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Fundamentals

For small to medium-sized businesses (SMBs), the concept of Strategic Automation Balance might initially seem complex, but at its core, it’s about finding the right mix of human effort and technology to achieve business goals efficiently and effectively. Imagine a seesaw ● on one side, you have your team, your people, with their skills, creativity, and personal touch. On the other side, you have automation ● software, tools, and systems designed to handle repetitive tasks and streamline processes. Strategic Automation Balance is about finding that sweet spot where these two sides work together harmoniously, maximizing your SMB’s potential without losing the human element that often defines smaller businesses.

Strategic Automation Balance, at its most fundamental, is about finding the optimal blend of human and technological resources to drive SMB success.

Think of a local bakery, an SMB example. They might automate their online ordering system to handle customer requests 24/7, freeing up staff from answering phones constantly. This is automation working well. However, if they automate the entire baking process and remove the skilled bakers, they might lose the unique, handcrafted quality that customers love.

That’s an imbalance. Understanding this balance is crucial for SMBs because resources are often limited, and every decision has a significant impact. It’s not about automating everything just because you can; it’s about automating strategically to enhance, not replace, the human strengths of your business.

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Understanding the Core Components

To grasp Balance, let’s break down its key components:

  • Strategic Alignment ● Automation efforts must directly support your SMB’s overall business strategy and objectives. It’s not about chasing the latest tech trends, but about identifying areas where automation can genuinely help you achieve your specific goals, whether it’s increased efficiency, improved customer service, or business growth.
  • Automation Implementation ● This involves choosing the right and technologies for your SMB. It’s crucial to consider factors like cost, ease of use, integration with existing systems, and scalability. Starting small and scaling up as needed is often a wise approach for SMBs.
  • Balance and Integration ● This is the heart of the concept. It’s about ensuring that automation complements human skills and doesn’t lead to dehumanization or loss of critical human capabilities. It’s about finding the right equilibrium where technology empowers your team and enhances the customer experience, rather than detracting from it.

For an SMB, implementing automation without a strategic balance can lead to several pitfalls. Over-automation can result in impersonal customer interactions, loss of creativity and innovation, and increased vulnerability to technical failures. Under-automation, on the other hand, can lead to inefficiencies, missed opportunities, and burnout among employees. Therefore, a thoughtful, balanced approach is essential.

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Why is Strategic Automation Balance Important for SMBs?

SMBs operate in a unique environment. They often have tighter budgets, fewer employees, and a need to be agile and responsive to market changes. Strategic Automation Balance becomes even more critical in this context for several reasons:

  1. Resource Optimization ● SMBs often have limited resources, both financial and human. Strategic automation allows them to optimize these resources by automating repetitive tasks, freeing up employees to focus on higher-value activities that require creativity, problem-solving, and human interaction. This can lead to significant cost savings and increased productivity.
  2. Enhanced Efficiency and Productivity ● Automation can streamline workflows, reduce errors, and speed up processes, leading to significant gains in efficiency and productivity. For example, automating invoice processing can save hours of manual data entry and reduce the risk of errors.
  3. Improved Customer Experience ● Strategic automation can enhance the by providing faster response times, personalized interactions, and 24/7 availability. Chatbots for inquiries or automated email are examples of how automation can improve customer engagement.
  4. Scalability and Growth ● As SMBs grow, automation becomes increasingly important for managing increased workloads and maintaining efficiency. Automated systems can handle larger volumes of data and transactions without requiring a proportional increase in staff, enabling sustainable growth.
  5. Competitive Advantage ● In today’s competitive landscape, SMBs need to leverage every advantage they can get. Strategic automation can provide a competitive edge by enabling them to operate more efficiently, offer better customer service, and innovate faster than competitors who are slower to adopt technology.

However, it’s crucial to remember that automation is not a one-size-fits-all solution. What works for a large corporation might not be suitable for an SMB. The key is to identify the specific needs and challenges of your SMB and tailor your accordingly. This requires careful planning, a deep understanding of your business processes, and a willingness to adapt and adjust your approach as needed.

