Published on
09/11/2025
Published on
09/11/2025
Author
Camila Heinrich
Author
Camila Heinrich
Category
Business Intelligence
Category
Business Intelligence
Automation Without Optimization Slows Services Instead of Accelerating
Automation Without Optimization Slows Services Instead of Accelerating
Understanding the boundary between automating and optimizing is more than an operational choice: it is the blueprint that defines whether your organization accelerates as a precise gear or loses traction through a lack of strategic alignment.
Understanding the boundary between automating and optimizing is more than an operational choice: it is the blueprint that defines whether your organization accelerates as a precise gear or loses traction through a lack of strategic alignment.
Big Idea
Automation is not optimization. In the services sector, digitizing disorganized workflows amplifies failures instead of solving them. True competitive advantage emerges when automation follows a structural review of processes, ensuring sustainable gains in cost, speed, and customer experience.
Conclusão Estratégica
Service companies that automate without redesigning journeys and standardizing data create digital bottlenecks, raise costs, and frustrate customers. Those that treat optimization as the foundation and automation as a multiplier transform operating margins and NPS into tangible competitive advantages.
Impacto Imediato
The strategic difference is sharp: standalone automation delivers short-term reductions. Optimization followed by automation generates multiplier effects, converting efficiency into long-term competitive advantage.
Big Idea
Automation is not optimization. In the services sector, digitizing disorganized workflows amplifies failures instead of solving them. True competitive advantage emerges when automation follows a structural review of processes, ensuring sustainable gains in cost, speed, and customer experience.
Conclusão Estratégica
Service companies that automate without redesigning journeys and standardizing data create digital bottlenecks, raise costs, and frustrate customers. Those that treat optimization as the foundation and automation as a multiplier transform operating margins and NPS into tangible competitive advantages.
Impacto Imediato
The strategic difference is sharp: standalone automation delivers short-term reductions. Optimization followed by automation generates multiplier effects, converting efficiency into long-term competitive advantage.
The services sector has invested in automation as a promise of scale and cost reduction. It digitalized customer service, accounting, and compliance. Yet the rush to automate poorly structured workflows created new tensions. McKinsey (2024) reports that 55% of automation initiatives in financial services failed due to a lack of prior data standardization [1].
Over the past five years, the “digital transformation” narrative gained traction, but execution fell short. PwC (2023) notes that 60% of mid-sized service companies fail to meet strategic goals because they treat technology as an end rather than a workflow redesign [2].
The services sector has invested in automation as a promise of scale and cost reduction. It digitalized customer service, accounting, and compliance. Yet the rush to automate poorly structured workflows created new tensions. McKinsey (2024) reports that 55% of automation initiatives in financial services failed due to a lack of prior data standardization [1].
Over the past five years, the “digital transformation” narrative gained traction, but execution fell short. PwC (2023) notes that 60% of mid-sized service companies fail to meet strategic goals because they treat technology as an end rather than a workflow redesign [2].
The alternative route lies in optimization: reviewing customer journeys, back-office flows, and system integration before digitalization. EY (2023) shows that organizations applying Lean Six Sigma before automation are 2.3 times more likely to capture sustainable value [3].
The message is direct: automating inefficiencies only accelerates waste. Differentiation comes from aligning automation with optimization as a precise gear that sustains end-to-end performance.
The alternative route lies in optimization: reviewing customer journeys, back-office flows, and system integration before digitalization. EY (2023) shows that organizations applying Lean Six Sigma before automation are 2.3 times more likely to capture sustainable value [3].
The message is direct: automating inefficiencies only accelerates waste. Differentiation comes from aligning automation with optimization as a precise gear that sustains end-to-end performance.
Service companies can turn automation into a multiplier when applied over optimized processes. EY (2025) highlights average gains of 30% in NPS and 25% in cost reduction when optimization precedes digitalization [4].
Technologies are abundant: generative AI in chatbots, RPA in financial reporting, predictive algorithms in risk management. But real impact occurs only when these tools are applied over streamlined workflows. PwC (2023) documents that mid-sized banks that standardized compliance processes before automation cut internal audit time by 40% [5].
There is also a cultural gain: when leaders communicate clearly that “optimize before you automate,” employee engagement rises. MIT Sloan & BCG (2024) show that digital project adoption rates jump from 45% to 80% when teams understand the strategic rationale [6].
In a competitive environment where margins are narrow and customer experience defines survival, the intelligent path is to adjust the lens before accelerating.
Service companies can turn automation into a multiplier when applied over optimized processes. EY (2025) highlights average gains of 30% in NPS and 25% in cost reduction when optimization precedes digitalization [4].
