This started with a simple observation during my COVID19 vaccination. When I arrived for vaccination at a humble charitable organization, I was handed a token by the coordinator. And unlike what westerners would imagine, it was not a computer generated thermal paper but a small chit made from one side printed paper. And the same experience was repeated, but this time it was an OPD at a hospital with a couple of million dollars in annual revenue. The security guard handed a token and asked me to get seated until my number is called out by the counter executive.
Another experience was at a government office, where owing to the COVID19 restrictions, visitors were not allowed inside. But I was not left to the mercy of an annoying computer asking me to play puzzle maze through its FAQ flow chart. Instead a multi functional security guard inquired my purpose of visit and handed a form from what appeared to be multiple bunches, each for a different purpose. Although I was expecting a different process upon my return with the form and documents, the security guard checked the KYC (Know Your Customer) as well as the form for completeness!
Neither of the above two may have been possible in the developed nations. We Indians, as well as Mexicans, Brazilians and other developing nation citizens, are adaptive that makes such things possible. Whether it is the Security Guard undertaking an additional responsibility for a marginal pay, or citizens like myself who trust their ability to understand forms, in a country where literacy is still a challenge!
I am not suggesting that we do not automate meager tasks and instead rely on underutilized human capital but rather decide with consideration for the context. For instance, most banks seem to have automated printing bank statements, or passbook entries, and some have even completely eliminated the process with monthly emails. And such change is necessary as it elevates not only the customer satisfaction but also the job satisfaction of the bank employees tasked the tedious and repetitive task with no growth prospects!
But when it comes to certain other tasks where context plays a critical role and cannot be ignored, automation may not be wise! For instance, generating token for availing services at banks – most customers visiting the bank to physically avail services are senior citizens comfortable with vernacular languages and uncomfortable with technology. In this case the security guard can either assist visitors to use the token dispenser or substitute the function of the token dispenser. In case one opts for the later, one can also avail certain value added services like maintaining discipline amongst visitors along with security!
Well I am not saying that one should not consider digital shift but rather highlighting the investment-return ratio. The multi function security guard is far economical compared to the capital (upfront) and operational (recurring) costs of maintaining the digital mechanism. Moreover, many banks are located in rural or semi-urban locations that make complicate the logistics of such brick and mortar digitization. And upkeep is a challenge, numerous people will complain about numerous instances of ‘Out of Service’ for cash withdrawal and statement entry.
Instead the focus should be on core digitization that can eliminate, or at least reduce, the need of such physical services. Yes, one may argue that such digitization is already in process but the adoption is lagging behind. But then one should rather invest on facilitating adoption through complimentary training services along with support desk. It would yield benefits on the longer run. Initially my parents were hesitant to get with a bank that does not provide passbook but a relation manager and digital services, but long term experience says otherwise.
There are numerous other meager tasks and functions that can be automated but such automation would not only be counter productive but also more complicated than necessary. And it is wiser to skip the step and move to core digitization. For instance, for cooking gas cylinders, rather than automating the mechanism at point of sale, the company introduced telephone booking! Now imagine, how much money did the company save by avoiding the installation of digital machines, leave apart their maintenance and savings from eliminating physical function.
Although the developed countries took this extra step since the technology was not sufficiently evolved to move on to the next step. I mean telephone banking was a services, but by the time it was introduced to masses in India, internet banking had already arrived. Barely any Indians have utilized phone banking. Hence, the companies should rather think critically for long term benefits rather than follow the trends of western countries.
It took 60 years for Textile boom to travel from New York to Ahmedabad but only 10 years for Software boom to travel from Santa Clara to Bangalore. Now in India, the sheer volume of transactions and urban population offers plenty of incentives for innovation and may be the next revolution will begin here!
Thoughts and opinions, whether aligned or opposite, are welcome in the thoughts section.
Header Image Photo by Andy Kelly on Unsplash
Savvy Munshi 