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Digitizing Operations

Next generation digital service operations transform an organization’s operating model by applying digital, automation, and new ways of working to both customer journeys and SG&A functions.

The rise of digital has brought about irreversible trends that are shaping the future of work into nothing short of an industrial revolution in services—the 4th industrial revolution. Spending on technologies and services that enable digital transformations of business practices, products, and organizations has increased from $2 to $3 trillion globally. For businesses, this revolution heralds the need for a radical reimagining of the end-to-end operating model. The rapid pace of change and innovation is transforming customer behavior and placing greater demand on digital channels.

McKinsey helps organizations apply digital and automation across the end-to-end operating model to capitalize on the irreversible trends that are driving this new revolution in services. To win in the new world, organizations must adapt their operating models and create a scalable, cross-functional deployment model that include the following elements:

Process and technology capabilities

  • Experience-centered redesign
  • Digitization
  • Orchestration and task automation
  • Analytics and decision automation
  • Workforce & partner ecosystem

Foundational enablers

  • Agile way of working
  • Technology enablement
  • Organization and management systems
  • Talent management and reskilling
  • Change and risk management

What we do

McKinsey’s proprietary knowledge and solutions allow us to bring an array of offerings to help our clients transform their end-to-end operating models. Our offerings include:

  • End-to-end process redesign enabled by technology solutions
  • Technology-enabled G&A optimization
  • Major technology transformations and program re-platforming
  • Workforce of the future redesign

25%

cost improvement

50%

faster process turnaround/response time

>30%

efficiency gain

10x

access to innovation

Featured Capabilities

Next Gen Operating Model Maturity Index: A survey that allows organizations to quickly assess areas of strength and opportunity across 16 key capabilities within three pillars that are critical to successfully reimagining operating models to adapt to the next normal.

Automation 20/20: A tool that assesses four key dimensions affecting successful adoption of automation. We partner with our clients to analyze results, compare their performance against other organizations, and prioritize recommended interventions that could have the greatest potential impact.

Trace: A tool that helps organizations improve performance by accelerating the transition to technology-enabled operations. It includes an emerging suite of process insight tools to diagnose, discover, monitor, and transform processes.

Hyperscience: An AI-based software that provides best-in-class document processing automation capabilities, allowing clients to redesign end-to-end processes that involve document processing; add intelligent document processing to existing digital, analytics, and automation capabilities; and solve document processing challenges holistically across the enterprise. The solution is powered by Hyper Labs in collaboration with McKinsey.

McKinsey Academy: A center of excellence for capability building that helps organizations build capabilities at scale to drive change. Our programs span leadership, execution, and functional skills. We work with organizations to foster a culture of life-long learning.

Go & See visits: An opportunity for leaders to learn from peers more advanced in the journey on topics such as implementing new digital strategy, agile at scale, data and analytics, or reimagining customer journeys.

AI immersion tours: A tour for executives to get a 360 degree view of the AI ecosystem by learning from industry-leading experts across academia, research think tanks, venture capital, and companies at various scales – from start-ups working on new cutting-edge use cases to advanced organizations that have completed their transformations.

Industry Insights

Article

Automation in government: Harnessing technology to transform customer experience

– Automation can enable governments to provide outstanding levels of customer experience, driven by innovations that are as sensitive to people as they are to technology.
Article

Making healthcare more affordable through scalable automation

– As more healthcare companies start to implement automation technologies, the ability to coordinate across the organization in achieving scale will be a major determinant of success.
Article

Rules of engagement: Winning with the basics in digital telecommunications

– Online sales and service are key measures of successful digital transformations. But most telecom operators aren’t implementing the fundamentals that drive customers online and keep them there.
Blog Post

Productivity in banking: An Interview with Lloyds Banking Group’s Jennifer Tippin

– Jennifer Tippin, Group Director, People and Productivity at Lloyds Banking Group talks with McKinsey about the bank’s focus on productivity.

Functional insights

Collection

The industrial revolution in services

– Weaving digital into the entire organization will require companies to raise their aspirations, expand their toolkits, and deliver impact across the board.
Article

Lean management or agile? The right answer may be both

– Through thoughtful design, agile and lean management can be the perfect match for companies in search of lasting performance improvement.
Article

Unlocking enterprise efficiencies through zero-based design

– Zero-based design allows even mature companies in asset-heavy industries to cut costs and complexity without compromising safety, quality, or customer trust.
Article

Sales automation: The key to boosting revenue and reducing costs

– Automation tailored to sales operations is a win for companies, customers, and sales reps. Here’s how to make it work.

COVID-19 insights

Article

Next-generation operating models for the next normal

– Changing stakeholder behavior may lead companies to reconsider how they operate.
Article

Beyond contactless operations: Human-centered customer experience

– As we look forward to the next normal, consumers are already demonstrating a preference for companies that deliver great service while reducing risks all along the customer journey.

Featured Experts

Rohit Sood
Senior Partner, Toronto
Brings digital-operations and lean-management expertise to help clients in the banking, insurance, retail, and healthcare sectors win in new ways
Greg Phalin
Senior Partner, Charlotte
Helps banks, insurance companies, and business-process-outsourcing companies set operations strategy, organizational structure, and governance
Martin Rosendahl
Partner, London
Helps organizations capture the full potential of transformation, with a focus on process improvement, offshoring and outsourcing, digital, and automation
Rob Whiteman
Partner, Chicago
Improves the performance and efficiency of corporate and business functions, such as finance and HR, primarily through the use of automation technologies, including robotic process automation, machine learning, and natural language processing
Federico Berruti
Partner, Toronto
Advises leading banks, companies, and governments on automation and artificial-intelligence strategies and implementations and on a range of transformation, partnership, disruptive-technology, and operational-efficiency issues
Grace Klopcic
Partner, Denver
Advises financial-services companies looking to optimize their digital and analytics capabilities, and put in place innovative digital payment strategies to drive growth
Sameer Chowdhary
Partner, Dallas
Serves healthcare organizations, including payers, integrated-delivery systems, and health systems on topics related to operational excellence, advanced analytics, automation and digitization, and cost optimization
Aishwarya Singh
Partner, Madrid
Helps high-tech clients transform their services businesses through operational excellence, re-energized sales, and a conscious shift toward high-value services
David Wilkes
Partner, Toronto
Advises leading insurance companies and financial services clients on digital and operations transformations that target customer experience, operational effectiveness, and efficiency—bringing together customer-experience design, disruptive technology, automation and digitization, and excellence in operations management
Jesús Moreno Sosa
Partner, Buenos Aires
Leads digital-transformation programs—improving customer experience, driving revenue, and reducing costs—and leads the customer experience group in Latin America
Thierry Chesnais
Partner, Hong Kong
Helps technology and industrial companies in Greater China to grow and transform through digital and analytics
Martin Weis
Partner, Zurich
Leads digital transformation journeys, with a focus on artificial intelligence (AI) and robotic process automation, on behalf of clients in industries such as automotive, high tech, energy, pharmaceuticals, and consumer products

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