Is AI repeating the historic mistakes of BPR?

Back in my coding days I worked on a death-march. Six days a week and on the seventh carried a pager. The aim was to redesign the way British Railways operated. Now everyone in the UK knows how that story ended.
While politically driven it was also a case of Business Process Reengineering – BPR. It was aggressive, IT lead and became synonymous with expensive failures.
It started with some very clever (i.e. well paid) people saying “Look at the way this company operates, with new technology you could do it so much more efficiently.” The mantra was “Don’t Automate, Obliterate.” This was more than just restructuring, it was creating “Leaner and Meaner” companies.
It went beyond individual process. It meant rethinking the way the whole company operated. My railway programme was not just about selling the industry, it sought to reimagine how trains operated: companies would run trains on the same routes just a few minutes apart and compete on price.
Expensive failures
Many, probably most, BPR efforts were expensive failures. It might be easy to flowchart a process but doing so often missed vital elements. Employees tacit knowledge which made things work was overlooked. Programming a business process the way you programme a computer ignored knowledge, experience, needs and variability of people. BPR programmes used unproven, scaled and stretch technology to a degree not done before.
BPR programmes laid off vast numbers of workers before they were finished. Many of these where hired back later when the BPR effort failed, like at British Railways.
The overworked and under valued staff who weren’t laid off had to pick up the pieces. The new systems frequently didn’t work and complaining about them was not well received. (It was against this background that the British Post office and Fujitsu started the Horizon system which would see staff put in prison and commit suicide.)
Is AI repeating the mistakes of BPR?
Which makes me ask, are companies repeating the mistakes of BPR in their rush to AI?
Like BPR, AI is being driven by technologists. Rather than start with the business need it starts with technology. How is less clear, there is much hand waving. The technology is cutting edge and by definition high risk.
Rather than showing staff how AI can make their life better, staff are being forced to use AI whether it makes sense or not. Complaints are not welcomed and there are frequent examples of how AI creates problems – like at Amazon.
The attitude to workers and aggressive language is very reminiscent of BPR. Some companies claim to be laying people off because of AI and almost everyone seems to be worrying about the prospect of AI redundancies. That is not conducive to successful change.
Tacit knowledge is being ignored again
LLMs only work with explicit knowledge: that which has been written down. If it hasn’t been written into words then LLMs don’t know it. Nor does it hold any kind of philosophy or design of how things should be done. AI might write something good today but what provision is it making for changes tomorrow? Humans are still needed to guide intent.
Before anyone says: “LLM have read millions of books so they have fewer blind spots” let me point out that there is very little written down about how YOUR company actually works. Even if you have a service manual or a standard operating procedure you may well find that people use considerable ingenuity in making the standard process work or finding ways to get work done despite it.
Most AI is a solution in search of a problem.
Most people do not spend their days writing documents, neither do most people spend most of their time reading. That an LLM can write a document is another example of a technology dog walking on its hind-legs. Clever but what use?
Get away from these “party tricks” and you find AI systems – like IT systems before them – need to work with the people, processes and systems that are already there. In time AI might replace these as well but today you have the people you have, the processes you have and the legacy systems you have. Changing more increases risk.
Thus Anthropic, OpenAI and friends are not going to replace SAP, Sage, Microsoft, SalesForce, or the other corporate applications any time soon. The remaining people would need retraining, other systems would need to be integrated, formal contracts and terms and conditions might need changing. Before that, sales need to be made, which means to salesperson needs to displace salesperson. The risk of introducing a new ERP system is enough to make any CEO reach for the whiskey.
Learning from BPR failure
BPR never really went away, it was moderated and became BPM – business process management – and BPI – business process improvement . We in the IT profession learned to work in small steps, integrate feedback, let business and users drive, and to manage the change with employees rather than bludgeoning them.
AI will probably take the same route. Right now the vendors have an incentive to hype it but in time – and perhaps with some high profile failures – things will moderate. Companies will remember that AI is a technology, and technology needs to be applied to a need. In time processes and companies will change but it won’t happen overnight.
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