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Identifying Areas for Strategic Automation in SMBs

For SMBs looking to implement strategic automation, the first step is to identify areas where automation can provide the most significant benefits. Here are some common areas to consider:

  • Marketing and Sales ● Automating email marketing campaigns, social media posting, lead generation, and CRM (Customer Relationship Management) tasks can significantly improve efficiency and reach.
  • Customer Service ● Implementing chatbots, automated ticketing systems, and self-service portals can enhance customer support and reduce response times.
  • Operations and Administration ● Automating tasks like invoice processing, payroll, scheduling, and inventory management can streamline operations and reduce administrative burden.
  • Finance and Accounting ● Automating tasks like bank reconciliation, expense tracking, and financial reporting can improve accuracy and efficiency in financial management.
  • Human Resources ● Automating tasks like onboarding, employee scheduling, and benefits administration can free up HR staff to focus on more strategic initiatives.

When considering automation in these areas, SMBs should ask themselves key questions:

  • What are the Most Time-Consuming and Repetitive Tasks in Our Business?
  • Where are We Experiencing Bottlenecks or Inefficiencies in Our Processes?
  • What are Our Biggest Pain Points in Terms of Customer Service or Operations?
  • How can Automation Help Us Improve the Customer Experience?
  • What are Our Budget Constraints and What Automation Solutions are Affordable and Scalable for Our SMB?

By carefully considering these questions and analyzing their business processes, SMBs can identify the most promising areas for strategic automation and begin to develop a plan for implementation. Remember, the goal is not just to automate tasks, but to strategically automate in a way that enhances the overall performance and success of the SMB while maintaining its unique strengths and human touch.

Intermediate

Building upon the fundamental understanding of Strategic Automation Balance, we now delve into a more intermediate perspective, tailored for SMBs seeking to implement and optimize automation for growth. At this stage, it’s crucial to move beyond the basic ‘what’ and ‘why’ of automation and focus on the ‘how’ ● the practical strategies, tools, and considerations for achieving a truly balanced approach. For SMBs with some existing automation or those ready to take a more sophisticated approach, understanding the nuances of implementation and optimization is paramount.

Strategic Automation Balance, at an intermediate level, involves the practical application of automation strategies, considering SMB-specific constraints and opportunities for optimized growth.

In the intermediate phase, SMBs need to consider the complexities of integrating automation into existing workflows, managing change within their teams, and measuring the return on investment (ROI) of automation initiatives. It’s no longer just about automating some tasks; it’s about creating a cohesive ecosystem where automation and human effort work synergistically to drive business value. This requires a deeper understanding of available automation technologies, a strategic approach to implementation, and a commitment to continuous improvement.

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Developing an SMB-Specific Automation Strategy

A generic automation strategy won’t suffice for SMBs. An effective strategy must be tailored to the specific context of the business, considering its size, industry, target market, and unique value proposition. Here are key steps in developing an SMB-specific automation strategy:

  1. Business Process Analysis ● Conduct a thorough analysis of your SMB’s core business processes. Identify bottlenecks, inefficiencies, and areas where manual tasks are consuming significant time and resources. Use process mapping techniques to visualize workflows and pinpoint automation opportunities.
  2. Goal Setting and Prioritization ● Define clear, measurable, achievable, relevant, and time-bound (SMART) goals for your automation initiatives. Prioritize automation projects based on their potential impact on key business metrics, such as revenue growth, customer satisfaction, and operational efficiency. Focus on high-impact, low-effort initially to demonstrate quick wins and build momentum.
  3. Technology Selection and Integration ● Research and evaluate different automation technologies and tools that align with your SMB’s needs and budget. Consider factors like scalability, ease of use, integration capabilities with existing systems, and vendor support. Prioritize solutions that offer seamless integration to avoid data silos and workflow disruptions.
  4. Phased Implementation Approach ● Adopt a phased approach to automation implementation, starting with pilot projects in specific areas. This allows you to test and refine your automation strategies, learn from early experiences, and minimize disruption to your business operations. Gradually expand automation to other areas as you gain confidence and expertise.
  5. Change Management and Training ● Automation implementation often involves changes to workflows and job roles. Develop a comprehensive change management plan to address employee concerns, communicate the benefits of automation, and provide adequate training on new systems and processes. Employee buy-in is crucial for successful automation adoption.
  6. Performance Measurement and Optimization ● Establish key performance indicators (KPIs) to track the effectiveness of your automation initiatives. Regularly monitor and analyze performance data to identify areas for improvement and optimization. Automation is not a one-time project; it’s an ongoing process of refinement and adaptation.

