Maximizing Value with Automation and Digital

Transformation
Leslie P. Willcocks · John Hindle ·
Matt Stanton · John Smith

Maximizing Value
with Automation
and Digital
Transformation
A Realist’s Guide
Leslie P. Willcocks John Hindle
London, UK Nashville, TN, USA

Matt Stanton John Smith

Swalcliffe, UK Innellan, UK

ISBN 978-3-031-46568-0 ISBN 978-3-031-46569-7 (eBook)

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 Acknowledgements

Our research into service automation, intelligent automation, AI and digital

transformation has involved thousands of survey respondents and case
research interviewees. Our heartfelt thanks for sharing your knowledge,
giving your time so generously and steering us towards an ever-deepening
understanding of the technologies, how they are received in organisations and
the challenges, risks and success factors. Without you, this research would
not have been possible. For the present study, we thank the suppliers, major
organisations and customers who generously gave of their time and brains in
answering our questions and for providing such wonderful case details.

v
 Introduction

Our general research into IT systems at Knowledge Capital Partners dates

back over thirty years, while our focus on new technologies—Cloud, RPA,
Intelligent Automation, AI and all of what we call the SMAC/BRAIDA
digital technologies (see Chapter 1) date roughly from the emergence of
cloud computing around 2010, through the introduction of Robotic Process
Automation in 2012, and continuing developments in the major trending
technologies, whose adoption will accelerate over the next 7–10 years.
We think of these as comprising social media, mobile, analytics, cloud,
blockchain, robotics, automation of knowledge work, internet of things,
digital fabrication and augmented reality, with a watching brief on 5G,
Web 3.0, quantum computing and metaverse. Not surprisingly, we see this
as provisional and readily updateable. We research, understand and inter-
pret them in the longer-term context of IT-based innovation and practice
as applied to organisations everywhere but predominantly in businesses,
non-profit organisations and government.

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 About the KCP Research Base

Knowledge Capital Partners is an expert research, advisory and communi-

cations firm providing independent, evidence-based insight into the impact
of intelligent automation and digital technologies on industries, markets
and organisations. It develops research-based planning, performance and
measurement tools to guide successful technology deployment and navigate
organisational challenges faced on the journey to digital transformation. It
offers commissioned research services, thought leadership reports, strategy
and operational advice and communications development for internal and
market use.
We are writing, here, primarily for executives and practitioners and will
endeavour to keep the academic apparatus and language to a minimum.
Our apologies for when we fail. Nevertheless, readers will need some reas-
surance that the recommendations and action principles we arrive at are
based on detailed, objective, rigorous, independent work. The KCP research
base for this book draws upon 935 RPA, 160 Cognitive/AI and 86 detailed
digital transformation adoption cases, growing to nearly 1200 cases by mid-
2023. This has been supported by annual surveys on these topics across the
2015–2023 period. The cases and surveys cover client and vendor organ-
isations from Europe, the USA, Canada, Australia, the UK, Asia Pacific,
South America and Africa. As well as carrying out new research for this
book over the 2022–2023 period, we also draw upon our prior publica-
tions. In particular, we would mention Service Automation, Robots and The
Future of Work (2016), Robotic Process Automation and Risk Mitigation: The

ix
x About the KCP Research Base

Definitive Guide (2017), Robotic Process Automation: The Next Phase (2018)
and Becoming Strategic with Robotic Process Automation (2020). There are
also multiple work-in-progress papers available on our website, www.Kno
wledgeCapitalPartners.com. This includes research not published elsewhere
and work prefiguring forthcoming books and publications. For those inter-
ested in our research methods, full details can be found in Willcocks, L.,
Lacity, M. and Gozman, D. (2021), ‘Influencing Information Systems prac-
tice: The action principles approach applied to robotic process and cognitive
automation,’ Journal Of Information Technology, 36, 3.
 Contents

1 Where Are We Now? Where Are We Heading?: From RPA

to Digital Transformation 1
Introduction 1
Misunderstandings 2
Impact of Automation on the Global Workforce 4
A Closer Look: Automation Jobs and Skills 6
Robotic Process Automation 7
RPA—Good for Stakeholders? 8
Establishing Digital Leadership 9
Beyond RPA—Intelligent Automation and ‘AI’ 10
Digital Transformation 12
An Automation Sweet Spot 14
Centres of Excellence 15
Conclusion 16

Part I Robotic Process Automation

2 A Strategic Approach to Robotic Process Automation 21
Introduction 21
Strategy vs. Operational Quick Wins 21
Culturally Imbedded vs. ‘IT as Usual’ 23
Planning vs. Opportunism 24
Program Governance vs. Project Delivery 24
Platform vs. Tool 25
Change Management vs. Silo Tolerance 26

