Intelligent Process Automation (IPA) is the next big thing in the industry. As per a McKinsey article, companies that automated 50 to 70 percent of their tasks are already receiving ROIs in ‘triple-digit percentages.’ In this article at McKinsey & Company, Sanjay Kaniyar and his co-authors share 4 steps to help CIOs lead IPA.
Decoding Intelligent Process Automation
Apart from reducing cost, intelligent process automation increases speed, efficiency, and enables better customer support. IT and CIOs must play their role well in this journey. Following are the reasons why leaders think their IPA initiatives failed:
- IT is more complex than any business process.
- People have a vague idea about IPA and its benefits.
- The current IPA tools in the market are not fully cultivated.
- People think they must revamp their systems to make IPA functionally stable.
Here are 4 steps that will help CIOs lead the intelligent process automation wave:
- High-Level Value Assessment: Before creating the IPA business case, evaluate the value you could derive. It can help in rule-based tasks like the ticket and incident management for the IT service desk. The comparison between human handling and IPA automation of the same task will give you a clear business case. Backups and upgrades of the intellectual assets can take up to 20 percent of the IT investment approximately. IPA can also help in developing, testing, and hosting new applications, 20 to 40 percent reduction in the IT effort.
- Exact Use Cases: To understand which areas IPA can improve, know the primary factors that lead to the current issues. The McKinsey team found out 50 different types of ticket. They sorted them into three IPA categories—‘automatable,’ ‘requires machine learning,’ and ‘highly cognitive/manual.’ There are tools like Zabbix and Prometheus that monitor numerous applications and infrastructure. The support team still finds it difficult as there are numerous tickets for the same problem. Instead of reducing labor cost, build a new operating model with agile and DevOps as the foundation.
- Tangible PoC: To get stakeholder buy-ins, focus on gathering tangible proofs. When IPA is used for incident processing, companies were able to save up to 30 percent of their operating cost. To make a failproof proof of concept, conduct workshops with the IT experts. They should have a thorough knowledge of the systems and processes to suggest automation. Select the IPA tools in the market that support your requirements. Get approvals from IT and the business. Assign an executive to upgrade the IPA in iterations. Document all the results and value of the process.
- Scaling Capabilities: Focus on building in-house skills and creating a more IPA-specific organizational culture. Increase the IPA capability to handle more complex tickets. The more the intelligent process automation scales, the more integrated it becomes. Provide risk and infrastructure support. Once done, CIOs should reach out to leaders from other business areas regarding IPA capabilities. Explore new opportunities even after successful IPA implement.
To view the original article, visit the following link: https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/a-cio-plan-for-becoming-a-leader-in-ipa