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Fundamentals

For Small to Medium Businesses (SMBs), navigating the complexities of growth while maintaining is a constant balancing act. The concept of Agile Automation Synergy offers a powerful framework to address this challenge. In its simplest Definition, Synergy is the harmonious combination of agile methodologies and automation technologies to enhance business processes, improve responsiveness, and drive within SMBs. Let’s break down this Definition further to understand its core components and Meaning for SMBs.

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Understanding Agile Methodologies

Agile methodologies, at their heart, are about flexibility and iterative improvement. Originating from software development, agile principles emphasize collaboration, customer feedback, and rapid adaptation to changing requirements. For SMBs, adopting an agile mindset means moving away from rigid, long-term planning towards a more dynamic and responsive approach. This doesn’t mean abandoning planning altogether; instead, it signifies embracing shorter cycles of planning, execution, and evaluation.

The Meaning of agility in this context is the ability to pivot quickly, learn from experiences, and continuously refine processes to better meet customer needs and market demands. Popular agile frameworks like Scrum and Kanban provide structured approaches to implement these principles, even in non-software contexts within SMB operations.

Consider an SMB in the e-commerce sector. Traditionally, launching a new marketing campaign might involve months of planning, design, and implementation. Using an agile approach, this SMB could break down the campaign into smaller sprints, perhaps two weeks each. In each sprint, they would focus on a specific aspect, like social media engagement or email marketing.

After each sprint, they would analyze the results, gather feedback, and adjust their strategy for the next sprint. This iterative process allows for course correction based on real-time data, making the marketing efforts more effective and efficient. The Description of agile here is not just about speed, but about smart speed ● moving quickly in the right direction based on continuous learning.

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Exploring Automation Technologies

Automation, in the context of SMBs, refers to the use of technology to perform tasks that were previously done manually. This can range from simple tasks like automated email responses to more complex processes like (RPA) for data entry or AI-powered chatbots for customer service. The Intention behind automation is to reduce manual effort, minimize errors, improve efficiency, and free up human resources for more strategic and creative work.

For SMBs with limited resources, automation can be a game-changer, allowing them to achieve more with less. The Significance of automation isn’t just about cost savings; it’s about unlocking potential and enabling SMBs to scale operations without proportionally increasing headcount.

Imagine a small accounting firm. Manual data entry for invoices and expense reports can be time-consuming and prone to errors. By implementing automation tools, such as optical character recognition (OCR) software to extract data from invoices and RPA to automatically input this data into accounting systems, the firm can significantly reduce manual workload.

This not only saves time and reduces errors but also allows accountants to focus on higher-value tasks like financial analysis and client advisory services. The Elucidation of automation’s benefits here is clear ● it transforms mundane tasks into streamlined processes, allowing SMBs to operate more effectively and strategically.

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The Synergy ● Where Agile and Automation Meet

The true power of Agile Automation Synergy emerges when and automation technologies are combined strategically. It’s not just about doing agile and doing automation separately; it’s about creating a feedback loop where agility informs automation and automation enhances agility. The Interpretation of synergy here is crucial ● it’s about creating a whole that is greater than the sum of its parts. For SMBs, this synergy translates into a more responsive, efficient, and innovative organization capable of adapting to change and seizing opportunities in a dynamic market.

Consider a small manufacturing company. Using agile principles, they can adopt a more flexible production schedule, responding quickly to changes in customer demand. By automating parts of their production line, they can increase output and reduce lead times. However, the real synergy comes when they use data from their automated systems to inform their agile planning.

For example, real-time data on production bottlenecks can be fed back into their agile sprints to identify areas for process improvement and further automation. This continuous feedback loop, driven by the combination of agile and automation, allows the SMB to become increasingly efficient and responsive over time. The Clarification of this synergy highlights its dynamic and iterative nature, constantly driving improvement and adaptation.

Agile Automation Synergy, at its core, is about empowering SMBs to be more responsive and efficient by strategically combining flexible methodologies with powerful technologies.

