What is Batch Automation? Identify Benefits & Challenges in 2024

Batch automation, also known as batch processing automation, can help increase efficiency and productivity while reducing costs and time spent on tasks by:

• Reducing manual labor 
• Minimizing human errors
• Automating repetitive tasks.

Google search volume indicates that batch automation and its benefits have been known for a while (Figure 1). Yet, many business leaders, analysts and engineers may not fully comprehend what batch automation is. Therefore, this article will provide a comprehensive guide for batch automation explaining: 

• What is it?
• How does it work?
• What are its benefits
• What are some use cases and real-life examples?

What is batch automation?

Batch automation automatically performs a series of repetitive and time-consuming tasks in batches or groups.  With the batch processing technique, users can simultaneously and continuously process data with little or no human intervention. Also, automated batch processing breaks large jobs down into smaller chunks for debugging efficiency.

Batch automation is commonly applicable to industries where large amounts of similar products are provided. There are 2 main types of batch automation:

• Manufacturing batch automation: These systems automate production of physical goods (e.g. food, pharmaceuticals and electronics)
• Software batch automation: This will be the focus of our article and is about automation processing of data in software applications. Typical domains of use include:
  • Industries like financial services (processing of payroll, invoices, and financial statements)
  • Business activities like data processing (e.g sorting, filtering, processing, and analyzing data)

Batch controlling system & batch management system vs. batch automation  

Other batch processing-related terms, such as batch controlling system and batch management software, may confuse vendors and users. These are different concepts because they all focus on distinct aspects of batch processing in different domains, as their definitions suggest:  

• Batch controlling systems are used in manufacturing batch automation. These are tools that automatically control batch processing operations, such as controllers and sensors. 
• Batch management systems are used in software batch automation. They are
  • software and processes that manage and track batches throughout various processes
  • typically embedded within batch automation software

Workload automation vs. batch automation

Workload automation is a broader term that includes software batch automation as one of its components. Workload automation (WLA) is the process of automating a wide range of IT processes, including batch processing, file transfers, and job scheduling.

However, some vendors use these two terms interchangeably since many WLA solutions include batch automation capabilities.

• Learn more on workload automation tools, case studies & best practices.

How does batch automation work?

Batch automation uses a computer program or system to automate a series of tasks typically carried out in batches or groups. Batch processing performs each step based on the results obtained from the previous step. 

The process usually involves the following steps:

1. Input data: The first step in batch automation is to input the data that needs to be processed into the computer system. This data can come from various sources, such as files, databases, or sensors.
2. Preprocessing: The following step is to prepare the input data for the next steps by cleaning, filtering, or transforming the data. Preprocessing step ensures that data is in the correct format and can be easily analyzed.
3. Batch processing: The computer system executes predefined tasks or algorithms on each batch of data to perform specific operations.
4. Output: Once each batch is processed, the results are typically output to a file or database. Users can leverage these results to generate reports, update databases, or trigger other processes.
5. Error handling: In case of any errors or exceptions occurring during batch processing, the system is designed to handle them appropriately. This may involve notifying a human operator, retrying the process, or rolling back to a previous state.

What are the benefits of batch automation?

There are many benefits to batch automation, including:

1. Increased efficiency: Batch automation can help streamline and speed up repetitive tasks, reducing the time and effort required to perform them manually. As a result, it can increase efficiency and productivity, allowing organizations to accomplish more with fewer resources.
2. Improved accuracy:Batch automation can reduce errors and inconsistencies when tasks are performed manually. Therefore, it can enhance the quality of work and help ensure that data is accurate and reliable.
3. Cost savings: Batch automation can reduce labor costs by minimizing the need for manual labor and any other expenses associated with manual processes, such as material waste and energy consumption.
4. Enhanced scalability: Batch automation can be easily scaled up or down to accommodate changing demand. Thus, organizations can handle larger volumes of work without increasing their workforce or investing in additional resources.
5. Ensured consistency: Batch automation can help ensure that tasks are performed consistently and comply with predefined standards or protocols. This way, batch processing automation can improve work quality and effectiveness. 

Batch automation can be used in a wide variety of industries and applications.

What are some batch automation use cases in different business functions?

