How do I start to make the shift towards adopting multiple levers in sequence to achieve compound impact?

Organisations typically use five key capabilities to improve both their customer and internal journeys. These are:<br/><br/>

Digitisation<br/><br/>

The process of using tools and technology to improve journeys. Digital tools have the capacity to transform customer-facing journeys in powerful ways, often by creating the potential for self-service. Digital can also reshape time-consuming transactional and manual tasks that are part of internal journeys, especially when multiple systems are involved.<br/><br/>

Advanced analytics<br/><br/>

The autonomous processing of data using sophisticated tools to discover insights and make recommendations. It provides intelligence to improve decision making and can especially enhance journeys where nonlinear thinking is required. For example, insurers with the right data and capabilities in place are massively accelerating processes in areas such as smart claims triage, fraud management, and pricing.<br/><br/>

Intelligent process automation (IPA)<br/><br/>

An emerging set of new technologies that combines fundamental process redesign with robotic process automation and machine learning. IPA can replace human effort in processes that involve aggregating data from multiple systems or taking a piece of information from a written document and entering it as a standardised data input. There are also automation approaches that can take on higher-level tasks. Examples include smart workflows (to track the status of the end-to-end process in real time, manage handoffs between different groups, and provide statistical data on bottlenecks), machine learning (to make predictions on their own based on inputs and provide insights on recognised patterns), and cognitive agents (technologies that combine machine learning and natural-language generation to build a virtual workforce capable of executing more sophisticated tasks).<br/><br/>

Business process outsourcing (BPO)<br/><br/>

This uses resources outside of the main business to complete specific tasks or functions. It often uses labour arbitrage to improve cost efficiency. This approach typically works best for processes that are manual, not primarily customer facing, and which do not influence or reflect key strategic choices or value propositions. The most common example is back-office processing of documents and correspondence.<br/><br/>

Lean process redesign<br/><br/>

This helps companies streamline processes, eliminate waste, and foster a culture of continuous improvement. This versatile methodology applies well to short-cycle as well as long-cycle processes, transactional as well as judgment-based processes, client-facing as well as internal processes.<br/><br/>

© McKinsey and Company

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