Insights

Revolutionizing efficiency and innovation through the right combination of people, processes, and technology.

Thanks to AI (Artificial Intelligence), process re-engineering is making a big comeback, enabling radical and rapid process redesign.

AI learns from large data sets. AI enables better, faster, smarter decisions. Better decisions produce better outcomes. Better operational decisions, in turn, fuel even greater operational decisions.

The cost of AI has dropped dramatically as well. Now AI is available off the shelf, and most barriers to entry are gone. That means AI-decisioning can augment business process outsourcing and hyper-automation. RPA (Robotic Process Automation) can structure work through rule-based automation, while AI/ML can handle variation in tasks, and people can handle exceptions.

Process redesign is an important part of improving an organization’s efficiency. The emergence of Artificial Intelligence (AI) has made it possible for organizations to automate and optimize their processes to enhance productivity. AI has transformed the way process redesign is done by offering valuable insights and tools for automation, enabling organizations to streamline their operations, cut expenses, and enhance customer satisfaction. This article will explore a few examples of how AI is used in process redesign.

WHAT IS AI-CENTRICITY?

When a company is AI-centric, artificial intelligence (AI) is at the core of its operations, strategies, and decision-making processes. Being AI-centric indicates that the company heavily relies on AI technologies to drive innovation, improve efficiency, and enhance its products or services.

ARE YOU READY FOR AI-CENTRICITY IN YOUR BUSINESS?

AI-centricity has important ramifications for your company’s future – how work is performed, how your company is organized, and how you think about talent.

An end-to-end perspective of your business is necessary to truly understand just how much AI can transform it. If you are generating data and if you can extract patterns from that data, there is gold that can be mined to support your operational processes and decisions.

AI IN ACTION

AI is playing a crucial role in helping businesses enhance their processes. It offers the necessary tools to analyze operations and pinpoint areas that require improvement. By automating repetitive tasks, identifying patterns in data, and making predictions, AI empowers companies to make informed decisions and optimize their operations. Tools like chatbots, natural language processing, and machine learning algorithms are particularly useful in streamlining processes and improving efficiency. They can automate customer service, analyze data, and manage supply chains. Additionally, these tools can identify patterns and make predictions to aid companies in making better decisions.

RETHINK PROCESS REENGINEERING

Considering the advancements in AI technology, companies need to reconsider the tasks required for their business processes, their frequency, and who will perform them. Additionally, when incorporating partial automation with AI, companies must determine the division of tasks between humans and machines. While many AI applications aim to enhance specific tasks, it is crucial for companies to take a comprehensive approach and reevaluate their end-to-end processes.

WHO OWNS AI-ENABLED PROCESS OPTIMIZATION?

In the past, process improvement was the responsibility of operations managers, and organizations rarely combined it with their AI projects. However, to fully utilize AI’s potential, process design and improvement should be integrated into AI initiatives. Successful initiatives are now led by product managers who focus on deploying the system and implementing necessary business changes.

Of course, engineering, finance, and operations remain critical stakeholders in any process reengineering project for mapping out detailed process flows, measuring costs and cycle times before and after implementation, and analyzing required skills and training. These activities are crucial for the success of AI projects and should not be left to chance.

In addition, automation-focused projects have a significant impact on process flows and typically involve incremental changes. Therefore, they often incorporate a formal set of process improvement steps. For instance, at ThoughtFOcus, they have a dedicated AI Center of Excellence that ensures every automation project is preceded by a process improvement effort. Automation is not only a technical endeavor but also a process-oriented engagement.

CHALLENGES

The utilization of Artificial Intelligence (AI) in process redesign comes with various challenges that businesses must address.

One significant challenge is the lack of data quality, as AI heavily relies on accurate and relevant data to produce optimal outcomes.

Another challenge is the inadequate understanding of business processes. AI models require a deep understanding of the processes they aim to optimize. Without this understanding, AI models may yield suboptimal results or even errors. Hence, businesses need to thoroughly comprehend their processes before integrating AI.

Resistance to change is also a common challenge when implementing AI in process redesign. Employees may resist the changes brought about by AI, fearing job loss or changes to their roles.

The lack of transparency in AI models makes it difficult to understand how they arrive at their predictions or decisions. This lack of transparency can be problematic, especially in regulated industries where explainability is crucial.

Integrating AI with legacy systems is also a challenge businesses face. Many organizations operate with outdated systems that are not compatible with AI technologies. This integration process can be time-consuming and resource intensive. Thus, careful planning is necessary to ensure a seamless transition.

Privacy and security concerns arise when using AI in process redesign. AI models require access to substantial amounts of sensitive and confidential data. To address this, businesses must implement robust security measures to protect the data used to train AI models.

Ethics and bias are additional challenges in using AI for process redesign. AI models can perpetuate biases and discrimination if not properly designed and implemented.

AI IS HERE

In conclusion, the integration of AI in manufacturing for process redesign has become essential for firms to stay competitive. AI should be viewed as a tool that enables firms to optimize their operations and achieve their desired outcomes, rather than an end in itself. By leveraging AI in the broader context of process re-engineering, firms can unlock significant opportunities for increased efficiency, productivity, and profitability. As AI continues to become as standard as spreadsheets and word processors, it is crucial for firms to embrace its potential and harness its power to drive transformative changes in their manufacturing processes. Those firms that successfully leverage AI in process re-engineering will be the ones that reap the greatest rewards in terms of improved performance and sustained profitability.