The Future of Business Processes: A Guide for Tomorrow’s Leaders

The?Envision Beyond Journal?is a monthly publication of the Intelligent Enterprise Institute, the think and do tank of SAP to help business leaders inspire and accelerate change.

?The issue is about?the?Future of Business Processes. Read and discover insights on the dynamic evolution of the business processes and the essential themes from a technological, organizational, and strategic perspective to better strategize and prepare for this transformation.?

?Don’t miss the Food for Thought section below to hear from other perspectives!

By Gizem Okumus & Bart Ruysen?

Did you know that business processes have been around for thousands of years? The concept of standardized procedures for handling transactions and operations can be traced back to the early days of commerce. For example, the Code of Hammurabi, an ancient Babylonian law code from 1760 BC, includes provisions for the collection of taxes, the sale of goods, and the resolution of disputes.??

During the Industrial Revolution, the introduction of machinery and mass production required new and more efficient ways of organizing work. This led to management principles that emphasized breaking down tasks into their simplest components and optimizing them for efficiency.??

The rise of computers and information technology revolutionized business processes in the 20th century. Computers made it possible to automate tasks, collect and analyze data, and make decisions more quickly.?

We are now on the brink of an era where emerging technologies such as artificial intelligence, machine learning, and robotics will transform the very core of business operations. Organizations that can harness these technologies to redefine their business processes will be well-positioned for success in the years to come. A recent Accenture study supports this expectation from the market: Companies who discussed AI on their earnings calls were 40% more likely to see their firm’s share prices increase.?

The convergence of emerging technologies, shifting customer expectations, and the evolving regulatory landscape is propelling businesses towards a future where processes need to be not just efficient but also intelligent, agile, and empathic.?

To navigate this uncharted terrain, organizations must harness the power of innovation, embrace emerging technologies, and cultivate a culture of continuous change. By embracing the future of business processes, organizations can not only stay ahead of the curve but also transform their operations, redefine their customer experiences, and pave the way for sustainable success in the years to come.?

In this guide, we will sketch out where we believe the emphasis should be from a technological, organizational, and strategic perspective.?

Can you imagine a world where technologies like Artificial Intelligence completely transform the way businesses operate? In fact, a world where repetitive tasks are automated, and data provides insights in real time is not that far from becoming a reality. In recent years, the average number of AI capabilities that organizations use, such as natural language generation and computer vision, has doubled – from 1.9 in 2018 to 3.8 in 2022, according to McKinsey research.??

Examples of how AI can currently improve business processes include:?

• Time-consuming data entry and invoicing operations in accounting can be automated so that humans can focus on more strategic tasks.??

• Marketing can benefit from personalized campaigns via AI. Customer behavior and trends can be analyzed for sales growth.??
• Chatbots can automate some areas of customer service and respond to common HR queries.??
• Job applications can be screened automatically for suitability. With better data insights, factors that contribute to employee turnover can be identified and avoided.??

Prompted by disruptive changes in the market and fueled by technology, businesses are rapidly evolving to improve customer and employee experiences and generate further value; they re-imagine their operations, develop innovative value propositions, reskill their workforce and change the way they leverage resources.??

Today, there are already certain steps (or tasks) that can be automated in a business process, whereas the future could see companies run fully automated business processes in which – within predefined parameters – machines can operate independently and even make decisions and act on them. This doesn’t mean that human oversight and monitoring as well as human expertise won’t remain essential to foster trust and transparency. Automated processes need to be balanced with the requirements and skills of the human workforce via human-centered design to maximize impact and achieve the desired result in alignment with ethical considerations.??

Looking ahead, this could be further supported by capabilities like Dynamic Process Adaptation where AI agents can help adapt processes based on changing conditions, preferences, or regulations and simulate business process changes. Another area is that of self-optimizing and self-healing systems which will be able to solve problems and tackle inefficiencies before these get noticed or disrupt business operations.?

In this business process transformation journey, there are 5 key topics to consider:??

1. Creating Effective Technology Integration Strategies: As we integrate new technologies into existing structures, maintaining agility and flexibility in business processes is paramount. The goal is to create systems that are robust yet adaptable, capable of evolving with the changing business landscape.?

2. Determining Appropriate Automation Levels: Understanding the impact of automation on business processes, and balancing it with strategic decision-making and prioritization, is vital. Not every process should be automated; the key is to identify where the human touch adds irreplaceable value.?

3. Ensuring Trust and Accountability: When introducing emerging technologies into the world of business processes, trust and accountability are paramount to ensure an effective adoption of the technology. Addressing concerns about data quality and reliability is as important as celebrating its capabilities. Good quality data and output is the cornerstone of any trustworthy system. Reliable data sourcing, managing AI?“hallucinations” to improve AI accuracy, and ensuring accountability in automated decisions are critical aspects of this journey.?

4. Building Sustainable and Responsible AI: Prioritizing diversity and inclusion within emerging technology-powered systems ensures unbiased decision-making, which further enhances trust and purposeful adoption among users. Ethics involve creating participatory AI systems and community-centered designs that take into account societal impact, fostering inclusiveness. Sustainable AI also involves considering its environmental footprint, especially mindful energy usage. Achieving this delicate balance between technological advancement and its environmental and social impact is crucial for sustainable development.?