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xii Contents

Measurement: ROI vs. TCO vs. TVO 27

Conclusion 28
3 Robotic Process Automation: Just Add Imagination 31
Introduction 31
Combinatory Innovation 32
Conclusion 35
4 RPA in Financial Services 37
Introduction 37
RPA Applications 38
Conclusion 41
5 RPA: Mastering Agility at Scale 43
Introduction 43
Scale: For … and Against 43
Multi-sector Examples 44
Conclusion 47
6 RPA and Managing Complexity 49
Introduction 49
The Inevitable Growth of Complexity 49
Complexity: Striking the Right Balance 50
Conclusion 53
7 RPA and Combinatorial Innovation 55
Introduction 55
The Possibilities are Limitless … 56
Heading for the Future 57
Conclusion 59

Part II Intelligent Automation and AI

8 Intelligent Automation/AI: The Value Potential 63
Introduction 63
Intelligent Automation and AI: Are You Missing Value? 64
A Progress Report—Major Findings 65
Navigation: The Total Value of Ownership Framework. 68
Conclusion 69
9 Intelligent Automation in Banking 71
Introduction 71
Banking—Grasping the Problem and the Opportunity 73
 Contents xiii

Case 1: North America—Human and Digital Workers

Blend and Multiply Outcomes 73
Case 2—The Middle East: A Bank Transforms Customer
Experience 74
Case 3: Europe—Reduced Customer Wait Time from 12
Days to 4 Hours 75
Conclusion 76
10 Challenges and Customer Experience in Utilities 77
Introduction 77
Better Service Through Automation 78
Applications in Utilities 79
Personalisation at Scale 79
Industry Restructuring 80
Scaled Retail Distribution 81
Digital Challengers 82
Conclusion 83
11 Risk and Intelligent Automation in Insurance 85
Introduction 85
Today’s Challenges for Insurance 86
Applications in Insurance 87
Case 1: Global 87
Case 2: United Kingdom 88
Case 3: Europe 89
Conclusion 90
12 The Knowledge Switch in Telecommunications 93
Introduction 93
Gaining Value: Case Studies 94
Case 1: North America 94
Case 2: Europe 95
Case 3: EMEA 97
Conclusion 98
13 Intelligent Automation in Healthcare 99
Introduction 99
Health Care: Possible Futures 100
Case 1: UK 100
Clinical Outcomes + Customer Experience ÷ Cost 101
Case 2: USA 102
Case 3: Europe 103
Conclusion 104
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14 AI: Ethical and Social Responsibility Challenges 105

Introduction 105
Chat GPT etc.: Not Born Perfect 106
An AI Imperfections Test 107
Conclusion 110

Part III Digital Transformation

15 Managing the Digital Catch-22 113
Conclusion 117
16 On the Yellow Brick Road—The Ten Technologies
that Pave the Way 119
Introduction 119
SMAC/BRAIDA Technologies 120
Watching Briefs 128
Major Trends 129
Conclusion 130
17 The Blind Spot 131
Introduction 131
The Blind Spot in Digital Transformation 132
Automation Execution: The Intel Inside 133
The Secret of Success: Integration 134
Towards Digital Leadership 136
The Progress Being Made 137
Conclusion 138
18 Core Capabilities for Digital Transformation 139
Introduction 139
How to Accelerate Progress 141
The Practices of Digital Leaders 143
Conclusion 146
19 How to Catch Up on Digital Transformation 147
Introduction 147
Follower Organisations: Making Progress 148
Strategy 148
Integrated Planning 149
Imbedded Culture 150
Program Governance 151
Digital Platform 151
Change Management 153
 Contents xv

Navigation 154
Laggard and Nascent Organisations: Taking the Next Steps 155
Strategy 156
Integrated Planning 156
Imbedded Culture 157
Program Governance 157
Digital Platform 157
Change Management 158
Navigation 159
Conclusion 160
20 Digital Platform as Foundation 161
Introduction 161
The Strategy-Platform Dialectic 162
Making Platform Progress in Banking and Financial Services 164
BANK 1: Established—But a Long Way to Go 165
BANK 2: Advanced with Even More Ambitious Targets 166
Future-Ready Digital Platforms 168
Getting To ‘Future-Ready’ 169
Conclusion 170
21 The Heart of the Matter—Effective Change Management 171
Introduction 171
The ‘Shadow’ Politics Track 174
The Power Audit 176
Mobilising/Gaining Power 177
Implementation Problems 178
Conclusion 179
22 A Case in Point: DBS Bank 181
Introduction 181
Practice 1—Vision and Strategy: Becoming the D
in GANDALF 182
Practice 2—Leadership and Management Development 183
Practice 3—Agile and Scalable Digital Operations and Platform 184
Practice 4—New Digitally Facilitated Customer Experiences 185
Practice 5—Continuous Digital Innovation 186
Lessons: Digital Transformation and Competitiveness 188
Conclusion 188