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Benefits of Agile Automation Synergy for SMBs

The Implication of embracing Agile for SMBs is far-reaching, impacting various aspects of their operations and growth trajectory. Here are some key benefits:

  1. Increased Efficiency ● Automation streamlines repetitive tasks, freeing up employees for higher-value activities. Agile methodologies ensure these efficiencies are continuously improved and aligned with business needs.
  2. Enhanced Responsiveness ● Agile frameworks enable SMBs to adapt quickly to changing market conditions and customer demands. Automation supports this responsiveness by enabling faster execution and delivery.
  3. Improved Quality ● Automation reduces human error in repetitive tasks, leading to higher quality outputs. Agile’s iterative approach allows for continuous quality improvement through feedback and refinement.
  4. Reduced Costs ● Automation can lower operational costs by reducing manual labor and errors. Agile methodologies help optimize resource allocation and minimize waste.
  5. Faster Innovation ● By freeing up resources and fostering a culture of experimentation, Agile Automation Synergy enables SMBs to innovate more rapidly and effectively.

These benefits are not just theoretical; they translate into tangible improvements in an SMB’s bottom line and competitive position. The Statement of these benefits underscores the practical value of Agile Automation Synergy for SMBs seeking sustainable growth and operational excellence.

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Initial Steps for SMBs to Embrace Agile Automation Synergy

For SMBs looking to embark on the journey of Agile Automation Synergy, the initial steps are crucial for setting a solid foundation. It’s not about overnight transformation but rather a gradual and strategic implementation. Here are some key starting points:

These steps provide a practical roadmap for SMBs to begin leveraging Agile Automation Synergy. The Designation of these initial actions is intended to make the concept accessible and actionable for SMBs, regardless of their current level of technological maturity.

In conclusion, Agile Automation Synergy is not just a buzzword; it’s a practical and powerful approach for SMBs to achieve sustainable growth and in today’s dynamic business environment. By understanding the fundamentals of agile methodologies and automation technologies, and by strategically combining them, SMBs can unlock significant benefits and position themselves for long-term success. The Essence of Agile Automation Synergy for SMBs lies in its ability to empower them to be more agile, more automated, and ultimately, more competitive.

Intermediate

Building upon the foundational understanding of Agile Automation Synergy, we now delve into a more intermediate perspective, exploring the and nuanced Meaning of this synergy within SMBs. At this level, we move beyond basic Definitions and begin to examine the practical application, challenges, and advanced strategies for leveraging Agile Automation Synergy to drive significant business impact. The Description now shifts from introductory concepts to actionable frameworks and deeper insights into the interplay between agility and automation.

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Deep Dive into Agile Frameworks for Automation

While the ‘agile mindset’ is crucial, SMBs benefit significantly from adopting structured agile frameworks to guide their automation initiatives. Scrum and Kanban, two popular frameworks, offer distinct yet complementary approaches. Scrum, with its emphasis on sprints, daily stand-ups, and retrospectives, provides a structured rhythm for iterative development and automation implementation.

Kanban, on the other hand, focuses on visualizing workflow, limiting work in progress (WIP), and continuous flow, making it ideal for optimizing existing automated processes and identifying bottlenecks. The Explanation of these frameworks highlights their practical utility in managing and enhancing automation efforts within SMBs.

For instance, an SMB developing a new customer onboarding process could utilize Scrum. Each sprint could focus on automating a specific stage of the onboarding journey, such as data collection, account setup, or initial training. Daily stand-ups would ensure alignment and address roadblocks, while sprint reviews would allow for stakeholder feedback and iterative improvements. Alternatively, an SMB with an existing automated order processing system might benefit from Kanban.

By visualizing the order processing workflow, they can identify bottlenecks, such as delays in inventory management or shipping, and implement automation solutions to streamline these areas. The Specification of framework application demonstrates how different agile methodologies can be tailored to specific automation needs within SMBs.

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Advanced Automation Technologies for SMB Growth

Moving beyond basic automation, SMBs can explore more advanced technologies to unlock greater efficiency and innovation. Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML) offer powerful capabilities to automate complex tasks, gain data-driven insights, and personalize customer experiences. RPA excels at automating rule-based, repetitive tasks across different systems, freeing up employees from mundane work.

