leaders with better decision-making capabilities. 

What are the Types of Data Automation?

Just as there exists different types of data (structured, unstructured, video, text, etc.), there are also different types of data automation. In the same vein, there are different technologies that automate data, including machine learning, robotic process automation (RPA), and artificial intelligence. 

Data automation depends on three main components, namely:

1. Extract

Data extraction means moving data from its sources into a centralized repository. SolveXia is an example of a finance automation platform that connects data systems and then is able to transform data into usable insights. 

2. Transform

Transform means to convert or enhance the data that’s collected before moving it to its target systems. 

3. Load 

Loading refers to the movement of data into target systems so it can be analyzed and used. 

What are Benefits of Data Automation?

Luckily, it’s simple to enact data automation for any business, which means even without a big budget or a dedicated IT team, you can take advantage (and reap the advantages) of having a data automation platform. 

The wide-ranging benefits include: 

1. Saved Time

Businesses save a ton of time when automating data processing and analysis. Rather than having your team spend countless hours on mundane and repetitive tasks, the system does the work while they focus on high-level responsibilities. 

2. Reduced Errors

No matter how great your team may be, human error is unavoidable. But, with a data automation platform, you can dramatically reduce error rates by 90% and gain confidence in trusting your data’s quality and accuracy. 

3. Improved Decision-Making Capabilities

When your team is free to focus on strategy and analysis, rather than data-entry and data manipulation, they are better equipped to provide innovative ideas and insights, while leveraging the data and analysis at their fingertips. 

Data automation platforms provide greater insights that enable better decision making, which can lead to reduced costs and increased profits. 

4. Scalability

A data automation platform works just as well with a small volume of data as it will with a large volume of data flowing in. With this reality, businesses can scale and make use of their data, no matter its volume, velocity, and variety. 

Another great benefit about finance platforms like SolveXia is that it can not only automate your data processing, it can also automate crucial finance functions, like: reconciliation, rebate management, regulatory reporting, and more. 

What are Challenges of Data Automation?

Data automation itself isn’t challenging when you find the right tool because it is automated for you. However, there are some challenges to implement data automation. But, they are all easy to overcome when you are aware of them and have a plan in place to deal with them. 

Let’s review what hurdles you may face:

1. Learning Curve

Any new technology may be considered to have a learning curve for some, if not all, of its users. The good news is that they are low code solutions (like SolveXia) that are intuitive and simple to learn, no matter what technical level your employees may be at. 

Plus, once they are setup, there’s no neeed for IT involvement. Anyone is able to run and customize processes and reports with its easy-to-use, drag-and-drop interface. 

2. Resistance to Adopt 

Some employees may be hesitant to adopt a new technology out of fear that the tool will replace their own value. It’s important to recognize and reiterate that automation solutions like SolveXia are here to augment human capabilities, not replace humans entirely. 

Instead, you get to automate the repetitive and cumbersome tasks, and as an upside, this frees time to focus on the activities that require human involvement. In actuality, many employees report feeling more satisfied and happy with their jobs after automating repetitive tasks because they get to see their real value in action. 

For more on change management and how to deal with any potential resistance, check out these 7 models of change that CFOs must know!

What are Best Practice Strategies for Data Automation?

Like everything in business, it’s best to have a plan before moving full steam ahead. 

These best practices are listed out to help you maximize the upsides of using data automation software to glean automated data insights: 

1. Define Your Goals

List out what you wish to accomplish by implementing a data automation platform in your business. This way, you can gauge how it’s performing once you get going. 

2. Locate the Optimal Data Source 

It may not make sense to automate everything (especially not at once). Figure out what data is needed to accomplish your business goals, and start with a singular focus first. 

3. Choose Your Solution 

Research your options based on need and budget. Then, find a tool that fits your business’ desires. 

4. Gain Buy-In 

Make sure everyone is aligned and on board with the deployment of a new technology. This includes employees and stakeholders. 

5. Implement Thoughtfully 

Test the solution first before implementing it across your entire organization. Make sure it is running smoothly and that everyone knows how to properly use the technology before scaling. 

Document the solution as well, so it can serve as reference material for anyone who may need it in the future. 

6. Monitor Continuously 

Keep an eye on how the solution is performing by defining key performance indicators (KPIs) and tracking them along the way. 

How to Choose Data Automation Tools?

In a sea filled with data automation platform options, where do you enter the waters? Well, it depends on where you currently are sailing and where you want to go. 

When selecting the right tool for your specific business, consider: 

1. Ease-of-Use 

A simple and intuitive interface makes the solution more likely to be used. The last thing you want to do is spend money on a technology that has a steep learning curve or is uninviting to employees with a range of different technical backgrounds. 

2. Integration Abilities

It’s obviously best for the platform to be able to work with your existing systems, especially because data comes from various sources (and you don’t want to lose it). SolveXia integrates with your existing tech stack, including legacy systems. 

3. Cost 

Your budget will play a pivotal role in deciding what solution is fitting. Of course, cloud-based solutions are more cost effective than those that need to be built from scratch and on-premise. 

4. Scalability

Let’s reiterate the importance of scalability because as your business grows, so does its volume of data. In the same vein, as you hire more people, more people will need access to data and insights, so it’s best to select a solution with access controls. This way, you can safeguard sensitive data. 

Wrap Up

There’s no doubt you want to be at the top in your industry, and the way by which you use your data will make all the difference. A data automation platform takes the headache and hassle out of transforming data into valuable insights for informed decision-making. 

All businesses have access to data, but the way in which they utilize it is what gives them a competitive advantage or causes them to fall by the wayside. 

In particular, finance is a department in which data accuracy, timeliness, and analysis is absolutely critical for success. A finance automation platform like SolveXia removes the dependency on spreadsheet-driven data by connecting systems and transforming data into insights. 

Plus, you can automate entire processes! Learn how by requesting a demo today.