For example, a small e-commerce SMB might prioritize automating its order fulfillment process to handle increasing sales volume. This could involve integrating their online store with a warehouse management system and automating shipping label generation and tracking updates. By focusing on this critical area, they can improve order accuracy, reduce shipping times, and enhance customer satisfaction, directly impacting revenue and growth.

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Choosing the Right Automation Tools for SMBs

The market is flooded with automation tools, making it challenging for SMBs to choose the right solutions. Here’s a guide to navigating the landscape and selecting tools that are well-suited for SMB needs:

  • Cloud-Based Solutions ● Cloud-based automation tools are often ideal for SMBs due to their affordability, scalability, and ease of deployment. They typically require minimal upfront investment in infrastructure and offer flexible subscription models.
  • No-Code/Low-Code Platforms ● These platforms empower SMBs to automate tasks and build workflows without requiring extensive coding skills. They offer user-friendly interfaces and drag-and-drop functionality, making automation accessible to non-technical users.
  • Integrated Suites Vs. Point Solutions ● Consider whether an integrated suite of automation tools or point solutions for specific tasks is more appropriate for your SMB. Integrated suites can offer better compatibility and data flow, while point solutions may provide more specialized functionality for specific needs.
  • Scalability and Flexibility ● Choose automation tools that can scale with your SMB’s growth and adapt to changing business needs. Look for solutions that offer flexible pricing plans and can accommodate increasing volumes of data and transactions.
  • Vendor Support and Training ● Evaluate the level of vendor support and training provided with automation tools. Reliable support and comprehensive training resources are essential for successful implementation and ongoing maintenance, especially for SMBs with limited IT staff.

Here’s a table showcasing examples of automation tools relevant to SMBs across different functional areas:

Functional Area Marketing & Sales
Automation Tool Examples HubSpot, Mailchimp, Zoho CRM
SMB Benefit Automated email campaigns, lead nurturing, CRM management
Functional Area Customer Service
Automation Tool Examples Zendesk, Intercom, Freshdesk
SMB Benefit Automated ticketing, chatbots, knowledge base management
Functional Area Operations & Admin
Automation Tool Examples Zapier, IFTTT, Microsoft Power Automate
SMB Benefit Workflow automation, data integration, task automation
Functional Area Finance & Accounting
Automation Tool Examples QuickBooks Online, Xero, Bill.com
SMB Benefit Automated invoicing, expense tracking, bank reconciliation
Functional Area Human Resources
Automation Tool Examples BambooHR, Gusto, Zoho People
SMB Benefit Automated onboarding, payroll processing, HR management

This table provides a starting point for SMBs to explore automation tools relevant to their specific needs. It’s crucial to conduct thorough research, compare different options, and choose tools that align with your SMB’s budget, technical capabilities, and strategic goals.

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Balancing Automation with the Human Touch in SMBs

While automation offers numerous benefits, SMBs must be mindful of preserving the human touch that often differentiates them from larger corporations. Customers often value the personalized service, direct interaction, and sense of community that SMBs provide. Striking the right balance is crucial.

  • Identify Human-Centric Areas ● Recognize areas where human interaction is essential for and business success. These might include complex problem-solving, relationship building, creative tasks, and situations requiring empathy and emotional intelligence.
  • Augment, Don’t Replace ● Focus on using automation to augment human capabilities rather than replacing them entirely. Automate repetitive tasks to free up employees to focus on higher-value activities that require human skills and judgment.
  • Personalization and Customization ● Leverage automation to enhance personalization and customization in customer interactions. Use data and analytics to tailor marketing messages, product recommendations, and customer service experiences.
  • Maintain Human Oversight ● Even in automated processes, maintain human oversight and intervention for critical decision-making and exception handling. Ensure that there are clear escalation paths for situations that require human judgment.
  • Communicate Transparently ● Be transparent with customers and employees about your automation efforts. Explain how automation is being used to improve service and efficiency, and emphasize the continued importance of human interaction.