1. Data processing

According to estimates, the expenditure on data analytics has increased by 80% in the batch industry, showing the necessity to process big data. ¹  

Batch automation can help process large volumes of data, such as customer records, financial transactions, or sensor data. It can extract insights, identify patterns, and make informed decisions based on the data. 

For instance, a financial services company can deploy batch automation to ensure compliance by flagging suspicious activities. Typically, the firm is expected to process large volumes of customer data on its fraud detection system. However, the company can automatically scan and analyze customer transactions with the help of batch automation.  

Learn more about compliance automation. 

2. Marketing

Batch automation can be used in marketing to automate tasks such as lead generation, email marketing, and social media management. It can help increase efficiency, improve campaign targeting, and reduce costs.

Suppose a retail company utilizes batch automation to improve its email marketing campaigns. The retailer can automate the segmentation of its customer database and target its email campaigns more effectively. As a result, the firm can obtain higher open and click-through rates and increase sales.

Learn more about RPA in marketing. 

3. Logistics and supply chain

Batch automation can be used in logistics and supply chain management to automate tasks such as inventory management, order processing, and shipping. It can help reduce costs, improve accuracy, and speed up delivery times.

For example, a logistics company can improve their inventory management system with batch automation by automatically reordering products when inventory levels reach a certain threshold. This way, the firm can reduce stock-outs risk and improve customer satisfaction by ensuring that products are always in stock.

What are some batch automation use cases in different industries?

1. Financial services

Batch automation can be used in financial services to automate invoicing, payroll processing, and account reconciliation tasks. It can help reduce errors and processing times and ensure compliance with regulatory requirements.

As an example, automated batch processing can automatically generate invoices in bulk by extracting the necessary information and predefined templates from the company database. Batch automation can ensure that these invoices are customized and delivered to clients via email or other electronic means. Consequently, the service provider can: 

• Streamline the invoicing process
• Reduce errors
• Save time and resources
• Improve the accuracy and speed.   

2. Healthcare

Batch automation can be used in healthcare to automate tasks such as patient registration, appointment scheduling, and billing. It can help reduce administrative costs and improve patient outcomes by allowing healthcare providers to focus on patient care.

For example, suppose a hospital implements batch automation to improve patient care and reduce costs. Then, this hospital can automate patient registration, appointment scheduling, and billing. 

Explore more on how different automation tools can benefit healthcare by reading:

• RPA in healthcare 
• Healthcare intelligent automation

What are the challenges of batch automation?

While batch automation can offer many benefits, several challenges are associated with its implementation and use. Some common challenges include:

System issues

1. Integration with legacy systems: In many cases, batch automation must be integrated with existing legacy systems, which can be complex and time-consuming. 
2. System downtime: Implementing batch automation may require system downtime, disrupting normal business operations and leading to lost productivity and revenue.

Data issues

3. Data management: Batch automation requires a large amount of data to be processed, which must be managed effectively to ensure accuracy and consistency. Managing such a large amount of data can be challenging, particularly when dealing with multiple data sources or inconsistent or incomplete data.
4. Data security: Batch automation can introduce security risks, particularly when dealing with sensitive data.
   1. Solution: Users can benefit from tools to encrypt data, restrict access, and prevent breaches.

Other issues

5. Process complexity: Batch automation can be complex, particularly when dealing with complex processes or workflows.
   1. Solution: Users can consult technical experts and utilize process mining software to discover complex processes and identify areas where batch automation can apply. 

What are the top batch automation vendors and tools?

Batch automation vendor landscape is broad since it includes various tools, such as:

• Workload automation tools
• Enterprise job scheduler software
• Batch scheduling software
• IT automation software
• Data warehouse automation tools

Check out our data-driven and comprehensive lists for:

• Workload automation vendors
• Batch scheduling software
• Enterprise job scheduler
• IT automation software
• Data warehouse automation tools

Further reading

Learn more on automation by checking out:

• What is RPA? Robotic Process Automation Tech Guide
• Guide to Business Process Automation: Types, Use Cases & Best Practices
• What is Intelligent Automation: Guide to RPA’s Future

External Links

• 1. Greenfield, D. (2021) “Automation Investment Expectations for the Batch Manufacturing Industries.” AutomationWorld. Revisited April 20, 2023.