Smart automation technologies such as robotic process
automation, conversational interfaces, and cognitive automation can
enable typical IT organizations to improve productivity by up to
23% while helping them reduce costs, improve effectiveness, and
enhance customer experience, according to new world-class IT
research from The Hackett Group, Inc. (NASDAQ: HCKT).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20191106005100/en/
IT Smart Automation Productivity
Advantage: Smart automation technologies such as robotic process
automation, conversational interfaces, and cognitive automation can
enable typical IT organizations to improve productivity by up to
23%. (Photo: The Hackett Group, 2019)
Smart automation also serves as a valuable milestone for IT
organizations as they continue their digital transformations,
enabling them to achieve staffing levels below those seen by
world-class IT organizations as they continue to drive towards the
broader benefits that come with total technology optimization.
For world-class IT organizations, which already operate with 13%
fewer staff and at 21% lower cost, the benefits of smart automation
are also significant, the research found. World-class IT
organizations can reduce staff hour requirements by an additional
32%, and cut costs by an additional 6%, enabling a greater focus on
value-added activities.
The research also detailed The Hackett Group’s new “Digital
World Class” advantage analysis, an estimate of the additional
benefits that world-class IT organizations can achieve through the
combination of operating model changes, full technology landscape
optimization, and the successful adoption of digital technologies.
By achieving world-class status in IT and also fully optimizing
their technology infrastructure, IT organizations can operate with
dramatically fewer staff hours, and at nearly a third lower cost
than typical IT organizations. This ‘breakthrough’ can free up
resources enabling world-class IT organizations to pursue
additional digital transformation initiatives, or other
optimization efforts.
The research includes a comprehensive look at the changes
required to IT’s service delivery model to fully realize the
benefits of digital transformation. The Hackett Group’s IT service
delivery model for the digital era incorporates six interconnected
capabilities: technology, service design, analytics and information
management, organization and governance, service partnering, and
human capital.
A public version of the research, “World-Class IT: Redefining
Performance in a Digital Era,” which contains nearly 60 metrics
detailing the performance of typical and world-class IT
organizations, is available on a complimentary basis, with
registration, at this link:
http://go.poweredbyhackett.com/wcit1905sm.
“With smart automation, IT organizations have a perfect
opportunity to not only increase their productivity and reduce
costs, but to demonstrate the potential of these powerful AI tools
to their business stakeholders,” said The Hackett Group Senior
Director Rick Pastore. “Every aspect of the IT organization is in
play, in part because economic, competitive, and customer
expectation pressures are higher than ever. For the first time,
this year’s world-class performance research quantifies the impact
of digital transformation, and details how companies can use smart
automation to generate value quickly and demonstrate their
commitment to the larger and more complex task of full technology
optimization.”
Effectiveness is another key element of world-class IT
performance, and in the digital age, IT’s efficiency metrics should
align with and reflect the metrics stakeholders use to assess their
own performance, the research explained. Using this approach, the
extent of enterprise-wide process automation is a fundamental
indicator of how well and how effectively IT applies its services
to improve finance, HR, procurement and other functions’ processes.
World-class IT organizations automate 28% more process transactions
than typical IT organizations, and show dramatically higher
automation rates for a wide array of transactional activities
across the enterprise, including receipt of orders, customer
invoicing, and purchase orders, the research found. One key to
improving effectiveness is a focus on standardization of end-to-end
processes.
“The aggressive approach that world-class IT organizations have
taken to enabling self service is particularly important,” said
Pastore. “It empowers users, improves agility, and frees up staff
in other functional areas to provide more value-added
services.”
For 2019, The Hackett Group for the first time has broken out
customer experience as a separate area of analysis, measurement,
and transformation focus, rather than embedding it in effectiveness
measures as it has done in the past. Many key IT performance
metrics are migrating toward assessment of customer experience and
value, the research found. One such metric is stakeholder
perception of IT’s primary role: Top IT performers are over 3x more
likely to be perceived as partners, capable of solving business
problems and capitalizing on opportunities, the research found.
