The Joy of Finance curates and summarizes the best finance and operations content for busy folks. You can sign-up for the newsletter here.
Raising the Intelligence of Automation
Intelligent automation offers a litany of benefits, including employee efficiency, cost reduction, and improved productivity. But what exactly does it mean for automation to be intelligent?
Capgemini defines intelligent automation as “the right combination of robotics process automation (RPA), artificial intelligence, and business process optimization applied cohesively to achieve strategic business objectives.”
Interviewing 1,500 senior executives from global financial services organizations, Capgemini released a report on the benefits of intelligent automation and what an intelligent automation strategy might look like.
First, the benefits…
While excellent for reducing operating expenses, many financial institutions are focusing their automation efforts on driving revenue growth. By 2020, financial services firms could see more than $500 billion in global revenue gain.
Key factors in revenue growth:
- Faster time to market (31%)
- Improved cross-selling (25%)
- Increased accuracy targeting new customers (16%)
Ironically, automating processes actually gives customers greater individual attention, leading to higher retention and conversion rates. Roughly two-thirds of the surveyed organizations reported at least a 60% increase in customer satisfaction.
Key factors in customer satisfaction:
- Faster response times from Straight Through Processing (38%)
- Faster customer query turnaround times (37%)
- Personalized customer service (32%)
If you’re unsure about where to start, you can read more about some of the best automation tools here.
Solutions at Scale
Many companies primarily utilize RPA, as it can be implemented rapidly and execute manual tasks. However, this is only a surface-level solution. Fully-capable machine learning and biometric intelligence will be essential to unlocking automation’s true potential. As of this report, only 10% of survey respondents have managed to automate their processes across all sectors of their organizations.
Based on an analysis of 50 use cases, Capgemini determined that more than half of all organizations fail to automate some of the easiest processes that provide quicker returns.
Processes companies should be automating first:
- Revenue optimization
- Trade settlement
As new solutions emerge, businesses must learn to keep pace with technology. While challenging, identifying the most relevant value drivers and breaking through scaling plateaus will be the keys to realizing your business’s full potential.
Read the full report “Growth in the Machine” here.