AI and ML enable more intelligent automation, allowing systems to learn from data, make decisions, and adapt to changing conditions. The Delineation of these technologies underscores their potential to transform SMB operations and drive competitive advantage.

Consider an SMB in the financial services sector. RPA can be used to automate tasks like KYC (Know Your Customer) compliance checks, loan application processing, and fraud detection. AI-powered chatbots can provide 24/7 customer support, answer frequently asked questions, and even handle basic transactions. ML algorithms can analyze customer data to personalize financial advice, predict customer churn, and identify new market opportunities.

The Import of these advanced technologies is that they empower SMBs to not only automate existing processes but also to create entirely new services and business models. This Statement of technological potential emphasizes the transformative power of for SMB growth.

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Integrating Agile and Automation ● Strategic Approaches

The true Significance of Agile Automation Synergy lies in its integrated approach. It’s not enough to simply implement agile methodologies and automation technologies in isolation; they must be strategically integrated to maximize their combined impact. This integration requires a holistic approach that considers people, processes, and technology. Key strategic approaches include:

  • Value Stream Mapping ● Identify the key value streams within the SMB and map out the processes involved. This helps pinpoint areas where agile and automation can be most effectively applied to optimize value delivery.
  • Automation-First Mindset ● Encourage a culture where automation is considered as the first option for any repetitive or manual task. This promotes proactive identification of automation opportunities within agile sprints.
  • Data-Driven Automation ● Leverage data analytics to identify automation priorities, measure the impact of automation initiatives, and continuously refine automation strategies based on performance data.
  • Cross-Functional Agile Teams ● Form agile teams that include members from different departments (e.g., IT, operations, marketing) to ensure holistic implementation of Agile Automation Synergy across the organization.
  • Continuous Improvement Loop ● Establish a continuous feedback loop where insights from agile iterations inform automation enhancements, and the efficiencies gained through automation further enhance agile responsiveness.

These strategic approaches provide a framework for SMBs to effectively integrate agile and automation, creating a synergistic effect that drives and business agility. The Explication of these strategies provides practical guidance for SMBs seeking to maximize the benefits of Agile Automation Synergy.

Strategic integration of agile methodologies and automation technologies is crucial for SMBs to unlock the full potential of Agile Automation Synergy and achieve sustainable competitive advantage.

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Overcoming Challenges in Implementing Agile Automation Synergy

While the benefits of Agile Automation Synergy are compelling, SMBs often face challenges in its implementation. These challenges can range from resource constraints and skill gaps to cultural resistance and integration complexities. Understanding and addressing these challenges is crucial for successful adoption. Common challenges include:

  1. Limited Resources ● SMBs often have limited budgets and personnel, making it challenging to invest in both agile training and automation technologies. Strategic prioritization and phased implementation are key to overcoming this.
  2. Skill Gaps ● Implementing agile methodologies and automation tools requires specific skills that may be lacking within the SMB. Investing in training, upskilling existing employees, or partnering with external experts can address this gap.
  3. Cultural Resistance ● Employees may resist changes associated with agile and automation, fearing job displacement or increased workload. Effective communication, change management, and demonstrating the benefits to employees are crucial for overcoming resistance.
  4. Integration Complexity ● Integrating agile methodologies and automation technologies across different departments and systems can be complex. A well-defined integration strategy, clear communication, and robust project management are essential.
  5. Measuring ROI ● Quantifying the (ROI) of Agile Automation Synergy initiatives can be challenging. Establishing clear metrics, tracking progress, and demonstrating tangible business outcomes are crucial for justifying investments and securing ongoing support.

Addressing these challenges requires a proactive and strategic approach. SMBs need to prioritize, plan carefully, invest in the right resources, and foster a culture of change and continuous improvement. The Interpretation of these challenges is not to discourage SMBs but to prepare them for the realities of implementation and guide them towards effective mitigation strategies.

