Why conventional automation is inadequate today – and APA makes the difference
Organizations are facing far-reaching changes: Qualified employees are becoming scarce and both customers and business partners expect fast, error-free processes and tailored support. To remain economically viable, organizations need to engineer their processes to be much more efficient. Conventional automation is progressively hitting its boundaries, particularly regarding complex, knowledge-driven tasks.
Leveraging modern AI technologies presents fresh possibilities to harness unstructured data for automation and to effectively support employees. Agentic process automation (APA) integrates business process management (BPM), robotic process automation (RPA), and AI in a holistic approach. As a result, APA holds significant promise to evolve into a fundamental element of enterprise software within the next 3 to 5 years, fundamentally altering business models and enhancing the efficiency, resilience, and strategic autonomy of organizations.
In this interview, Ahmet Varlik discusses how organizations can effectively navigate this transformation by employing a well-defined strategy and incorporating a human-in-the-loop methodology.
About the discussion partner
Ahmet Varlik has been with the msg group since 2016, where he leads the Automation department within the msg Artificial Intelligence area. His extensive experience in optimizing complex processes — especially within the finance and insurance sectors — serves as the foundation for his role at the convergence of BPM, RPA, and AI.
What do we mean when we talk about agentic process automation?
Ahmet Varlik: Agentic process automation (APA) is more than just another automation technology. It is a holistic approach across system boundaries, specialist areas and departments. The emphasis lies on automating complex , knowledge-driven processes by intelligently integrating business process management (BPM), robotic process automation (RPA) and artificial intelligence (AI).
With APA, smart, self-learning AI agents undertake tasks, constantly analyze processes, identify patterns in unstructured data, and uncover optimization opportunities in real time. These AI agents not only follow established rules but also assess situations independently, make decisions, and adapt flexibly to new demands – even when faced with incomplete data or unique scenarios.
Nevertheless, the effective implementation of agentic process automation necessitates a robust foundation. Process discovery and analysis render workflows visible, pinpoint bottlenecks, and prepare unstructured data. This lays the essential groundwork for AI agents to maximize their impact.
Numerous organizations have embraced automation already.. What makes agentic process automation still significant?
Ahmet Varlik: The issue at hand is: The benefits of conventional automation frequently do not meet expectations. Numerous organizations depend on separate individual solutions rather than integrated systems. This is effective for clearly structured, repetitive tasks, but it is too inflexible and rule-driven to adapt to the fast-paced nature of modern business models.
Moreover, approximately 80 percent of all corporate data is unstructured – including emails, documents, customer inquiries, and contract documents. Traditional automation can only handle this unstructured data to a very limited degree. This is precisely where APA steps in: AI is employed to systematically analyze unstructured information, convert it into actionable decisions, and incorporate it into end-to-end processes. This approach serves as a significant catalyst for enhancing efficiency and alleviating the workload on employees.
Why should organizations choose to automate their processes internally instead of depending on business process outsourcing (BPO)?
Ahmet Varlik: At first glance, BPO appears appealing as it allows for the outsourcing of processes and minimizes internal workload. However, in the long run, it tends to be more costly than implementing smart automation within the organization. Moreover, valuable strategic knowledge is given up. By automating in-house, process expertise stays within the organization, is developed over time, and ultimately transforms into a competitive edge. Outsourcing specific processes does not address the need for a holistic approach to automation, which must be integrated throughout the organization to be truly effective.
What does it mean exactly to consider automation from a holistic perspective?
Ahmet Varlik: Holistic automation means viewing agentic process automation not merely as a standalone tool project, but as a strategic transformation that spans all levels. Automation is integrated into the corporate strategy, supported by a clear vision and commitment from top management. From a technological standpoint, we prioritize end-to-end orchestration rather than focusing on isolated solutions. This approach, however, necessitates dismantling existing siloed thinking and fostering closer collaboration among specialist departments, IT, and data management.
When automation fails, it is often due to fragmented data landscapes being the primary culprit. Without clean and integrated data, AI struggles to learn effectively or make trustworthy decisions. APA specifically tackles this issue by promoting intelligent data utilization across system boundaries.
„Agentic process automation means viewing automation not merely as a standalone tool project, but as a strategic transformation that spans all levels. Automation is integrated into the corporate strategy, supported by a clear vision and commitment from top management.“
Ahmet Varlik - Head of department Automation
Will automation become a responsibility for top management in the future?
