Achieving Financial Discipline in Scaling Intelligent Automation

Scaling intelligent automation successfully requires financial discipline, according to Greg Holmes, the Field CTO for EMEA at Apptio, an IBM company. Implementing automation without proper financial planning can lead to budget shortfalls when moving from pilot programs to full-scale deployments within an organization.

Holmes emphasizes the importance of integrating Financial Operations (FinOps) with automation to shift from reactive cost management to proactive value engineering. By tracking resource consumption from the outset, engineering teams can assess the value of automation projects in real-time, rather than waiting months or years for results.

One key aspect of scaling intelligent automation is understanding the unit economics involved. Holmes points out that many innovation projects fail due to financial opacity during the pilot phase, which masks future financial liabilities. Organizations need to monitor the marginal cost at scale, including metrics like cost per customer served or cost per transaction, to ensure the viability of automation projects.

To address the challenges of scaling automation, Holmes recommends integrating governance into development tools and workloads. By utilizing tools like HashiCorp Terraform and GitHub, organizations can enforce policies during deployment and ensure cost-effective resource allocation.

The tension between financial accountability and operational metrics often arises when scaling automation. Holmes suggests using Technology Business Management (TBM) frameworks, such as the one provided by Apptio, to bridge the gap between technology, finance, and business perspectives. The TBM taxonomy helps translate technical inputs into business outputs, providing a common language for decision-making.

Legacy debt and long-term budgeting are also critical considerations when scaling automation. Holmes warns against using automation as a band-aid solution for inefficient processes, as this can lead to increased technical debt. A Total Cost of Ownership (TCO) approach can help organizations determine the most effective automation strategy, whether as a patch or a bridge to modernization.

By balancing variable costs with long-term commitments, organizations can scale automation effectively without succumbing to financial volatility. Making strategic commitments to specific technologies and platforms over a multi-year horizon allows for better investment decisions and standardization of architecture.

In conclusion, successful scaling of intelligent automation requires a combination of financial rigor, operational efficiency, and strategic planning. By integrating financial discipline with automation initiatives and leveraging TBM frameworks, organizations can navigate the complexities of scaling automation projects and drive long-term value for their businesses.

IBM is a sponsor of the Intelligent Automation Conference Global, where experts like Greg Holmes will share their insights on scaling intelligent automation. For more information on AI and big data, check out the AI & Big Data Expo events happening in Amsterdam, California, and London, co-located with other leading technology events under the TechEx umbrella. AI News is powered by TechForge Media, providing a platform for exploring upcoming enterprise technology events and webinars.