Techblog
Automating your business - Tips from a convenience store owner
Automating your work processes has many advantages and can cut costs. For Alex Song, automation saved his ‘mama’ shop $1,500 on man power costs. It’s not a decision to be taken lightly. Here’s what you need to consider before automating your business.
Small businessman Alex Song was the owner of a fully automated ‘mama’ or convenience shop in the north-eastern region of Singapore, Hougang. Instead of a shopkeeper, customers were greeted by a self-service cash register invented by Mr Song.
The idea: automate the convenience store
Here’s how his system works: Customers choose the items they want from the shelves and “scan” them, placing them in front of a closed-circuit television (CCTV) camera installed in the cash register machine. After calculating the total price, they pay at the same cash register machine. In case change is needed, clients press buttons on the machine to dispense change in S$1 or 10-cent coins.
Eight CCTV cameras keep a close eye on would-be thieves.
With no prior experience in the provision shop business, Mr Song wanted to save manpower costs and test a new way of doing retail business without a shop keeper.
“If successful, the system could solve manpower shortage problem and educate young people to be honest,” he says.
The result: big savings in manpower costs
Indeed the idea did prove successful. Mr Song spent less than $1000 to set up the shop system but saved around $21,000 per year in manpower costs.
Now he’s looking for a new location to move his provision shop to, after closing it down in March because of the poor foot traffic. As with any bricks and mortar store, no matter the technology powering it, location is vital.
“We are still undergoing studies and experimenting until we work out the whole system perfectly,” says Mr Song
Understanding what to automate
When considering automation, it’s important to have a clear vision and make a careful assessment. Factors like the right location and knowing your target audience is key. Mr Song says companies shouldn’t automate for the sake of automation.
“My system is not emphasised on automation,” he says. “I operated the business mainly believing in human honour. ‘We make honesty our way of life’, that was printed on the shop’s front signboard.”
Moving forward, Mr Song will slightly change his concept.
He says a shop supervisor will be responsible for half of its operating tasks, a lesson he learnt from his ‘shop keeperless’ provision shop.
“Up to 50% automation is enough for the majority of companies. 100% or full automation should only be applied to dangerous jobs.”
He believes business should not cut low salary jobs. “This is my advice to all entrepreneurs. It’s their duty to leave some jobs for low skilled workers. This is a must to maintain a stable society especially after the artificial intelligence revolution.”
Summary
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When considering automation, it’s important to have a clear vision and make a careful assessment. Factors like the right location and knowing your target audience is key.
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Don’t automate for the sake of automation.
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Up to 50% automation is enough for the majority of companies. 100% or full automation should only be applied to dangerous jobs.
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Don’t cut low salary jobs.