Original Source: Digital Mckinsey
“Automation has great potential to create value—but only for businesses that carefully design and execute it. Encouraged by the much-vaunted potential of automation, organizations around the world are embarking on their own transformation journeys. On paper, the numbers look compelling. The McKinsey Global Institute estimates that about half the activities that workers are paid $15 trillion in wages to perform in the global economy have the potential to be automated by taking advantage of current technologies (see sidebar, “Key automation technologies”).1 Looked at another way, at least 30 percent of work activities in about 60 percent of all occupations could, in principle, be automated.
With their eyes on the automation prize, companies have set aspirational targets that run to hundreds of millions of dollars. As they launch their first, second, and third waves of automation, however, most are finding it harder than they expected to capture the promised impact. In our experience, about half of current programs are delivering value on some fronts, but only a handful are generating the impact at scale that their business cases promised.
Teething troubles are to be expected with an effort as wide-ranging as automation. Applying a largely unfamiliar portfolio of technologies in a fastmoving, complex business is enough to break even the most experienced leaders and teams. In the C-suite, executives are approving major investments that promise generous paybacks in a matter of months; meanwhile, down on the factory floor, project teams are constantly scrambling to extend timelines and trim back impact estimates. We have seen RPA programs put on hold and CIOs flatly refusing to install new bots—even when vendors have been working on them for months—until solutions have been defined to scale up programs effectively.2 In case after case, early adopters are left writing off big investments…”
Contributors: Open SourceCategories: Industry Articles, SIG U Resource, Whitepaper
SRC Type: Artificial Intelligence, Disruptive Digitization, Robotic Process Automation (RPA)