Strategic Automation Balance is not about eliminating human involvement, but about strategically reallocating human effort to areas where it provides the greatest value.

For instance, a local coffee shop might automate its online ordering system and loyalty program, but still prioritize face-to-face interactions with customers at the counter, building relationships and providing personalized recommendations. This approach leverages automation for efficiency while preserving the human connection that defines the SMB’s brand and customer experience.

In conclusion, at the intermediate level, Strategic Automation Balance for SMBs is about moving from conceptual understanding to practical implementation. It requires developing a tailored automation strategy, selecting appropriate tools, and carefully balancing automation with the essential human touch that defines SMBs. By focusing on these key aspects, SMBs can harness the power of automation to drive growth, improve efficiency, and enhance customer satisfaction while maintaining their unique identity and competitive advantage.

Advanced

Moving into an advanced exploration of Strategic Automation Balance within the SMB context necessitates a rigorous, research-informed approach. At this level, we transcend practical implementation guides and delve into the theoretical underpinnings, diverse perspectives, and long-term strategic implications of automation for SMBs. This section aims to provide an expert-level understanding, drawing upon scholarly research, data-driven insights, and critical analysis to redefine and contextualize Strategic Automation Balance in the nuanced landscape of small to medium-sized enterprises.

Strategic Automation Balance, from an advanced perspective, is defined as the dynamically optimized equilibrium between technological automation and deployment within SMBs, strategically aligned to maximize sustainable competitive advantage, operational resilience, and socio-economic value creation, while mitigating potential negative externalities.

This advanced definition emphasizes several key aspects that are often overlooked in more simplistic interpretations. Firstly, it highlights the dynamic nature of the balance, acknowledging that the optimal equilibrium is not static but rather evolves with technological advancements, market changes, and the SMB’s own growth trajectory. Secondly, it underscores the strategic alignment imperative, emphasizing that automation must be intrinsically linked to the SMB’s overarching strategic objectives, rather than being pursued as an end in itself.

Thirdly, it broadens the scope beyond mere to encompass sustainable competitive advantage, operational resilience, and socio-economic value creation, recognizing the multifaceted impact of automation. Finally, and critically, it acknowledges the need to mitigate potential negative externalities, such as job displacement, deskilling, and ethical concerns, which are often glossed over in purely techno-optimistic narratives.

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Redefining Strategic Automation Balance ● A Multi-Dimensional Framework

To fully grasp the advanced meaning of Strategic Automation Balance, we need to move beyond a simplistic binary view of human vs. machine and adopt a multi-dimensional framework. This framework incorporates several key dimensions that interact and influence the optimal balance for SMBs:

  1. Economic Dimension ● This dimension focuses on the economic rationale for automation, including cost reduction, productivity gains, revenue enhancement, and ROI. Advanced research in economics and operations management provides frameworks for analyzing the cost-benefit trade-offs of automation investments, considering factors like labor costs, technology costs, and market demand elasticity. For SMBs, this dimension is particularly critical due to resource constraints and the need for demonstrable economic returns.
  2. Organizational Dimension ● This dimension examines the impact of automation on organizational structure, culture, and human capital. Research in organizational behavior and management studies the effects of automation on job design, employee morale, skill requirements, and organizational learning. For SMBs, maintaining organizational agility, fostering innovation, and retaining skilled employees are crucial considerations within this dimension.
  3. Technological Dimension ● This dimension encompasses the evolving landscape of automation technologies, including artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), and cloud computing. Research in computer science and engineering explores the capabilities, limitations, and ethical implications of these technologies. For SMBs, understanding the technological feasibility, scalability, and security aspects of different automation solutions is paramount.
  4. Social and Ethical Dimension ● This dimension addresses the broader societal and ethical implications of automation, including job displacement, income inequality, algorithmic bias, and data privacy. Research in sociology, ethics, and public policy examines the societal impact of automation and explores responsible innovation frameworks. For SMBs, considering the ethical implications of automation and maintaining social legitimacy are increasingly important, especially in communities where they are deeply embedded.
  5. Strategic Dimension ● This overarching dimension integrates all the previous dimensions and emphasizes the strategic alignment of automation with the SMB’s long-term goals and competitive strategy. Research in strategic management and business policy provides frameworks for aligning technological investments with overall business strategy and creating sustainable competitive advantage. For SMBs, a well-defined strategic automation roadmap is essential for navigating the complexities of and maximizing its strategic impact.

