Flevy Management Insights Q&A

How does Digital Transformation enable the automation of re-engineered business processes?

     Joseph Robinson    |    Business Process Re-engineering


This article provides a detailed response to: How does Digital Transformation enable the automation of re-engineered business processes? For a comprehensive understanding of Business Process Re-engineering, we also include relevant case studies for further reading and links to Business Process Re-engineering best practice resources.

TLDR Digital Transformation strategically leverages digital technologies to automate re-engineered business processes, achieving Operational Excellence and improved customer experiences through efficiency, agility, and innovation.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Digital Transformation mean?
What does Process Automation mean?
What does Strategic Alignment mean?
What does Continuous Improvement mean?


Digital Transformation is a critical enabler for the automation of re-engineered business processes, driving efficiencies, and fostering innovation within organizations. As C-level executives, understanding the strategic alignment of digital technologies with business processes is paramount. This alignment not only streamlines operations but also unlocks new value for customers and stakeholders alike. The journey towards a digitally transformed organization involves a comprehensive overhaul of processes, culture, and customer experiences through the adoption of digital technology.

The Role of Digital Transformation in Process Automation

Digital Transformation goes beyond mere automation; it involves rethinking existing business models and processes in the light of digital technologies. This transformation enables organizations to become more efficient, agile, and customer-focused. Automation, a critical component of Digital Transformation, allows for the streamlining of business processes by reducing manual intervention, minimizing errors, and increasing speed. For instance, Robotic Process Automation (RPA) can take over repetitive tasks from human employees, freeing them to focus on more strategic activities. A report by McKinsey Global Institute highlights that about 60% of all occupations have at least 30% of activities that could be automated, underscoring the significant impact automation could have across various industries.

Moreover, Digital Transformation facilitates the integration of disparate systems and processes, enabling seamless data flow and improved decision-making. Advanced analytics and Artificial Intelligence (AI) play a crucial role in analyzing vast amounts of data, providing insights that can lead to optimized processes. For example, predictive maintenance in manufacturing can significantly reduce downtime and maintenance costs by predicting equipment failures before they occur.

Additionally, the automation of re-engineered business processes through Digital Transformation can enhance customer experiences by providing personalized and efficient services. For instance, chatbots and virtual assistants can offer 24/7 customer support, handling queries and transactions without human intervention. This not only improves customer satisfaction but also reduces operational costs.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Strategic Planning for Digital Transformation

For Digital Transformation to be successful, it must be strategically planned and aligned with the organization's overall objectives. This requires a clear understanding of the current state of processes, technology, and culture. A comprehensive digital strategy should outline the vision, goals, and roadmap for transformation, taking into consideration the unique challenges and opportunities of the organization. Leadership commitment is crucial in driving this change, fostering a culture of innovation, and breaking down silos that can hinder transformation efforts.

Investing in the right technology is also key to enabling process automation. This involves not only selecting technologies that align with the organization's needs but also ensuring that the organization has the necessary skills and infrastructure to implement and manage these technologies effectively. Training and development programs are essential in equipping employees with the skills needed for a digital-first environment.

Furthermore, measuring the success of Digital Transformation initiatives is critical in ensuring they deliver the intended value. This involves setting clear metrics and KPIs that align with the organization's strategic objectives. Regular monitoring and evaluation can help identify areas for improvement and ensure that the transformation efforts are on track.

Real-World Examples of Successful Digital Transformation

Several organizations across industries have successfully implemented Digital Transformation to automate re-engineered business processes. For instance, Amazon has leveraged automation and AI to revolutionize its supply chain and logistics operations, enabling same-day deliveries for its Prime customers. This has not only enhanced customer satisfaction but also significantly reduced operational costs.

Similarly, General Electric (GE) has transformed its manufacturing processes through the adoption of the Industrial Internet of Things (IIoT) and predictive analytics. This has enabled GE to improve efficiency, reduce downtime, and customize products in real-time, providing a competitive edge in the market.

In the banking sector, JPMorgan Chase's COIN (Contract Intelligence) platform uses machine learning to review and interpret commercial loan agreements, a task that previously consumed 360,000 hours of lawyers' time annually. This automation has not only reduced processing times but also minimized errors, demonstrating the power of Digital Transformation in re-engineering business processes.

