How to get started with intelligent automation

Entrepreneurs will attest that running a business, new or old, big or small, is not an easy task. Indeed, according to the latest data according to the US Bureau of Labor Statistics, nearly 1 in 5 US companies go bankrupt in the first year.

The road to creating a successful, long-lasting business is fraught with challenges, including rising customer expectations, skills gaps, and increasing complexity between business and IT functions, all of which are difficult to predict and prepare for. Therefore, AI and automation (which can be referred to as “intelligent automation”) can be used to automate low-level tasks within the business to better prepare for the unpredictable.

In fact, the adoption of AI has grown steadily in recent years. According to IBM’s 2022 AI Adoption Index35% of companies are using AI in their business and another 42% are researching AI technologies. Intelligent automation is no longer a technology of the future. It has become an increasingly important investment to help businesses grow and prosper.

Business process automation: Start with process mining

Intelligent automation helps companies overcome challenges. But often, effectively deploying and scaling these technologies can be a challenge in itself. Many automation attempts initially fail due to a lack of vision and uncertainty about where to start.

Process mining, a process discovery, optimization and monitoring technology, is proving to be an ideal starting place for companies ready to embrace automation and embark on their digital transformation journeys.

All organizations, regardless of size, location, industry or other demographic, rely on processes to operate effectively. Process mining enables companies to better manage day-to-day business functions of accounting, procurement, project management, risk management, supply chain operations (and more) and ensure employees can focus on higher value work.

By understanding how business processes actually work, a Chief Automation Officer (CAO) and their team can identify automation opportunities prioritized based on impact and expected return on investment (ROI).

Process mining ensures continuous improvement in every industry

It is vital for organizations to change and act flexibly, and understanding business processes is the first step in process improvement. With a better understanding of how underlying processes run, organizations can make smarter decisions to increase efficiency and save costs.

Max Mara, a major Italian-based luxury fashion house dedicated to making quality fashion accessible to everyday people, has seen its digital share of business volume almost triple over the course of the pandemic. They recognized that the efficiency of back-end operations would now have an even greater impact on customer satisfaction. The retailer therefore implemented process mining to improve the customer journey during busy times, and was able to demonstrate a 90% increase in customer service time and a 46% reduction in average cost per solution.

Another organization embarking on a digital transformation journey is faith, an Italian bank spread over 19 Italian regions. Credem prides itself on good banking, a philosophy that ensures that the financial needs of its clients, from day-to-day banking to asset management, are met.

The financial institution realized it needed to improve business value, reduce costs and increase efficiency while enabling monitoring and control of vital business processes. To begin with, the bank has studied processes and areas that can be automated. For example, credit card checks and approvals for retail customers.

They then applied business automation to reduce approval time from four days to one, saving approximately €500,000 per year. In total, Credem was able to apply automation to 91 processes, saving them more than €1.4 million and shortening the loan process by 70%.

Process mining provides the power of information and data to improve business process execution and achieve operational excellence. More knowledge of processes can lead to more effective data-driven decision-making, cost savings and improved customer service.

By starting automation initiatives with process mining, organizations can create deeper efficiencies in business to focus on driving innovation, delivering quality products and services, and improving customer retention.

Dinesh Nirmal is Senior Vice President of Products at IBM Software.