These dimensions are not mutually exclusive but rather interconnected and interdependent. For instance, the economic benefits of automation must be weighed against potential organizational disruptions and social consequences. The optimal Strategic Automation Balance for an SMB is achieved when these dimensions are carefully considered and harmonized to create a holistic and sustainable approach to automation.

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Cross-Sectorial Influences and Multi-Cultural Business Aspects

The meaning and implementation of Strategic Automation Balance are not uniform across all sectors and cultures. Cross-sectorial analysis reveals significant variations in automation adoption rates, drivers, and challenges. For example, the manufacturing sector has a long history of automation, driven by efficiency and cost reduction, while the service sector is increasingly exploring automation to enhance customer experience and personalize services. Similarly, the retail sector is leveraging automation for supply chain optimization and e-commerce operations, while the healthcare sector is exploring automation for diagnostics, patient care, and administrative tasks.

Furthermore, multi-cultural business aspects significantly influence the perception and implementation of automation. Cultural norms, values, and labor market dynamics vary across different regions and countries, impacting the social acceptability and economic viability of automation. In some cultures, there may be greater emphasis on human labor and interpersonal relationships, leading to a more cautious approach to automation.

In other cultures, there may be a greater embrace of technological innovation and efficiency, driving faster adoption of automation. SMBs operating in global markets or with diverse workforces need to be particularly sensitive to these cultural nuances and adapt their accordingly.

Consider the example of customer service automation. In some cultures, customers may prefer direct human interaction and may be less receptive to chatbots or automated self-service options. In other cultures, customers may value efficiency and convenience and may readily embrace automated customer service channels.

SMBs need to understand these cultural preferences and tailor their strategies to align with local expectations and norms. This might involve offering a mix of human and automated channels, providing culturally sensitive chatbot responses, and ensuring that human agents are readily available for complex or sensitive issues.

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In-Depth Business Analysis ● Focusing on SMB Resilience and Adaptability

For SMBs, Strategic Automation Balance is not just about efficiency gains; it’s fundamentally about enhancing resilience and adaptability in an increasingly volatile and uncertain business environment. Advanced research on organizational resilience highlights the importance of agility, flexibility, and redundancy in navigating disruptions and adapting to change. Strategic automation can play a crucial role in building these capabilities within SMBs.

Here’s an in-depth business analysis focusing on how Strategic Automation Balance contributes to SMB resilience and adaptability:

  1. Enhanced Operational Agility ● Automation enables SMBs to respond more quickly and effectively to changing market demands and customer needs. Automated workflows can be easily reconfigured and scaled up or down as needed, providing greater operational agility compared to purely manual processes. For example, cloud-based automation platforms allow SMBs to rapidly deploy new applications and services without significant infrastructure investments or lengthy implementation cycles.
  2. Improved Business Continuity ● Automation can enhance business continuity by reducing reliance on individual employees and mitigating the impact of disruptions such as employee turnover or unforeseen events. Automated processes can continue to operate even if key personnel are unavailable, ensuring business continuity and minimizing downtime. For instance, automated data backup and recovery systems protect critical business data and enable rapid restoration in case of system failures or cyberattacks.
  3. Data-Driven Decision Making ● Strategic automation generates vast amounts of data that can be analyzed to gain valuable insights into business performance, customer behavior, and market trends. Data analytics tools and AI-powered insights enable SMBs to make more informed decisions, optimize processes, and identify new opportunities. For example, automated CRM systems capture customer interactions and provide data for sales forecasting, customer segmentation, and personalized marketing campaigns.
  4. Reduced Operational Costs and Risks ● Automation can reduce operational costs by minimizing manual labor, errors, and waste. It can also mitigate operational risks by automating compliance tasks, improving data security, and enhancing process consistency. For instance, automated invoice processing reduces manual data entry errors and ensures timely payments, while automated cybersecurity tools protect against cyber threats and data breaches.
  5. Fostering Innovation and Growth ● By automating routine tasks, SMBs can free up human capital to focus on more strategic and innovative activities. Automation can empower employees to engage in creative problem-solving, product development, and business expansion initiatives. For example, automating content creation and social media posting allows marketing teams to focus on developing more strategic marketing campaigns and exploring new channels for customer engagement.