In conclusion, Digital Transformation is a powerful enabler for the automation of re-engineered business processes. By strategically leveraging digital technologies, organizations can achieve operational excellence, enhance customer experiences, and drive innovation. As C-level executives, leading this transformation requires a clear vision, strategic planning, and a commitment to fostering a culture of continuous improvement and digital literacy.

Best Practices in Business Process Re-engineering

Here are best practices relevant to Business Process Re-engineering from the Flevy Marketplace. View all our Business Process Re-engineering materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Business Process Re-engineering

Business Process Re-engineering Case Studies

For a practical understanding of Business Process Re-engineering, take a look at these case studies.

Business Process Improvement for Asian Electronics Manufacturer

Scenario: The company is a prominent electronics manufacturer based in Asia, facing significant challenges in business process improvement.

Read Full Case Study

Process Optimization in Aerospace Supply Chain

Scenario: The organization in question operates within the aerospace sector, focusing on manufacturing critical components for commercial aircraft.

Read Full Case Study

Business Process Re-engineering for a Global Financial Services Firm

Scenario: A global financial services firm is facing challenges in streamlining its business processes.

Read Full Case Study

Operational Efficiency Improvement Project for a Global Retail Chain

Scenario: A global retail chain operating in multiple markets recently identified significant inefficiencies in its central operation processes.

Read Full Case Study

Customer Engagement Strategy for Wellness App in Digital Health Space

Scenario: A leading digital health organization focusing on wellness applications faces a strategic challenge in enhancing process improvement to stay competitive.

Read Full Case Study

Operational Efficiency Redesign for Wellness Center in Competitive Market

Scenario: The wellness center in a densely populated urban area is facing challenges in streamlining its Operational Efficiency.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How can companies measure the ROI of process improvement projects, especially those with intangible benefits?
Measuring ROI for process improvement projects requires a comprehensive framework that includes both tangible and intangible benefits, leveraging tools like balanced scorecards, advanced analytics, and incorporating methods to quantify intangibles for a holistic view of project impact and Continuous Improvement. [Read full explanation]
How can companies measure the ROI of business process improvement projects effectively?
Effective ROI measurement for Business Process Improvement projects involves Strategic Planning, clear SMART objectives, comprehensive cost-benefit analysis, ongoing performance tracking with KPIs, and post-implementation reviews to align with organizational goals and maximize value. [Read full explanation]
How can organizations effectively measure the ROI of process improvement projects, particularly those involving advanced analytics and big data?
Organizations can measure the ROI of process improvement projects involving advanced analytics and big data by establishing clear baselines and metrics, leveraging analytics for impact measurement, and incorporating qualitative benefits into their ROI analysis, aligning with broader business objectives for long-term growth. [Read full explanation]
How is the rise of AI and machine learning transforming traditional business process improvement methodologies?
AI and ML are revolutionizing Business Process Improvement by automating tasks, optimizing workflows, driving innovation, and providing data-driven insights for better decision-making and operational efficiency. [Read full explanation]
What strategies can executives employ to ensure alignment between business process improvement initiatives and overall corporate strategy?
Executives can ensure alignment between Business Process Improvement (BPI) initiatives and corporate strategy through Strategic Planning, effective Communication, and rigorous Measurement and Continuous Improvement, enhancing competitiveness and driving sustainable growth. [Read full explanation]
How is the rise of AI and machine learning reshaping traditional process improvement methodologies?
AI and ML are revolutionizing traditional process improvement methodologies, enhancing data-driven decision-making, automating processes, and fostering Innovation and Strategic Transformation for unprecedented efficiency and agility. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

It is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:

Source: "How does Digital Transformation enable the automation of re-engineered business processes?," Flevy Management Insights, Joseph Robinson, 2025




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
 
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

– Roberto Pelliccia, Senior Executive in International Hospitality
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

– Nishi Singh, Strategist and MD at NSP Consultants
 
"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting
 
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

– Jim Schoen, Principal at FRC Group



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.