Index 191
 About the Authors

Leslie P. Willcocks is Professor Emeritus at the London School of Economics

and Political Science, and Associate Fellow at Green Templeton College
Oxford. He has an international reputation for his work on automation; the
future of work and skills; global business management and sourcing; digital
business; digital transformation; adaptive business strategy and organisational
change. He worked in consulting and IT project management for ten years,
then in business education at Oxford, Warwick, and the LSE and is now
research director at advisory group Knowledge Capital Partners, and Editor-
in-Chief of the Journal of Information Technology, one of the premier-ranked
journals in the field, focusing on technological innovation.
Leslie is co-author of 73 books and has published over 230 refereed papers
in journals such as Harvard Business Review, Sloan Management Review, Cali-
fornia Management Review, MIS Quarterly, MISQ Executive and Journal of
Management Studies. His work also appears in major media outlets such
as Forbes magazine and HBR online. In 2023, he was in the world’s top
three most cited researchers in his field. Leslie has delivered company exec-
utive programmes worldwide, is a regular keynote speaker at international
practitioner and academic conferences, and for 25 years, has been retained
as an adviser and expert witness by major corporations and government
institutions.

John Hindle is managing partner of Knowledge Capital Partners. He has an

extensive international business background as a senior marketing executive

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xviii About the Authors

and adviser to companies in the US and Europe. He is Vice Chair of the

IEEE P2755 Intelligent Process Automation Working Group, a multilateral
standards initiative for the growing Intelligent Process Automation industry.
John holds a doctoral degree from Vanderbilt University and has held Adjunct
Professorships in Human and Organisational Development with Vanderbilt,
and International Marketing with New York University in London. He is a
past Trustee of Vanderbilt University. John has published many papers on
outsourcing, reengineering and automation and is co-author of Becoming
Strategic with Robotic Automation (SB Publishing, 2019).

Matt Stanton is a marketing professional with over 20 years’ of expe-

rience across fast-moving consumer goods (FMCG), pharmaceutical and
biotechnology sectors. His professional experience spans global marketing
roles, providing marketing consultancy services for leading international
organisations, along with business start-ups in FMCG, pharmaceutical and
biotechnology space. His expertise covers conceptualising marketing strategy,
helping organisations find innovative customer revenue streams and growth
opportunities and ‘stress-testing’ business models based on the assessment of
internal capabilities and external competitive environment using wargaming
methodology. Matt holds an International M.B.A. from NIMBAS, Grad-
uate School of Management, Utrecht, The Netherlands. Matt is a partner
of Knowledge Capital Partners.

John Smith is Knowledge Capital Partners’ communications specialist. He

is an advisor and writer with exceptional experience of working with busi-
ness leaders on communications critical to the outcome of major changes
designed to increase the growth, sustainability and value of their organisa-
tions. He offers great insight into the challenges facing organisations that
must enable employees, customers, investors and the wider community to
trust and support their aims. He has led the process of defining the messages
and managing communications channels to stakeholders on enterprise-wide
transformations, acquisitions, post-merger integration and the deployment of
game-changing technologies. He has worked in this role as an independent
consultant with both corporate and public services clients, with emerging and
mature businesses, across most major markets, internationally.
 List of Figures

Fig. 2.1 Becoming strategic with automation 22

Fig. 2.2 The automation path to value 22
Fig. 2.3 The KCP total value of ownership framework 28
Fig. 8.1 The automation path to value 64
Fig. 8.2 A total value of ownership framework 68
Fig. 10.1 The customer lifecycle 79
Fig. 14.1 Key technical and ethical ‘AI’ challenges 107
Fig. 16.1 SMAC/BRAIDA Technologies 2020–2030 120
Fig. 16.2 The RPA, cognitive/intelligent automation and AI landscape 125
Fig. 17.1 Digital transformation and automation execution maturity
(Source Authors and Darshan Jain, 2023) 132
Fig. 18.1 Digital transformation capabilities (Source Knowledge
Capital Partners, 2023) 142
Fig. 21.1 Digital transformation starts with cultural change 172

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