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Measuring Success and ROI of Agile Automation Synergy

Demonstrating the value and return on investment (ROI) of Agile Automation Synergy is critical for securing ongoing support and justifying further investments. SMBs need to establish clear metrics and track progress to measure the success of their initiatives. Key metrics to consider include:

Metric Category Efficiency
Specific Metrics Process cycle time reduction, task completion rate, error rate reduction, throughput increase
Meaning for SMBs Quantifies improvements in operational efficiency and productivity due to automation and agile process optimization.
Metric Category Responsiveness
Specific Metrics Customer response time, lead time reduction, time to market for new products/services, change request turnaround time
Meaning for SMBs Measures the SMB's ability to adapt quickly to changing customer needs and market demands, enabled by agile and automation.
Metric Category Quality
Specific Metrics Customer satisfaction scores, defect rate reduction, compliance adherence, service level agreement (SLA) attainment
Meaning for SMBs Reflects improvements in product/service quality and customer experience, driven by automation and agile quality assurance practices.
Metric Category Cost Savings
Specific Metrics Labor cost reduction, operational expense reduction, error correction cost reduction, resource utilization improvement
Meaning for SMBs Demonstrates the direct financial benefits of automation and agile process optimization in terms of cost reduction and resource efficiency.
Metric Category Innovation
Specific Metrics Number of new product/service launches, employee idea generation rate, innovation project success rate, market share growth
Meaning for SMBs Captures the impact of Agile Automation Synergy on fostering innovation and driving business growth through new offerings and market expansion.

By tracking these metrics, SMBs can gain a clear understanding of the impact of Agile Automation Synergy on their business performance. Regularly reporting on these metrics to stakeholders helps demonstrate the value of the initiatives and build momentum for further adoption. The Clarification of these metrics provides a practical framework for SMBs to measure and communicate the success of their Agile Automation Synergy efforts.

In conclusion, moving to an intermediate understanding of Agile Automation Synergy involves delving into structured agile frameworks, exploring advanced automation technologies, and strategically integrating these elements to drive significant business impact. While challenges exist, a proactive and strategic approach, coupled with effective measurement and communication, can enable SMBs to successfully leverage Agile Automation Synergy for sustainable growth and competitive advantage. The Essence at this level is about strategic implementation, overcoming challenges, and demonstrating tangible business value through measurable outcomes.

Advanced

At an advanced level, the Meaning of Agile Automation Synergy transcends mere operational efficiency and enters the realm of strategic organizational transformation and competitive paradigm shifts for SMBs. The Definition, therefore, must be refined to encompass its broader implications ● Agile Automation Synergy represents a dynamic, adaptive, and learning-oriented organizational model wherein agile methodologies and automation technologies are not merely tools but are deeply interwoven to create a self-optimizing system capable of navigating complexity, fostering innovation, and achieving sustained in volatile and uncertain business environments. This Interpretation moves beyond practical application to consider the theoretical underpinnings and long-term strategic consequences of this synergy.

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Redefining Agile Automation Synergy ● An Expert-Level Perspective

From an advanced perspective, Agile Automation Synergy can be viewed through the lens of various business theories and disciplines. Drawing upon research in organizational theory, operations management, and information systems, we can Explicate a more nuanced understanding. It is not simply the sum of agility and automation but rather a complex adaptive system where the emergent properties of their interaction create a fundamentally different organizational capability. This system exhibits characteristics of:

  • Dynamic Capability ● Agile Automation Synergy enhances an SMB’s dynamic capabilities ● the ability to sense, seize, and reconfigure resources to adapt to changing environments and create new sources of competitive advantage. Automation provides the operational agility to execute changes rapidly, while agile methodologies ensure these changes are strategically aligned and effectively implemented.
  • Organizational Ambidexterity ● This synergy fosters organizational ambidexterity, enabling SMBs to simultaneously pursue exploitation (refining existing processes through automation for efficiency) and exploration (innovating new products and services through agile experimentation). Automation optimizes current operations, freeing up resources for agile-driven innovation initiatives.
  • Learning Organization ● Agile Automation Synergy promotes a learning organization culture. Agile’s iterative feedback loops, combined with data-driven insights from automated systems, create a continuous learning cycle. This allows SMBs to constantly adapt, improve, and evolve their processes and strategies.