5. Promoting Human Augmentation and Workforce Skill Development: On an individual level, each person should assess how this kind of transformation will affect their abilities and in what way emerging technologies could help them overcome weaknesses or further amplify existing strengths. For instance, can somebody who perceives themselves as non-creative feel more imaginative when using Generative AI? Readying the workforce for future technologies means creating a balanced collaboration between humans and machines. It's about strengthening existing skills and gaining new skills via AI. Specialists in fields like Finance, Marketing, and HR can use intelligent technologies to make more efficient, accurate, and informed decisions.?

In large-scale organizations, the complexity and dynamics of business process transformations are immense. Yet, as described in the above section, these challenges pave the way for business process revolution and an enhanced Human-AI interaction. The future of business processes is not all about automation; in the world we live in today it’s about creating purpose-driven processes that are both sensitive to human needs and the impact on the wider ecosystem. This could involve processes to achieve a specific social or environmental impact beyond simply generating profits, like sustainable sourcing, ethical marketing, compliance with environmental standards, improved diversity and inclusion in the workforce, etc.??

Purpose-driven processes will also help to foster a sense of community and belonging that might lead to better teamwork and collaboration, potentially resulting in an increased level of engagement, as such, this could have a significant impact on organizations and organizational roles.??

This transformation goes beyond mere efficiency; it’s about augmenting human capabilities and fostering a culture where change is not just accepted but welcomed. It becomes increasingly important for employees to understand and align with the vision of the business, so transformations become not just a top-down mandate but a shared journey.?

A key topic to consider in this transformation process is which roles will change, and how they will change. Identifying new, emerging roles that are needed to accelerate, strengthen, and support these future business processes and preparing large-scale organizations for change is crucial. To adapt to this technological revolution, it’s imperative that through human skills development, we are ensuring that our workforce is not only digitally fluent and hence ready for, but also excited about the future.??

The journey towards the future of business processes with more sophisticated augmentation and automation involves continuous learning, innovation, and improvement. It will require a roadmap that is both strategic and purposefully empathic, considering the human element in every step.?

Preparing for this transformation is about building a foundation where business process innovation can thrive, supported by a workforce that is skilled, adaptable, and visionary. In a 2020 survey by McKinsey, 87 percent of the executives interviewed said their companies were not adequately prepared to address the skills gap.?

Transformation is an opportunity to showcase an organization’s capabilities. It’s a chance to demonstrate how a strategic vision, especially around more technology-driven processes, can propel an organization into the future. It’s a fine art to decide on how to balance human-driven vs technology-driven business processes.??

More than ever, this requires an effective navigation from the complex landscape of organizational changes and the need for a deep and nuanced understanding of what truly defines the organization, its core values, its strengths, and its unique identity. This understanding is crucial for ensuring that change initiatives align with the organization’s ethos, leverage its strengths, and ultimately, support its long-term success.

In such a dynamic business environment, where change is the only constant, stakeholder engagement has become an indispensable element of successful organizational transformation. It’s not just about informing stakeholders about the impending changes, it’s about actively involving them in the process, ensuring that their perspectives are considered, and their voices are heard. Continuous stakeholder feedback to management is essential for:?

• Building a shared understanding to foster trust and make the process more resistant to redundancy.??
• Early identification of roadblocks and areas of concern.?
• Tapping into the collective expertise and experience of the stakeholders to come up with better solutions.?

By involving a diverse range of voices, businesses can identify creative and innovative solutions that may not have been considered otherwise in support of the transformational change needed to execute the defined vision.?

As we embark on this transformative journey, it’s clear that the introduction of emerging technologies, especially AI, is not just a trend but a necessity for businesses to gain a competitive advantage, improve their overall performance and develop a workforce that is skilled, adaptable, and visionary. The keys to success lie in implementing effective technology integration strategies, striking the right balance in automation levels, addressing AI trust and ethics, nurturing human skills in tandem with automation, and aligning the workforce with future technologies. According to BCG, achieving organizational learning with AI (drawing on multiple interaction models between humans and machines) and building feedback loops between human and AI increases the likelihood of reaping significant benefits from AI investments by 34%.??

This technological evolution is not about replacing humans but about creating a harmonious coexistence. As businesses evolve, it’s crucial to not only focus on efficiency but also on creating purpose-driven processes that enhance the interaction between humans and AI, fostering a culture where change is embraced. The journey towards the future of business processes with more sophisticated augmentation and automation requires a strategic and empathic roadmap that considers the human element in every step.?

With that, we conclude for now. In our next article, we will outline the future of business process management. Stay tuned for more!?

• "AI adoption has more than doubled since 2017" says McKinsey. Find out more here.
• Read here from?BCG?on the key?characteristics?that set the winners apart from the observers in the journey?from potential to profit with Generative AI.
• Tech Target’s recent article explores the evolution of?business process management?as technology is?shaping the future.?

The?Intelligent Enterprise Institute?helps business leaders understand the transformative potential of different forms of intelligence and use it for their organizations and life. It provides a platform to inspire and accelerate change, supported in market trends and SAP’s vision to help the world run better and improve people’s lives. By generating new insights and bringing together unheard voices and unique perspectives from leading thinkers and doers of the world, the Intelligent Enterprise Institute aims to foster different qualities in enterprises and their stakeholders alike taking it into action for desirable outcomes.