This article will explore the potential future of robotics in the service industry and what it means for businesses. Does your business rely on the service industry? Have you considered robotic staffing as an alternative to hiring labor?
Rather than using costly and cumbersome hiring processes, this article will teach you how to implement a robotic workforce that is cost-effective, reliable, and perfect for the demands of your business.
The size of the worldwide service robots market was $12.88 billion in 2019 and is anticipated to grow at a CAGR of 15.9% to reach $41.49 billion by 2027.
The use of robotics in service industries is constantly evolving with the rest of technology. This article explores how businesses can utilize robots to save money through increased efficiency in these industries without sacrificing quality or customer satisfaction.
If you have been wondering how to deploy robots in service industry, read this article and see how robotics can be used to improve the customer experience.
There is so much that can be learned from robots, but it is vital to consider the application cases for each business. This article will help you understand the benefits of using a robotic workforce in your business.
Robots can help businesses of all sizes with a variety of tasks from selling goods, providing services, and even caring for people. This article discusses how robotics are being utilized in service industries to improve operations, boost efficiency, and gain competitive advantages for specific industries and businesses.
What Is Robotics In Service Industry
Robotics have always been an important aspect in modern technology and production. However, there has been a surge of interest in robotics within service industries. Service industries such as restaurants, transportation, retail, beauty salons and even healthcare are being introduced by businesses, government agencies and organizations.
The trend is all around us! By taking the time to understand how people react to a robotic worker versus a live one you can understand the difference between it and traditional labor in your business.
In many ways introducing robotics into service industry businesses has a broad and beneficial impact. Employment, customer satisfaction, and business profitability all increase by using robotics.
It is not just a trend; robots are beneficial to businesses of all sizes and will continue to be for many years to come. By 2028, the size of the global service robotics market is projected to reach $168.6 billion, growing at a 23.1% CAGR over the forecast period.
Robotic process automation (RPA) is the next phase in technology’s progression to produce new applications within service industries. RPA will take away many mundane tasks that humans are not suited for; it will also automate menial tasks that humans perform.
By applying RPA as an alternative robot staffing option in your business you can improve operational efficiency, reduce costs, and increase customer satisfaction levels.
Importance Of Robotics In Service Industry
The importance of robotics in service industry cannot be understated. Robotics is being used currently in manufacturing plants to help companies reduce costs and improve production rates.
Robots are taking over jobs that were once exclusively performed by humans, including welders, factory workers, pilots and even surgeons. The same trend is also seen in the service industry as well.
Service robots are being developed to help customers access services easily or to perform tasks that are dangerous for humans. In 2020, the global market for professional service robots generated 6.7 billion US dollars in revenue (sample approach).
Risks Of Robotics In Service Industry
The service robotics market is expected to grow significantly in the next few years, driven by advances in artificial intelligence and the increasing availability of personal service robots and professional service robots. The robotics industry is already benefiting from the trend, with many companies investing in the research and development of new service robots.
New consumer service robot sales increased 16% to 4.4 billion dollars in revenue.
There is a growing market for service robots market, both professional and personal robots. Autonomous mobile robots and medical service robots are becoming increasingly popular for a variety of tasks, from providing assistance to the elderly or disabled to delivering goods or services. The service robot market is expected to grow significantly in the next few years.
1. Quality Of Service Decreases
If there is one thing customers are sensitive about, it is the quality of service provided by service businesses. Imagine ordering a latte from a robot that does not know how to make a latte. This type of situation could cause a serious decrease in customer satisfaction, which will lead to losing customers and revenue.
However, if the robot can consistently make lattes with high-quality ingredients and maintain proper temperature, then this concern should be taken off the table. Robots become more effective than humans because they never rest or take breaks; in fact, they do not even need any caffeine to stay awake!
2. New Employee Training
Training new employees is a very time-consuming and expensive process. First, you need to pay new employees to learn how to carry out their job responsibilities. Then you need to train them on the steps required to complete each task. After this, you have senior staff who have been trained as well as the new employees.
Finally, you will have managers and supervisors who are also trained in the same way as their subordinates. Ultimately, this results in delays due to employee training programs taking up time and energy.
3. Lack Of Human Interaction
A robot is unable to recognize and respond to customer interaction in a service industry. For example, imagine a customer asking for their drink to be prepared with a particular flavor or type of syrup.
The job would be impossible for the robot to complete without human interaction. What happens if the customer changes their mind about what they want? Robots are not able to provide any communication between employees and customers, which is essential when there are customers seeking particular items or services from your business.
4. Training Is Too Costly
Because robots do not require training, it is much simpler to implement robots in a service industry. Training takes a long time and is costly in the short term. This requires your business to spend money on hiring employees, training employees, and then paying them to become expert service providers.
5. High Personnel Costs
If you have a large number of employees, you will need to pay them more when they are not required to work. For example, if you have 26 employees on your payroll and using a robotic workforce around 5% of your staff will be robotic staff members, then you would need to pay all 26 employees more than they normally would have been paid if there were no robotic staff members.