However, it’s crucial to acknowledge the potential downsides and challenges associated with automation, even in the context of resilience and adaptability. Over-reliance on automation can create vulnerabilities if systems fail or become outdated. Lack of human oversight can lead to unintended consequences or ethical breaches.

Job displacement due to automation can erode employee morale and social capital. Therefore, a truly strategic approach to automation must proactively address these potential risks and ensure that automation is implemented in a responsible and sustainable manner.

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Long-Term Business Consequences and Success Insights for SMBs

The long-term of Strategic Automation Balance for SMBs are profound and far-reaching. SMBs that effectively navigate the automation landscape and achieve a balanced approach are likely to gain a significant and achieve sustainable success in the long run. Conversely, SMBs that fail to strategically automate or that over-automate without considering the human element risk falling behind and becoming less competitive.

Here are key long-term business consequences and success insights for SMBs:

  • Enhanced Competitiveness and Market Share ● SMBs that strategically automate can operate more efficiently, offer better products and services, and respond more quickly to market changes, leading to enhanced competitiveness and increased market share. Automation enables SMBs to compete more effectively with larger corporations and disrupt traditional industries.
  • Sustainable Growth and Profitability ● Strategic Automation Balance drives and profitability by optimizing resource utilization, reducing operational costs, and enhancing revenue generation. Automation enables SMBs to scale their operations without proportional increases in headcount, leading to improved profit margins and long-term financial stability.
  • Increased Innovation and Adaptability ● SMBs that embrace strategic automation are better positioned to innovate and adapt to future challenges and opportunities. Automation frees up human capital for innovation, fosters data-driven decision-making, and enhances organizational agility, enabling SMBs to thrive in dynamic and uncertain environments.
  • Improved Employee Engagement and Satisfaction ● When implemented strategically, automation can improve employee engagement and satisfaction by automating mundane and repetitive tasks, empowering employees to focus on more meaningful and challenging work, and providing them with better tools and technologies. This can lead to higher employee retention and improved organizational performance.
  • Enhanced Customer Loyalty and Advocacy ● Strategic automation can enhance customer loyalty and advocacy by providing faster, more personalized, and more convenient customer experiences. Automation enables SMBs to deliver exceptional customer service at scale, building stronger customer relationships and fostering positive word-of-mouth.

However, achieving these long-term benefits requires a sustained commitment to strategic automation, continuous learning and adaptation, and a proactive approach to managing the human and ethical dimensions of automation. SMBs need to invest in employee training and upskilling to prepare their workforce for the changing demands of an automated workplace. They need to foster a culture of innovation and experimentation to continuously explore new automation opportunities. And they need to engage in ethical reflection and responsible innovation to ensure that automation is used in a way that benefits both the business and society as a whole.

In conclusion, the advanced understanding of Strategic Automation Balance for SMBs is far more nuanced and complex than simple efficiency gains. It is a multi-dimensional, dynamic, and strategically imperative concept that encompasses economic, organizational, technological, social, ethical, and strategic considerations. By adopting a holistic and research-informed approach to Strategic Automation Balance, SMBs can unlock their full potential, enhance their resilience and adaptability, and achieve sustainable success in the long term. This requires a shift from viewing automation as a purely technical solution to recognizing it as a strategic imperative that must be carefully balanced with human capital and ethical considerations to create lasting value for the SMB and its stakeholders.

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