These theoretical frameworks provide a deeper Understanding of the strategic Significance of Agile Automation Synergy. It is not just about doing things faster or cheaper; it’s about building a fundamentally more adaptable, innovative, and resilient organization. The Statement from an advanced standpoint is that Agile Automation Synergy represents a strategic imperative for SMBs seeking long-term success in the 21st-century business landscape.

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Cross-Sectorial Business Influences and Multi-Cultural Aspects

The Meaning and application of Agile Automation Synergy are not uniform across all sectors or cultures. Cross-sectorial analysis reveals that the specific manifestations and priorities of this synergy vary significantly depending on industry characteristics, regulatory environments, and competitive dynamics. For example:

  • Manufacturing ● In manufacturing, Agile Automation Synergy might focus on smart factories, flexible production lines, and predictive maintenance. The emphasis is on operational efficiency, quality control, and responsiveness to fluctuating demand.
  • Healthcare ● In healthcare, the synergy could manifest in telehealth platforms, AI-powered diagnostics, and automated patient management systems. Priorities include improving patient outcomes, enhancing access to care, and streamlining administrative processes.
  • Financial Services ● In financial services, Agile Automation Synergy might drive algorithmic trading, personalized financial advice, and automated fraud detection. Key objectives are enhancing customer experience, improving risk management, and ensuring regulatory compliance.

Furthermore, multi-cultural business aspects influence the adoption and implementation of Agile Automation Synergy. Cultural norms around collaboration, hierarchy, risk aversion, and technology adoption can significantly impact how SMBs in different regions approach this synergy. For instance, cultures that value collectivism might emphasize collaborative agile practices, while cultures with a higher tolerance for risk might be more willing to experiment with cutting-edge automation technologies. The Delineation of these cross-sectorial and multi-cultural influences highlights the need for a context-specific approach to Agile Automation Synergy implementation.

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In-Depth Business Analysis ● Focusing on SMB Competitive Advantage

To provide an in-depth business analysis, let’s focus on how Agile Automation Synergy can create a for SMBs, particularly in the context of increasing globalization and digital disruption. The traditional sources of competitive advantage, such as economies of scale and proprietary technology, are becoming less defensible in today’s dynamic environment. Agile Automation Synergy offers a new paradigm for competitive advantage based on:

  1. Adaptive Capacity ● In a rapidly changing world, the ability to adapt quickly is paramount. Agile Automation Synergy builds into the very fabric of the SMB, enabling it to respond effectively to market shifts, technological advancements, and unforeseen disruptions. This agility becomes a core competitive differentiator.
  2. Innovation Velocity ● Agile methodologies foster a and rapid iteration, while automation frees up resources and reduces the cost of experimentation. This combination accelerates the pace of innovation, allowing SMBs to bring new products and services to market faster than competitors.
  3. Personalized Customer Experiences ● Automation technologies, particularly AI and ML, enable SMBs to personalize customer interactions at scale. Agile approaches ensure that these personalized experiences are continuously refined based on customer feedback and evolving needs. This creates stronger customer loyalty and differentiation.
  4. Operational Excellence at Scale ● Automation drives operational efficiency and reduces costs, while agile methodologies ensure that these efficiencies are aligned with strategic objectives and customer value. Agile Automation Synergy allows SMBs to achieve operational excellence not just in isolated processes but across the entire value chain, even as they scale.
  5. Data-Driven Decision Making ● Automated systems generate vast amounts of data, which, when combined with agile analytics and feedback loops, enables data-driven decision-making at all levels of the SMB. This leads to more informed strategies, optimized operations, and a competitive edge based on superior insights.

These elements collectively contribute to a sustainable competitive advantage that is difficult for competitors to replicate. It’s not just about adopting agile or automation in isolation; it’s about building a synergistic system that continuously learns, adapts, and innovates. The Elucidation of these competitive advantages underscores the strategic imperative of Agile Automation Synergy for SMBs seeking long-term market leadership.