The same concept applies to robotic staff members and their operating costs. You are required to pay for the base operating cost along with the maintenance of your robotic workforce. Your robotics staff will be able to work during your slow hours, which translates into higher operational costs than if there were no robotic staff members.
6. Technological Upkeep
Robots are very sophisticated in nature and require constant upgrades and maintenance due to their advanced technology. You also have to evaluate how these costs will affect your business operations. However, if you can automate a few key areas in your business such as inventory management or shipping and receiving, then you can reduce some labor-intensive tasks at a lower cost. However, this may increase your operating costs depending on your business model.
7. Operational Inefficiency
Robots are not able to oversee and performance tasks in the same way a human can. If you are trying to introduce a new product into your business operations and there is a need for human interaction required, then this will be difficult with robotic employees.
For example, if you want to test out new products such as different flavors of coffee and get feedback from customers about their level of satisfaction, then it will be difficult for the robot to properly perform such tasks. Humans are more flexible than robots and can easily adapt in situations where a robot would encounter some difficulty.
8. Workforce Reduction
If you are looking to replace some of your human workforce with robots, then there is a possibility that your service industry business will experience a reduction in human staff.
This is because robot workers are required to perform high-level tasks that require complex human interaction. In this scenario, the human workforce will be reduced and there will be less product or service output from your business.
You also have to consider how the reductions of your human workforce will affect other parts of the business such as merchandising, marketing and customer care services.
Benefits Of Robotics In Service Industry
The combined market for autonomous mobile robots (AMR) and delivery robots had an 11% increase in revenue to over $1 billion USD. As industrial robots increasingly enter the workforce, human workers may find themselves out of a job.
However, these same workers may be able to find employment in service management and service quality control, making sure that the robots are delivering the best possible service. With careful planning and execution, the transition from human-led workforces to robot-led ones can be a smooth one that benefits everyone involved.
1. Save Labor Costs
If you have a fleet of robotic workers, then you no longer need to pay a wage and salary to human employees. The time when your robotics staff are working are the hours that your human staff would not be required.
For example, if you have robots on staff until 9:00 pm, then this means that you will save money on salary and wages while reaping the benefits of automation. If there is an increase in customer demand during your normal business hours, then you will be able to utilize your robotic workforce and handle additional workloads without having to hire additional human staff.
This will ensure that all operational costs are covered without relying on additional staffing in the future.
2. Improved Productivity
The robotic workforce is able to work in a more productive manner. With robots, you will not have the same level of downtime as with your human staff. If you are looking to introduce new products, then you can utilize your robots and test out the new product without worrying about when your human staff will work or when they will rest. Therefore, there will be no loss in productivity due to lack of human interaction for the robot staff members.
3. Reduced Cost Of Ownership
Owning a robot is much cheaper than owning a human employee; therefore, robotic workers are significantly cheaper than human employees over time. If you want to save money over time, then you can consider using a robot workforce in your business. You will benefit from the low cost of maintenance and operation of the robots.
4. No Training Required
Robots require no training in order to become fully operational. This is beneficial for businesses that are looking to automate non-human tasks as well as human tasks within the business operations.
Robots are able to operate quietly on their own without having any negative impact on productivity or other tasks at your business location. Therefore, your human staff need not be trained in such tasks as they would have done prior to employing robots into your operations.
5. Improve Customer Service
Robots are able to respond to customer inquiries more effectively than human staff. When your customers call you, they will be able to speak to a robot and get the results that they require without having to deal with any robotic errors.
This will improve the overall level of service provided by your business and improves customer satisfaction levels. Therefore, this is beneficial in the long-term for your business operations as well as increasing customer loyalty and new customer growth.
6. Greater Security Levels
34,400 units of professional cleaning robots were sold, a 92% increase in demand. A robotic workforce is able to operate around the clock and in all conditions with no adverse impact on performance levels or productivity levels.
Robots are able to perform tasks that are potentially dangerous to humans, such as inspecting the safety levels of food products, handling hazardous materials and performing security tasks that are aimed at ensuring your business is secure. Robots can also monitor areas where a potential threat may exist, such as behind a high-security door, and alert security teams immediately.
7. Guaranteed Availability
Your customers will be able to speak to your robots and ask them questions without having to worry about the robot being unavailable or not responding properly during peak business times.
This means that there will be no loss in customer demand or sales during peak business hours that your human staff would experience. Robots are able to work around the clock and in all conditions.
8. Increased Productivity Rates
The robotic workforce is able to increase productivity levels as they do not require breaks or lunch breaks as humans do. Therefore, your productivity rates will improve over time by not having your employees take time off during peak business times, which will have a negative impact on productivity levels.
Robots are also able to work around the clock meaning that there is no need for overtime hours or additional staff for tasks such as cleaning or maintenance on the robots and their environment.
Service robots are growing in popularity as their purpose is to support human work and to provide a service that is beneficial for the human. Service robots are used in many industries, particularly the manufacturing industry and service industry.
The future of service robots looks bright as new developments are taking place every day to improve their functionality and ensure they can be used with greater ease.