Automated processes straight off the assembly line

Many established companies have an immense trove of data amassed over the years. The BCG Platinion Automation Factory shows how they can use it to generate significant savings. 

From sophisticated production lines in the consumer goods industry to intelligent robots in battery factories: Automation was long considered the domain of the manufacturing industry. Digitalization changed this paradigm, not only melding the physical with the digital world but also supporting the effective automation of business processes in all industries. Companies that are unable to leverage their digital potential will quickly fall behind in terms of speed and costs.  

However, many established companies are lagging behind when it comes to process automation even though they fulfill key prerequisites:

• Access to relevant data volumes: The raw material for digital automation
• High transaction volume: The basis for profitably implementing automation

Data as a raw material

The volume of data amassed over the years can give companies an almost irresistible competitive advantage. Modern technologies like data lakes can make information accessible that was previously unsuited for structured storage in databases, thus enabling complex, previously unimaginable analyses. This “unstructured” data includes in particular video and audio files, but also a large number of exotic “document types” such as inquiries through customer portals or product usage patterns in the field study that do not follow a formalized representation.

 Significant potential

The transaction volume is the key factor in the profitability of process automation. If it is high enough, even the digitalization of subprocesses such as processing texts in documents can hold significant potential. In concrete project initiatives with our clients, we were able to realize cost savings between 50% and 90%. Investments can thus be recouped within the same year.

 Broad solution space

It can be challenging for companies to get an overview of the wealth of its own processes and data and to use it effectively, especially since there is not one right automation technology to do so. Instead, there is a large number of potential technical solutions available today:

• Robotic Process Automation (RPA) develops digital robots that operate applications at a tremendous speed
• The Internet of Things (IoT) connects physical devices with digital environments
• Artificial Intelligence (AI) imitates human thought and solves problems independently

Automation off the assembly line

A major challenge is identifying the profitable combination among this wealth of different solutions and technologies in a targeted manner and applying it effectively. Just like in the traditional factory with its precisely aligned production stations, the benefit of individual automation technologies increases exponentially if they are connected with each other intelligently. The goal is a platform that integrates technologies, makes different data broadly available, and thus produces automated processes like on an assembly line.

 Intelligently combining technologies

The concrete benefit of this connection can be seen by the example of a project BCG Platinion completed for an insurance company.

 The challenge: The system-based capture and processing of data was not technologically efficient. In addition, the company was using a proprietary IT system that did not enable an integrated enhancement through AI components.

 The solution: Connecting RPA and AI to intelligently control processes based on the available data. Digital robots now consolidate the required data from many different sources. The data trove gathered in this way as if by magic enables valuable analyses and insights by means of an AI module. In the next step, the results are automatically transferred into existing standard IT systems by means of RPA, and the underlying business process is run highly efficiently and error-free.

 The result: Immediate eight-figure savings and the ability to additionally integrate further technologies such as IoT applications at a later point and gradually increase the value potential.

 Automation factory as the goal

Process automation does not work in isolation, it does not work with a single automation application or pilot project. Our Automation Factory framework looks at the digitally connected automation from design and data provisioning, orchestration, and processing to IT integration and is thus able to generate tangible economies of scale very quickly. Only if a company is equipped with the right capabilities in these dimensions and uses technologies as indispensable tools can automation be leveraged effectively and actually deliver on its value proposition.

--

The authors Oliver Schwager, Jakob Gliwa, and Dr. Nico Rödder help BCG Platinion’s clients to build their digital capabilities.

BCG Platinion is part of Boston Consulting Group (BCG) and supplements the range of services offered by the leading strategy consultancy with sound technology expertise on business-critical IT issues.