# Confronting Inefficient Processes is Key to AI Success

> A GBS leader from Celonis reveals that 76% of executives recognize broken processes as a barrier to AI success, calling for a reevaluation of operational foundations to harness AI's full potential. Embracing change is crucial for effective digital transformation.

**Source**: celonis.com | **Published**: 2026-09-10 | **Type**: case_study

## Key Facts

- 76% of leaders cite broken processes hindering AI, revealing a critical barrier to digital transformation.
- Celonis unlocked $75M at Merck, showcasing significant ROI from optimizing operational processes.
- Companies like GE HealthCare face vulnerabilities if they resist admitting process flaws amid AI adoption.
- Digital transformation efforts may falter without solid foundations, indicating a need for strategic realignment.
- The shift towards AI demands transparency in operations, suggesting a market trend towards process optimization.

## Summary

\## Summary
Merck faced challenges in optimizing their operational processes, which hindered their AI initiatives. By implementing Celonis, they transformed their workflow and established a solid process foundation. This led to unlocking $75 million in value, demonstrating the effectiveness of their digital transformation efforts.

\## Background
Merck is a global healthcare company known for its pharmaceuticals and vaccines. Before deploying Celonis, Merck struggled with inefficient operational processes that were often maintained through workarounds. This situation limited their ability to leverage AI effectively.

\## Challenge
The primary issue was the presence of broken and unoptimized processes that obstructed the success of their AI initiatives. Leaders recognized that without a robust process foundation, their efforts to implement AI would likely fail.

\## Solution
Celonis was implemented at Merck to provide operational insights and process optimization. This tool helped identify inefficiencies and streamline workflows, transitioning from a "science project" to a critical component of their AI strategy.

\## Results
The deployment of Celonis at Merck unlocked $75 million in value. This significant financial impact illustrates the success of their digital transformation and the importance of addressing process inefficiencies.

\## Key Insights
One key takeaway is the necessity of acknowledging and addressing broken processes before attempting to implement AI solutions. A solid operational foundation is crucial for maximizing the value of AI investments.

\## Customer Testimonial
No direct quote is available from the source material.

## Entities

- **Companies**: Merck, GE HealthCare, Johnson Controls, Celonis
- **Technologies**: AI

## Key Concepts

digital transformation, process optimization, AI initiatives, operational context, value unlocking, defense mechanism, workflow, agentify operations

## Definitions

- **digital transformation**: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers.
- **AI initiatives**: Projects or strategies aimed at implementing artificial intelligence technologies to improve business processes and outcomes.
- **operational context**: The understanding of the processes and workflows within an organization that informs decision-making and strategy.
- **value unlocking**: The process of realizing and maximizing the potential benefits and efficiencies from business operations.
- **workflow**: The sequence of processes through which a piece of work passes from initiation to completion.

## Use Cases

- scaling Celonis at Merck
- optimizing workflows with AI
- transforming broken processes
- enhancing operational efficiency
- driving digital transformation initiatives

## Frequently Asked Questions

**What is the significance of acknowledging broken processes?**

Acknowledging broken processes is crucial as it is the first step towards improvement. Without recognizing the issues, organizations cannot effectively implement solutions or leverage technologies like AI.

**How can AI initiatives be successful?**

For AI initiatives to succeed, they must be built on a solid process foundation. This means addressing any existing inefficiencies and ensuring that workflows are optimized before integrating AI technologies.

**What role does Celonis play in digital transformation?**

Celonis provides operational context that helps organizations understand their processes better. This insight is essential for making informed decisions during digital transformation efforts.

**What are some common challenges in digital transformation?**

Common challenges include resistance to change, outdated processes, and a lack of understanding of how new technologies can be integrated. Overcoming these hurdles is essential for successful transformation.

**Why is it important to optimize workflows?**

Optimizing workflows is important because it enhances efficiency and effectiveness, allowing organizations to better utilize resources and improve overall performance. This is especially critical when implementing AI solutions.

## Links

- [Read on Welcome.AI](https://welcome.ai/content/confronting-inefficient-processes-is-key-to-ai-success)
- [Original source](https://www.celonis.com/blog/your-process-baby-is-ugly)
- [Celonis](https://welcome.ai/company/celonis): Featured company

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Source: Welcome.AI | https://welcome.ai/content/confronting-inefficient-processes-is-key-to-ai-success