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Intelligent Automation: Powering business efficiency
Productivity, agility & scalability enabling growth
Mar 12, 2024
In a world grappling with polycrisis businesses face multiple insecurities and global economic slowdown. To thrive in this dynamic environment, companies are resetting their organizations for one major priority: growth.
According to BCG, 72% of C-Suite executives are focusing on increasing business efficiency by redesigning business process operations (BCG, CEO Outlook 2023: Caution, Optimism, and Navigating the Road Ahead, 2023). Businesses understand that creating new business efficiencies now will be the key to future business growth. Efficient, high-performing businesses will have the time and resources to spot and act on seize upcoming growth opportunities much faster than the competition.
PROCESS AUTOMATION IN FOCUS
Effectively deployed technology helps companies optimize business process management. According to IDC Future Scape, the spotlight is on process automation technology to enhance business efficiency and tackle longstanding process challenges ranging from compliance, response times, data privacy and processing quality.
65% of organizations have deployed process automation technologies in the last 12–18 months to improve the overall effectiveness. This is an important step in the organizations’ transformation journey towards fully digital operations laying the foundation for future growth.
Let’s deep dive to discover the best automation technologies and unlock the Power of Possibility.
GENERATIVE AI ON THE HYPE
Expectations are super-high, as IDC predicts that 90% of knowledge workers will see AI augmenting their workflows (IDC Future Scape, 2023).
According to BCG, the redesign of business processes / functions enabled by AI technology will potentially deliver 30-50% efficiency gains (BCG, AI RADAR From Potential to Profit with GenAI, 2024).
No wonder C-suite executives plan to further increase investments in AI in the next 12 months. However, IDC observes an unexpected change in companies' optimization strategies. After a generative AI hype, 60% of businesses will now refocus on mandating automation strategies based on outcomes versus specific technologies by 2025 (IDC Future Scape, 2023). This is a clear signal we are moving from “Pure AI use cases” to an integrated approach linking AI more with other technologies.
INTELLIGENT AUTOMATION TO BOOST BUSINESS EFFICIENCY
Intelligent automation (IA) is the corresponding approach for advanced business process design combining the right set of technologies to automate specific business processes to achieve operational excellence at scale. Intelligent automation technologies include for example artificial intelligence, intelligent document processing, cloud solutions and robotic process automation.
The key to business efficiency is to find the right combination of technologies and human workforce to cut down response times to customer requests and deliver superior business processes.
Smart process design and fully digital processing enable companies furthermore to reorganize digital operations on a global level. For remaining tasks requiring human labor, the company can access a global talent pool, consequently optimizing costs and turnaround time.
USE CASE: TRANSFORMING UNSTRUCTURED EMAILS AND DOCUMENT IMAGES TO STRUCTURED DATA
Currently, this “Intelligent Automation Use-Case” is getting specific attention. IDC Future Scape is predicting a significant 20% increase of use cases directly tying Generative AI (GenAI) to Intelligent Document Processing (IDP).
Based on large language models, GenAI can ‘read’ and ‘understand’ written text and pull out the most relevant information. This makes it an excellent tool to turn unstructured information – such as incoming emails, or social media queries – into a structured format that can be processed automatically.
Intelligent document processing (IDP) is a combination of document capture and AI technologies. IDP captures documents and seeks to extract, analyze, validate, and make qualitative and quantitative document information available, in structured format.
This makes it a perfect tool to process incoming customer document images.
Businesses receiving thousands of inbound emails and documents now have the chance to combine the two technologies to completely automate the processing. IDP and GenAI will deliver the structured data right to the company’s IT system and empower straight-through-processing. Human workforce will be necessary only for the cases that cannot be interpreted automatically and for decisions that need “a human in the loop”.
The potential is huge, as in 2024 alone, the deployment of GenAI tools is expected to enable businesses to double the productive use of unstructured data by discovering untapped insights and knowledge, driving 20% growth in sustainable benefits (IDC FutureScape, 2023).
PARTNERSHIP FOR TECH-DRIVEN BUSINESS EFFICIENCY
The fast pace of technology change challenges companies in seeking and retaining the right skills to power Intelligent Automation of business processes. According to IDC, 80% of global organizations will struggle to find enough skilled AI professionals to continually manage and update systems. The solution to this challenge is to find the right partners.
According to IDC, the potential answer is tech-driven business process outsourcing. Business process services (BPS) involve the transfer of management and execution of business processes by a customer to a third-party service provider. This tech driven outsourcing can be applied to Technology Business Solutions, Data & Business Process Management, Workforce Experience Services, Office Logistics or Enterprise Business Support, for example, which can derive in multiple benefits:
- FastTrack to boost business process efficiency.
- Process cost savings compared to in-house operations.
- Leading expertise continuously leveraging leading edge technology.
- Process expertise at the functional and the industry level.
- Enhanced regulatory compliance and data security.
More than 30% of companies worldwide are already addressing talent shortages and skills gaps by engaging with third-party service providers (IDC FutureScape, 2023). Finding the right tech driven partners will be a key success factor to adopt technology fast, to boost business efficiency and to seize new growth opportunities faster than the competition. Download IDC's latest Business Efficiency report for free to stay up to date on industry trends and statistics.
Market Research
How to enhance Business Efficiency, by IDC
Unlock digital efficiency: Blend human skills and tech to optimize processes and drive growth.
Success story:
SPS HELPS A LEADING INVESTMENT MANAGEMENT FIRM TO ENHANCE BUSINESS EFFICIENCY
The client: A top-tier investment management company in the US, managing over US$7 trillion in assets, renowned for its extensive portfolio.
The challenge: The investment management firm faced several challenges with its internal operations. Their traditional mail intake system, reliant on over 200 employees for manual sorting, was inefficient and outdated, lacking advanced technology to enhance business intelligence or service improvements.
The solution:
- Full Process Redesign: Transition to a One Touch Processing (OTP) Solution, streamlining operations significantly.
- Workforce Optimization: As improved processing and automation were introduced in stages over time, staff numbers were systematically reduced, achieving major efficiency gains.
- Operational Resilience: Established an operation capable of processing all mail by 3PM Eastern Time.
- Innovative Technology Integration: Introduction of OTP and technology with an end-to-end audit trail. Relocated the operation to an area less prone to natural disasters with a full recovery site less than two hours away.
- Strategic Outsourcing Approach: SPS adopted a consultative approach for this first-generation outsourcing project, involving educating the client and ensuring a low-risk transition.
- Phased Implementation: Executed in three phases – initial takeover, shifting operations to the SPS site, and process transformation.
The Benefits:
- Efficient Mail Processing: SPS now effectively processes over $2 billion checks into the client’s bank account each month.
- Outcome-Based Commercial Model: Adoption of an innovative, outcome-based model aligning with client’s financial goals.
- Reduced Operational Headcount: Significant reduction in operation headcount by approximately 75%, including reductions in downstream operations.
- SLA Achievement: Implementation of a stringent SLA, ensuring 100% of mail is processed by a set time each day.
- Scalability and Compliance: The operation is now fully scalable and SEC-compliant for financial processing.
- Cost-Effectiveness: Major cost savings through digital transformation, aligning with the firm’s low-cost, investor-focused strategy.
SCALE YOUR BUSINESS
SPS is a leading technology driven business transformation company. With its suite of Technology Business Solutions, SPS transforms business process operations and client communication across industries. Download our free whitepaper and discover the current global business challenges and ways to create business efficiency and sustainable business growth.
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