Technologies are abundant: generative AI in chatbots, RPA in financial reporting, predictive algorithms in risk management. But real impact occurs only when these tools are applied over streamlined workflows. PwC (2023) documents that mid-sized banks that standardized compliance processes before automation cut internal audit time by 40% [5].
There is also a cultural gain: when leaders communicate clearly that “optimize before you automate,” employee engagement rises. MIT Sloan & BCG (2024) show that digital project adoption rates jump from 45% to 80% when teams understand the strategic rationale [6].
In a competitive environment where margins are narrow and customer experience defines survival, the intelligent path is to adjust the lens before accelerating.
The alternative route lies in optimization: reviewing customer journeys, back-office flows, and system integration before digitalization. EY (2023) shows that organizations applying Lean Six Sigma before automation are 2.3 times more likely to capture sustainable value [3].
The message is direct: automating inefficiencies only accelerates waste. Differentiation comes from aligning automation with optimization as a precise gear that sustains end-to-end performance.
The dilemma for service leaders is straightforward: quick wins through isolated automation or sustainable gains through prior optimization? Digital shortcuts often lead to rework, customer dissatisfaction, and poor ROI.
The intelligent route is to review processes, standardize data, and only then automate. EY (2023) recommends three phases: map the customer journey, eliminate waste, automate with scale in mind [3].
The cost of inaction is high: McKinsey (2025) estimates that companies automating without optimization increase IT maintenance costs by up to 30% within three years [10]. Those that optimize first achieve positive ROI in half the time.
The decision is clear: redesign first, accelerate after.
The dilemma for service leaders is straightforward: quick wins through isolated automation or sustainable gains through prior optimization? Digital shortcuts often lead to rework, customer dissatisfaction, and poor ROI.
The intelligent route is to review processes, standardize data, and only then automate. EY (2023) recommends three phases: map the customer journey, eliminate waste, automate with scale in mind [3].
The cost of inaction is high: McKinsey (2025) estimates that companies automating without optimization increase IT maintenance costs by up to 30% within three years [10]. Those that optimize first achieve positive ROI in half the time.
The decision is clear: redesign first, accelerate after.
Banco Inter (Brazil) in 2023 followed the right sequence: standardized customer data, integrated channels, and only then automated with generative AI. Results: 35% reduction in response time and 22% increase in NPS (PwC, 2023) [5].
Banco Inter (Brazil) in 2023 followed the right sequence: standardized customer data, integrated channels, and only then automated with generative AI. Results: 35% reduction in response time and 22% increase in NPS (PwC, 2023) [5].
Mid-sized service companies should begin with an internal program to review customer journeys and back-office workflows before approving automation investments.
The pilot can start with client onboarding or financial reporting. At the same time, leadership must communicate the strategic logic with clarity: optimize first, automate after.
Mid-sized service companies should begin with an internal program to review customer journeys and back-office workflows before approving automation investments.
The pilot can start with client onboarding or financial reporting. At the same time, leadership must communicate the strategic logic with clarity: optimize first, automate after.
References
[1] McKinsey & Company. The State of AI in Early 2024. Link (2024).
[2] PwC. Global Service Study 2023. Link (2023).
[3] EY. Intelligent Automation Consulting Services. Link (2023).
[4] EY. Research Insight Report: GBS as the Engine of Digital Transformation. Link (2025).
[5] PwC. Intelligent Automation: The Future of Digitalisation in Organisations. Link (2023).
[6] MIT Sloan & BCG. Me, Myself, and AI Podcast Series. Link (2024).
[7] EY. AI-enabled Automation Services. Link (2024).
[8] EY. How Focusing on KPIs Makes Micro Transformation Work. Link (2024).
[9] EY. Case Study: Intelligent Automation Shifts a State Agency into Higher Gear. Link (2024).
[10] McKinsey & Company. The State of AI: How Organizations Are Rewiring to Capture Value. Link (2025).
References
[1] McKinsey & Company. The State of AI in Early 2024. Link (2024).
[2] PwC. Global Service Study 2023. Link (2023).
[3] EY. Intelligent Automation Consulting Services. Link (2023).
[4] EY. Research Insight Report: GBS as the Engine of Digital Transformation. Link (2025).
[5] PwC. Intelligent Automation: The Future of Digitalisation in Organisations. Link (2023).
[6] MIT Sloan & BCG. Me, Myself, and AI Podcast Series. Link (2024).
[7] EY. AI-enabled Automation Services. Link (2024).
[8] EY. How Focusing on KPIs Makes Micro Transformation Work. Link (2024).
[9] EY. Case Study: Intelligent Automation Shifts a State Agency into Higher Gear. Link (2024).
[10] McKinsey & Company. The State of AI: How Organizations Are Rewiring to Capture Value. Link (2025).
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