Not all automation is created equal. The two primary approaches, fixed and dynamic workflows, serve different purposes and play distinct roles in a company’s operations. Understanding the difference between them is key to choosing the right tool for the job.
What is a Fixed Workflow?
A fixed workflow, also known as a static or sequential workflow, is a process with a rigid, predefined set of sequential steps. Fixed workflows are for predictable, repetitive tasks that have little to no variation. They are built on a simple “if-this-then-that” logic, where a trigger event always leads to the same series of actions.
Roles a Fixed Workflow Plays:
- Routine and Repetitive Tasks: They are perfect for processes that happen the same way every time.
- Ensuring Consistency and Compliance: A fixed workflow guarantees that every step follows the correct order, which is crucial for compliance, quality control, and auditing.
- Efficiency and Speed: Because the path is predetermined, there is no time wasted on decision-making. These workflows are highly efficient, reducing processing time and manual effort.
- Common Use Cases: Employee onboarding, leave requests, expense report approvals, and data backup procedures are all classic examples of tasks best handled by a fixed workflow.
What is a Dynamic Workflow?
A dynamic workflow, on the other hand, is a more flexible and intelligent process that can adapt its path in real-time based on specific conditions, data inputs, or changing circumstances. Instead of a single, rigid path, it’s more like a decision tree that can branch out in different directions.
Dynamic workflows are powered by advanced logic, rules engines, and often, artificial intelligence. They use complex, non-linear processes that require a level of decision-making. Additionally, they require a customized approach.
Roles a Dynamic Workflow Plays:
- Handling Unpredictable Scenarios: They excel at managing situations with many variables and exceptions, where a fixed path would simply break.
- Improving Customer Service: A customer service ticket workflow is a great example. A dynamic workflow could automatically route a ticket to the correct team based on keywords in the customer’s message. Then, the workflow could prioritize it based on the customer’s history and even send automated responses as conditions change.
- Adapting to Evolving Business Needs: Dynamic workflows do not require a complete system overhaul for modifications. This allows companies to remain agile and responsive.
- Common Use Cases: Complex loan application approvals, insurance claims processing, project management with shifting priorities, and supply chain logistics are all perfect candidates for a dynamic workflow.
Choosing the Right Tool for the Job
The choice between a fixed and a dynamic workflow isn’t about which one is better; it’s about which one is right for your specific needs.
- Use a Fixed Workflow when: The process is straightforward, repetitive, and has a low number of variables. You need to ensure consistency, speed, and strict adherence to a set of rules.
- Use a Dynamic Workflow when: The process is complex, involves multiple decision points, and is subject to frequent change or exceptions. You need a system that can adapt to real-time information and handle complex logic without human intervention.
Ultimately, the most successful businesses often use a combination of both. They leverage fixed workflows for their routine, high-volume tasks to ensure efficiency and compliance, while implementing dynamic workflows for their more complex, mission-critical processes to maintain agility and solve problems on the fly. By strategically deploying both, companies can create a comprehensive system for financial workflow automation that is both robust and flexible.