Best practices for implementing automation capabilities within an organization or a company include making automation a strategic priority; deploying automation technologies systematically; decentralizing governance; ensuring the IT function’s involvement; and internalizing both costs and benefits.
BEST PRACTICES FOR IMPLEMENTING AUTOMATION CAPABILITIES WITHIN AN ORGANIZATION OR A COMPANY
BEST PRACTICES FOR IMPLEMENTING AUTOMATION CAPABILITIES WITHIN AN ORGANIZATION OR A COMPANY
OVERVIEW
There is a general increase in the rate of automation in the US and around the world as companies embrace new technologies like artificial intelligence,software robotics, machine learning, and innovative technology platforms.
There is a general increase in the rate of automation in the US and around the world as companies embrace new technologies like artificial intelligence,
Automation has enabled companies to redefine their business processes and is expected to provide a significant opportunity for improvements in performance and efficiency.
According to a McKinsey Global Survey, about 57% of organizations worldwide are putting efforts to navigate the process of automation in their business entities. Further, about 38% of organizations have not yet begun their journey towards business process automation, and nearly half of them plan to do so within the next year.
According to a McKinsey Global Survey, about 57% of organizations worldwide are putting efforts to navigate the process of automation in their business entities. Further, about 38% of organizations have not yet begun their journey towards business process automation, and nearly half of them plan to do so within the next year.
MAKE AUTOMATION A STRATEGIC PRIORITY
A study by McKinsey shows that organizations with successful automation efforts are more likely than others to designate automation as a strategic priority.
The study further reports that the process has high chances of success when it is considered as a necessity during the strategic-planning processes or to stay ahead of the competition.
A study by McKinsey shows that organizations with successful automation efforts are more likely than others to designate automation as a strategic priority.
The study further reports that the process has high chances of success when it is considered as a necessity during the strategic-planning processes or to stay ahead of the competition.
DEPLOY AUTOMATION TECHNOLOGIES SYSTEMATICALLY
The success of automation is possible either through the deployment of traditional top-down approach (waterfall) or by implementingflexible agile methods; it recommended taking a systematic approach.
The success of automation is possible either through the deployment of traditional top-down approach (waterfall) or by implementing
In a recent report by McKinsey, only 5% of respondents at successful companies say their deployment methods have been ad hoc, compared to about 19% of peers not reporting success.
When companies decide to automate their business processes, it’s quite natural that they want to automate all the processes in a single go. This could reduce the chances of success as the company know little about automation and how it would resonate with their organization.
It is therefore advisable to start with lightweight processes as you advance to more critical ones liketesting the automation impact, roadblocks identification, and finding potential solutions to get rid of problems .
When companies decide to automate their business processes, it’s quite natural that they want to automate all the processes in a single go. This could reduce the chances of success as the company know little about automation and how it would resonate with their organization.
It is therefore advisable to start with lightweight processes as you advance to more critical ones like
DECENTRALIZE GOVERNANCE
Another defining factor of the automation process is the way programs are organized. A study by McKinsey shows that decentralization is more likely to yield success.
The study found that respondents at successful organizations are more likely to admit that their business units are accountable for implementing automation efforts, either with or without their central team's support.
Another defining factor of the automation process is the way programs are organized. A study by McKinsey shows that decentralization is more likely to yield success.
The study found that respondents at successful organizations are more likely to admit that their business units are accountable for implementing automation efforts, either with or without their central team's support.
Alternatively, respondents from less successful businesses are more than twice as likely to admit that their central team is primarily responsible for the implementation of the automation process across their business units.
In addition, it is important to establish the roles and responsibilities of every stakeholder involved in the process. Further, to implement accountability and set up a transparent hierarchy, the identification of a process owner is necessary within the process.
ENSURE THE IT FUNCTION’S INVOLVEMENT
According to a surveyon organizations that have successfully automated their processes, the implementation success of process automation depends on the early intervention of their IT department.
According to a survey
First, these organizations’ IT teams are more likely to have automated their processes. Furthermore, the IT team's involvement acts as a key differentiator for the successful implementation of automation processes.
More than 75% of respondents from successful organizations say IT was involved in initial discussions of automation projects, compared to about 58% of all other respondents.
By contrast, just 13% of respondents who consider their automation efforts successful, say IT was not broughtonboard until pilots were already underway.
By contrast, just 13% of respondents who consider their automation efforts successful, say IT was not brought
INTERNALIZE BOTH COSTS AND BENEFITS
Successful and less successful automation efforts get differentiated in regard to the management’s understanding of the total cost of ownership (TCO).
Successful and less successful automation efforts get differentiated in regard to the management’s understanding of the total cost of ownership (TCO).
In the McKinsey study, about half of respondents with successful automation efforts say their leaders understand very well the TCO for automation projects. Further, only 7% of peers at other organizations say the same.
Further, it is noted that regardless of meeting targets adequately, the participants report notable benefits for their automation efforts. Reduced costs are one of the most common benefits reported by nearly 30% of survey participants.