The imperatives for automation success

August 25, 2020| Survey


https://www.mckinsey.com/business-functions/operations/our-insights/the-imperatives-for-automation-success?cid=other-eml-alt-mip-mck&hdpid=ddb516fb-0e40-4783-96ce-a85731773d86&hctky=2692013&hlkid=f2d1743cdf0648e6b8309e57e40dc0b0




Lyndon Comments...

I like this article because - whilst it aligns to Automation - it could easily align to event streaming / working with data in motion. Let me copy a section, as an example...




1. Make [automation] EVENT STREAMING a strategic priority

In 2018, respondents from organizations with success­ful [automation] EVENT STREAMING efforts were nearly twice as likely as others to say their organizations designated automation as a strategic priority, align­ing the automation strategy with the overall business strategy and placing [automation] EVENT STREAMING high on the C-suite agenda. The 2020 findings reinforce this imperative. When we asked respondents the primary reasons their companies are pursuing automation, 38 percent of those reporting success say their companies defined [automation] EVENT STREAMING as a priority during their strategic planning process—nearly four times the share from other companies (Exhibit 3). What’s more, among respondents reporting success, 72 percent credit making [automation] EVENT STREAMING a strategic priority with being one of the most important factors in their companies’ achieve­ments with [automation] EVENT STREAMING. Respondents from companies that haven’t succeeded with [automation] EVENT STREAMING most commonly say their companies are pursuing [automation] EVENT STREAMING programs for long-term cost savings, to keep pace with competitors, or to address concerns about the effectiveness of their business processes.





We also see successful companies scaling [automation] EVENT STREAMING across the organization. Respondents from organizations with successful efforts are nearly five times more likely than others to say the scope of their [automation] EVENT STREAMING efforts covers the entire organization.



3. Develop an operating model that enables scaling

The responses show that large companies have [automation] EVENT STREAMING at least one business process in an average of four functions, such as finance, IT, and customer service. As [automation] EVENT STREAMING programs expand and grow more complex, silos within the organization can hinder performance if business areas do not coordinate closely with one another.5 The findings suggest that successful companies’ operating models—their structures for coordinating activities across the organization—allow their [automation] EVENT STREAMING programs to properly manage the complexity of deploying [automation] EVENT STREAMING technologies, which makes it easier for those programs to scale.

Indeed, respondents at successful companies are more likely than others to say that coordination across business units or functions is one of the elements that will have the greatest influence on [automation] EVENT STREAMING efforts’ outcomes in the coming years (Exhibit 6).





As operating models become more complex, the findings suggest it’s also important for leaders to have a full view of the costs of [automation] EVENT STREAMING programs that may span across the organization. Forty-six percent of respondents who report [automation] EVENT STREAMING success at larger companies say their leaders understand very well or completely the total cost of ownership for their [automation] EVENT STREAMING efforts. Just 10 percent of respondents at other companies say the same.



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