Agile Automation Synergy, viewed scholarly, represents a strategic organizational model that empowers SMBs to achieve dynamic capability, organizational ambidexterity, and sustained competitive advantage in the face of global disruption.

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Long-Term Business Consequences and Success Insights for SMBs

The long-term business consequences of embracing Agile Automation Synergy are profound for SMBs. It’s not just about short-term gains in efficiency or cost savings; it’s about fundamentally transforming the organization to thrive in the long run. Key long-term consequences and success insights include:

  • Enhanced Resilience ● SMBs that embrace Agile Automation Synergy become more resilient to external shocks and disruptions. Their adaptive capacity allows them to weather economic downturns, technological shifts, and competitive pressures more effectively.
  • Sustainable Growth ● Agile Automation Synergy enables sustainable growth by optimizing resource utilization, fostering innovation, and enhancing customer loyalty. This growth is not just about scaling operations but about building a robust and adaptable business model.
  • Attracting and Retaining Talent ● Organizations that embrace agile and automation are often seen as more innovative and forward-thinking, making them more attractive to top talent. Furthermore, automation can free up employees from mundane tasks, allowing them to focus on more challenging and rewarding work, improving retention.
  • Increased Valuation ● SMBs that demonstrate strong agile capabilities and effective automation are often valued higher by investors and potential acquirers. Agile Automation Synergy signals a future-proof business model with strong growth potential and operational efficiency.
  • Market Leadership ● In the long run, SMBs that effectively leverage Agile Automation Synergy are more likely to emerge as market leaders in their respective niches. Their adaptive capacity, innovation velocity, and operational excellence provide a significant and sustainable competitive edge.

These long-term consequences highlight the transformative potential of Agile Automation Synergy for SMBs. It’s not just a tactical approach but a strategic paradigm shift that can redefine the trajectory of an SMB’s success. The Designation of these long-term outcomes emphasizes the enduring value and strategic importance of embracing this synergy.

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Advanced Research and Future Directions

Advanced research on Agile Automation Synergy is still evolving, but initial studies and conceptual frameworks are emerging. Future research directions include:

  • Empirical Studies ● More empirical research is needed to quantify the impact of Agile Automation Synergy on SMB performance across different sectors and contexts. Longitudinal studies tracking the performance of SMBs that adopt this synergy would be particularly valuable.
  • Framework Development ● Further development of theoretical frameworks and practical methodologies for implementing Agile Automation Synergy in SMBs is needed. This includes frameworks for assessing organizational readiness, selecting appropriate automation technologies, and measuring the ROI of synergy initiatives.
  • Ethical and Societal Implications ● Research should also explore the ethical and societal implications of widespread automation in SMBs, including the impact on employment, skills development, and the future of work.
  • Cross-Cultural Comparisons ● Comparative studies across different cultures and regions are needed to understand how cultural factors influence the adoption and effectiveness of Agile Automation Synergy in SMBs globally.

These research directions highlight the ongoing advanced interest in Agile Automation Synergy and its potential to transform the SMB landscape. The Explication of these future research areas underscores the dynamic and evolving nature of this field and its continued relevance for both advanced inquiry and practical business application.

In conclusion, at an advanced level, Agile Automation Synergy represents a profound shift in how SMBs can achieve and sustain competitive advantage. It is a dynamic, adaptive, and learning-oriented organizational model that goes beyond mere operational improvements to fundamentally transform the SMB into a resilient, innovative, and future-proof entity. The Essence of Agile Automation Synergy, from an advanced perspective, is its potential to redefine the very nature of SMB competitiveness in the 21st century, moving from traditional advantages to a new paradigm of adaptive capacity, innovation velocity, and data-driven intelligence.

Agile Automation Synergy, SMB Digital Transformation, Competitive Advantage Strategies
Agile Automation Synergy ● SMBs boost adaptability and efficiency by merging agile methods with automation tech for growth.