Mckinsey: Technology + operations: A flywheel for performance improvement

New automation techniques can provide the first step toward continuous, tech-enabled redesign of critical operations—forming an intuitive ops-to-tech cycle in which tech improves ops, and vice versa.

 
Operations leaders across sectors are deploying new automation tools and techniques, in parallel with longer-term IT modernization plans, to quickly digitize the last mile of processes within a company. Combined with advances in IT (including agile software development and microservices) and in organizational design (such as more robust learning platforms and moving beyond the traditional matrix structure with agile methodologies), operations leaders can rapidly turn their ops into tech—tech that they own, manage, and continuously improve—driving cost reductions of as much as 60 percent while improving quality and timeliness as well.

However, many operations teams and their senior leadership set aspirations that are too low and struggle to realize impact even in the first steps of this journey. Lacking a clear target and strong mandate to change their operating model, many companies remain trapped in pilot purgatory: investment is tentative, there is little impact at scale, teams abandon efforts after a few isolated projects, and they focus solely on point solutions, rather than building a true engine for execution and continuous improvement.

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Technology + operations: A flywheel for performance improvement