Leading IT organizations are also tracking different metrics
than they have historically in order to reflect customer
experience. For example, instead of only tracking degree of
transactional process automation, IT can be assessing the level of
automation of customer and employee touch points, as well as
satisfaction with the tools they provide. A similar shift can be
seen across an array of metrics categories, including project
delivery, data asset utilization, and innovation rates.
“World-class IT groups are also clearly more focused on digital
innovation, investing 21% of their technology spend on emerging
technologies, twice as much as the peer group,” said The Hackett
Group Principal Michael Spires. “In addition they have driven down
complexity, which improves agility and frees up funds that can be
used to discover, test, and introduce emerging technologies that
enable innovation.”
“But more importantly, the best IT organizations are clearly
shifting their mindset and culture from a legacy emphasis on
technology to a sharp focus on business outcomes,” said Spires.
“They understand the value of digital transformation and see smart
automation as an exceptional accelerator on the road to optimal
performance. They are learning how to articulate transformation in
the context of business value. This is critical, because from a
business perspective it’s not about RPA or cognitive, or measuring
uptime or error rates. It’s about streamlining and simplifying
processes to drive better outcomes. It’s about measuring what
matters, and having an impact on time-to-market, time-to-service,
cost-to-serve, revenue, and truly, their company’s bottom line.
World-class IT organizations are those that achieve top quartile
performance in both efficiency and effectiveness across an array of
weighted metrics in The Hackett Group’s comprehensive finance
benchmark. Digital world class is The Hackett Group’s estimate of
the additional benefit that world-class IT organizations can derive
from full technology enablement of execution of IT work and
optimization of the IT technology landscape. The Hackett Group’s
world-class IT research is based on an analysis of results from
recent benchmarks, performance studies, and advisory and
transformation engagements at hundreds of global companies.
About The Hackett Group
The Hackett Group (NASDAQ: HCKT) is an intellectual
property-based strategic consultancy and leading benchmarking and
best practices firm to global companies, with offerings that
include smart automation and enterprise cloud application
implementation. Services include business transformation,
enterprise analytics, global business services, and working capital
management. The Hackett Group also provides dedicated expertise in
business strategy, operations, finance, human capital management,
strategic sourcing, procurement and information technology,
including its award-winning Oracle and SAP practices.
The Hackett Group has completed more than 16,500 benchmarking
studies with major corporations and government agencies, including
93% of the Dow Jones Industrials, 89% of the Fortune 100, 83% of
the DAX 30 and 57% of the FTSE 100. These studies drive its Best
Practice Intelligence Center™ which includes the firm's
benchmarking metrics, best practices repository and best practice
configuration guides and process flows, which enable The Hackett
Group’s clients and partners to achieve world-class
performance.
More information on The Hackett Group is available at:
www.thehackettgroup.com, info@thehackettgroup.com, or by calling
(770) 225-3600.
Cautionary Statement Regarding “Forward Looking”
Statements
This release contains “forward looking” statements within the
meaning of Section 27A of the Securities Act of 1933 as amended and
Section 21E of the Securities Exchange Act of 1934, as amended.
Statements including without limitation, words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, seeks”, “estimates”
or other similar phrases or variations of such words or similar
expressions indicating, present or future anticipated or expected
occurrences or outcomes are intended to identify such forward
looking statements. Forward looking statements are not statements
of historical fact and involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, performance or achievements to be materially different
from the results, performance or achievements expressed or implied
by the forward looking statements. Factors that may impact such
forward looking statements include without limitation, the ability
of Hackett to effectively market its process automation, digital
transformation and other consulting services, competition from
other consulting and technology companies who may have or develop
in the future, similar offerings, the commercial viability of
Hackett and its services as well as other risk detailed in
Hackett’s reports filed with the United States Securities and
Exchange Commission. Hackett does not undertake any duty to update
this release or any forward looking statements contained
herein.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191106005100/en/
Gary Baker Global Communications Director - (917) 796-2391 or
gbaker@thehackettgroup.com
Hackett (NASDAQ:HCKT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hackett (NASDAQ:HCKT)
Historical Stock Chart
From Jul 2023 to Jul 2024