Ahmet Varlik: Yes, but not in the way that top management oversees every single detail. It is primarily about establishing the strategic direction and showing commitment. Top management needs to articulate the target vision, allocate resources, and prioritize automation genuinely. Without the backing of executives, APA cannot effectively assert itself.
The operational implementation and specific decisions should reside within the specialist departments, with support from a center of excellence (CoE). The CoE consolidates automation expertise, establishes standards, prioritizes initiatives, and guarantees that experiences and best practices are regularly disseminated. This is the sole method to scale automation while avoiding the formation of new silos.
Numerous executive boards are pondering: Should we put our money into APA or hold off to observe the competition's moves? What is your advice?
Ahmet Varlik: There are notable distinctions in the market: While certain companies listed on the DAX have established dedicated departments for intelligent automation, many upper mid-sized companies still struggle with the integration of current automation technologies and AI.
We anticipate that the APA approach will become the norm within the next 3 to 5 years. Thus, my recommendation is: Those who choose to invest in intelligent, adaptive automation at this time will reap the benefits of lasting efficiency gains, enhanced innovative capabilities, and greater resilience to change. Conversely, those who do not will miss out on these benefits and a strategic advantage in the market.
Therefore, the essential question is not: "Can we afford agentic process automation?" but instead: "What will it cost us if we choose not to invest?".
What does APA signify for employees in concrete terms?
Ahmet Varlik: With APA, we essentially adhere to the "human in the loop" principle—AI assists but does not take over. Employees participate at the key moments where human expertise and judgment are essential.
Consequently, the team is freed from routine tasks and can focus on activities that add value and foster creativity. Employees view automation as a form of support rather than a threat. This enhances both motivation and productivity.
How does APA alter the relationship with customers? What observations do they make about it?
Ahmet Varlik: Organizations are creating an "intelligent nervous system", enhancing their resilience, adaptability, and innovation. The emphasis is moving from mere efficiency improvements to proactive entities that view complexity as a chance for growth. This transformation leads organizations to become more customer-focused and agile in the marketplace. In this context, being customer-focused translates to quicker response times, reduced errors, and tailored services.
Let’s be honest: How long does it take until APA returns tangible results?
Ahmet Varlik: The introduction of APA represents a transformative journey that extends well beyond simply adopting new technologies. It necessitates technical know-how, organizational changes, and a corporate culture that embraces openness. Those who aim for too much too soon may find themselves feeling overwhelmed.
This is why we suggest: Start small but think big. Start with a well-defined pilot project, showcase early successes, and learn from those experiences. This approach will foster trust and acceptance. From the beginning, it is crucial to prioritize scalability and integration within the overall architecture. Based on our experience, the first tangible successes can typically be realized within 3 to 6 months.
How does APA ensure data security and data protection?
Ahmet Varlik: Data security and data protection need to be prioritized from the beginning, which entails: Data should be anonymized or pseudonymized whenever feasible. Organizations must establish explicit guidelines for managing sensitive information, which includes access controls and the encryption of data transfers. It is crucial to maintain close collaboration with data protection and IT security teams. Moreover, the human-in-the-loop principle guarantees that important decisions undergo review. This approach helps to proactively reduce risks and ensure compliance.
Summary: From efficiency projects to a strategic force for transformation
With agentic process automation, automation transitions from merely an efficiency tool to a strategic force for transformation. APA empowers organizations to adapt swiftly to emerging challenges and proactively capitalize on opportunities. Simultaneously, APA enhances the resilience of organizations.
Adaptive processes and systems enable early detection of disruptions, market fluctuations, or supply chain issues, allowing for agile responses. This not only ensures stability, but also actively bolsters long-term value generation. To achieve this, a well-defined strategy is essential, which must be translated into effective solutions through collaborative efforts across various areas.
msg advisors support you in elevating automation to new heights – offering technology-agnostic consulting paired with a profound understanding of both IT and business. The consultants are well-versed in the industries and the challenges faced by an organization's central functions – from the executive board to production.
As part of the msg group, msg advisors has access to IT experts who can promptly implement solutions from a technical standpoint. This guarantees that the transformation is not only meticulously planned but also executed to perfection.
Agentic process automation – But where's your organization today?
To effectively implement APA, it's essential to have a well-defined strategy and a certain degree of maturity regarding data, culture, and competencies.
Find out how far your company really is and identify untapped potential.
Our white paper answers the following questions:
- Which prerequisites must be met for the introduction of APA?
- How can organizations evaluate their current situation?
- And how can APA be successfully implemented in practice?
(Only available in german)
